GOALS ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 SHOULD YOU BECOME AN ENTREPRENEUR? Define entrepreneurshipDefine entrepreneurship Identify advantages and disadvantagesIdentify advantages and disadvantages Identify characteristics of entrepreneursIdentify characteristics of entrepreneurs Identify types of businessesIdentify types of businesses Identify opportunitiesIdentify opportunities Identify goalsIdentify goals

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 2 WHAT IS AN ENTREPRENEUR? Definitions People who own, operate, and take the risk of a business venture are called entrepreneurs. Entrepreneurship is the process of running a business of one’s own.

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 3 WHAT IS AN ENTREPRENEUR? Employees vs. entrepreneurs 1 works for someone else 1 takes risks

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 4 ADVANTAGES OF ENTREPRENEURSHIP Entrepreneurs are their own bosses. Entrepreneurs can choose a business that interests them. Entrepreneurs can be creative. Entrepreneurs can make lots of money.

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 5 DISADVANTAGES OF ENTREPRENEURSHIP Entrepreneurship is risky. Entrepreneurs face uncertain and irregular incomes. Entrepreneurs work long hours. Entrepreneurs must make all decisions by themselves.

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 6 CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS Independent and able to act quickly Self-confident Have determination and perseverance Goal-oriented Have a need to achieve and to set high standards for themselves

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 7 ASSESS YOUR SUITABILITY FOR ENTREPRENEURSHIP Self-Assessment Hobbies and interests Past experiences Strengths and weaknesses Assess your aptitude Ability to learn a particular kind of job Assess the advantages & disadvantages of entrepreneurship

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 8 JOB ATTRIBUTES CHECKLIST  I enjoy working with numbers.  I enjoy working outdoors.  I enjoy working with my hands.  I enjoy selling.  I like working with people.  I prefer to work alone.  I like supervising other people.  I like knowing exactly what it is I am supposed to do.

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 9 TYPES OF ENTREPRENEURIAL BUSINESSES Manufacturing Wholesaling Retailing Service Agricultural Mining and extracting

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 10 MANUFACTURING BUSINESSES Make/create products: Apparel and other textile products Chemicals and related products Electronics and other electrical equipment Fabricated metal products Food products Industrial machinery and equipment Printing and publishing Rubber and miscellaneous plastic products Stone, clay, and glass products

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 11 WHOLESALING BUSINESSES The Middle Man – distribute products to other companies: Apparel Electrical goods Groceries and related products Hardware, plumbing, heating equipment Lumber, construction materials Machinery, equipment, supplies Motor vehicles, automotive equipment Paper, paper products Petroleum, petroleum products

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 12 RETAILING BUSINESSES Sell to the final end user: Auto and home supply stores Clothing stores Florists Furniture stores Gift, novelty, and souvenir stores Grocery stores Jewelry stores Retail bakeries Sporting goods and bicycle stores

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 13 SERVICE BUSINESSES Provide INTANGIBLE goods: Appliance repair Automotive repair Babysitting Bookkeeping Consulting Dance instruction Electrical services Exterminators

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 14 AGRICULTURAL BUSINESSES Generate produce and farm products MINING/EXTRACTING BUSINESSES Take resources out of the ground so they can be consumed

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 15 SMALL BUSINESSES DOMINATE THE U.S. ECONOMY

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 16 COMPARE DIFFERENT OPPORTUNITIES Is there a market? Will people buy? How much money would it take? Will I be able to borrow that much? How many hours a week are required? Am I willing to commit that much time? What are the risks? What is the rate of business failure? Do I have the right background? Do others who own this kind of business have more experience? How much money could I make?

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 17 WHERE TO INVESTIGATE OPPORTUNITIES Library Small Business Administration Trade shows – events where companies can display their products

ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 1 Slide 18 SETTING GOALS Financial goals Revenues Startup costs Profits Reasonable & attainable 1-5 years Nonfinancial goals Personal satisfaction Serve the community