All About Entrepreneurship CTAE-FS-11: Entrepreneurship - Learners demonstrate understanding of concepts, processes, and behaviors associated with entrepreneurial performance

Entrepreneurship

Vocabulary EntrepreneursEntrepreneurship

Employees vs. Entrepreneurs Employees:Entrepreneurs: Both: Example: Same Jones manages a record store owned by Felipe Santiago. Sam decides to keep the store open until midnight on weekdays. – If the additional hours bring in more customers and profit, Sam may get a raise but the extra earnings will flow to Felipe, the owner.

Why do people become entrepreneurs? Integrity & Ethical Behavior – Such as, leaving the fast paced corporate world to set their own schedules – Such as, pursuing a personal dream – Such as, working from home to raise a family yet still earn an income Operate with integrity & exhibit ethical behavior in all areas of business to ensure the highest standards of conduct are observed in the relationships with everyone affect by the business activities.

Types of Entrepreneurial Businesses 1. Manufacturing Businesses 5. Other Business Areas – Food products 2. Wholesale Businesses – Apparel 3. Retail Businesses – Florists 4.Service Businesses – Babysitting _________ businesses generate fresh produce and other farm products _________________businesses take resources like coal out of the ground so that they can be consumed _________________: Being “green” or organic is a growing movement toward environmentally friendly products. – Advantage: often favored by customers because consumers benefit the earth & conserve resources by using their products/ services

Recognizing Opportunity. – Small firms/ businesses with fewer than 500 employees make up the overwhelming majority of the existing 29.6 million jobs over the past 15 years compared with 1.8 million created by large businesses. There are many businesses today that started small & have grown into large companies that are making a major impact in our economic system Entrepreneurs Who Changed America:

Entrepreneurial Opportunities in Economic Recovery During economic downturns, small business owners have the flexibility to be more creative & take more risks than large companies.. The American Recovery & Reinvestment Act of 2009 was passed to stimulate the economy. Click to read provisions of the ARRA for individuals and businesses. Click to read provisions of the ARRA for individuals and businesses

Business Success or Failure Although there are many opportunities for entrepreneurial success, there is also a risk of failure. – 67% of new businesses survive for 2 years – 44% of new businesses survive for 4 years Major factors in a firm’s success include but are not limited to: – Having adequate capital & being large enough to have employees – The owner’s education, experience, & knowledge of business – The reason for starting the firm Must be sufficiently motivating – The owner’s ability to work with others – The owner’s ability to choose the right business & make sound decisions – The owner’s entrepreneurial characteristics

Characteristics of Successful Entrepreneurs Successful Entrepreneur : to make their own decisions & do something they enjoy : in order to make all the decisions and bounce back from bad ones : to persist through hard times : knowing what they want & staying focused to achieve it : motivated by setting & achieving goals : to find new ways to market & new solutions to problems : to make quick decisions to stay ahead of competitors : to learn new technology that can help with their business

Characteristics of Good Team Members Commitment The right set of skills needed to get the job done & help accomplish the team’s goals Communication Works well with others, knows they won’t always get their way, & is willing to accept the decision of the group Creativity

Dis/Advantages of Entrepreneurship AdvantagesDisadvantages Entrepreneurs are their own bosses Entrepreneurs can choose a business that interests them Entrepreneurship is risky Entrepreneurs face uncertain and irregular incomes

Problem Solving Model Step 6: Evaluate the Action Ex: After 6 mons, Dan evaluated if his business is achieving his financial and non financial goals. Step 5: Take Action Ex: Dan begins to putting together a business plan and spreading the word about his new venture. Step 4: Evaluate Alternatives and Select the Best Option Ex: Dan wants to be his own boss so he ranks working for a website design company last, he would rather pursue website design so he ranks that second, and decides to open his own website design company. Step 3: Identify Various Solutions Ex: Dan comes up with several possible solutions like work as a website designer for another company, pursue his interests in the food industry, & start his own website design company. Step 2: Gather Information Ex: It would he helpful for Dan to do a self assessment to determine his strengths & weaknesses, skills, experience, speak to an industry professional, and refer to a trade magazine. Step 1: Define the Problem Ex: Should Dan Parker start a website design company?

Problem Solving Skills Communicate – In order to solve problems, you may have to ask questions, request information, and express your ideas and opinions. Brainstorming – A creative problem-solving technique that involves generating a large number of fresh ideas; often done in a group setting. Learn from Mistakes – View your mistakes as a learning experience