Entrepreneurship Ch. 1.1

Do you know anyone who owns a business?

Entrepreneurs People who own, operate, and take the risk of a business venture. They try to meet the needs of the marketplace by supplying a service or product & make a profit by doing so.

Entrepreneurship The process of running a business of one’s own. When their business flourishes, the profits go to them. When their business fails, they may go out of business and lose money.

Employees vs. Entrepreneurs Entrepreneurs assume RISK, employees don’t Both may make decisions, but only the entrepreneur is directly affected by the consequences of those decisions Employees – people who work for someone else

Group Activity Advantages of Being an Employee Disadvantages of Being an Employee Advantages of Being an Entrepreneur Disadvantages of Being an Entrepreneur

Types of Businesses Manufacturing – produce items Wholesaling – sell to other businesses Retailing – sell to the consumer Service – sell services rather than products

Group Work List 3 specific businesses for each category –Manufacturing –Retail –Service –Wholesale (we skip this one)

Other Business Areas Agriculture – farming Mining & Extracting – coal mines, oil, etc.

Entrepreneurs in Colonial Times Rice & Tobacco Farmers Bankers Merchants Silversmiths Candlemakers

After American Revolution During Industrialization, entrepreneurs invented machines that increased productivity and helped the economy grow.

Entrepreneurs Change the World They strengthen the economy They fill unmet needs They change how things are done They increase productivity

19 th Century Entrepreneurs Cyrus McCormick – International Harvester & International Trucks (year 1831) Lydia Moss Bradley – investments & real estate; founded Bradley University in 1896 John D. Rockefeller – oil (1870s)

20 th Century Entrepreneurs Henry Ford – cars anyone can afford; assembly line Olive Ann Beech – Beech aircraft co. Clarence Birdseye – packaged frozen foods Rose Knox – Knox Gelatine; employee sick leave and 5 day work week

Small Businesses Today 5.8 million + in the U.S. Employ more workers than all of the U.S. large corporations combined Can be more creative and take more risks Lead technological change & can be innovative

Motivational Video