Entrepreneurship Chapter 1 Mrs. Leonard

SHOULD YOU BECOME AN ENTREPRENEUR? Chapter 1 SHOULD YOU BECOME AN ENTREPRENEUR? 1.1 Entrepreneurs: Present and Past 1.2 Is Entrepreneurship Right for You? 1.3 Identify Business Opportunities and Set Goals

Lesson 1.1 ENTREPRENEURS: PRESENT AND PAST Chapter 1 Lesson 1.1 ENTREPRENEURS: PRESENT AND PAST

What is an entrepreneur? Chapter 1 People who own, operate, and take the risk of a business venture are called _____________________. _______________________________ is the process of running a business of one’s own. Entrepreneurs try to identify the needs of the marketplace and meet those needs by supplying a ________________ or _______________ When they succeed the companies ____________ and profits go to them When they fail their companies decline and they may have to ___________________________________________

Employees and Entrepreneurs Chapter 1 Entrepreneurs Assume _______________ Directly affected by consequences of decisions they make ____________________ – people who work for someone else Not directly affected by consequences of the decisions they make

Why do people become entrepreneurs? Chapter 1 Why do people become entrepreneurs? Leave corporate environment Work at _________________ Pursue a _______________________ What are other reasons people want to become an entrepreneur?

Compare and Contrast Chapter 1 Use the table below to compare and contrast entrepreneurs vs. employees Entrepreneur Employees

Types of Entrepreneurial Businesses Chapter 1 Types of Entrepreneurial Businesses _______________________ businesses – produce the products they sell Using resources and supplies they create everything from automobiles to paper Wholesaling businesses – sell products to people other than the __________ customer EX. Wholesaler supplies greeting card store (ex. Hallmark) with items such as cards and wrapping paper

Types of Entrepreneurial Businesses Chapter 1 Types of Entrepreneurial Businesses __________________ businesses – sell products directly to the people who use or consume them Ex. Clothing Store Service businesses – sell all _________________ rather than products Ex. Hotels, Hairdressers

EXAMPLES OF MANUFACTURING BUSINESSES Chapter 1 EXAMPLES OF MANUFACTURING BUSINESSES ___________________ and other textile products Chemicals and related products _________________and other electrical equipment Fabricated metal products __________________ products Industrial machinery and equipment Printing and publishing Rubber and miscellaneous plastic products Stone, clay, and glass product What are examples in our community of Manufacturing Businesses?

EXAMPLES OF WHOLESALING BUSINESSES Chapter 1 EXAMPLES OF WHOLESALING BUSINESSES Apparel Electrical goods _______________________ and related products Hardware, plumbing, heating equipment Lumber, construction materials Machinery, equipment, supplies Motor vehicles, automotive equipment _________________________, paper products Petroleum, petroleum products What are examples in our community of Wholesaling Businesses?

EXAMPLES OF RETAILING BUSINESSES Chapter 1 EXAMPLES OF RETAILING BUSINESSES Auto and home supply stores Building materials and supply stores Clothing stores __________________ Furniture stores Gift, novelty, and souvenir stores ___________ __________ Hardware stores Jewelry stores Retail bakeries Shoe stores Sporting goods and bicycle stores What are examples in our community of Retailing businesses?

EXAMPLES OF SERVICE BUSINESSES Chapter 1 EXAMPLES OF SERVICE BUSINESSES Appliance repair _________________ repair Babysitting Bookkeeping Consulting Dance instruction Electrical services Exterminators What are examples in our community of Service businesses? Flower decorating House cleaning Lawn care Painting _____________________ Translating Travel agency Tutoring

Chapter 1 Other business areas ____________________ business – generate fresh produce and other farm products EX. Wheat Mining and Extracting businesses – take resources like ____________ out of the ground so it can be consumed

ENTREPRENEURS IN UNITED STATES HISTORY Chapter 1 ENTREPRENEURS IN UNITED STATES HISTORY During the colonial years, entrepreneurship flourished – raised crops like rice and tobacco After the American revolution, the US began to ____________________ – entrepreneurs invented machines that increased productivity and helped the economy grow. Entrepreneurs change American _________________________ decade after decade Establish huge companies or fill unmet needs Constantly change how things are done and contribute to the overall good of the nation

ENTREPRENEURS IN UNITED STATES HISTORY – 19th Century Chapter 1 ENTREPRENEURS IN UNITED STATES HISTORY – 19th Century ____________ __________________ – (1831) used the reaper to mechanize the job of harvesting crops McCormick had $60 when he went to Chicago to set up a factory to manufacture ______________. Company evolved into International Harvester, which produced farm equipment Today, this company is called Navistar International Transportation Company, which manufactures International brand trucks.

ENTREPRENEURS IN UNITED STATES HISTORY – 19th Century Chapter 1 ENTREPRENEURS IN UNITED STATES HISTORY – 19th Century _______________________________________ – entrepreneur from Illinois made millions of dollars in investments and real estate Transformed seemingly unusable marshland into _________ _______________________ Also founded Bradley University (1896) ____________________________ – began working at age 16 as clerk in small produce business Age 23, he saved enough money to enter the oil refinery business In 1872 his company, Standard Oil owned all the main oil refineries in Cleveland New York, Pittsburgh, and Philadelphia Rockefeller ended up owning all oil distribution in the US – eventually becoming the ______________ man in the world

ENTREPRENEURS IN UNITED STATES HISTORY – 20th Century Chapter 1 ENTREPRENEURS IN UNITED STATES HISTORY – 20th Century ________________________ – mass-produced the Model-T automobile, which he sold at a price Americans could afford _________________________ – co-founded the Beach Aircraft Company with her husband She handled the financial aspects of the company and took part in major company decisions

ENTREPRENEURS IN UNITED STATES HISTORY – 20th Century Chapter 1 ENTREPRENEURS IN UNITED STATES HISTORY – 20th Century ______________________________ pioneered the development of packaged frozen foods in the 1920’s Had a major impact on the eating habits throughout the world __________________ took over the Knox Gelatine Company in 1908 She was an innovative business owner and was the first to provide employees with paid sick or vacation leave and a five day work week Chapter 1

Entrepreneurs Today Chapter 1 More than 5.8 million small businesses contribute billions of dollars each year to the U.S. economy These small companies employee more ________________ than all of the country’s large corporations combined Companies such as _______________, Intel, and Apple all started small businesses These companies have changed the workplace by making computers accessible to the world Other entrepreneurial companies such as Southwest Airlines, ________________________, and Estee Lauder Cosmetics started as small businesses These companies make life more ___________________ for consumers and provide employment for hundreds of thousands of worker

Entrepreneurs Today Chapter 1 Small companies can be _________________ and take more risks than large companies There experimentation and innovation lead to ________________________ change and increased _____________________ – which make small businesses a significant part of the American economy Many experts believe small companies will play an increasingly important role in the future

1.1 Assessment Chapter 1 Answer the following questions about lesson 1.1 in Microsoft Word. Write the questions and the answers. Save this in your Entrepreneurship folder on the computer as Chapter 1 Assessment. How are entrepreneurs different from employees What are the different kinds of entrepreneurial businesses. Name one historical entrepreneur and describe what he/she did. Why are small businesses so important to our economy?

Lesson 1.2 IS ENTREPRENEURSHIP RIGHT FOR YOU? Chapter 1 Lesson 1.2 IS ENTREPRENEURSHIP RIGHT FOR YOU? GOALS Identify the characteristics of successful entrepreneurs. Assess whether you have what it takes to succeed in your own business.

CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS Chapter 1 CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS Successful entrepreneurs are _____________________________ are self-confident have determination and perseverance are ______________________________ have a need to achieve and to set high standards for themselves are __________________ are able to act quickly

SMALL BUSINESSES DOMINATE THE U.S. ECONOMY Chapter 1 SMALL BUSINESSES DOMINATE THE U.S. ECONOMY Chapter 1

ASSESS YOUR SUITABILITY FOR ENTREPRENEURSHIP Chapter 1 ASSESS YOUR SUITABILITY FOR ENTREPRENEURSHIP To determine if entrepreneurship is right for you, you first need to perform a _______________ _____________________ Self-Assessment – an evaluation of your strengths and weaknesses. List strength and ____________ on a sheet of paper Ask others what they believe your strengths and weaknesses lie Take a test to assess your abilities

Chapter 1 Assess your Interests Success to an entrepreneur requires a strong commitment to business and a lot of energy – to be able to commit yourself fully you should choose a field that __________________________ Hobbies and Interests – many entrepreneurs center business on an interest and hobby Making a list of hobbies and interests can help you decide what business is right for you Past ___________ – analyzing past experiences and jobs can help you decide on a business you would enjoy owning What businesses do your hobbies, interests, and past experiences suggest for you to enter?

Chapter 1 ASSESS YOUR APITUTES Different jobs require different job ________________ Aptitude – is the ability to learn a particular kind of job Auto mechanics must possess an aptitude for solving mechanical problems Insurance salesmen must possess good _____________________ skills What possible jobs match your own personal interests and aptitudes?

JOB ATTRIBUTES CHECKLIST Chapter 1 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.

ADVANTAGES OF ENTREPRENEURSHIP Chapter 1 ADVANTAGES OF ENTREPRENEURSHIP Entrepreneurs are their own _____________. No one tells an entrepreneur what to do – they control their own destinies Entrepreneurs can choose a business that __________________ them. Entrepreneurs can be _________________. Entrepreneurs can make lots of ________________. Entrepreneurs take risks – this means that entrepreneurs can make a lot of money if their business succeeds

DISADVANTAGES OF ENTREPRENEURSHIP Chapter 1 DISADVANTAGES OF ENTREPRENEURSHIP Entrepreneurship is ___________________. All small businesses face the possibility of going out of business or losing money Entrepreneurs face uncertain and irregular ____________. Entrepreneurs may make money one month and lose money the next month Entrepreneurs work _____________________________. Entrepreneurs never are really finished with their jobs They work long, irregular hours and receive no paid days off and may have to work evenings and weekends Entrepreneurs must make all decisions ________________. Unless they have partners, they must make decisions alone

Chapter 1 1.2 Assessment Answer the following questions about lesson 1.2 on a separate sheet of paper. Write the questions and the answers. Name 3 important characteristics of entrepreneurs. Name key factors that aid an entrepreneur’s commitment to a business. What does it mean to have an aptitude for something? What are two advantages and two disadvantages of entrepreneurship? Entrepreneurs can fail even if they are committed and have the characteristics needed to be successful. Why do you think this can happen? Why is it important for entrepreneurs to choose a field that they will enjoy? Do you think the advantages of entrepreneurship outweigh the disadvantages? Why or why not?

Lesson 1.3 IDENTIFY BUSINESS OPPORTUNITIES AND SET GOALS Chapter 1 Lesson 1.3 IDENTIFY BUSINESS OPPORTUNITIES AND SET GOALS GOALS Recognize different businesses you could start. Identify your own personal goals.

Identify Business Opportunities and Set Goals Chapter 1 Identify Business Opportunities and Set Goals Is there a business that is not currently located in Fayetteville (that people normally have to travel far to get to) that would flourish if it were opened here? Is there enough demand in the community to open that kind of business nearby

INVESTIGATE OPPORTUNITIES Chapter 1 INVESTIGATE OPPORTUNITIES _____________ – has resources that can help you examine different opportunities Books on entrepreneurship, magazines for entrepreneurs, trade magazines for certain businesses, and government publications County Business Patterns is an annual series of publications providing economic profiles of counties, states, and the United States as a whole ___________________________________ – organization that exists to help small businesses and their owners Trade shows – special meetings where companies display their products Talking to other ________________________

COMPARE DIFFERENT OPPORTUNITIES Chapter 1 COMPARE DIFFERENT OPPORTUNITIES Is there a ________________? 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 ____________? 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?

SETTING GOALS Financial goals Chapter 1 SETTING GOALS Financial goals Include how much money you will earn and how quickly you will pay off _________________ Make sure goals are __________________ and attainable It usually takes time for businesses to be financially viable Most businesses begin operations by _______________ money (which are usually paid within one to five years) Setting specific financial goals before starting a business can ensure the business is able to earn _________________ you want

SETTING GOALS Non-Financial goals Chapter 1 SETTING GOALS Non-Financial goals Personal ___________________ (serve a community need, enjoy the personal independence, or do something the like) Specify the non-financial goals you want to achieve by being an entrepreneur

Chapter 1 1.3 Assessment Open your Chapter 1 Assessment questions (from 1.1 and 1.2). Add the following questions to your Chapter 1 Assessment. Type the questions and bold your answers. How can you find out about various business opportunities? Why are financial goals important? Name some non-financial goals an entrepreneur might have.