Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 1 Lesson 1.1 All About Entrepreneurship Goals Define entrepreneurship. Recognize the role entrepreneurs play in the U.S. economy. Determine the reasons that businesses succeed or fail.

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Entrepreneurship Many of the small businesses in the U.S. are owned and operated by men and women who created their own companies. Chapter 1 Slide 2

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 3 What is an Entrepreneur? entrepreneurs people who own, operate, and take the risk of a business venture entrepreneurship running a business of one’s own

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Employees vs. Entrepreneurs employees people who work for someone else Additional earnings go to the business owner, not to the employee. Chapter 1 Slide 4

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Why Do People Become Entrepreneurs? to set your own schedule to work out of your home to pursue a personal dream Chapter 1 Slide 5

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 6 Business Success or Failure Sixty-seven percent of new businesses survive at least two years. Forty-four percent of new businesses survive at least four years. Success rates can be enhanced if businesses have adequate capital are large enough to have employees

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 7 the owner lacks business knowledge Having an idea for a product or service is different than knowing how to run a business. Businesses may fail if

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 8 Characteristics of Successful Entrepreneurs Successful entrepreneurs are: independent self-confident determined goal-oriented achievement-oriented with high standards

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 9 able to act quickly technologically current creative

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 10 Are You Right for Entrepreneurship? self-assessment an evaluation of your strengths and weaknesses

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Assess Your Interests choose a field that interests you you will enjoy Chapter 1 Slide 11

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Assess Your Aptitude aptitude the ability to learn a particular type of job Chapter 1 Slide 12

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Assess the Advantages of Entrepreneurship Entrepreneurs are their own bosses can choose a business that interests them can be creative can make large sums of money Chapter 1 Slide 13

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 14 Assess the Disadvantages of Entrepreneurship Disadvantages of entrepreneurship include: risk uncertain and irregular incomes long hours all decisions are made independently

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 15 Look for Ideas opportunities possibilities that arise from existing conditions ideas thoughts or concepts that come from creative thinking

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 16 Financial Goals Financial goals should be: realistic measurable easily attainable in the time allotted

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 17 Nonfinancial Goals Nonfinancial goals may include: personal satisfaction serving a community need doing something you like enjoying personal independence

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Use the Problem-Solving Model problem-solving model helps people solve problems in a logical manner Chapter 1 Slide 18

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 19 Problem-Solving Skills Communicate communicate clearly and confidently be a good listener Brainstorming a creative problem-solving technique generates a large number of fresh ideas

Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 20 Mistakes are a learning experience. Learn from Mistakes