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. ChapterChapter1 Should You Become an Entrepreneur? IMPACT OF SMALL BUSINESS/ ENTREPRENEURSHIP

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 2 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. Chapter 1 Slide 3 Vocabulary entrepreneurs entrepreneurship 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. Entrepreneurship The process of recognizing: An opportunity Testing it in the market Gathering resources to go into business 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. Chapter 1 Slide 5 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. Chapter 1 Slide 6 They provide a service or product to meet those unmet needs. Entrepreneurs identify unmet needs in the marketplace.

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 7

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. Barriers to Small Business Money – growth needs money, determine how much you need. Growth expenses will climb before revenue does! Restrictive loan policies Chapter 1 Slide 8

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 9

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? The main reasons why small businesses are strongly promoted and supported by local Government is because they are important to the economy. Many people start entrepreneurial ventures during times of economic recession. Chapter 1 Slide 10

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. Up in the Air 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. Integrity and Ethical Behavior Entrepreneurs should behave ethically in all areas of business. The actions taken and the results of the those actions should be considered. 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. Chapter 1 Slide 13 Types of Entrepreneurial Businesses manufacturing wholesaling retailing service

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

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 Other Business Areas agricultural mining and extracting

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. Green Entrepreneurship Many types of businesses may focus on being organic or “green.” It is important to educate customers about how products or services benefit the earth conserve resources Chapter 1 Slide 16

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 Describe different types of entrepreneurial businesses.

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 18 Recognizing Opportunity Many companies began with one person who started a business based on a single opportunity. Small firms, with fewer than 500 employees, represent 99.9 percent of American businesses.

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 Entrepreneurs Who Changed America Starbucks Coffee Company retailer of coffee products introduced new product, Espresso markets coffee and tea products through website national retail supermarkets

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 corporate vision was to provide home improvement products at the lowest price with the best possible service now has more than 2,100 stores in the United States, Canada, and Mexico The Home Depot

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 21 founded in 1986 Oprah Winfrey is the first woman in history to own and produce her own talk show. HARPO Entertainment Group HARPO Productions HARPO Films HARPO Video HARPO Productions, Inc.

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. Entrepreneurial Opportunities in Economic Recovery Small businesses are an important part of the economic recovery. They are: willing and able to make changes quickly more creative than large companies Their experimentation and innovation lead to technological change and increased productivity. Chapter 1 Slide 22

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 23 $30 billion in tax relief for small businesses $13 billion in loans, lines of credit, and equity capital The American Recovery and Reinvestment Act of 2009

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 24 Describe how one of the entrepreneurs discussed above recognized an opportunity to develop a successful business.

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 25 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 26 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 27 What factors contribute to helping a business succeed?

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 28 Lesson 1.2 Is Entrepreneurship Right for You? Goals Identify the characteristics of successful entrepreneurs. Identify the characteristics of good team members. Assess whether you have what it takes to succeed in your own business.

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 29 Vocabulary self-assessment aptitude

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 30 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 31 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 32 Name three important characteristics of entrepreneurs.

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 33 Characteristics of Good Team Members Good team members display the following traits: commitment competency communication cooperation creativity

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 34 Why is it important for entrepreneurs to be good team members?

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 35 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 36

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 37

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 38

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 39

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 40 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 41 What kinds of assessments should you make to determine if entrepreneurship is right for you?

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 42 Lesson 1.3 Explore Ideas and Opportunities Goals Identify sources for new business ideas. Recognize different business opportunities. Identify you own personal goals.

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 43 Vocabulary opportunities ideas trade shows

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 44 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 45 Hobbies and Interests Past Experiences Discovery or Invention Ideas come from a variety of sources including:

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 46 Where do new ideas for businesses come from?

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 47 Investigate Opportunities Sources of Information Internet library County Business Patterns Small Business Administration

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 48 special meetings where companies of the same or related industry display their products trade shows

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 49 Compare Different Opportunities For each business opportunity, you should consider: Will people buy my product or service? How much money is required to start the business? How many hours per week will it take to run the business?

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 50 Do I have the right background to run this business? How much money could I make running this business? What are the risks associated with this business?

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 51 How can you find out about various business opportunities?

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 52 Set Goals

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 53 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 54 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. Chapter 1 Slide 55 Why are financial goals important? Name some nonfinancial goals an entrepreneur may have.

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 56 Lesson 1.4 Problem Solving for Entrepreneurs Goals List the six steps of the problem- solving model. Describe ways to improve your problem-solving skills.

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 57 Vocabulary problem-solving model brainstorming

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 58

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 59

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 60 write down what the problem is and why it is a problem quantify the problem Gather Information collect information that can help solve the problem Define the Problem

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 61 identify all possibilities before selecting a particular solution Evaluate Alternatives and Select the Best Option quantify or rank alternatives Identify Various Solutions

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 62 implement the solution Evaluate the Action even a well-thought-out solution may not work Take Action

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 63 What are the six steps in the problem-solving model?

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 64 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 65 Mistakes are a learning experience. Learn from Mistakes

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 66 How can you improve your problem-solving skills?

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 67 PERFORMANCE INDICATORS Evaluate and delegate responsibilities needed to perform required tasks Demonstrate effective teamwork skills needed to function in a business setting

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 68 Demonstrate effective oral communication skills Apply technical skills to create a multimedia presentation which enhances the oral presentation Demonstrate knowledge of multimedia software and components

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 69 THINK CRITICALLY 1.Why must entrepreneurs look at future trends when making business decisions? 2.Why should entrepreneurs look beyond current technology trends when making business decisions?

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 70 4.How are entrepreneurs affected by a global economy? 3.Why should statistics be used for this presentation?