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Your Potential As An Entrepreneurship

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Presentation on theme: "Your Potential As An Entrepreneurship"— Presentation transcript:

1 Your Potential As An Entrepreneurship
Entrepreneurship I Your Potential As An Entrepreneurship

2 In This Presentation You Will Learn….
The rewards of starting your own business The risks involved in starting your own business How capital and investment are required to start an enterprise Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

3 Rewards of Entrepreneurship!!!
As an entrepreneur, you will enjoy many rewards. For many entrepreneurs the greatest rewards are independence, personal satisfaction, and prestige. Rewards for Entrepreneurship include: Being Your Own Boss Doing Something You Enjoy Having The Opportunity To Be Creative Freedom To Set Your Own Schedule Controlling Your Salary Contributing To The Community Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

4 Being Your Own Boss As a business owner, you will have the freedom to make your own business decisions. You can set your own hours, decide what products or services to offer, and what new directions to take. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

5 Doing Something You Enjoy
What interest do you have that might lead to a successful business? Start with a business or personal activity you enjoy. If you enjoy cooking, start a catering business. If you like to in-line skate or mountain bike, give lessons and sell equipment. You will achieve great satisfaction from creating and developing a business around your interests. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

6 Having The Opportunity To Be Creative
Do you enjoy thinking of new ways to do things? As an entrepreneur, your ideas will directly affect your business. Would you rather create procedures or follow them? Entrepreneurs can shape their businesses in ways that employees cannot. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

7 Freedom To Set Your Own Schedule
Are you self-motivated? The demands on you, as an entrepreneur, will be great. However, you would have the flexibility to determine your own hours. You would have the option of working at home or at your business. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

8 Controlling Your Salary
Would you like to have more control over how much money you can earn? As an entrepreneur your earnings are limited only by the potential of your business. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

9 Contributing To The Community
In addition to providing goods or services that people need, business owners generate jobs and create income for the community. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

10 Entrepreneurial Risks
If being an entrepreneur is so wonderful, you might ask, why doesn’t everyone do it? Clearly, the rewards only tell one side of the story. In an economy where two or more businesses are in competition, striving for the same customer or market, an entrepreneur faces many costs and risks. Entrepreneurial Risks include: Working long hours Having an uncertain income Being fully responsible Risking one’s investment Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

11 Working Long Hours Are you willing to work long hours?
As an entrepreneur, you will work long hours, especially during the start-up period of your business. During start-up, survival often depends on daily decisions, and there is little in the way of paid help. Most entrepreneurs respond by devoting most of their waking hours to their endeavor, often working seven days a week. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

12 Having An Uncertain Income
As a rule, owners make more money than employees – but only when business is good. When business is bad, earnings can be low or even nonexistent. Business owners do not get a regular paycheck and, in the beginning, they may not be able to afford good health insurance or vacations. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

13 Being Fully Responsible
The owner of a business is responsible for more than just decision making. He or she must see that everything gets done – from sweeping the floors to paying the bills to making repairs. Ultimately, there is no one else to take responsibility for these things. The success or failure of the venture in all its aspects large and small, rests entirely on the owner. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

14 Risking One’s Investment
Undoubtedly, the biggest risk of being in business for oneself is the possibility of losing one’s investment. Investment is the amount of money one puts into a business as capital. Capital includes the buildings, equipment, tools, and other goods needed to produce a product, or the money used to buy these things. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

15 Who Are Entrepreneurs? Because entrepreneurs are so important to our nation’s economy, there is a great deal of interest in what makes them tick. They are featured in magazine and newspaper articles. Best-sellers are written about them. Some have become celebrities. There has been research done to determine if entrepreneurs have any traits, experiences, or skills in common. The object of such studies has been to learn whether entrepreneurs are born or made. The answer is unclear, but it is definite that entrepreneurs prosper with proper skills and knowledge. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

16 Entrepreneur Background!!!
Research reveals a wide span of ages, educational backgrounds, and personal histories. It also reveals a common life experiences that may incline people toward entrepreneurship: Nearly half (47 percent) of entrepreneurs are under age 35 when they start their businesses; 16 percent are under age 25. Forty percent of entrepreneurs have only a high school diploma or less. Twenty-seven percent of entrepreneurs had some college, 33 percent have completed a college degree. Many entrepreneurs were independent from an early age. Frequently they had work experience when they were young (paper routes, yard-care services, baby-sitting, etc.) Sixty-two percent had parents or close relatives who owned a business. Many entrepreneurs were influenced early in life by a role model, a person who attitudes and achievements they tried to emulate. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

17 Entrepreneur Characteristics!!!
There are distinctive traits and qualities needed to set up an owner-operated business and run it successfully. Listings vary but usually include these 12 items: Persistent – Entrepreneurs are willing to work until a job is done, no matter how long it takes. They are tenacious in overcoming obstacles and pursuing their goals. Creative – Entrepreneurs continually look for new ways to solve old problems. Responsible – Entrepreneurs do not “pass the buck.” They take responsibility for their decisions and actions. Inquisitive – Entrepreneurs want to know as much as possible about anything that might affect their ventures. They conduct research and ask questions to solve problems. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

18 Entrepreneur Characteristics (Continued)!!!
Goal-oriented – Entrepreneurs decide where they want to go and then set out to get there. Independent – Entrepreneurs want to se their own agendas and schedules. They want to make their own decisions. Self-demanding – Entrepreneurs have high expectations of themselves. Self-confident – Entrepreneurs believe in themselves and act accordingly. Risk-taking – Entrepreneurs like to take risks, but they are not reckless. They seek opportunities that offer both a challenge and a reasonable chance of success. Restless – Once entrepreneurs achieve their goals, they begin looking for new challenges. Action oriented – Entrepreneurs are doers as opposed to spectators. They make decisions and act on them. Enthusiastic – Entrepreneurs are energetic and passionate about their pursuits. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

19 Entrepreneur Skills!!! While you may have the desire and characteristics to be an entrepreneur, you also need some foundational skills Foundational Skills are math, communication, and decision-making skills that entrepreneurs use regularly in setting up and running a business. These skills are essential to the process of creating a business. The research has identified the following skills needed by entrepreneurs: Communication Skills Human Relations Skills Math Skills Problem-Solving Skills Technical Skills Basic Business Skills Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

20 Communication Skills!!! How well do you communicate with others?
Entrepreneurs need person-to-person, telephone, and written communication skills to gather the information necessary to organize and run their businesses. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

21 Human Relations Skills!!!
Do you get along well with others? Do you enjoy meeting and talking to people? Entrepreneurs need the skills to get along with people, get cooperation, and persuade others to their way of thinking. These skills are particularly important, in carrying out the negotiations necessary to run he business. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

22 Math Skills!!! Are you prepared to maintain the necessary business records required to run a business? The entrepreneur needs basic arithmetic and knowledge of standard business record keeping. These are tools needed to make initial purchase decisions, calculate potential profit, and put together financial statements. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

23 Problem-Solving & Decision-Making Skills!!!
Do others turn to you to solve problems or help in making decisions? Entrepreneurs must be able to make decisions to establish their business. They must also be able to use techniques for solving problems. Some will call for logical solutions and some will require creative solutions. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

24 Technical Skills!!! Skills in the processes and technology of business being created are important to the entrepreneur. In some instances they can be acquired quickly, in others training is needed. Computer skills are almost essential in any business. Knowing how to use word-processing, spreadsheet, database, and programs will enhance your business operation. One valuable research tool for many entrepreneurs is the Internet. The Internet is a large computer network linking small computer networks worldwide. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

25 Basic Business Skills!!! Do you have a basic understanding of how the economy works? Your city’s newspaper probably has a business section If you’re not already doing so, read it on a daily basis to learn more about the economy and the business world. You’ll also need to know the fundamental concepts of finance, marketing, and management to create a successful business. Your school offers courses in these areas. Take advantage of them! Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

26 Building Your Entrepreneurial Skills!!!
If you didn’t score 100 on each characteristic and skill, don’t worry. You can build them up. The more background profile experiences you share with the typical entrepreneur, the more likely you are to start your own business. A profile is a set of characteristics or qualities that identify a type or a category of person. However, if you do not fit the profile, you should not be discouraged from pursuing your entrepreneurial aspirations. The following steps can help you develop your entrepreneurial skills: Determine the current strength of your entrepreneurial characteristics. Make a conscious effort to think of entrepreneurial characteristics as habits that can be changed. Developing the characteristics in which you feel weak. How? Practice. Throughout each day, concentrate on acting as if you have the traits you want to develop. After a while, you will find that those traits become part of your makeup. You won’t be acting, and you won’t have to concentrate. Being entrepreneurial will come naturally. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

27 To Become More Achievement-Oriented!!!
These techniques can help increase your need for achievement: Think like an achiever. Create worthwhile goals and hold high standards. Think of ways to improve what you do and how you do it. Use the language of achievement. Use positive language, seeing adversity as opportunities to excel, grow, and shine. Plan for achievement. Putting your short-term and long-term goals in writing will help you focus your goals and give you tools for measurement. Act positive. Maintain a positive self-image and act with confidence. See the big picture and don’t get discouraged by minor setbacks. Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

28 Strengthen Your Entrepreneurial Characteristics!!!
Reading – Read articles and books about entrepreneurs and entrepreneurial activities. Writing – Write about individuals who overcame obstacles to achieve success. Watching – Watch films about business people, athletes, or others who are achievement-oriented. Practicing – Practice case studies that involve goal-oriented behavior, creativity, and moderate risk taking. Entrepreneurship I - Chapter 2 (Entrepreneurship & Small Business Management)

29 References Allen, K. & Meyer, E. (2000). Entrepreneurship and Small Business Management. Retrieved August 25, 2012, from Glenco McGraw-Hill. Entrepreneurship & Small Business Management References Entrepreneurship - Chapter 2 (Entrepreneurship & Small Business Management)

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