Chapter 1 All About Entrepreneurship. BY. MISS DINNELLA. Section 1.1 All about Entrepreneurship. -Entrepreneurship -People who own, operate, and take the risk of a business venture are called entrepreneurs -Employees vs. Entrepreneurs
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Chapter 1 All About Entrepreneurship BY. MISS DINNELLA
Section 1.1 All about Entrepreneurship -Entrepreneurship -People who own, operate, and take the risk of a business venture are called entrepreneurs -Employees vs. Entrepreneurs -Entrepreneurs assume risk; this is the main difference from them and employees -Employees-people who work for someone else
Example • Ex. Sam Jones manages a record store owned by Felipe Santiago. Sam decides to keep the store open until midnight during the week. If the additional hours bring in customers and increase profits, Felipe may praise Sam. He may even get a raise. However, Sam won’t directly receive any of the profits because he is an employee. The additional earnings will flow to Felipe, the owner. -What are some reasons to become an entrepreneur?
Answer(s) -Leave the faced-paced corporate environment and set their own schedule -To be at home and still earn an income -Pursue a personal dream -Other reasons?
Integrity and Ethical Behavior -Involves operating with integrity and exhibiting ethical behavior in all areas of business -Highest standards of conduct are: -Observed from their relationships with everyone -Having consistency in actions, methods, measures, principles, expectations, and outcomes
Types of Entrepreneurial Businesses 1. Manufacturing (actually produce the products they sell) -Apparel and other textile products -Food products -Electronics and other electrical -Printing and Publishing
continued 2. Wholesaling (sell products to other businesses rather than the final customer) -Apparel -Groceries and related products -Machinery, equipment, supplies -Paper, paper products
continued 3. Retailing (greeting card stores, sell products directly to the customers) -Auto and home supply stores -Clothing stores -Retail bakeries -Sporting goods and bicycle stores
continued 4. Service (sells services rather than products) -Lawn care -Tutoring -Painting -Plumbing -Web design and maintenance
Other types of entrepreneurial businesses: -Agricultural (generate fresh produce and other farm products -Mining and Extracting (resources like coal out of the ground so that they can be consumed “Going Green” –Why are many businesses going “green”?
Recognizing Opportunity U.S. Small Business Administration’s Office of Advocacy -29.6 million businesses in the United States in 2008 -Small firms with fewer than 500 employees represent 99.9 % of these businesses -18,000 U.S. businesses are considered large -Small businesses contribute to billions of dollars to the U.S. economy every year and generate jobs that drive economic growth -Small businesses created 21. 9 million jobs in the last 15 years compared to 1.8 million created by large businesses
Entrepreneurs Who Changed America #1. Starbucks Coffee Company #2. Home Depot #3. Harpo Productions, Inc. • (count off by 3’s each person with a 1 look up a fact about Starbucks, 2-Home Depot and 3-Harpo)
Starbucks Coffee Company -Was founded in 1971, opening its first location in Seattle’s Pike Place market -Named after Herman Melville’s novel Moby Dick -World’s largest brand of coffee -Stores receive more than 40 million customer visits per week at coffeehouses (North America, Europe, Middle East, Latin America and Pacific Rim) -Espresso idea from Italy -Markets in grocery stores, websites and coffeehouses -Offers several different coffees and teas
The Home Depot -In 1979, Bernie Marcus and Arthur Blank opened the first two The Home Depot stores in Atlanta, Georgia, forever changing the home improvement industry -Offered one-stop shopping for the do-it-yourselfer -Stocked around 25, 000 products; today an average store offers 40,000 products in approximately 105,000 square feet -With five years, they expanded to Georgia and Florida, Louisiana, Texas and Alabama -Today, they have 21,000 stores in the US, Canada and Mexico
Harpo Productions, Inc -Oprah Winfrey created HARPO productions in 1986 -Based in Chicago (Harpo Productions, Film and Video) -In 1988, The Oprah Winfrey Show
Business Success or Failure --67% of new businesses survive at least two years -44% survive at least four years -Half of all new businesses do not survive beyond four years -Major factors have to do with adequate capital and employees; the owner’s education level and the reason for starting in the first place -Many business fail due to lack of knowledge from the business owner
1.2 Is Entrepreneurship Right for You Characteristics of Successful Entrepreneurs 1. Successful entrepreneurs are independent 2. “” Self-confident 3. “” Determination and perseverance 4. “” Goal-oriented 5. “” Achieve and Set High Standards for themselves 6. “” Creative 7. “” Act quickly 8. “” Keep up to date with technology
Characteristics of Good Team Members Five C’s • Commitment • Competency • Communication • Cooperation • Creativity
Self-assessment -Evaluation of your strengths and weaknesses
Aptitude • Aptitude-is the ability to learn a particular kind of job. • Ex. Auto mechanics must be good at problem solving and working with their hands • Insurance agents must have good interpersonal skills
Advantages and Disadvantages of Entrepreneurship Advantages 1. Entrepreneurs are their own bosses 2. “” can choose a business that interests them 3.”” can be creative 4. “” can make large sums of money Disadvantages 1. Risky 2. Uncertain and irregular incomes 3. Work long hours 4. Make all decisions by themselves
1.3 Explore Ideas and Opportunities • Opportunities- are possibilities that arise from existing conditions • Ideas-thoughts or concepts that come from creative thinking (ideas can come from many different sources)
SMART goals • S-Specific- Goals should answer “What” “Why or “How’ • M-Measurable – Goals should establish ways to measure your progress • A-Goals should not be too far to reach • R-Realistic- Goals should represent things to which you are willing to commit • T-Goals should have a timeframe
1.4 Problem Solving For Entrepreneurs Problem-Solving Model-helps people solve problems in a logical manner. The model consists of six steps: 1. Define the problem 2. Gather information 3. Identify various solutions 4. Evaluate alternatives and select the best option 5. Take action 6. Evaluate the action
Problem-Solving Situation Dan Parker knows what his problem is: Should he start a website design company? He took many computer courses throughout high school, and he is now attending college. He has worked in the food industry throughout high school and college to earn money to help pay for his college expenses. Dan enjoys working at restaurants and has gained valuable customer service and management experience. In addition, he also volunteers his web design skills on projects for his university and local community programs. He will be graduating in the next few months with a degree in Computer Science. Dan is considering starting his own website design business, but he is not sure whether that is not sure whether that is the right choice for him.