Entrepreneurship: Ideas in Action

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Entrepreneurship Ideas in Action

• Chapter 1
• Should You Become an Entrepreneur?

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Build a Business Delias Dilemma

• Who are some famous entrepreneurs in our country?
  Name some in King George.
• What kinds of things do you think Delia and
  Gloria should consider before they decide to
  start a business?
• What resources do you think Delia and Gloria will
  find in the library?
• Where else could they go to get help in making
  their decision about starting their own business?

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1.1 - Entrepreneurs Present and Past

• Goals of This Section
• Define Entrepreneurship
• Learn about Entrepreneurship in history
• Identify the impact of Entrepreneurs and small
  business today

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What is an Entrepreneur?

• People who own, operate, and take the risk of a
  business venture.
• These people are engaged in Entrepreneurship.
• Entrepreneurs assume risk. This makes them
  different from
• Employees, who are people who work for someone
  else.
• How are Entrepreneurs different from Employees?

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Why do people become Entrepreneurs?

• Leave the fast-paced cooperate environment
• Work at home and earn an income
• Pursue a personal dream
• In Class Activity - List three reasons you would
  like to be an Employee and three reasons you
  would like to be an Entrepreneur.

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Types of Entrepreneurial Businesses

• Manufacturing - produce the products they sell
• Wholesaling - sell products to people other than
  the final customer
• Retailing - sell products directly to people who
  use or consume them
• Service - sell services rather than products

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Other Business Areas

• Agricultural Businesses generate fresh produce
  and other farm products such as wheat.
• Mining and Extracting Businesses take resources
  like coal out of the ground so they can be
  consumed.
• Describe different kinds of entrepreneurial
  businesses.

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Entrepreneurs in United States History

• During Colonial Times, Entrepreneurs
• Raised crops such as tobacco and rice
• Worked as bankers, merchants, silversmiths,
  candle-makers
• After the American Revolution, the US began to
  INDUSTRIALIZE
• Entrepreneurs invented machines that increased
  productivity and helped the economy grow.

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Entrepreneurs Who Changed America

• Nineteenth Century Entrepreneurs
• Cyrus McCormick - 1831 - the Reaper -
  International Harvester - Navistar International
• Lydia Moss Bradley - Peoria, Illinois - Real
  Estate tycoon - Bradley University in 1896
• John D. Rockefeller - clerk at 16 - Oil refinery
  at 23 - Standard Oil in 1872 owned all the main
  oil refineries

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Entrepreneurs Who Changed America

• Early 20th Century Entrepreneurs
• Henry Ford - Model T - Created one of the worlds
  largest companies, the Ford Motor Company
• Olive Ann Beech - Founded Beech Aircraft Company
  which evolved into Raytheon Company in 1980
• Clarence Birdseye - Pioneered development of
  packaged frozen foods in 1920s
• Rose Knox - Leader in the food industry - Knox
  Gelatine Company 1908

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Entrepreneurial Timeline The First Woman
Millionaire

• Madam C.J. Walker - 1904 - Developed hair-care
  products for African-American Women -
  Door-to-Door sales
• Opened Lelia College to train women to use and
  sell the product line
• Empowered women to take pride in their work
• Name one historical Entrepreneur and describe
  what he or she did.

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Entrepreneurs Today

• More than 6.5 million small businesses contribute
  billions of dollars every year to the US economy!
  
• Microsoft, Intel, and Apple all started as small
  businesses.
• Southwest Airlines, Mrs. Fields Cookies, and
  Estee Lauder make life more pleasant for
  consumers.
• Small companies take more risks, can be more
  creative, are a significant part of the American
  Economy.

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Checkpoint

• Why are small businesses so important to our
  economy?
• What are your reasons for becoming an
  Entrepreneur?
• Do you think these are common to all
  Entrepreneurs?

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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.

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Characteristics of Successful Entrepreneurs

• Independent
• Self-Confident
• Determination Perseverance
• Goal-Oriented
• Need to Achieve Set High Standards
• Creative
• Able to Act Quickly

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Assess Your Suitability for Entrepreneurship

• Self-Assessment - evaluation of your strengths
  and weaknesses list on paper
• Assess your Interests - choose a field you are
  interested in and you will enjoy hobbies,
  interests, past experiences
• Assess your Aptitude - ability to learn a
  particular kind of job
• Name key factors that aid an Entrepreneurs
  commitment to a business.

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Job Attributes Check List

• 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

• 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

In class Activity Page 11
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Advantages of Entrepreneurship

• Be your own boss
• Choose a business that interests you
• Be creative
• Make a lot of money

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Disadvantages of Entrepreneurship

• Risky
• Uncertain Irregular income
• Long hours 24/7/365
• Make all decisions alone

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Think Critically

• 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?

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1.3 - Identify Business Opportunities and Set
Goals

• Recognize different businesses you could start
• Identify your own personal goals

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Investigate Opportunities

• Library - books, magazines, government
  publications
• Small Business Administration (SBA)
• Trade Shows
• Other business owners

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Compare Different Opportunities

• Is there a market in my community for this kind
  of business? Will people buy my product or
  service?
• How much money would it take to start this
  business? Will I be able to borrow it?
• How many hours a week is it likely to take to run
  this business? Am I willing to commit that much
  time?
• What are the particular risks associated with
  this business? What is the rate of business
  failure?
• Does my background prepare me to run this kind of
  business? Do most people who own this kind of
  business have more experience than I do?
• How much money could I make running this business?

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Setting Goals

• Financial goals - how much money you will earn,
  how quickly you will pay off debts.
• Setting specific financial goals before starting
  a business can ensure a business is able to earn
  the profits you want.
• Non-Financial Goals -
• personal satisfaction
• serve a community need
• do something you like
• enjoy personal independence

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Think Critically

• In terms of annual income, what financial goals
  have you set for yourself for 5 years after you
  graduate? What non-financial goals have you set
  that becoming an entrepreneur can help you
  achieve? Are financial or non-financial goals
  more important to you? Why?

• Choose a business idea that appeals to you. For
  this business, answer the six assessment
  questions listed in this lesson (page 15). Is
  this a realistic choice for you? Why or why not?

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What Went Wrong?Be Sharp or Fall Flat

• Read page 16 Is Entrepreneurship Right
  for You
• What characteristics did Louise possess that led
  her to become an Entrepreneur?
• What circumstances out of Louises control led to
  the failure of this business?

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Chapter Review

• Complete Vocabulary Builder
• Complete Review Your Knowledge
• Turn in for grade.
• Due Thursday.

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This Is Your Business Project

• Complete the sheets provided to you.
• You will work on these sheets along with more for
  each chapter throughout the whole semester. This
  completed project is due 1/25/10.
• Keep it in your notebook in the Business
  Project Section.
• Progress will be checked weekly.