entrepreneurship i your potential as an entrepreneurship

Entrepreneurship IYour Potential As An Entrepreneurship

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)

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


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.


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.


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.


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.


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.


Contributing To The Community

• In addition to providing goods or services that people need, business owners generate jobs and create income for the community.


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


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.


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.


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.


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.


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)

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)

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:

1. 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.

2. Creative – Entrepreneurs continually look for new ways to solve old problems.

3. Responsible – Entrepreneurs do not “pass the buck.” They take responsibility for their decisions and actions.

4. 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.


Entrepreneur Characteristics (Continued)!!!

5. Goal-oriented – Entrepreneurs decide where they want to go and then set out to get there.

6. Independent – Entrepreneurs want to se their own agendas and schedules. They want to make their own decisions.

7. Self-demanding – Entrepreneurs have high expectations of themselves.8. Self-confident – Entrepreneurs believe in themselves and act accordingly.9. 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.

10. Restless – Once entrepreneurs achieve their goals, they begin looking for new challenges.

11. Action oriented – Entrepreneurs are doers as opposed to spectators. They make decisions and act on them.

12. Enthusiastic – Entrepreneurs are energetic and passionate about their pursuits.


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


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.


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.


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.


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.


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 E-mail 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.


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!


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:1. Determine the current strength of your entrepreneurial characteristics.2. Make a conscious effort to think of entrepreneurial characteristics as habits that can

be changed. 3. 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.


To Become More Achievement-Oriented!!!

• These techniques can help increase your need for achievement:1. Think like an achiever. Create worthwhile goals and hold high

standards. Think of ways to improve what you do and how you do it.2. Use the language of achievement. Use positive language, seeing

adversity as opportunities to excel, grow, and shine.3. 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.

4. Act positive. Maintain a positive self-image and act with confidence. See the big picture and don’t get discouraged by minor setbacks.


Strengthen Your Entrepreneurial Characteristics!!!1. Reading – Read articles and books about entrepreneurs and

entrepreneurial activities.2. Writing – Write about individuals who overcame obstacles to

achieve success.3. Watching – Watch films about business people, athletes, or

others who are achievement-oriented.4. Practicing – Practice case studies that involve goal-oriented

behavior, creativity, and moderate risk taking.

Entrepreneurship I - Chapter 2 (Entrepreneurship & Small Business Management)

References


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

References

Entrepreneurship &

Small Business

Management

entrepreneurship i your potential as an entrepreneurship

Documents

entrepreneurship slide

rewards of entrepreneurship

business owners

catering business

business decisions

successful business

greatest rewards

entrepreneurial risks