ENTREPRENEURSHIP

Objectives• Define Entrepreneurship• Describe the advantages of entrepreneurship• Explain the risks of entrepreneurship• List the characteristics and skills of entrepreneurs• Understand the importance of small business in various

economies

Standard• Marketing Advanced Strategies, Standard 2: Explain why

entrepreneurship is important to the U.S. economy. Compare and contrast the role of the entrepreneur to that of a manager.

What is Entrepreneurship?

• The process of starting & operating your own business

• People who create, launch, organize, and manage a new business and take the risk of the business are entrepreneurs• Henry Ford introduced the mass production of vehicles

by making them affordable to average people• William Hewlett & David Packard started a small

business in Packard’s garage• They invented floppy disks & the first pocket calculator

Advantages of Entrepreneurship

•Personal Freedom

•Personal Satisfaction

•Increased self-esteem

•Increased Income

•Set own work schedule

•Make own decisions

•Financial Rewards

Risks of Entrepreneurship

•High level of stress

•Risk of failure•Possible setbacks

•Potential loss of income

•Long and irregular hours

•Need to handle multiple tasks

•Need for self-discipline

Characteristics of Successful Entrepreneurs

• Determination• Self-motivation, self-discipline, & self-confidence

• Strong organizational skills

• Leadership ability

• Creativity• Willingness to work hard

• Spirit of adventure• Good social skills

Marketing & Entrepreneurship

• Entrepreneurs should have marketing knowledge• They will have an advantage over those who do not

• Why would entrepreneurs who have a good understanding of marketing have an advantage over those who do not?

Trends in Entrepreneurship

• 80% of new jobs created annually come from business that are less than 5 years old

• 90% of all U.S. businesses have fewer than 20 employees

• Firms with fewer than 500 employees were responsible 50% of the GDP

• About 1 in 10 adults in the U.S. plan to start a new business

• As many as 25% of all U.S. workers are self-employed

Trends in Entrepreneurship• Availability of technology• Increased global communication• Rise of the Internet and e-commerce• Increasingly diversified society & market

Do you have what it takes?• Turn to page 782 in your text book.• Number 1-19• Read each question CAREFULLY and answer yes or no

based on how you feel.

• Next, create a diagram with 3 circles• Label each circle with these words: Physical, Emotional, Financial• Take numbers 9-19 and place the number in the appropriate circle,

if some of them overlap places, please place them in the appropriate overlapping circle(s)