Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter Chapter Chapter Chapter 11

Should You Become an Entrepreneur? 1.1 All about Entrepreneurship 1.1 All about Entrepreneurship

1.2 Is Entrepreneurship Right for You? 1.2 Is Entrepreneurship Right for You?

1.3 Explore Ideas and Opportunities1.3 Explore Ideas and Opportunities

1.4 Problem Solving for Entrepreneurs 1.4 Problem Solving for Entrepreneurs

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 2

Lesson 1.1

All About Entrepreneurship

Goals Define entrepreneurship. Recognize the role entrepreneurs play

in the U.S. economy. Determine the reasons that businesses

succeed or fail.

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 3

Vocabulary entrepreneurs entrepreneurship employees

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Entrepreneurship

Many of the small businesses in the U.S. are owned and operated by men and women who created their own companies.

Chapter 1Slide 4

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 5

What is an Entrepreneur?

entrepreneurs people who own, operate, and take the

risk of a business venture

entrepreneurship running a business of one’s own

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Chapter 1Slide 6

They provide a service or product to meet those unmet needs.

Entrepreneurs identify unmet needs in the marketplace.

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Employees vs. Entrepreneurs employees

people who work for someone else

Additional earnings go to the business owner, not to the employee.

Chapter 1Slide 7

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Why Do People Become Entrepreneurs? to set your own schedule to work out of your home to pursue a personal dream to “be the boss” for the expected financial reward

Chapter 1Slide 8

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Integrity and Ethical Behavior Entrepreneurs should behave ethically

in all areas of business. The actions taken and the results of those

actions should be considered.

Chapter 1Slide 9

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 10

Types of Entrepreneurial Businesses manufacturing wholesaling retailing service

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 11

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Chapter 1Slide 12

Other Business Areas

agricultural mining and extracting

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Green Entrepreneurship

Many types of businesses may focus on being organic or “green.”

It is important to educate customers about how products or services benefit the earth conserve resources

Chapter 1Slide 13

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 14

Describe different types of entrepreneurial businesses.

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Chapter 1Slide 15

Recognizing Opportunity

Many companies began with one person who started a business based on a single opportunity.

Small firms, with fewer than 500 employees, represent 99.9 percent of American businesses.

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Entrepreneurial Opportunities in Economic Recovery

Small businesses are an important part of the economic recovery. They are: willing and able to make changes quickly more creative than large companies

Their experimentation and innovation lead to technological change and increased productivity.

Chapter 1Slide 16

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 17

$30 billion in tax relief for small businesses $13 billion in loans, lines of credit, and

equity capital

The American Recovery and Reinvestment Act of 2009

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 18

Describe how one of the entrepreneurs discussed above recognized an opportunity to develop a successful business.

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 19

Business Success or Failure

Sixty-seven percent of new businesses survive at least two years.

Forty-four percent of new businesses survive at least four years.

Success rates can be enhanced if businesses have adequate capital are large enough to have employees

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 20

the owner lacks business knowledge

Having an idea for a product or service is different than knowing how to run a business.

Businesses may fail if

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 21

What factors contribute to helping a business succeed?

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Chapter 1Slide 22

Lesson 1.2

Is Entrepreneurship Right for You? Goals Identify the characteristics of successful

entrepreneurs. Identify the characteristics of good team

members. Assess whether you have what it takes

to succeed in your own business.

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 23

Vocabulary self-assessment aptitude

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Chapter 1Slide 24

Characteristics of Successful Entrepreneurs Successful entrepreneurs are:

independent self-confident determined goal-oriented achievement-oriented with high

standards

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Chapter 1Slide 25

able to act quickly technologically current

creative

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 26

Name three important characteristics of entrepreneurs.

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Chapter 1Slide 27

Characteristics of Good Team Members Good team members display the

following traits: commitment competency communication cooperation creativity

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 28

Why is it important for entrepreneurs to be good team members?

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Chapter 1Slide 29

Are You Right for Entrepreneurship? self-assessment

an evaluation of your strengths and weaknesses

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Assess Your Interests

choose a field that interests you you will enjoy matches your personal values you have aptitudes/skills in

Chapter 1Slide 30

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Assess Your Aptitude

aptitude the natural ability to learn a particular type

of job

Chapter 1Slide 31

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Chapter 1Slide 32

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Assess the Advantages of Entrepreneurship Entrepreneurs

are their own bosses can choose a business that interests them can be creative can make large sums of money

Chapter 1Slide 33

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Chapter 1Slide 34

Assess the Disadvantages of Entrepreneurship Disadvantages of entrepreneurship

include: risk uncertain and irregular incomes long hours all decisions are made independently

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 35

What kinds of assessments should you make to determine if entrepreneurship is right for you?

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 36

Lesson 1.3

Explore Ideas and Opportunities

Goals Identify sources for new business

ideas. Recognize different business

opportunities. Identify you own personal goals.

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 37

Vocabulary opportunities ideas trade shows

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Chapter 1Slide 38

Look for Ideas

opportunities possibilities that arise from existing

conditions

ideas thoughts or concepts that come from

creative thinking

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 39

Hobbies and Interests Past Experiences Discovery or Invention

Ideas come from a variety of sources including:

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Chapter 1Slide 40

Where do new ideas for businesses come from?

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Chapter 1Slide 41

Investigate Opportunities

Sources of Information Internet library County Business Patterns Small Business Administration

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 42

special meetings where companies of the same or related industry display their products

trade shows

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 43

Compare Different Opportunities For each business opportunity, you

should consider: Will people buy my product or service? How much money is required to start the

business? How many hours per week will it take to

run the business?

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 44

Do I have the right background to run this business?

How much money could I make running this business?

What are the risks associated with this business?

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 45

How can you find out about various business opportunities?

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 46

Set Goals

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Chapter 1Slide 47

Financial Goals

Financial goals should be: realistic measurable easily attainable in the time allotted

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 48

Nonfinancial Goals

Nonfinancial goals may include: personal satisfaction serving a community need doing something you like enjoying personal independence

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 49

Why are financial goals important? Name some nonfinancial goals an entrepreneur may have.

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Chapter 1Slide 50

THINK CRITICALLY

1. Why must entrepreneurs look at future trends when making business decisions?

2. Why should entrepreneurs look beyond current technology trends when making business decisions?

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 1Slide 51

4. How are entrepreneurs affected by a global economy?

3. Why should statistics be used for this presentation?