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Chapter 1
Should You Become an
Entrepreneur?
1.1 All about Entrepreneurship
1.2 Is Entrepreneurship Right for
You?
1.3 Explore Ideas and Opportunities
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.
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.
Chapter 1
Slide 2
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.
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
Chapter 1
Slide 3
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.
What do Entrepreneurs Do?
 Entrepreneurs identify unmet needs in
the marketplace.
 They provide a service or product to meet
those unmet needs.
 Examples
Chapter 1
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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.
Employees vs. Entrepreneurs
 Employees
 people who work for someone else
 Additional earnings go to the business
owner, not to the employee.
 Entrepreneurs
 Assume risk
 They are directly affected by the
consequences of decisions
Chapter 1
Slide 5
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
Chapter 1
Slide 6
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.
Integrity and Ethical
Behavior
 Entrepreneurs should behave ethically
in all areas of business.
 The actions taken and the results of the
those actions should be considered.
Chapter 1
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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.
Types of Entrepreneurial
Businesses
 Manufacturing
 Wholesaling
 Retailing
 Service
Chapter 1
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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.
Other Business Areas
 Agricultural
 Farms
 Mining and Extracting
 Coal
 Gas
Chapter 1
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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.
Green Entrepreneurship
 It is important to educate customers
about how products or services
 benefit the earth
 conserve resources
 Examples
Chapter 1
Slide 10
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.
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.
Chapter 1
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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.
Entrepreneurs Who Changed
America
 Starbucks Coffee Company
 Founded in 1971
 Introduced new product, Espresso
 Markets coffee and tea products through
 website
 national retail supermarkets
Chapter 1
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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.
 The Home Depot
 Started in 1979 by two friends
 Grow within five year
 Corporate vision was to provide home
improvement products
 at the lowest price
 with the best possible service
 More than 2,100 stores in the United States,
Canada, and Mexico
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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.
 HARPO Productions, Inc.
 Founded in 1986
 Oprah Winfrey is the first woman in
history to own and produce her own
talk show.
 HARPO Entertainment Group
 HARPO Productions
 HARPO Films
 HARPO Video
Chapter 1
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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 1
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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.
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
Chapter 1
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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.
 Business May Fail If…..
 the owner lacks business knowledge
 Having an idea for a product or service
is different than knowing how to run a
business.
Chapter 1
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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.
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.
Chapter 1
Slide 18
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.
Characteristics of Successful
Entrepreneurs
 Successful entrepreneurs are:
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Independent
Self-confident
Determined
Goal-oriented
Achievement-oriented with high standards
Creative
Act quickly
Technologically current
Chapter 1
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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.
Characteristics of Good Team
Members
 Good team members display the
following traits:
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Commitment
Competency
Communication
Cooperation
Creativity
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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.
Are You Right for
Entrepreneurship?
 Self-assessment
 An evaluation of your strengths and
weaknesses
Chapter 1
Slide 21
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.
Assessing Your Interests &
Aptitude
 Interest:
 Choose a field that interests you and that you will enjoy
 What business should you own quiz
 What you enjoy
 Aptitude:
 The ability to learn a particular type of job
 What I can do or learn to do
Chapter 1
Slide 22
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
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are their own bosses
can choose a business that interests them
can be creative
can make large sums of money
Chapter 1
Slide 23
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 Disadvantages of
Entrepreneurship
 Disadvantages of entrepreneurship include:
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risk
uncertain and irregular incomes
long hours
all decisions are made independently
Chapter 1
Slide 24
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.
Lesson 1.3
Explore Ideas and
Opportunities
Goals
 Identify sources for new business
ideas.
 Recognize different business
opportunities.
 Identify you own personal goals.
Chapter 1
Slide 25
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.
Look for Ideas
 Opportunities
 possibilities that arise from existing
conditions
 Examples
 Ideas
 thoughts or concepts that come from
creative thinking
 Examples
Chapter 1
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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.
Ideas
 Ideas come from a variety of sources including:
 Hobbies and Interests
 What you did for fun now a business
 Past Experiences
 What you did as a job made better
 Consulting services
 Discovery or Invention
 Needed something or made something better
Chapter 1
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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.
Investigate Opportunities
 Sources of Information
 Internet
 library
 County Business Patterns
 Publication providing economic profiles
 Employment, payroll, the number of establishments by
industry
 Small Business Administration
 Helps small businesses and their owners
 Trade Shows
 Special meetings where companies of the same or related
industry display their products
 Luanda Williams (Book)
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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.
Compare Different
Opportunities
 For each business opportunity, you should consider:
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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?
What are the risks associated with this business
Do I have the right background to run this business?
How much money could I make running this business?
Chapter 1
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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.
Set Goals
Specific
• What? Why? How?
Measurable
• How much? Starting Point
Attainable
• Can you reach it?
Realistic
• Will it be possible?
Time Specific
• When will it happen?
Chapter 1
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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.
Financial Goals
 Financial goals should be:
 Realistic
 Measurable
 Easily attainable in the time allotted
 Mo Yang
 Book
Chapter 1
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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.
Nonfinancial Goals
 Nonfinancial goals may include:
 Personal satisfaction
 Doing something you like
 Personal independence
 Serving a community need
Chapter 1
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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.
Lesson 1.4
Problem Solving for
Entrepreneurs
Goals
 List the six steps of the problemsolving model.
 Describe ways to improve your
problem-solving skills.
Chapter 1
Slide 33
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.
Use the Problem-Solving
Model
 Problem-Solving Model
 Helps people solve problems in a logical
manner
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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.
Step 1
 Define the Problem
 Write down what the problem is and why it
is a problem
 Make sure the problem is the problem
 Quantify the problem
 How could this be put into numbers or $
Chapter 1
Slide 35
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.
Step 2
 Gather Information
 Collect information that can help solve the
problem
 How has the problem been solved before?
 Who solved it?
Chapter 1
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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.
Step 3
 Identify Various Solutions
 Identify all possibilities before selecting a
particular solution
 Weigh the risk, pros & cons
Chapter 1
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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.
Step 4
 Evaluate Alternatives and Select the
Best Option
 Quantify or rank alternatives
Chapter 1
Slide 38
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.
Step 5
 Take Action
 Implement the solution
Chapter 1
Slide 39
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.
Step 6
 Evaluate the Action
 Even a well-thought-out solution may not
work
 Evaluate again!
Chapter 1
Slide 40
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.
Problem-Solving Skills
 Communicate
 Communicate clearly and confidently
 Be a good listener
 Brainstorming
 A creative problem-solving technique
 Generates a large number of fresh ideas
 Learn from Mistakes
 Where did you go wrong
 How can you improve
Chapter 1
Slide 41
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 1
Slide 42
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.