Download 6.1 - Mrs. Meyer`s Map

Characteristics of Entrepreneurs
 An
entrepreneur is someone who takes a
risk in starting a business to earn a profit.
 Must have a developed initial plan and
desire to be your own boss
 Innovation and special skills are also
necessary
 Entrepreneurship is the process of
starting, organizing, managing, and
assuming the responsibility for a business.
What Does it Take?





Not all business owners are
entrepreneurs
Must have confidence and capability to
turn an idea into a business
Come from all genders, ages, ethnic
groups (more are male but more even for
young ent.).
Must have an understanding of business
operations, but doesn’t need to come
from a degree
Often ideas come from problems in daily
life…Makin Bacon® example
Personal Characteristics
Entrepreneurs are…
Persistent
Inquisitive
Energetic
Goal oriented
Independent
Self-confident
Creative
Reliable
Competitive
They have…
Problem-solving skills
Tolerance for ambiguity
Strong integrity
Personal initiative
Ability to secure resources
Capability to learn from
failure
Willingness to work hard
Entrepreneurship and the
Economy
 Entrepreneurship
is a key part of the
economy
 Nearly one in ten of all Americans 18-64 is
involved in some form of entrepreneurship
 More than 670,000 new businesses are
created annually
 Businesses with fewer than 500
employees are responsible for over 60%
of new jobs created between 1993 and
2003
Financing

A majority of money needed to
start a new business comes
from the entrepreneur and
his/her family and friends

One in five Americans has
invested in a business of
someone they know well

Venture capital is money
provided by large investors to
finance new products and new
business that have a good
chance of being profitable
Venture Capital
 Late
1990’s many venture capital co. were
formed
 Supplied > 100 billion each yr. to new
businesses
 Most were high-tech e-commerce start-ups
 Failed…venture capital decreased
 Other sources include loans from banks,
credit from other businesses
Productivity
 New
and small businesses produce large
volumes of goods and services
 Businesses
without employees besides
the owner account for $600 billion in sales
annually
 Over
½ of the U.S. GDP comes
from small businesses each year!
Opportunities and Risk
 There
are many risks that go along with
starting a new business
 Must
give up a regular job and stable income
 Benefits
= personal control over
your own business & satisfaction
of creating a successful company
New Business Opportunities
 Innovation
is any invention or creation
that is brand new
 Improvement
is a designed
change the increases the
usefulness of a product, service,
or product
 Either
of these types of inventions may
become the basis of a new business
New Business Opportunities
(cont.)

Inventors may sell idea to another co. for
development and sale

Innovations can be anything from Post-its
(Arthur Fry) to an artificial heart

New services can be considered improvements
or innovations as well

Entrepreneurs are creative problem solvers
Recognizing Risks
 Developing
a successful new business is
not easy
 The
National Federation of Independent
Business reports that of all new
businesses, only one third actually makes
a profit.
 Over
50% of all new businesses are
discontinued.
Recognizing Risks (cont.)
 The
primary reasons that businesses
started by entrepreneurs close include:
•
•
•
•
•
Lack of adequate capital
Low sales
Higher than expected expenses
Competitive pressure
An owner unprepared to manage a growing
business
• Operations requiring more time than the owner is
willing to commit
Assessment
 Pg.
4
131
points
 Complete
1-4, 4 points
Innovate! Rules:
1
piece of construction paper
 Glue/Tape/Staples
 One marker
 Scissors
 May trade with my bag…one item at a
time.
 You can trade with other groups at
anytime
 Judged by myself & other teachers – the
SHARKS!