Chapter 1: Should You Become an Entrepreneur?

Entrepreneurs Past and Present: Section 1.1

• Goals– Define entrepreneurship

– Lean about entrepreneurship in history

– Identify the impact of entrepreneurs and small business today.

Entrepreneurship

• Entrepreneurs are anyone who owns their own business.

• The processes of operating your own business is known as entrepreneurship.

Employees vs. Entrepreneurs

• Employees are people who work for someone else.

Why People Become Entrepreneurs

• The reasons people become entrepreneurs are varied.– Some people want to leave the corporate

environment.

– Some people want to pursue a personal dream.

– Others see a need in the market they feel they can fill.

– There are many varied reasons people become entrepreneurs.

Common Types of Entrepreneurial Businesses.

• Manufacturing

• Wholesaling

• Retailing

• Service

• Agricultural

• Mining

What do you think?

• List at least two examples of each type of entrepreneurial businesses in our area.– 2 Manufacturing

– 2 Wholesaling

– 2 Retailing

– 2 Service

Entrepreneurs in U.S. History

• Many entrepreneurs helped spur the American Industrial Revolution.

• These entrepreneurs constantly change how things are done and contribute to the overall good of the nation.

Cyris McCormick

• Used the reaper in 1831 to harvest crops.

• The company he founded eventually evolved into International Harvester; which today is now Navistar International Transportation which makes International brand trucks.

John D. Rockefeller

• Founded Standard Oil.

• Eventually Rockefeller controlled almost all oil distribution in the United States.

• Eventually he became the richest man in the world for his time.

Early Twentieth-Century Entrepreneurs

• Henry Ford developed and mass produced the Model-T automobile.

• Clarence Birdseye pioneered the development of packaged frozen foods in the 1920s.

• Rose Knox took over the Knox Gelatine Company in 1908. She was the first to provide employees paid sick and vacation leave and a five-day work week.

Assessment 1.1 page 8

• Think Critically – Answer questions 1 and 2.

• Make Connections– Answer questions 3 and 4.

Is Entrepreneurship Right for You?: Section 1.2

• Goals– Identify the characteristics of successful

entrepreneurs.

– Assess whether you have what it takes to success in you own business.

Characteristics of Successful Entrepreneurs

• Successful entrepreneurs are independent.

• Successful entrepreneurs are self-confident.

• Successful entrepreneurs have determination and perseverance.

• Successful entrepreneurs are goal-oriented.

• Successful entrepreneurs have a need to achieve and set high standards for themselves.

• Successful entrepreneurs are able to act quickly.

Assess Your Suitability for Entrepreneurship

• Entrepreneurship is not for everyone.

• It is important to perform a self assessment to see if you have what it takes to be a successful entrepreneur.

Assess Your Interests

• Hobbies and Interests.– Look at your hobbies and interests to they may

turn into a career.

– You are more likely to invest the needed time and energy in a business if you have a passion for it.

• Past Experiences.– Previous jobs and experience can help you decide

on a business you may enjoy owning.

Assess Your Aptitude

• Aptitude is the ability to learn a particular type of job.

What do you think?

• Select three jobs for people who display an aptitude in each of the following categories.– I enjoy working with numbers.– I enjoy working outdoors.– I enjoy working with my hands.– I enjoy selling.– I like working with people.– I prefer to work alone.– I like supervising other people.– I like knowing exactly what I am suppose to do.

Assess the Advantages of Entrepreneurship.

• Many people see significant advantages in owning their own business.– Entrepreneurs are their own boss.

– Entrepreneurs can choose a business that interests them.

– Entrepreneurs can be creative.

– Entrepreneurs can make a lot of money.

Assess the Disadvantages of Entrepreneurship

• There are many disadvantages of being an entrepreneur as well.– Entrepreneurship is risky.

– Entrepreneurs face uncertain and irregular incomes.

– Entrepreneurs work long hours.

– Entrepreneurs must make all decisions by themselves.

Assessment 1.2 page 13

• Think Critically – Answer questions 1, 2, and 3.

• Make Connections– Answer questions 4 and 5.

Identify Business Opportunities and Set Goals: Section 1.3

• Goals– Recognize different businesses you could start.

– Identify you own personal goals.

Investigate Opportunities

• Small Business Administration.

• Trade Shows.

• Trade Publications.

Compare Different Opportunities

• Once you find some appealing businesses you need to identify the best chance for success.

• Ask yourself:– Is there a market in my community for this kind of

businesses? Will people buy my product or service?

– How much money would it take to start this business? Will I be able to borrow or raise that much money?

Compare Different Opportunities

• Ask yourself:– How many hours a week is it likely to take to run this

business? Am I willing to commit that much time?

– What are the particular risks associated with this business? What is the rate of business failure?

– Does my background prepare me to run this kind of business? Do most people who own this type of business have more experience than I do?

– How much money could I make running this business?

Setting Goals

• Financial

• Non Financial Goals

Financial Goals

• How much money do you expect to take in?

• What do you expect to be able to do with this business?

Non Financial Goals

• What satisfaction do you receive in running this type of business?

Assessment 1.3 page 13

• Think Critically – Answer questions 1, and 2..

• Make Connections– Answer questions 3, 4, and 5.

Entrepreneurship Today• You have 10 minutes to find two statistics that

are surprising to you. You will report your findings to the class.

• http://www.entrepreneur.com/encyclopedia/businessstatistics/index115544.html