entrepreneurship 101 chapter one. teen millionaires... how did they do it 8.11 min teenage...
TRANSCRIPT
• Self-made millionaire at age 14.
• http://www.youtube.com/watch?v=1C9tTUuWSfU&feature=related
• 8.45 min
• Quirky's Pivot Power• http://www.youtube.com/watch?v=vhX1MW-xijI• 38 sec
Entrepreneur
• One who organizes, manages and assumes the risks of a business or enterprise
• One who takes a risk and starts a business to solve a problem OR take advantage of an opportunity
Robert Fournier, 16, get's ready to take his sister Laura for a spin around the block on one of his rickshaws in Smith Falls.
It was a gutsy decision for Rachel Hill-Campbell, but one made easier to stomach through the help of entrepreneurial friends.
Eight years ago, Hill-Campbell started her St. Catharines mobile eyeglass-selling venture called Personal Optical.
She made use of the Niagara College Business Development Centre, which provides in-house training, business mentorship and provincial government funding for qualified people starting new businesses.
School project turns into small business opportunity for Fort Erie teen
Lakeshore Catholic high school student Gaetano Letizia didn’t have to go knocking on doors to find a summer job for himself. The 17-year-old Fort Erie resident created one for himself.
Cassie Rempel, 22, is the owner of Bark Fur Joy grooming salon. Rempel’s business specializes in providing quality dog and cat grooming, with extra love and affection for people's furry friends.
The owner of three pooches herself, she learned her craft during an intensive training course at a St. Catharines dog grooming school. She studied business at Hamilton's Mohawk College where she learned how to make a business plan. Now she employs and trains several staff members at the busy salon that also serves as a doggy daycare for owners who drop their pets off for a "day at the spa".
The meaning of entrepreneurship?
• What is Entrepreneurship?
• Write down as many characteristics about an entrepreneur as possible.
• Also, read between the lines.
Characteristics of an entrepreneur
• Innovative• Determine• Self-confident• Resilient• Driven• Adventurous• Don’t accept failure – Look at it as a challenge• Persistent
Characteristics of an entrepreneur
• Energetic• Motivated• Opportunistic• Brave• Flexible• Confident• Creative
Characteristics of an entrepreneur
• Experimental• Intelligent• Common Sense• Knowledgeable• Adaptive• Take initiative• Self-starter
Characteristics of an entrepreneur
• Personable• Organized• Risk Taker• Trust in self and others (self confident)• Trustworthy• Understanding• Hussel
YouTube
• Sarah Blakely interviewed on NY 360
• Sara Blakely, Speaker, Entrepreneur &
Founder of SPANX
• http://www.youtube.com/watch?v=kFx-RdVLheI
1. For-Profit / Not-for-Profit
For-Profit
- make money
Not-for-Profit
- offer something for society
- not make a profit
(Charities, United Way ...)
FOR-PROFITAmerican Eagle
Sport Chek
Canadian Tire
Black’s Cameras
Dell Computers
Radio Shack
General Motors
Donegan’s Haulage
Pizza Hut
Drains Are Us Plumbing
NOT-FOR-PROFITSalvation Army
Big Sisters
United Way
Boy Scouts of Canada
Rotary Club
Arthritis Society
Girl Guides
Cancer Society
Canadian Red Cross
Canadian Diabetes Association
3. Goods versus A Service
• Goods = $ value
Tangible
(can touch)
• Service = $ value
Intangible
(can see the result of)
• SERVICE / GOODS
Services Goods
Bender’s Auto Service Toyota Corp.
Hair Connection Spinrite Yarns Ltd.
Dr. Betty Ferguson Bauer Sports Ltd.
Abacus Computer Training Microsoft Corp.
Zebroski Chartered Accountant General Electric Ltd.
5. Local /Provincial /National /International
• local = one community• provincial = within one province• national = includes several provinces• international = includes world
CANADIAN LOCAL, NATIONAL, INTERNATIONAL, BUSINESSES
• LOCAL – (list some local business)• NATIONAL BUSINESSES
– Canadian Tire -Radio Shack– Root’s -Hudson Bay– Canada Trust -Intrawest
• INTERNATIONAL BUSINESSES– NHL -CIBC– McCain’s Foods -Bombardier Corp.– Tim Horton’s -Nortel
List three advantages and three disadvantages
to selling a product in each type of market.
Market Advantages Disadvantages
Local
Provincial
National
International
Gross National Product (GNP)• the total monetary value of all the goods
and services produced in Canada in one year
• Trade Agreements:
• GATT General Agreement on
Tariffs & Trade
• NAFTA North American Free
Trade Agreement
• Downsizing
• is the “conscious use of permanent personnel reductions in an attempt to improve efficiency and/or effectiveness”
Outsourcing
means taking some specific, but limited, function that your company was doing in-house – and having another company perform that exact same function for you and then reintegrating their work back into your overall operation.
Offshoringis when a company takes one of its factories that
it is operating here and moves the whole factor offshore – to another country
Assignment:
List five ways in which technology has changed the lives of Canadians over the past 20 years.
Explain the positive or negative impact of each change. The first one has been done for you.
Change Positive or negative Impact
SEE EXAMPLE ON NEXT SLIDE
Change Positive or negative Impact
The invention and proliferation of cell phones
Positive impact:Cell phones allow individuals to be accessible anywhere in the world at any time of day, which results in quicker decisions and quicker responses to emergencies.Negative Impact:The use of cell phones in cars has caused many traffic accidents.
MediaNet
Supply and Demand (AD0504,SV) S 2000
Streaming Video29 min
• Demand:
– is the quantity of a good / service that consumers are willing and able to buy at a particular price
– i.e., iPad, High-Def TV
• Supply:
– is the quantity of a good/service that businesses are willing and able to provide within a range of prices that people would be willing to pay.
• i.e., limited edition prints (1/250)versus millions of iPads
• Conditions that create demand:• 1. Interest• 2. Ample supply• 3. Reasonable, competitive price
4. Accessibility
Factors that affect demand:
1. Income increases » you can afford more
2. Change in consumer’s tastes » need the latest in fashion, music
3. Change in expectations of
future conditions» buy now or gone
Conditions that affect supply
1. Change in number of producers
2. Price of related goods
3. Change in technology
4. Change in expectations
5. Cost of production
• Using basic economics to explain high gas prices
• http://www.youtube.com/watch?v=hg9FaMB54CA• 2.52 min
YouTube
• My Blackberry Is Not Working• funny
– http://www.youtube.com/watch?v=kAG39jKi0lI
2. New Ideas
• Invention
• Innovation
Invention or Innovation?
• QUICKIES: sticky notes of 21st Century
• http://www.youtube.com/watch?v=HQT5_4aVvHU• 1.45 min
• History of Post-it Notes• See Wikipedia -- Post-it Note
4. Political Benefits
• we have strong financial & legal institutions– money, education & training is available– regulations protect and trade exists
compared to communism
Demographics
Data about groups of people including age,
ethnic origin, religion, family size, income ...
• Demographics is the study of people in a population.
• Some frequently used demographic variables are:
• Age • Sex / Gender • Race/ Ethnicity • Location of residence • Socioeconomic status (SES) • Religion • Marital status • Ownership (home, car, pet, etc.) • Language • Mobility • Life cycles (fertility, mortality, migration)
Entrepreneurs who study the demographics of their customers will find it easier to predict what these customers will want to purchase.
Look at:• spending power• attitudes• careers / education
Cohort Year of birth
Age in
2012
Avg Number of births per
year
Size
Silent Generation
before 1946
65+ Relatively small
Baby Boomer
1946-1964 47-65 426,000 Very large
Baby buster
1965-1981Gen X
30-46 362,000 Relatively small
Children of the boomers
1982-1995Gen Y
16-29 382,000 Relatively large
Children of the buster cohorts
1996 on 0-15 344,000 Relatively small
• Video– MultiGen Workforce, Generation X
• Karen McCullough Loves Generation X– http://msgenevieve.typepad.com/enterprisingemployee/
5 min
– MultiGen Workforce, The Baby Boomers
What is Generation Y?
• Hmm, I've always wondered this myself. Now I know.?
- The Silent generation, people born before 1946. - The Baby Boomers, people born between 1946 and 1959.- Generation X, people born between 1960 and 1979.- Generation Y, people born between 1980 and 1995.
Why do we call the last one generation Y?
……… .>
• Y should I get a job?• Y should I leave home and find my own place?
• Y should I get a car when I can borrow yours?
• Y should I clean my room?• Y should I wash and iron my own clothes?
• Y should I buy any food? and….
• YouTube.ca
• Demographics Explained 3.34 min
• What the speaker lacks in charisma, she gives in knowledge of her topic
• Generation Y 4.04 minhttp://www.youtube.com/watch?v=WsyZ4HRiu40&feature=related
• Enterprising people have most of the characteristics and skills of an entrepreneur but work for a company, not themselves.
• Reason: They often do not want to take the financial risk to own their own business.
Examples of Enterprising People
• Terry Fox – Run for Cancer• June Callwood – Home for Abused Women• Herb Carnegie – Future Aces• Rick Hansen – World Motion Tour for Handicapped• Arthur Fry – 3M post-it• Lee Iacocca – Chrysler mini van• Sarah McLachlan – Lilith Fair Tour• Peter Dalglish – Street Kids International
Work Environment
• More and more corporations are encouraging employees to be enterprising people in order to become more competitive, improve their productivity, or keep pace with changing markets, technology, and new opportunities.
Ways a Corporation can Encourage Employees to be Enterprising People.
Suggestion box• e.g., High Schools, General Motors, Honda
Profit sharing• e.g., Chez Piggy’s restaurant – Kingston, E.D. Smith
Team concept• e.g., 3M – creative groups for new ideas
Stock purchase plan• e.g., Canadian Tire
Pay for courses employees take to upgrade skills Encourage Professional Development Innovative and fun work environment
Provide support for enterprising people Evaluate ideas Reward efforts and results Provide freedom from constraints (flex hours) Encourage passion and commitment Share power Reward commitment and innovation Build teams and collaborative problem solving Lead by example Celebrate achievement Recognize efforts Establish a system to accept ideas and invest in idea
generation
• Create a workplace culture where employees feel their input is valued and where the employee can learn from his or her mistakes
• Provide tools needed to achieve desired results
• Provide them with meaningful work opportunities
• Provide alternative work arrangements: flex-time; telecommuting
• Support employees with benefit packages that are tailored to the needs of the employee
• Intrapreneurship is the practice of entrepreneurial skills and approaches within a company
– See article• Great Intrapreneurs in Business History
– By Jake Swearingen
• http://www.cbsnews.com/8301-505125_162-51196888/great-intrapreneurs-in-business-history/
• Enterprising employees engage in special projects within a larger firm and behave as entrepreneurs even though they are employees and have the resources and capabilities of the larger firm to draw upon– trying things until successful– learning from failures– attempting to conserve resources
• May work as a small team
• Provides an environment for creative thinking
• Maintains a high level of satisfaction
• A level of excitement is maintained and greater achievement results
How starting a business may change your life.
• Less time for friends and family• More responsibility• Feel more independent and in charge of your life• Feel successful• Respect• Sense of accomplishment• May lose your savings and other assets• May make a lot of money• May have the stress of carrying a lot of debt• May have to sacrifice weekends and holidays• Feel challenged
Choices in starting a business
1. Start the business from nothing
2. Buy an existing business
3. Modify an existing business
4. Buy a Franchise
Create the following table. List as many adv/disadv as possible.
Choice Advantages Disadvantages
Start a business from scratchBuy an existing businessModify an existing businessBuy a franchise
• you are more likely to start a business IF your parents have a business??
• must have vision for the future and
a willingness to take a risk
• may inherit basic traits
Quote:
Herb Kelleher current chairman & past CEO of Southwest Airlines
In a conversation some years ago I asked Herb to discuss whether he believed that entrepreneurs were born with their notable qualities or whether they were made through training and experience.
Are Successful Entrepreneurs Born Or Made?
We asked Herb whether he felt there were any natural born characteristics that a person would need to achieve entrepreneurial success. In answering he indicated that his experience taught him that there were six personal attributes that are important contributors to entrepreneurial success that cannot be trained into people. These include: