Understanding Entrepreneurial Trends
Entrepreneurship
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businesses that conduct business mainly on
the internet
Advantages:
◦ potential to attract a huge amount of customers
◦ faster business growth
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Provide services to people for many different
reasons
◦ biggest and fastest growing part of the American
economy
◦ Examples: Banking, Insurance, Education,
Advertising, Real Estate, Trades, Tax Preparation
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Businesses that are run out of an individuals
home
◦ Rapid business growth since the late 1990’s
◦ Examples: Consultants, Sales Reps, Writers, Graphic
Artists, Web Designers, Survey Takers
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A business that focuses on a goodwill
mission to better society
Examples: United Way, Salvation Army, Feed
the Children, YMCA, American Red Cross
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Trend in business to improve processes,
efficiency and marketing to gain a
competitive advantage over competition
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Contracting with other companies for services
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Partnering with another company for mutual
benefit
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Starting another company within a company
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5.
Brainstorming – thinking freely to generate
new ideas
Recognize Needs as Opportunities
Evaluate Products & Services
Observe the world around you and the
people
Learn about different types of businesses
and industries
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Thinking creatively that results in a new way
of doing something
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A small specialized market
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Personal characteristics that describe a
population
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Age
Gender
Income
Ethnic background
Education
Occupation
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Interests
Hobbies
Work
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Trade Magazines
◦ Periodical published for specific types of business
or industries
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Specialty Magazines
◦ periodical that targets people with a specific
interest
◦ Examples: Sports, Fashion, Computers &
Electronics, Entertainment, Autos, Cooking
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Trade Show
◦ Show or exhibition in which vendors promote new
products and do demonstrations to market
products
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Newspapers
Internet
Government Agencies
Entrepreneurship
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Beliefs and principles that you choose to live by
◦ Define who you are
◦ Shape your attitudes and choices
◦ Identify priorities
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Influenced by
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Family
Religion
Friends
Society
Personal Experiences
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a business in which one or more members of
a family have a significant ownership interest
in the business
◦ Typically small businesses
◦ Exceptions: Marriot, Mattel Toys
◦ Only 1/3 survive to the second generation
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Shared feeling of trust and togetherness
Family working as a team can achieve great
things
Family profits
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It is tough to separate business and family
Can’t get away
Trouble viewing problems objectively without
emotion
Backstabbing
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Could I work for someone in my family?
Do we share similar values & goals?
Clear Expectations?
Can we separate family & business when we
go home each night?
Can we keep relationships positive?
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Buying the rights to set up a new business
patterned on an existing model
A legal agreement to begin a business in the
name of the recognized company
Examples:
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Subway
Dunkin Donuts
UPS Store
Super 8
McDonald's
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Franchisee – buyer of the rights
◦ Example: John Doe, Susan Smith
 Need initial investment in $30,000 - $250,000 range
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Franchisor- seller of the rights
◦ Example: McDonald’s, Subway
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Usually less risky
Facility, employees, equipment, procedures
are usually established
Customer base
Goodwill – loyalty to existing customers
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Read pg. 60 thru the end of the Section 3.2
on pg. 63
◦ Franchises
◦ Evaluating a Business Opportunity
◦ Starting Your Own Business
◦ Answer #3 and #4 on pg. 63 in your journal