COURSE:
Entrepreneurship I
ESSENTIAL
STANDARD:
1.00
B2
OBJECTIVE:
1.01
B2
UNIT A
8%
Entrepreneurship Foundations
Understand economics, career planning,
information management, and communication
skills.
Understand economic systems to be able to
recognize the environments in which businesses
function
Essential Questions:
 What distinguishes an entrepreneur from a small business owner or manager?
 What are the barriers to small business/entrepreneurial success?
 What impacts the growth of small businesses?
 How have small businesses contributed to society?
UNPACKED CONTENT
Competency 1.01
A. Define the terms entrepreneurship and small business
1. Entrepreneurship - the process of recognizing an opportunity, testing it in the market, and
gathering resources necessary to go into business
2. Small Business - any business that is operated by one or a few individuals.
a. Employs <100 people.
b. Represent 99.7% of all employers.
B. Explain the relationship between small business and entrepreneurship
1. Entrepreneur – an individual who undertakes the risk associated with creating, organizing, and
owning a business
2. Entrepreneurship – is the process of starting and operating one’s own business
3. Venture – is a business undertaking involving risk
4. Opportunity – is an idea that has commercial value
5. Small Business Owner – the owner of a business that was generally started to create jobs for
the owners and referred to as a “mom and pop” business
6. Entrepreneurial venture is quite different from small business in the following ways:
a. Innovation - This is the very instrument of entrepreneurship. It provides resources with a
new power to create wealth. Entrepreneurship frequently engages extensive innovation
further than what a small business might exhibit.
b. Risk - Risk must be usually high in an entrepreneurial venture. If not, with the enticement
of sure profits, many entrepreneurs would be trailing the idea and the opportunity would no
longer exist.
c. Amount of wealth creation - A booming entrepreneurial venture generates substantial
wealth, normally in excess of several million dollars of profit rather than simply generating
an income stream that replaces fixed employment.
d. Speed of wealth creation - A successful small business can make quite a lot of profit over
a lifetime. But for an entrepreneur, wealth creation often is fast and speedy, for example,
within 5 years. Also, the types of business they are engaged in is what basically
differentiates entrepreneur activities. Innovation is the key. Every entrepreneur should rely
greatly on this.
8716 Entrepreneurship I
Unit A: Entrepreneurship Foundations
Summer 2012, Page 1
OBJECTIVE:
1.01
B2
Understand economic systems to be able to
recognize the environments in which businesses
function
UNPACKED CONTENT
e. Innovation can be emphasized on the following:
1) new organization
2) new products
3) new markets
4) new production methods
C. Describe barriers to small business/entrepreneurial success
1. Owner – time is needed to plan and manage growth, you’re busy running the business.
Delegate responsibility!
2. People – you can’t grow without people helping, problem is finding the RIGHT people.
Define the job you want done!
3. Money – growth needs money, determine how much you need. Growth expenses will climb
before revenue does!
4. Customers – if you don’t sell, you won’t grow. Acquire new, SPOIL existing. Superior
Customer Service should be priority!
5. Information Chaos – is confusing and halts growth. Good information should be CORRECT,
CURRENT, and CONSISTENT!
6. Processes – are the wheel of the company. If not documented you will constantly be
reinventing. Document & K.I.S.S.!
7. Planning – Phil Orsini, entrepreneur & author says “Companies don’t fail because they grow.
They fail because they don’t plan their growth.” Strategic plans are your roadmap to growth!
D. Discuss reasons for the growth of small business
1. The economic system of free enterprise answers 4 basic questions:
a. What goods and services should be produced?
b. What quantity of goods and services should be produced?
c. How should goods and services be produced?
d. For whom should goods and services be produced?
2. In a Free Enterprise system people have the right to make the following economic choices:
a. People choose what products to buy
b. People choose to own private property
c. People can choose to start a business and compete with other businesses
3. Market economy (free enterprise) is vital to entrepreneurship and includes the following:
a. The profit motive
1) profit is the primary incentive
2) profit is money that is left after all expenses of running a business have been deducted
from the income
3) it measures success
b. The role of competition
1) Competition between similar businesses is one of the basic characteristics
2) Gives consumers choices
3) Forces companies to improve quality
4) Leads to surpluses that bring prices down
5) Businesses compete on the basis of price and non-price factors
c. Market structures
1) The nature and degree of competition among businesses operating in the same industry
2) Market structure affects market price
3) Industries grouped as perfect competition (numerous buyers and sellers and no single
seller can affect price), monopolistic competition (many sellers produce similar but
8716 Entrepreneurship I
Unit A: Entrepreneurship Foundations
Summer 2012, Page 2
differentiated products), monopoly (one seller has control over supply and price), and
oligopoly (just a few competing firms)
4. Started by entrepreneurs who put efforts in to build the company and earn profits. Due to the
disadvantages of BIG business, small businesses are flourishing
a. Entrepreneurs come up with new ideas
b. They try to do something that’s never been done before
c. They get venture capital funding
d. If the business is good, the returns are also good
e. Entrepreneurs can explore their own ideas and show creativity
E. Identify ways that small business has contributed to society
1. Small businesses contribute employment
2. Pay taxes to government
3. Help with the flow of the economy
4. Examples of entrepreneurs that have helped
a. 1800s Thomas Edison – light bulb
b. 1800s PT Barnum – was 60 when he did his first show, became known as the “Greatest
Show on Earth”
c. 1900s William Harley & Arthur Davidson – survived the Great Depression and is the
world’s largest motorcycle manufacturer
d. Present, Russell Simmons turned his passion for hip-hop into a venture now worth
millions. Known as the Godfather of Hip Hop
5. Donations – A business person donates a lot of money for charity purposes. From his or her
earnings, he or she would like to help the downtrodden and try to improve their living
conditions.
6. Charitable institutions – A businessman or woman sets up various educational, medical and
vocational training institutions to provide the less privileged with benefits which they normally
cannot afford. The fees may be less or waived in the case of a meritorious student. Hospitals
are also run by these charitable institutions.
7. Sponsorship – Many business people sponsor a candidate for higher education or fund a child
in an orphanage. In fact, many orphanages are backed by these business people. Scholarships
are provided to a poor student for him or her to avail of better educational opportunities.
8. Welfare programs – A businessman or woman financially contributes to various welfare
programs, like helping the blind, orphans, widow etc. In times of crisis, they help by donating
items such as blankets, clothes, medicines etc.
9. Advisors to respective government – Many successful business people participate in
government activities in order to promote the well-being of the citizens. The government often
seeks their advice on certain social and economic activities.
10. Turn demand into supply
8716 Entrepreneurship I
Unit A: Entrepreneurship Foundations
Summer 2012, Page 3
OBJECTIVE:
1.
Understand economic systems to be able to
1.01 B2
recognize the environments in which businesses
function
RELEVANCY
INSTRUCTIONAL ACTIVITIES
TO OBJECTIVE
Present the Competency 1.01 PPT and have the students complete the
guided notes for the concepts (Appendix #1)
2. Read article @ http://www.america.gov/st/businessenglish/2006/January/20080814223926XJyrreP0.615597.html
Divide the class into groups and have each group create a list of specific
contributions entrepreneurs make to the economy. Compile the list
with the class and create a “Top 10 List of Contributions
3. Divide students into groups and have each group list products that are in
direct competition with each other for customers.
Have students discuss and report their findings for the following questions:
a. How competition affects pricing?
b. What marketing strategies are used in competition?
4.
Have students write a reflection of the products or services they have
used in which quality or service is more important than price. This can be
done via the computer or handwritten.
Literacy Strategy:
A Quick-Write is a short written response to a question. The teacher is trying to help students connect or
show what they know. The teacher is looking for evidence of thinking, not grammar, punctuation, or
mechanics. Usually a Quick-Write takes one-two minutes. Quick-Writes are often the type of writing a
student puts in a learning log or journal.
8716 Entrepreneurship I
Unit A: Entrepreneurship Foundations
Summer 2012, Page 4
OBJECTIVE:
1.01
Understand economic systems to be able to recognize the
environments in which businesses function
B2
REFERENCES
WEBSITES
http://EzineArticles.com/4897485
Textbook References:
Entrepreneurship and Small Business Management –
Kathleen Allen and Earl Meyer; Glencoe Publishing;
2006 Edition
Supplemental Resources:
http://www.evancarmichael.com/Busine
ss-Coach/740/Seven-Barriers-toBusiness-Growth.html
http://www.america.gov/st/businessenglish/2006/January/20080814223926
XJyrreP0.615597.html
http://www.paggu.com/entrepreneurship
/top-5-contributions-ofentrepreneurship-in-society/
8716 Entrepreneurship I
Unit A: Entrepreneurship Foundations
Summer 2012, Page 5
O BJECTIVE 1.02
A PPENDIX OF
I NSTRUCTIONAL S UPPORT M ATERIALS
1.01 S UPPLIES


Supplies Needed
Flip Chart or Whiteboard
Markers
8716 Entrepreneurship I
Where Supplies Are Used
Activity Related Appendix/ Lesson
1
1
Unit A: Entrepreneurship Foundations
Summer 2012, Page 6
Appendix #1 – Graphic Organizer or Notes
STUDY GUIDE – OBJECTIVE 1.01
Competency 1.01: Understand _____________ systems to be able to recognize the ____________
in which businesses function
Define Small Business and Entrepreneurship
Small ___________– any ____________ that is operated by one or a few individuals. Employs
_____100 people. Represent __________of all employers.
Entrepreneurship – the process of _____________ an opportunity, __________ it in the market, and
_____________ resources necessary to go into _____________
Entrepreneurship vs. Small Business
Entrepreneurial _____________is quite different from small business in the following ways:
_____________- This is the very instrument of entrepreneurship. It provides resources with a new
power to create wealth. __________________ frequently engages extensive innovation further than
what a small business might exhibit.
Risk - Risk must be usually high in an ________________ venture. If not, with the enticement of sure
__________, many entrepreneurs would be trailing the idea and the ___________ would no longer
exist.
Amount of wealth creation - A booming __________________ venture generates substantial
wealth, normally in excess of several million dollars of ________ rather than simply generating an
income stream that replaces fixed _______________.
Speed of wealth ___________ - A successful small business can make quite a lot of
_____________ over a lifetime. But for an _______________, wealth creation often is_________ and
speedy, for example, within _____ years. Also, the types of business they are engaged in is what
basically differentiates entrepreneur activities. _______________ is the key. Every entrepreneur
should rely greatly on this. _____________ can be emphasized on the following:
- new ______________
- new _____________
- new _____________
- new production ____________
8716 Entrepreneurship I
Unit A: Entrepreneurship Foundations
Summer 2012, Page 7
Barriers to Small Business/Entrepreneurial Success
Owner – _________is needed to _______and _________growth, you’re _______running the
business. ___________ responsibility!
People – you __________ grow without ________ helping, __________ is finding the RIGHT people.
________ the job you want done!
Money – ___________ needs ____________, determine how much you need. _________ expenses
will climb before ______________ does!
Customers – if you don’t sell, you _________ grow. Acquire new, __________ existing. __________
Customer Service ____________ be ____________!
Information ____________– is ____________and halts growth. Good ___________ should be
______________, CURRENT, and __________________!
Processes – are the wheel of the ___________. If not ____________you will constantly be
_______________. Document & K.I.S.S.!
Planning – Phil Orsini, _____________ & author says “_____________ don’t fail because they
__________. They fail because they _________ plan their growth.” Strategic plans are your
__________
Resource: http://www.evancarmichael.com/Business-Coach/740/Seven-Barriers-to-BusinessGrowth.html
Economic Reasons for Growth
1. The economic system of free enterprise answers 4 basic questions:
◦
What ____________and __________________ should be produced?
◦
What _________________ of goods and services should be produced?
◦
____________________ should goods and services be produced?
◦
For ___________ should goods and services be produced?
2. In a Free Enterprise system people have the right to make the following economic choices:
a. _____________________________________________________________
b. _____________________________________________________________
c. _____________________________________________________________
3. Market economy (free enterprise) is vital to entrepreneurship and includes the following:
a. The profit motive
1) profit is the ________________________ incentive
2) profit is money that is _______________ after all expenses of running a
business have been deducted from the _______________
3) it measures ____________________________
b. The role of competition
8716 Entrepreneurship I
Unit A: Entrepreneurship Foundations
Summer 2012, Page 8
1) Competition between _____________________ businesses is one of the
basic characteristics
2) Gives consumers __________________________________
3) Forces companies to _____________________________ quality
4) Leads to ___________________________ that bring prices
________________________
5) Businesses compete on the basis of __________________ and
______________________________ factors
c. Market structures
1) The ____________________ and __________________ of competition
among businesses operating in the same industry
2) Market _______________ affects __________________ price
3) Industries grouped as
1. _____________________ _____________________ (numerous
buyers and sellers and no single seller can affect price),
2. ____________________________________ competition (many
sellers produce similar but differentiated products),
3. _______________________________________________ (one seller
has control over supply and price)
4. _______________________________________________ (just a few
competing firms)
Reasons for Growth
Started by _____________who put efforts in to build the company and _________ profits. Due to the
disadvantages of BIG _____________, small businesses are flourishing
_________________ come up with new ___________
They try to do ____________ that’s never been done before
They get venture capital _________
If the business is good, the ___________ are also good
________________can explore their own ideas and show ______________
Ways SB has contributed to society
Small businesses _______________employment
Turn ____________________ into _______________________________
Pay____________to government
Help with the flow of the ____________
Examples of ______________that have helped
1800s Thomas Edison
8716 Entrepreneurship I
Unit A: Entrepreneurship Foundations
Summer 2012, Page 9
1800s PT Barnum
__________ William _________& Arthur ____________
Present, ______________Simmons
Donations – A ____________ person _____________a lot of money for charity purposes.
Charitable institutions – A businessman or woman sets up various _______________, medical and
vocational ___________institutions to provide the less _____________ with benefits which they
normally cannot afford.
Sponsorship – Many _____________people sponsor a candidate for higher ___________ or fund a
child in an orphanage
Welfare programs – A businessman or woman ___________ contributes to various welfare
_____________, like helping the blind, orphans, widow etc.
Advisors to respective __________________– Many successful business people participate in
government _____________in order to promote the well-being of the __________
Resources: http://www.paggu.com/entrepreneurship/top-5-contributions-of-entrepreneurship-insociety/
8716 Entrepreneurship I
Unit A: Entrepreneurship Foundations
Summer 2012, Page 10