Chapter 1
Should You Become an
Entrepreneur?
1.1 All about Entrepreneurship
1.2 Is Entrepreneurship Right for
You?
1.3 Explore Ideas and Opportunities
1.4 Problem Solving for Entrepreneurs
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Lesson 1.1
All About Entrepreneurship
Goals
 Define entrepreneurship.
 Recognize the role entrepreneurs play
in the U.S. economy.
 Determine the reasons that businesses
succeed or fail.
Chapter 1
Slide 2
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Vocabulary
 entrepreneurs
 entrepreneurship
 employees
Chapter 1
Slide 3
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Entrepreneurship
 Many of the small businesses in the
U.S. are owned and operated by men
and women who created their own
companies.
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What is an Entrepreneur?
 entrepreneurs
 people who own, operate, and take the
risk of a business venture
 entrepreneurship
 running a business of one’s own
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Entrepreneurship: Ideas in Action 5e
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 Entrepreneurs identify unmet needs in
the marketplace.
 They provide a service or product to meet
those unmet needs.
Chapter 1
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Entrepreneurship: Ideas in Action 5e
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Employees vs. Entrepreneurs
 employees
 people who work for someone else
 Additional earnings go to the business
owner, not to the employee.
Chapter 1
Slide 7
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why Do People Become
Entrepreneurs?
 to set your own schedule
 to work out of your home
 to pursue a personal dream
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Integrity and Ethical
Behavior
 Entrepreneurs should behave ethically
in all areas of business.
 The actions taken and the results of the
those actions should be considered.
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Entrepreneurial
Businesses
 manufacturing
 wholesaling
 retailing
 service
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1
Slide 11
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other Business Areas
 agricultural
 mining and extracting
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Green Entrepreneurship
 Many types of businesses may focus
on being organic or “green.”
 It is important to educate customers
about how products or services
 benefit the earth
 conserve resources
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Describe different types of
entrepreneurial businesses.
Chapter 1
Slide 14
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Recognizing Opportunity
 Many companies began with one
person who started a business based
on a single opportunity.
 Small firms, with fewer than 500
employees, represent 99.9 percent of
American businesses.
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Entrepreneurs Who Changed
America
 Starbucks Coffee Company
 retailer of coffee products
 introduced new product, Espresso
 markets coffee and tea products through
 website
 national retail supermarkets
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The Home Depot
 corporate vision was to provide home
improvement products
 at the lowest price
 with the best possible service
 now has more than 2,100 stores in the
United States, Canada, and Mexico
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 HARPO Productions, Inc.
 founded in 1986
 Oprah Winfrey is the first woman in
history to own and produce her own
talk show.
 HARPO Entertainment Group
 HARPO Productions
 HARPO Films
 HARPO Video
Chapter 1
Slide 18
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Entrepreneurial Opportunities in
Economic Recovery
 Small businesses are an important part
of the economic recovery. They are:
 willing and able to make changes quickly
 more creative than large companies
 Their experimentation and innovation
lead to technological change and
increased productivity.
Chapter 1
Slide 19
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 The American Recovery and
Reinvestment Act of 2009
 $30 billion in tax relief for small businesses
 $13 billion in loans, lines of credit, and
equity capital
Chapter 1
Slide 20
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Describe how one of the
entrepreneurs discussed above
recognized an opportunity to develop
a successful business.
Chapter 1
Slide 21
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Business Success or Failure
 Sixty-seven percent of new businesses
survive at least two years.
 Forty-four percent of new businesses
survive at least four years.
 Success rates can be enhanced if
businesses
 have adequate capital
 are large enough to have employees
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Businesses may fail if
 the owner lacks business knowledge
 Having an idea for a product or service
is different than knowing how to run a
business.
Chapter 1
Slide 23
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What factors contribute to helping a
business succeed?
Chapter 1
Slide 24
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Lesson 1.2
Is Entrepreneurship Right for
You?
Goals
 Identify the characteristics of successful
entrepreneurs.
 Identify the characteristics of good team
members.
 Assess whether you have what it takes
to succeed in your own business.
Chapter 1
Slide 25
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Vocabulary
 self-assessment
 aptitude
Chapter 1
Slide 26
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Characteristics of Successful
Entrepreneurs
 Successful entrepreneurs are:





Chapter 1
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independent
self-confident
determined
goal-oriented
achievement-oriented with high
standards
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 creative
 able to act quickly
 technologically current
Chapter 1
Slide 28
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Name three important characteristics
of entrepreneurs.
Chapter 1
Slide 29
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Characteristics of Good Team
Members
 Good team members display the
following traits:





Chapter 1
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commitment
competency
communication
cooperation
creativity
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why is it important for entrepreneurs
to be good team members?
Chapter 1
Slide 31
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Are You Right for
Entrepreneurship?
 self-assessment
 an evaluation of your strengths and
weaknesses
Chapter 1
Slide 32
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Assess Your Interests
 choose a field that
 interests you
 you will enjoy
Chapter 1
Slide 33
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Assess Your Aptitude
 aptitude
 the ability to learn a particular type of job
Chapter 1
Slide 34
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1
Slide 35
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Assess the Advantages of
Entrepreneurship
 Entrepreneurs




Chapter 1
Slide 36
are their own bosses
can choose a business that interests them
can be creative
can make large sums of money
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Assess the Disadvantages of
Entrepreneurship
 Disadvantages of entrepreneurship
include:




Chapter 1
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risk
uncertain and irregular incomes
long hours
all decisions are made independently
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What kinds of assessments
should you make to determine if
entrepreneurship is right for
you?
Chapter 1
Slide 38
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Lesson 1.3
Explore Ideas and
Opportunities
Goals
 Identify sources for new business
ideas.
 Recognize different business
opportunities.
 Identify you own personal goals.
Chapter 1
Slide 39
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Vocabulary
 opportunities
 ideas
 trade shows
Chapter 1
Slide 40
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Look for Ideas
 opportunities
 possibilities that arise from existing
conditions
 ideas
 thoughts or concepts that come from
creative thinking
Chapter 1
Slide 41
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Ideas come from a variety of sources
including:
 Hobbies and Interests
 Past Experiences
 Discovery or Invention
Chapter 1
Slide 42
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Where do new ideas for businesses
come from?
Chapter 1
Slide 43
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Investigate Opportunities
 Sources of Information




Chapter 1
Slide 44
Internet
library
County Business Patterns
Small Business Administration
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 trade shows
 special meetings where companies of the
same or related industry display their
products
Chapter 1
Slide 45
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Compare Different
Opportunities
 For each business opportunity, you
should consider:
 Will people buy my product or service?
 How much money is required to start the
business?
 How many hours per week will it take to
run the business?
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 What are the risks associated with this
business?
 Do I have the right background to run this
business?
 How much money could I make running this
business?
Chapter 1
Slide 47
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How can you find out about various
business opportunities?
Chapter 1
Slide 48
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Set Goals
Chapter 1
Slide 49
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Financial Goals
 Financial goals should be:
 realistic
 measurable
 easily attainable in the time allotted
Chapter 1
Slide 50
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Nonfinancial Goals
 Nonfinancial goals may include:




Chapter 1
Slide 51
personal satisfaction
serving a community need
doing something you like
enjoying personal independence
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why are financial goals important?
Name some nonfinancial goals an
entrepreneur may have.
Chapter 1
Slide 52
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Lesson 1.4
Problem Solving for
Entrepreneurs
Goals
 List the six steps of the problemsolving model.
 Describe ways to improve your
problem-solving skills.
Chapter 1
Slide 53
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Vocabulary
 problem-solving model
 brainstorming
Chapter 1
Slide 54
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Use the Problem-Solving
Model
 problem-solving model
 helps people solve problems in a logical
manner
Chapter 1
Slide 55
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1
Slide 56
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Define the Problem
 write down what the problem is and why it
is a problem
 quantify the problem
 Gather Information
 collect information that can help solve the
problem
Chapter 1
Slide 57
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Identify Various Solutions
 identify all possibilities before selecting
a particular solution
 Evaluate Alternatives and Select the
Best Option
 quantify or rank alternatives
Chapter 1
Slide 58
Entrepreneurship: Ideas in Action 5e
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 Take Action
 implement the solution
 Evaluate the Action
 even a well-thought-out solution
may not work
Chapter 1
Slide 59
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What are the six steps in the
problem-solving model?
Chapter 1
Slide 60
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Problem-Solving Skills
 Communicate
 communicate clearly and confidently
 be a good listener
 Brainstorming
 a creative problem-solving technique
 generates a large number of fresh ideas
Chapter 1
Slide 61
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Learn from Mistakes
 Mistakes are a learning experience.
Chapter 1
Slide 62
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How can you improve your
problem-solving skills?
Chapter 1
Slide 63
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
PERFORMANCE INDICATORS
 Evaluate and delegate responsibilities
needed to perform required tasks
 Demonstrate effective teamwork skills
needed to function in a business setting
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 Demonstrate knowledge of multimedia
software and components
 Demonstrate effective oral
communication skills
 Apply technical skills to create a
multimedia presentation which
enhances the oral presentation
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
THINK CRITICALLY
1. Why must entrepreneurs look at
future trends when making business
decisions?
2. Why should entrepreneurs look
beyond current technology trends
when making business decisions?
Chapter 1
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Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3. Why should statistics be used for this
presentation?
4. How are entrepreneurs affected by a
global economy?
Chapter 1
Slide 67
Entrepreneurship: Ideas in Action 5e
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.