Characteristics of Entrepreneurs International Business Characteristics of Entrepreneurs Presented By Mrs. Bowden

Today we will: Define characteristics of Entrepreneurs

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

Risks/Rewards Risks are: Exposure to the chance of loss (financial, reputation, etc…) Rewards are: A gain or success (financial, reputation, etc…) Have students give their definitions of risks and rewards.

Risks/Rewards In business, why do you think owners should weigh risks versus rewards before making a business decision? To determine if the risks outweigh the rewards. If the risks are too great, failure could be detrimental to the company. Can be class discussion, hand-raising or individual activity.

Good Business Opportunities A business opportunity is good when it makes business sense and will make money. Do you think the following opportunity is good for business: • Will cost the company an immediate investment of $1,500 • Will increase customer traffic • Will increase sales & profit • Will increase customer satisfaction Can be class discussion, hand-raising or individual activity. Answer: Yes, this is a good business decision. The risk of paying $1,500 is outweighed by the number of rewards this company will gain.

Good Business Opportunities A business opportunity is good when it makes business sense and will make money. Do you think the following opportunity is good for business: • Will cost the company an immediate investment of $20,000 • If opportunity is successful, investment will raise sales by 2% • If opportunity fails, company reputation will be ruined • If opportunity fails, the business may have to close Can be class discussion, hand-raising or individual activity. Answer: No. The risks and costs far outweigh the rewards of this business opportunity.

Good Business Opportunities A business opportunity is good when it makes business sense and will make money. Do you think the following opportunity is good for business: • Will cost the company an immediate investment of $40,000 • If opportunity is successful, sales will increase 5% annually • If opportunity is successful, the business may be able to open another location • If opportunity fails, the business will lose $40,000 Can be class discussion, hand-raising or individual activity. Answer: Yes. Though the rewards will not be immediate, a 5% increase every year and the option to open another location will be very profitable.

Difference between Entrepreneurs and Employees: Employees are people who work for someone else are subjected to neither the risks nor benefits of business ownership

Reasons for becoming an entrepreneur include: Should you be an entrepreneur?: Reasons for becoming an entrepreneur include: the desire to set your own schedule the need to work out of your home the wish to pursue a personal dream

Entrepreneurs that CHANGED America!: Starbucks Harpo Home Depot

Who are Entrepreneurs: 64 % had some college education when they started a business More that 60% used money of their own to start Slightly more that half worked overtime About 50 % of businesses were home based The majority were over 55 years old – the rest were between 25 and 45

Who are Entrepreneurs: Courage Discipline Creativity Empathy Curiosity Enthusiasm Determination

Who are Entrepreneurs: Skills: Mathematical Organizational Business People Communication Financial Computer Business Knowledge Decision Making

Who are Entrepreneurs: Your Turn – Think About It… What are two areas of skills that you are weak in? Who can help you increase your potential in those areas? What can you do to help your self get better in those areas?

Who are Entrepreneurs: Entrepreneurs are problem Solvers!

Who are Entrepreneurs: Let’s solve a problem! Are you hungry and need a Snack?? What are the steps to solve This problem?

Advantages of entrepreneurship include: Assess the Advantages of Entrepreneurship: Advantages of entrepreneurship include: being your own boss choosing a business of interest to you being creative making large sums of money

Disadvantages of entrepreneurship include: Assess the Disadvantages of Entrepreneurship: Disadvantages of entrepreneurship include: risk uncertain and irregular incomes long hours all decisions are made independently

opportunities ideas How to decide on a business: possibilities that arise from existing conditions ideas thoughts or concepts that come from creative thinking

Ideas come from a variety of sources including: How to decide on a business: Ideas come from a variety of sources including: hobbies and interests past experiences discovery and invention