Entrepreneurship in a Free-Market Economy

Objectives Describe the role of the entrepreneur and how entrepreneurs start businesses Explain how innovative entrepreneurial ventures have impacted society

Key Vocabulary Business Model Business Plan Due Diligence Entrepreneur Executive Summary Market Research Market Share Target Market Venture Capital Vetting

Market Opportunity and Entrepreneurial Innovations The world is rapidly changing for all of you but in different ways Analyze the given scenario Be creative, but realistic

Market Opportunity and Entrepreneurial Innovations Be practical business people that understand an idea as an opportunity and then go out and create an organization with the necessary human and financial resources to create the value inherent in that idea

Market Opportunity and Entrepreneurial Innovations Discuss and list ideas for new technologies, products, and services that would address the demands generated by these new market conditions You will select one of these ideas to develop into a poster describing the value of the idea Keep in mind such things as market demand, cost of production, and competition.

Market Opportunity and Entrepreneurial Innovations You should be as creative and outlandish as possible to start and then work as a group to pare down to four or five ideas that the team feels have real potential Rank your ideas from most to least viable. Be ready to defend your ranking

Evaluating a New Idea Create a simple table with a header, divided into four columns and three rows plus a headed row, so that there is equal room to write in each cell In the header, write “Business Idea,” “Target Market,” “Pros,” and “Cons.”

Evaluating a New Idea Business Idea Target Market Pros Cons Gardener/Catering: company provides gardening and public park clean-up, then uses gathered food to cater parties Urban market for gardening/public park clean-up services and then city for catering Company earns money collecting the products that it will sell on to another client (low overhead) Can’t control menu, labor and capital intensive, lots of opportunity for competition

Evaluating a New Idea Write out a description of top three ideas under the first column Explain the target market for each of these ideas under the second column Assess the Pros and Cons of each idea as a group to help get the best and worst out of each idea

Evaluating a New Idea Charts will be posted around the room for viewing and critique by all the class What makes entrepreneurs so critical to the free-market system is not just their ability to come up with new ideas, but their ability to distinguish good ideas from bad ones, and realistic business opportunities from those that are not as promising

Evaluating a New Idea One of the most useful tools in determining these differences is the process sometimes referred to as peer vetting

Business Idea Peer Review Through peer vetting, you will learn the value of exposing their ideas to others in order to detect and eliminate weaknesses as well as to strengthen their ability to persuade another important audience: investors Nominate one group member to stand by your poster to answer questions Use sticky notes to comment, question, or leave concerns

Business Idea Peer Review Download: Worksheet- Venture Capital Investor Checklist Entrepreneurs find that bouncing an idea off trusted friends and colleagues is a great way to assess its viability and sharpen its focus It is also a great way to clear out unrealistic ideas

Business Idea Peer Review The vetting process in which you are about to take part only works when the comments are clear, concise, and constructive. It also helps if they try to avoid redundancy by reading the comments already made and not repeating them

Incorporating Peer Vetting into Business Ideas To review and incorporate peer comments into the three business ideas using a separate sheet of paper Go through the comments to determine which of them they can and should address Teams do not need to respond to all comments You should be ready to explain why you chose to disregard a comment

Incorporating Peer Vetting Into Business Ideas Write the improved version of the business idea, its target market, and its pros and cons on a new sheet of chart paper Order the ideas from most to least promising using the information from the vetting process to help you decide the order However, you can only choose one idea to create into a poster

Investor Proposal Download: Worksheet- Building a Business Plan Based on this information transfer key ideas and concepts from the plan to the poster for potential investors Posters will be shown to the class and questions about their posters will have to be answered, no more than 5 mins.

Investor Posters Download: Assignment-Investor poster Download: Assignment Criteria-Investor Poster

Investor Posters Groups reassemble into new groups When looking at the posters of other teams, you will act as an investor Presenters discuss ideas as a way to get funding 5 mins to analyze each poster

Investor Posters Which ideas would you invest in? Why? Has this lesson’s activities made the prospect of launching your own entrepreneurial venture someday more or less likely? Why?

Enrichment Part 1 Pick one famous entrepreneur (e.g., Steve Jobs, Sean Combs, Vera Wang, Oprah Winfrey) and create a biographical presentation that highlights their entrepreneurial experiences and personality traits that made them successful. Include your own analysis as to why the highlighted traits and experiences proved important

Enrichment Part 2 Join up with a classmate of my choosing to combine your Power Points. Compare and contrast your entrepreneur’s creations and personality types In your opinions, what made your entrepreneurs successful?

Groups J. K. Rowling & Larry Page Drake & Bill Gates Henry Ford & Elon Musk Martha Stewart & Sergey Brin Mark Cuban & Oprah Jeff Bezos & Walt Disney Dr. Dre & John Paul DeJoria J. K. Rowling & Larry Page Drake & Bill Gates Rob Dyrdek & Mark Zuckerberg Kevin Systram & Jay-z

Cross-Curricular Integration Choose a single chapter (or subchapter) from one of your science textbooks—for example, electromagnetism from physics or virology from biology—and conduct research into entrepreneurial businesses that have been started in this area The goal is not to focus exclusively on one entrepreneurial venture Instead, it is to compile a list of companies in that area of science that have turned a field of study that many students consider boring into an exciting profit-generating opportunity The list should include brief summaries of what each company does and how it relates to the specific aspect of science.

Cross-Curricular Integration Research an invention from the last 200 years that has changed the way the world works. The term invention: both new products and new ways of doing things. Examples of both of these (products can include the cotton gin, the PC, the radio, the motor car, the Internet, and the television; new ways of doing things (process) can include harnessing steam power for mechanization, the assembly line, just-in-time inventory).

Cross-Curricular Integration Address the following aspects of the chosen invention: a description of the invention, the person or people who brought it about, the problem the product or the service solved, or the need that it fulfilled. Confirm your choice with me prior to beginning research