Characteristics of a success venture Entrepreneurship 30 Characteristics of a success venture

Characteristics of an Entrepreneurial Venture Common set of characteristics: A set goal An element of risk Personal commitment Planning and preparation Commitment of numerous resources Not the only ones, vary from venture to venture, have their own unique characteristics as well,

continued The application of these characteristics requires a level of organization, management, responsibility and very often ownership of the enterprise being created Help determine whether an individual is undertaking or apart of an entrepreneurial venture

Venture Structure Unlimited possibilities Three main: Local/national/multinational Service provision/good provision Profit/non-profit

Local/National/Multinational Operate on three geographic scales – becomes more complex as the area expands Local Exist in your school, local community, larger urban centres nearby – gives the town or city it’s personality and strength Most basic venture, restricted to a well-defined market area (rural grocery store, family farms – total income for family), urban centre has an increased population base, more possibilities to expand, start operating a chain of video outlets or pizza stores in the city

National Multinational Typically the national retail chains, or nationally based professional firms. (The Bay, Zellers, Saan, Eaton’s, Safeway, Superstore, Deliotte Touche, Price Waterhouse – accounting firms) They all usually start with one store, or idea Ex: Timothy Eaton Multinational Very powerful, represent money, capital, and even political power. Large and have the ability to influence Becoming more of an option than before with globalization and technology Ex: Exxon Corporation: oil and gas Ex: manufacturing pulp and paper, tobacco, etc.

Service/Good Provision – what does the venture offer? Service Provision No good or things just a service, typically for a fee Specialized areas – service then fee Include: Transportation (STC), dry cleaning, real estate, custom combining, autobody work, interior design, lawyers, and accountants are just a few.

Good Provision Ventures that operate in the retail/wholesale sector are in the business of supplying goods to the public, or to other retailers. Retailers sell directly to the public. Ex: gas stations, corner store, department stores, specialty stores Wholesalers sell to retailers Take out contracts with producers to purchase their produce, wholesalers then sell the produce to the retailers for a profit. “middleman” In many situations the company owns the wholesaler and the retail enterprise.

Profit/Non-Profit Profit Ventures A commercial venture is created b/c of a desire to provide a product or service to the public in exchange for a monetary benefit (profit). Profit – is the value that remains after all of the expenses (cost of purchasing goods, salaries, rent, utilities, supplies) of running the business have been paid. Revenue – expense = net profit or loss Most entrepreneurs make their living off of their venture. Have to pay ee’s, however, owner’s take home pay depends on the success of the venture that month.

Non-Profit In the business to raising money for other people or causes Any surplus in funds after expenses will be used for the benefit of others, and not to increase the asset value of the owners, there are no owners in the sense of profit takers Typically run by community groups, religious organizations, governments, and other civic-minded people. Supported by volunteers (cuts down on costs) – food bank Ex: international non-profit – International Red Cross

Examples Local/Provincial/Canada Non-profit International Non-profit Big Brothers, Children’s Wish Foundation (SK), Canadian Cancer Society (MJ office), girl guides, 4-H, multicultural centre, human society International Non-profit YMCA, girl guides, Red Cross, United Way, Amnesty International, Local / Goods Hoopla, New Board Shop, Yvette Moore International / Service McDonalds

Key concept: Maximize revenue and minimize expenses to increase the profit in both profit and non-profit the accumulation of funds is the primary goal of the enterprise Handout of vocabulary and homework

Relationship of Ent to the individual, community and society The world is undergoing rapid economic change – economics that are not innovative will rapidly fall behind those economies that are Global and competitive economy Entr. Are people who recognize a need or want Need – something essential to life Want – something that is desirable, but not essential It is more than just money (new ides, approaches, methods, style), social responsibility Entrepreneurship Spirit: applies to everyone regardless of what positions, occupations or professional an individual selects – it is even in school

Moose Jaw and Canada needs entrepreneurs: Increase productivity New jobs Raise standard of living Inspire and enhance opportunities for aboriginal peoples, women, youth, elderly and other minorities. Turn lemons into lemonade

Entrepreneurship 30 Venture Ownership