The Meaning of Entrepreneurship Course Introduction

Entrepreneur The word comes from the Latin and French word “to take” Meaning that an entrepreneur takes hold of opportunities when they see them Willing to assume calculated risks as they look for ways to satisfy the needs and wants of others through innovation

Needs vs. Wants Needs Wants Essential for human survival “Real” or “Psychological” Real needs are also known as basic needs Food, shelter, etc. Real needs are tangible Wants Human desires that go beyond the basic needs and are not essential for survival Make people feel good or help them achieve a goal

The Goal of Entrepreneurship TO CREATE AND BUILD A VENTURE THAT WILL FILL THE CUSTOMERS NEEDS OR WANTS

Characteristics of Ventures For Profit / Not-For-Profit Profit – normal business Not-For-Profit – raise money for their cause Large Scale / Small Scale Service Production / Goods Production Physical / Virtual Physical – actual store to go to Virtual – uses e-commerce over the internet Local / Provincial / National / International Globalization Gross National Product Tariffs, NAFTA and GATT

Technology and Change Changing demographics Data about groups of people Age, ethnic origin, religion, family size, income, etc. Information Technology has fundamentally changed how companies do business Allowing smaller companies the information that used to be only accessible for large companies Job losses from technology and the recession Although would be considered a negative, it has resulted in increased numbers of entrepreneurs

Supply and Demand An alert entrepreneur takes advantage of consumer DEMAND by providing a SUPPLY of goods or services When supply is greater than demand, prices go down When demand is greater than supply, prices go up Entrepreneurs try to find the balance where demand and supply are equal

Impact on the Community Job Creation The Multiplier Effect New Ideas Often generate new ways of doing things Economic Benefits Lower prices, improved standard of living Political Benefits Entrepreneurship strong in free, democratic societies

Entrepreneurship and Demographics Study of the characteristics of people in a population Help entrepreneurs predict what their customers may want The “Baby Boomer” generation and its effect on Canadian economy and government Think of what older people spend their money on Immigration They present opportunities that may not have been met by other businesses in the community

Questions on the Computer What is the difference between wants and needs? How do these terms relate to demand? Do you think having a job is a need or a want? Give examples of 2 trade agreements Canada has signed. How do countries benefit from trade agreements? In pairs, identify an entrepreneurial venture operating in your local community. Is this venture a for-profit or not-for-profit initiative? Does it provide a product or service? What is it? Is it large or small scale Is it local, provincial, national, or international in scope? In what ways does it take advantage of innovations in technology