Mr. Singh Chapter 1

Entrepreneurship What does it mean to be an entrepreneur? Entrepreneurs are people who take hold of opportunities when they see them They are willing to assume calculated risks as they look to satisfy their needs and wants

Needs vs Wants Need - essential for human survival Eg. Food, Shelter 2 different kinds of needs “real” which are mentioned above and “psychological” which is companionship and security Want – human desires that go beyond basic needs and not essential for survival Entrepreneurship – creation and building of a venture to fill a market niche

Different types of ventures For-Profit/Not-For-Profit Profit business’s main goal is to make profit (money) Not-For-Profit – fundraising activites and their goal is not to make profit but rather raise money they need to deliver their serivce Eg. Save the children, salvation army, Heart and Stroke Foundation etc.

Different types of ventures Large Scale/Small scale Big Corporations that want to satisfy on a large scale usually international or national level Smaller companies may work to satisfy a smaller more local level The cancer society is an example of a large scale business and dedicates large sums of money to large scale research iniatives

Different types of ventures Service production/Goods Production Produce either a service or a good A good is something that can be sold for profit either in store or online (ex. Clothes, electronics etc.) A service can be anything from work that a mechanic does or repairperson, lawyer etc

Different types of ventures Physical/Virtual Entrepreneurs can have businesses that don’t require a physical location such e-commerce or virtual businesses Many people run successful businesses completely online

Local/Provincial/National When an entrepreneur grows beyond their local community to the province, this is provincial entrepreneurship Enterprise that operates in more than one province is a national enterprise Globalization – companies are engaged in business activities around the world GNP - Gross National Product is the total of all goods and services produced in Canada in one year

Technology and Change Technology continues to grow and people can make a lot of money selling online (E- commerce) Small business can compete with larger ones because of this Demographics – data about groups of people including age, ethnic origin, family sizes, income, etc.

Technology and Change Being knowledgeable in technology is an asset because it helps you be flexible and adapt to trends Technology has changed the way we do business. Google has enabled us to search and research anything we want therefore preparing us much better Aps and new software make doing business much easier

Technology and Change Technology has hurt some people too Loss of jobs to machines (McDonalds) Companies downsize a lot more now and people lose jobs Today many Canadian residents are small business owners Government, banks, and other community based organizations have a keen interest in helping entrepreneurs succeed by providing resources, education and support

In class assignment Task: Research an entrepreneur and describe why you believe he/she is successful? What made them into a success? Write a paragraph describing what entrepreneurship means to you. You will need to know this for your test

Supply and Demand Demand – What people need and want Supply – What is being sold to people (Goods or services) When supply is greater than demand, the price  When Demand is greater than supply, the price  The key is to reach the right balance between the two in order to be successful

Impact on the Community Job creation When I started Nemesis Sports, I created jobs for people (coaches, admin, etc.) Those who work for Nemesis Sports have money to buy goods and services A lot of that money is spent on items in the local community As businesses grow more people are hired and more goods and services will be needed

Impact on the community New ideas The community benefits from learning new ways of doing things Encourages the creation of a broader range of goods and services Entrepreneurship helps bring new life and new innovation to communities

Impact on Community Economic Benefit When multiple entrepreneurs create businesses, this helps lower prices in the community through competition The success of one new business venture can produce a lot more wealth for everyone Ex. When computers were invented, we saw many jobs created because of it such as hardware, repair services, e-commerce etc.

Impact on Community Political Benefits Many governments support entrepreneurship They provide grants or loans with lower interest rates They can provide education and training This is only in some countries. Communist and Dictatorship countries do not have the same opportunities for entrepreneurship as Canada and the US

Intrapreneurship Entrepreneurship that occurs within an existing organization or corporation Organizations encourage this to become more competitive, improve their productivity, or keep pace with changing markets Corporations create teams and then challenge teams to be innovative and turn an idea into a new product or service Some invite customers to give ideas about changes that are needed in their product

Intrapreneurship Cont’d Organizations that are not entrepreneurial are at a disadvantage If companies don’t anticipate the way markets change they will lose their market share

Approaches to Entrepreneurship Two approaches 1. Start business from scratch or 2. Buy an existing business Some entrepreneurs modify or change one persons idea and turn it into success Ex. McDonalds (discussed in class)

Entrepreneurs: Made or Born? Studies show that entrepreneurs whose parents or grandparents are self-employed are more likely to start their own business What about the environment around you? How does this have an affect? What all entrepreneurs share is a vision for the future and the willingness to take the risk of starting a venture