E n t r e p u

What is entrepreneurship? It is a business started by someone who notices a need for a product or service. It is the key driver of our economy because high majority of jobs are created by small businesses, which later on become big businesses and give a lot of people jobs. 

Big Business Little business turns into….

Henry Ford

Advantages Satisfaction from taking a risk in becoming a success Showing expertise at skills Working from home Gaining profit

Disadvantages Total responsibility for the business Long hours Financial risks

Importance to Economic Development Entrepreneurship helps local economies turn into global economies. They are often risk-takers and try to develop their economy. Example : McDonald’s was located only in America, and it spread into world-wide.

Popsicle Frank Epperson 11 yrs old 1905

Crayons Edwin Binney and C. Harold Smith 1903 crayola

SMILE Harvey Ball 1963 Massachusetts Popularized in the 60s

What It Takes Starting your own business may sound exciting, but it is not something to take on lightly. Do some soul searching first to determine . . . If it is the right path for you? If you are really cut out to be an entrepreneur?

what exactly is an entrepreneur? en·tre·pre·neur [ahn-truh-pruh-nur, -noor; Fr. ahn- truh-pruh-nɶr] -a person who organizes and manages any enterprise, esp. a business, usually with considerable initiative and risk. Dictionary.com Unabridged (v 1.1) Based on the Random House Unabridged Dictionary, © Random House, Inc. 2006.

How to become an entrepreneur? Develop a product or create a service. Become an independent representative for someone else's company, selling or distributing their products. Buy an existing business or franchise. Become an "intrapreneur," operating autonomously within a company.

Why start your own business? Many people become entrepreneurs because they want … To create something of their own, to have a sense of personal achievement. To create substantial wealth. To break out of the "corporate rat race" To be their own boss.

downside Being your own boss, however, has its downside. The most frequently cited disadvantage is the long hard hours, particularly during the start-up period. It takes a great amount of effort to get a business up and running. That means you may be working late into the night and every weekend for some time.

financial risk The risk that a company will not have adequate cash flow to meet financial obligations. Entrepreneurs assume risk. This makes them different from employees (who are people who work for someone else). Until the business takes off, your income may go up and down dramatically. In addition, you may have to invest some of your own savings and/or use your personal assets as collateral for business loans.

Responsibility Running your own business is a tremendous responsibility. Your employees depend on you to provide stable employment. Your customers expect you to deliver on your promises. Your suppliers and bankers expect you to pay your bills. Your investors expect you to turn a decent profit. Are you the kind of person that can handle that kind of pressure?

Characteristics Studies have identified a variety of personality characteristics associated with successful entrepreneurs. Among the most important are a healthy sense of self confidence Optimistic

Characteristics Successful entrepreneurs take risks, but they are calculated risks. They don't plunge blindly into new situations. Instead, they are thorough and prepared.

Entrepreneurs… Accepts Risks & Opportunities in Creating/Operating A New Business Characteristics Resourceful Good Customer Relations Desire To Be Own Boss- Gain Control Of Life Build For Family Tolerance For Uncertainty/Risk

Non-Financial Reasons To Start A Business Source: CIBC World Markets, Economics & Strategy, “Secrets to Small Business Success”, research.cibcwm.com/economic_public/ download/sb-ssbs-10192004.pdf

Financial Reasons To Start A Business Source: CIBC World Markets, Economics & Strategy, “Secrets to Small Business Success”, research.cibcwm.com/economic_public/ download/sb-ssbs-10192004.pdf

Recognizing Opportunity Many of America’s most successful companies started with one person who recognized an opportunity and came up with an idea for a business in response to that opportunity.

According to the sba… Small Business Administration In 2009, out of the 27.5 million businesses in the U.S., there were 5.9 million firms with employees and 21.4 million without employees. Small firms with fewer than 500 employees represent 99.9% of total businesses in the United States. Only 18,469 U.S. businesses are considered large. Seven out of 10 new employer firms survive at least 2 years, half at least 5 years, a third at least 10 years, and a quarter stay in business 15 years or more.

Famous Entrepreneurs

Oprah Winfrey Company: Harpo Inc., Position: Chairman Industry: Media Oprah Gail Winfrey is the chairman of Harpo, Inc., Harpo Productions, Inc., Harpo Studios, Inc., Harpo Films, Inc., Harpo Print, LLC and Harpo Video, Inc. She is one of a handful of women who are self made billionaires, and is the only black female billionaire. The Oprah Winfrey Show  is the highest-rated TV talk show in history and  is seen in 110 countries. 

Mary Kay Ash Company: Mary Kay Position: Chairman Industry: Cosmetics Mary Kay Ash founded the cosmetics empire that helped to empower and inspire thousands of women. Her worldwide brand is now established in more than 30 countries and has a sales force of more than one million. Kay's business techniques were unconventional and attracted much attention with actions like giving her top sales people pink Mary Kay Cadillacs as an incentive and appreciation of their contribution to the company.

ROBERT L. JOHNSON Company: The RLJ Company Position: Founder, CEO Industry: Real Estate, Hospitality, Professional Sports, Media and Entertainment, Gaming In 1980 Robert L. Johnson launched a cable channel targeted at African Americans called BET, Black Entertainment Television. BET became the first African American firm to be listed on the New York Stock Exchange in 1991. In 2001, Johnson became the first African American billionaire when he sold BET to Viacom for $3 billion. After the sale, Johnson formed the RLJ Companies, where he began new business ventures in sports, hotels, lotteries and restaurants.

Bill Gates Company: Microsoft Position: Chairman Industry: Technology Bill Gates is one of the most influential people in the world. He is cofounder of one of the most recognized brands in the computer industry with nearly every desk top computer using at least one software program from Microsoft. According to the Forbes magazine (2008), Bill Gates is third richest man in the United States with an estimated $58 million.