What is an Entrepreneur?

Someone who takes risks in starting a business. Entrepreneur Jay-Z

Risks??? Venture- business undertaking involving risks Risks- possibility of damage, injury, or loss Can you be successful without taking risks? Risks???

6 Types of Entrepreneurial Business Retailing- selling products to people Service- sell services Manufacturing- actually produce the products they sell Wholesaling- sell the products to people other than the final customer

6 Types of Entrepreneurial Businesses Agricultural- generate fresh produce & other farm products Mining & extracting- take resources like coal out of the ground so they can be consumed

Entrepreneurs

What is Entrepreneurship?

Ability and willingness to develop, organize and manage a business. Goal: Profit Challenge: Risk Entrepreneur Oprah Winfrey

Personal Traits of Successful Entrepreneurs

Entrepreneur Mark Zuckerberg Entrepreneurs are… Competitive Creative Energetic Goal oriented Independent Inquisitive Persistent Reliable Self-confident Entrepreneur Mark Zuckerberg

Entrepreneur Ted Turner Entrepreneurs can… Partner with others Secure resources Spot opportunity Learn from failure Self-motivate Problem solve Maintain integrity Deal with ambiguity Work hard Entrepreneur Ted Turner

1 in 10 Americans, Ages 18-64 involved in entrepreneur activities 625,000 new businesses/year Very risky Almost as many close each year Start with $10K or less Entrepreneur Economy

Opportunities and Risks in Starting a Business

Entrepreneur Truett Cathy Opportunities Independence Personal satisfaction Make a profit Adventure Income Control over your own business Contribute to society Entrepreneur Truett Cathy

Entrepreneur Donald Trump Risks Income Might lose investment Long hours, hard work Quality of life Stress Discouragement Responsibility Competitive pressure Expenses, lack of money Lack of experience Entrepreneur Donald Trump

Reasons for Failure

Failure: Top 10 Reasons Management mistakes** Lack of experience Poor financial control Weak marketing efforts Lack of a strategic plan Uncontrolled growth Poor location Improper inventory control Incorrect pricing Inability to make the “entrepreneurial transition”

Effective planning Good management Success

Failure in Perspective

The venture fails, not the entrepreneur.

Discussion Questions

Entrepreneurs can fail even if they are committed and have the characteristics needed to be successful. Why do you think this can happen?

Why is it important for entrepreneurs to choose a field that they will enjoy?

Do you think the advantages of entrepreneurship outweigh the disadvantages?