Chapter 1 Entrepreneurs Frank J. Germonto 8/2714 1

What’s an Entrepreneur ? A person who assumes risks of organizing and managing a business for the sake of potential rewards? What rewards? When did the present day meaning of Entrepreneur take form? 2

What’s an Economy? A nations financial structure The structure is the system that produces and distributes wealth. The US economy is a called a free enterprise system. Why? 3

Free Enterprise Free Enterprise system an economic system in which businesses are privately owned and operate relatively free of government interference. Really? 4

Free Enterprise continued You don’t have to get permission form the government to start a business – however, you must obey laws and regulations. Why? The Free Market system is also known as Capitalism. 5

Capitalism - Characteristics Individuals and companies may compete for their own economic gain. Private property ownership and wealth are permissible. Free-market forces determine prices. 6

Capital Capital is the cash or goods invested to generate income and wealth. In a free enterprise system anyone who can raise the necessary capital may start a business. Is this a good system and why? 7

Voluntary Exchange Free enterprise is also known as a free trade system as it is based on Voluntary Exchange. Voluntary Exchange a transaction between 2 parties who agree to trade money for a product or service. 8

Trading an exchange of 1 thing for another Trading takes place when both parties believe they will benefit. Robbery or Looting, in contrast, is an involuntary trade. 9

Free - Enterprise System The Free Enterprise System encourage entrepreneurs who use resources efficiently to satisfy consumer needs by rewarding them with profit. What’s profit? 10

Why be an Entrepreneur? Control over time Fulfillment Creation-Ownership Control over compensation Control over working conditions What else?????????????? 11

5 Roots of Opportunity A Find problems your business can solve. B. Changes in laws, situations, or tends. Think Cannabis C. Inventions of totally new products and services. D. Technological Advances (Scientists invent- Entrepreneurs figure out how to sell it. E. Competition- find a way to best the competition on price, location, quality, reliability, or speed and you can create a business with an existing product or service. 12

A Business Opportunity is An idea pus 3 characteristics: A. It is attractive to customers. B. It will work in your business environment. C. It can be executed in the existing window of opportunity. 13

“SWOT” A process used to evaluate a business opportunity. A. Strengths: Capabilities and positive points B. Weaknesses: Negatives C. Opportunities: positive external events or circumstances that help you get ahead of the competition. D. Threats: External factors or events that can harm the business-legal issues-competition- declining economy etc. 14

Quiz: What are 3 things that you can do particularly well? Explain the following in your own 25 words or less: The people who get on in this world are those who get out and look for circumstances they want and if they can’t find them, make them. For the most part I believe people are: A. Self starters, who willingly give full effort for a days pay and look to better their situation through their own initiatives and actions and require minimal supervision or B. Are basically lazy, self centered, require constant supervision and feel they’re owed something. 15