UNIT 1: Your Potential as an Entrepreneur Chapter 2: Why Be An Entrepreneur? What Does It Take to Be An Entrepreneur?

Key Terms to Know Achiever Capital Competition Foundation skills Investment Profile Role model

Rewards of Entrepreneurship Being your own boss – have the freedom to make your own decisions in all aspects of operating the business Doing something you enjoy Having the opportunity to be creative – can shape the business Can be proud of your accomplishments & the business

Rewards of Entrepreneurship, cont. Having the freedom to set your own schedule – flexibility in setting hours & locations Having job security – a guarantee to control your own destiny Making more money – can control your own income Being recognized within the community – prestige; providing employment for others

Rewards of Entrepreneurship, cont. Benefits the consumer – satisfying their wants & needs Benefits society – creates a means of exchange; business taxes contribute to the infrastructure Benefits the employees – earn a paycheck to spend in the markets; can get training for their own personal growth; medical coverage, vacation time benefits

Risks of Entrepreneurship Competition – the rivalry among businesses for consumer dollars Working long hours – saves on payroll expenses (paying employees) Having an uncertain income – fluctuates with the prosperity of the business; profits get reinvested into the business

Risks of Entrepreneurship, cont. Being fully responsible – the success/failure of the venture is on your shoulders! Must see to it that all tasks get completed Risking one’s investment – must protect the money invested & capital purchased for the business INVESTMENT – the amount of money a person puts into the business known as capital CAPITAL – the buildings, equipment, tools, etc. needed to produce the G&S or the cash used to purchase them

What Does It Take to Be an Entrepreneur? Who are Entrepreneurs? Are they born or are they made?

Statistics of Entrepreneurs 47% were under age 35 when they started the business 16% were under age 25 when they started 40% had a high school diploma or less 27% had some college 33% had a college degree Many started working from an early age (babysitting, yard work, etc.) 62% had relatives who owned a business Role models influenced them! ROLE MODEL – a person who influences your attitude & achievements

Who are Entrepreneurs? 12 Characteristics of Successful Entrepreneurs Persistent Creative Responsible Inquisitive Goal-oriented Independent Self-demanding Self-confident Risk-taking Restless Action-oriented Enthusiastic

Who are Entrepreneurs? 10 Essential Entrepreneurial Skills Communication skills Math skills Problem-solving skills Technology & computer skills Decision-making skills Organizing & planning skills Teamwork skills Social skills Adaptability skills Basic business skills

Build Your Potential as an Entrepreneur PROFILE – a set of characteristics or qualities that identifies a type of category of a person Do you fit the profile? – If not, do you have a “can-do” attitude & a desire to start your business? – If so, then you can build up your potential to be an entrepreneur!!

Build Your Potential as an Entrepreneur, cont. Strengthen your entrepreneurial characteristics Be an achiever – a person with a record of successes; have an inner feeling of personal accomplishment – Set out to be the best at whatever you do – Set your sights on accomplishing the extraordinary – Write your goals down on paper – Pursue your goals with confidence & commitment – View difficulties as opportunities to learn & grow

Build Your Potential as an Entrepreneur, cont. Strengthen your entrepreneurial characteristics by: 1. Know your entrepreneurial strengths 2. Make a habit of doing entrepreneurial traits – 21 days of it, then it’s a habit! 3. Develop your weaknesses by practicing & acting like you have them

Build Your Potential as an Entrepreneur, cont. Strengthen your entrepreneurial characteristics by: 1. Reading – articles & books 2. Writing – write stories about others who overcame obstacles to achieve success 3. Watching – videos, clips about successful people 4. Solving – solve case problems dealing with risk-taking

Build Your Potential as an Entrepreneur, cont. Develop your entrepreneurial skills – See Slide 10 for a list of skills that you need to develop 1. Learn the techniques needed to use the skill 2. Put the skill to work in real-world situations 3. Ask yourself whether you get the results you want. If not, determine how you can improve & apply what you’ve learned

Build Your Potential as an Entrepreneur, cont. Develop your entrepreneurial skills – Learn them: In school (take classes) Through work experience By reading Get a job at a similar business (on-the-job training) Family businesses Workshops/seminars (community education) Internships (paid or unpaid) Internet: for sample business planswww.ohio.gov Professional organizations – provide literature & counseling services (SBA)

Who Becomes an Entrepreneur? Young people – JA programs can help Inventors – be innovative! Marketers – use diverse methods of selling G&S (e.g. Avon, Pampered Chef) People that use their intuition & imagination – They see a commercial opportunity – They see what consumers are demanding (population trends, daycare needs) Perfectors – take an existing idea & improve it

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