ENTREPRENEURSHIP

Objectives Define Entrepreneurship Describe the advantages of entrepreneurship Explain the risks of entrepreneurship List the characteristics and skills of entrepreneurs Understand the importance of small business in various economies

Standard Marketing Advanced Strategies, Standard 2: Explain why entrepreneurship is important to the U.S. economy. Compare and contrast the role of the entrepreneur to that of a manager.

What is Entrepreneurship? The process of starting & operating your own business People who create, launch, organize, and manage a new business and take the risk of the business are entrepreneurs Henry Ford introduced the mass production of vehicles by making them affordable to average people William Hewlett & David Packard started a small business in Packard’s garage They invented floppy disks & the first pocket calculator

Advantages of Entrepreneurship Personal Freedom Personal Satisfaction Increased self- esteem Increased Income Set own work schedule Make own decisions Financial Rewards

Risks of Entrepreneurship High level of stress Risk of failure Possible setbacks Potential loss of income Long and irregular hours Need to handle multiple tasks Need for self- discipline

Characteristics of Successful Entrepreneurs Determination Self-motivation, self- discipline, & self- confidence Strong organizational skills Leadership ability Creativity Willingness to work hard Spirit of adventure Good social skills

Marketing & Entrepreneurship Entrepreneurs should have marketing knowledge They will have an advantage over those who do not Why would entrepreneurs who have a good understanding of marketing have an advantage over those who do not?

Trends in Entrepreneurship 80% of new jobs created annually come from business that are less than 5 years old 90% of all U.S. businesses have fewer than 20 employees Firms with fewer than 500 employees were responsible 50% of the GDP About 1 in 10 adults in the U.S. plan to start a new business As many as 25% of all U.S. workers are self- employed

Trends in Entrepreneurship Availability of technology Increased global communication Rise of the Internet and e-commerce Increasingly diversified society & market

Do you have what it takes? Turn to page 782 in your text book. Number 1-19 Read each question CAREFULLY and answer yes or no based on how you feel. Next, create a diagram with 3 circles Label each circle with these words: Physical, Emotional, Financial Take numbers 9-19 and place the number in the appropriate circle, if some of them overlap places, please place them in the appropriate overlapping circle(s)