CHAPTER 4 THE ENTREPRENEUR

WHO IS AN ENTREPRENEUR?

FACT OR MYTH?

SUCCESSFUL ENTREPRENEURS ARE THOSE WHO COME UP WITH THE MOST CREATIVE, ORIGINAL IDEAS FOR THEIR BUSINESS MYTH STUDIES SHOW THAT 70% - 90% OF THE IDEAS FOR A NEW BUSINESS COME FROM AN ENTREPRENEUR’S PREVIOUS EMPLOYMENT OR EXISTING BUSINESS CONTACTS. THE MORE EXPERIENCE YOU GET WORKING FOR SOMEONE ELSE, THE MORE LIKELY YOU ARE TO COME UP WITH AN IDEA FOR A NEW BUSINESS.

WOMEN ARE NOT CAPABLE OF BECOMING SUCCESSFUL ENTREPRENEURS MYTH THERE ARE OVER 900,000 FEMALE ENTREPRENEURS IN CANADA, MAKING UP A LARGER SHARE OF THE SELF- EMPLOYED THAN IN ANY OTHER COUNTRY.

ENTREPRENEURSHIP IS A “YOUNG PERSON’S GAME”; MOST FIRST- TIME ENTREPRENEURS ARE EITHER IN COLLEGE OR RIGHT OUT OF IT MYTH CANADIANS AGED 25 TO 44 HAVE A GREATER TENDENCY TO LAUNCH NEW BUSINESSES. HOWEVER, THE BDC INDEX HAS STEADILY DECLINED WITHIN THIS AGE GROUP, WHILE INCREASING AMONGST OLDER INDIVIDUALS.

ECONOMIC CRISIS CAN STIMULATE THE DESIRE TO START A BUSINESS FACT IN 2009 ALBERTA LED THE WAY WITH 10.4% OF THE POPULATION INTENDING TO START A BUSINESS. THE OTHER REGIONS OBTAINED SIMILAR RESULTS, RANGING BETWEEN 6.3% AND 6.8% OF THEIR POPULATION, FOR A CANADIAN AVERAGE OF 7.0%

ENTREPRENEURS WHO ARE FINANCIALLY LITERATE HAVE A GREATER CHANCE SURVIVING LONG TERM FACT STATISTICS CANADA DATA SHOWS THAT 85% OF STARTUPS MAKE IT THROUGH THEIR FIRST YEAR BUT ONLY 51% SURVIVE FOR FIVE YEARS. FINANCIAL LITERACY EDUCATION PLAYS A BIG ROLE IN BOOSTING THAT LONG-TERM SUCCESS RATE, ARMING ENTREPRENEURS WITH THE KNOWLEDGE AND SUPPORT TO MAINTAIN A HEALTHY BUSINESS.

WHAT IS AN ENTREPRENEUR? Individuals who start their own businesses or aggressively expand existing ones Organize productive resources (human, natural, capital) to make goods or services Assume risk of financial failure

ENTERING THE MARKET Decide what, how and for whom to produce based on signals from the market  potential profits Correct decisions  big rewards (profits = revenues - costs) and incorrect decisions  big losses (debt) Consumers benefit from high quality, affordable goods of great variety

CHARACTERISTICS OF SUCCESSFUL ENTREPRENEUR Go-getter attitude: recognize opportunities, optimistic Risk taking: moderate Hard work: don’t notice the passage of time Motivation: work for themselves, make money Self-confidence: rely on yourself rather than luck or friends Objectivity: realize strengths and weaknesses and get expert help for weaknesses

BECOMING AN ENTREPRENEUR? BDC has numerous resources for young entrepreneurs: t.aspx

ENTREPRENEUR “PROFILES” 1.In your table groups, research a Canadian entrepreneur (can be deceased) 2.Create a “profile” by answering the questions below 3.You will then present these “profiles” to the class (you may use PowerPoint if you wish) 4.Presentations should be approximately 3-4 minutes Profile questions 1.Give the audience a brief background of the entrepreneur (i.e. Where are they from? What led them to become entrepreneurs? Which company did they startup? Provide a picture, etc.) 2.How did they start their business? How did they get the idea? 3.Were there any obstacles they encountered when trying to make their business successful? If so, what were they? 4.Did the entrepreneur take any risks why building their business? 5.Did they make any major contributions to the society? 6.Are there any other interesting facts about your entrepreneur?