Mrs. Chandler

 to undertake, to pursue opportunity, or fulfill needs/wants through innovation or the establishment of a business or venture.  Needs – essentials  Wants – desires  What are needs? Examples  What are wants? Examples

 Business is based on supply and demand.  Demand – What the consumer needs and wants ◦ Ex. August – school supplies advertised for the entire month. ◦ What happens when the supply is greater than the demand? ◦ What happens when the demand is greater than the supply?  Snow blowers.

 May apply to a business but other undertakings as well.  Ex. Charities Characteristics of ventures/businesses For – Profit/Not for Profit -Profit-Revenue - costs Large Scale/Small scale Service production/goods production Physical/Virtual Local/Provincial/National/International

 Self-employment business  personal service ex. Lawyers, engineers, plumbers  Owner/Operator business  provide a product/service (or mixture) to a limited geographical area. Ex. Dry cleaner, corner store  National Organizations  manufactures/distributes more than one product not limited to geography. Ex. Wal- Mart, Kraft Foods.

 Technology and change  Demographics (age, family size, income and religion) and consumer buying habits. Ex. Baby boom  Economy- the wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.  Environment  How has the above influenced ventures over the last 10 years?

 A group of customers towards which a business had decided to aim its marketing efforts and ultimately its merchandise.  A well-defined Target Market is the first element to a market strategy.  You have to make some educated guesses about the age group your product or service will appeal to.

 What is the impact of Entrepreneurship on communities?

1. Create new product and/or service businesses. 1. Bring creative and innovative methods to developing or producing new products or services. 1. Provide employment opportunities and create new jobs as a result of growing their businesses consistently and rapidly.

4. Help contribute to regional and national economic growth. 5. Encourage greater industrial efficiency/productivity to enhance our international competitiveness.

 On a piece of paper, write down your definition of an ENTREPRENEUR.

Someone who perceives an opportunity and creates an organization to pursue it.

 Control  Excitement/Enthusiasm  Flexibility  Freedom  Decision making

 Administrative challenges  Staying ahead of your competition  Loneliness  No regular salary  Work Schedule

 Why do Canadians start businesses?

1. To seize an opportunity 2. To achieve a sense of personal accomplishment 3. Dreamed of running their own business 4. A chance to use their experience/skills 5. To be their own boss 6. Economic necessity; to make a living 7. Had previous experience they wished to use 8. To supplement their income from other employment 9. To create a job for themselves 10. Frustrated in their previous job 11. To make lots of money

 Why do you think businesses fail?

1. Poor cash flow management 2. Lack of understanding of how to hire, retain, and motivate the right people 3. Absence of performance monitoring 4. Poor debt management 5. Over borrowing 6. Excessive reliance on a few key customers 7. Poor market research = incorrect understanding of the market’s wants and needs 8. Lack of financial and insufficient planning 9. Failure to innovate 10. Poor inventory management 11. Poor communications throughout the business 12. Failure to recognize strengths and weaknesses 13. Trying to go it alone

Opportunity Resources Entrepreneur Organization Strategy Business Plan

1. The Entrepreneur ◦ It all begins with the entrepreneur, the driving force behind the business and the coordinator of all the activities, resources and people that are needed to get it off the ground. ◦ This individual will have conducted an assessment of his or her own resources and capabilities and made a conscious decision to launch the business. 2. Opportunity ◦ The entrepreneur must then find a concept or idea with the potential to develop into a successful enterprise. ◦ The concept is carefully evaluated to determine if it represents a viable opportunity. ◦ The object is to determine the magnitude of the returns expected with a successful implementation.

3. Organization ◦ To capitalize on any business opportunity, an organizational structure must be established, with a manger or management team and a form of ownership. 4. Resources ◦ Some essential financial and other resources must be obtained. The key usually is money. It is the “enabler” that makes everything else happen. Other key resources typically include physical plant and equipment, technical capability, and human resources. 5. Strategy ◦ Once a start-up appears likely, a specific strategy must be developed and a feasibility study conducted. ◦ The feasibility study is a way to test your business concept to see whether it actually does have market potential. ◦ Throughout this process you probably will modify your concept and business strategy several times until you feel that you have it right.

 The trait test PowerPoint  Characteristics of an entrepreneur PowerPoint.

 E xamine needs, wants, and problems for which he/she feels something can be done  N arrows possible opportunities down to one specific opportunity  T hinks of an innovative idea  R esearches the opportunity and idea thoroughly  E nlists the best sources of advice and assistance that can be found  P lans the venture and looks for possible problems that might arise  R anks the risks and possible rewards  E valuates the risk and possible rewards and makes a decision  N ever hangs on to an idea, as much as it is loved, if research shows it won’t work  E mploys the resources necessary for the venture if the decision is made to go ahead  U nderstands that any entrepreneurial venture will take a great deal of long, hard work  R ealizes a sense of accomplishment from successful ventures and learns from failed ones

 Handouts ◦ Needs and wants ◦ Supply and demand ◦ Pop challenge lesson