1. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ChapterChapter1 Should You Become an Entrepreneur? 1.1 All about Entrepreneurship 1.2 Is Entrepreneurship Right for You? 1.3 Explore Ideas and Opportunities 1.4 Problem Solving for Entrepreneurs

2. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 2 Lesson 1.1 All About Entrepreneurship Goals Define entrepreneurship. Recognize the role entrepreneurs play in the U.S. economy. Determine the reasons that businesses succeed or fail.

3. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 3 Vocabulary entrepreneurs entrepreneurship employees

4. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Entrepreneurship Many of the small businesses in the U.S. are owned and operated by men and women who created their own companies. Chapter 1 Slide 4

5. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 5 What is an Entrepreneur? entrepreneurs people who own, operate, and take the risk of a business venture entrepreneurship running a business of one’s own

6. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 6 They provide a service or product to meet those unmet needs. Entrepreneurs identify unmet needs in the marketplace.

7. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Employees vs. Entrepreneurs employees people who work for someone else Additional earnings go to the business owner, not to the employee. Chapter 1 Slide 7

8. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Why Do People Become Entrepreneurs? to set your own schedule to work out of your home to pursue a personal dream to “be the boss” for the expected financial reward Chapter 1 Slide 8

9. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Integrity and Ethical Behavior Entrepreneurs should behave ethically in all areas of business. The actions taken and the results of those actions should be considered. Chapter 1 Slide 9

10. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 10 Types of Entrepreneurial Businesses manufacturing wholesaling retailing service

11. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 11

12. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 12 Other Business Areas agricultural mining and extracting

13. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Green Entrepreneurship Many types of businesses may focus on being organic or “green.” It is important to educate customers about how products or services benefit the earth conserve resources Chapter 1 Slide 13

14. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 14 Describe different types of entrepreneurial businesses.

15. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 15 Recognizing Opportunity Many companies began with one person who started a business based on a single opportunity. Small firms, with fewer than 500 employees, represent 99.9 percent of American businesses.

16. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Entrepreneurial Opportunities in Economic Recovery Small businesses are an important part of the economic recovery. They are: willing and able to make changes quickly more creative than large companies Their experimentation and innovation lead to technological change and increased productivity. Chapter 1 Slide 16

17. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 17 $30 billion in tax relief for small businesses $13 billion in loans, lines of credit, and equity capital The American Recovery and Reinvestment Act of 2009

18. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 18 Describe how one of the entrepreneurs discussed above recognized an opportunity to develop a successful business.

19. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 19 Business Success or Failure Sixty-seven percent of new businesses survive at least two years. Forty-four percent of new businesses survive at least four years. Success rates can be enhanced if businesses have adequate capital are large enough to have employees

20. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 20 the owner lacks business knowledge Having an idea for a product or service is different than knowing how to run a business. Businesses may fail if

21. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 21 What factors contribute to helping a business succeed?

22. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 22 Lesson 1.2 Is Entrepreneurship Right for You? Goals Identify the characteristics of successful entrepreneurs. Identify the characteristics of good team members. Assess whether you have what it takes to succeed in your own business.

23. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 23 Vocabulary self-assessment aptitude

24. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 24 Characteristics of Successful Entrepreneurs Successful entrepreneurs are: independent self-confident determined goal-oriented achievement-oriented with high standards

25. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 25 able to act quickly technologically current creative

26. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 26 Name three important characteristics of entrepreneurs.

27. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 27 Characteristics of Good Team Members Good team members display the following traits: commitment competency communication cooperation creativity

28. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 28 Why is it important for entrepreneurs to be good team members?

29. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 29 Are You Right for Entrepreneurship? self-assessment an evaluation of your strengths and weaknesses

30. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Assess Your Interests choose a field that interests you you will enjoy matches your personal values you have aptitudes/skills in Chapter 1 Slide 30

31. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Assess Your Aptitude aptitude the natural ability to learn a particular type of job Chapter 1 Slide 31

32. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 32

33. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Assess the Advantages of Entrepreneurship Entrepreneurs are their own bosses can choose a business that interests them can be creative can make large sums of money Chapter 1 Slide 33

34. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 34 Assess the Disadvantages of Entrepreneurship Disadvantages of entrepreneurship include: risk uncertain and irregular incomes long hours all decisions are made independently

35. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 35 What kinds of assessments should you make to determine if entrepreneurship is right for you?

36. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 36 Lesson 1.3 Explore Ideas and Opportunities Goals Identify sources for new business ideas. Recognize different business opportunities. Identify you own personal goals.

37. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 37 Vocabulary opportunities ideas trade shows

38. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 38 Look for Ideas opportunities possibilities that arise from existing conditions ideas thoughts or concepts that come from creative thinking

39. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 39 Hobbies and Interests Past Experiences Discovery or Invention Ideas come from a variety of sources including:

40. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 40 Where do new ideas for businesses come from?

41. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 41 Investigate Opportunities Sources of Information Internet library County Business Patterns Small Business Administration

42. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 42 special meetings where companies of the same or related industry display their products trade shows

43. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 43 Compare Different Opportunities For each business opportunity, you should consider: Will people buy my product or service? How much money is required to start the business? How many hours per week will it take to run the business?

44. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 44 Do I have the right background to run this business? How much money could I make running this business? What are the risks associated with this business?

45. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 45 How can you find out about various business opportunities?

46. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 46 Set Goals

47. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 47 Financial Goals Financial goals should be: realistic measurable easily attainable in the time allotted

48. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 48 Nonfinancial Goals Nonfinancial goals may include: personal satisfaction serving a community need doing something you like enjoying personal independence

49. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 49 Why are financial goals important? Name some nonfinancial goals an entrepreneur may have.

50. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 50 THINK CRITICALLY 1.Why must entrepreneurs look at future trends when making business decisions? 2.Why should entrepreneurs look beyond current technology trends when making business decisions?

51. Entrepreneurship: Ideas in Action 5e © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 1 Slide 51 4.How are entrepreneurs affected by a global economy? 3.Why should statistics be used for this presentation?