1. Gr. 11 Economics

2.  Entrepreneurs are 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

3.  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

4.  Go-getter attitude – recognize opportunities, optimistic  Risk taking – moderate  Hard work – don’t notice the passage of time

5.  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

6.  80% of businesses fail in the first five years of existence  personal characteristics of entrepreneurs  lazy, unknowledgeable, unskilled, poor planning, inexperienced  misunderstand market – unpopular product, priced too high or low, market too small  insufficient start up money

7.  Pasadena, Newfoundland  Federal government started in 1986  favourable environment for businesses to grow  Low rent – Year 1-2 (25%), Year 3 (50%), Year 4 (75%), Year 5 (110%)

8.  Development officer – financing, business plans, cash-flow forecasts  Cost of sharing services – secretarial, photocopying, computers  Business advisory committee – lawyer, banker, accountant, business people

9.  Franchise is a license from a corporation (franchiser) to a another corporation or individual (franchisee) to sell a particular good or service with an advertised trade name  Franchisee a semi-entrepreneur because less risk, less innovation, less self-reliance

10.  Franchiser benefits from others money investment and hard work which allows them to expand business greatly  Franchisee benefits from proven business with less chance of 80% failure rate, but less freedom and must pay fees and % of profit to franchiser in return for trade name and assistance