2. Professional Development LAP 4 Career Opportunities in Entrepreneurship

3. Objectives Describe the risks and rewards of entrepreneurship. Explain factors that relate to entrepreneurial success.

4. Describe the risks and rewards of entrepreneurship. Objective

5. Have you ever thought about owning a business?Have you ever thought about owning a business? Consider these facts:Consider these facts:  Seven out of every 10 high school students are interested in starting a business.  Approximately 370,000 young people ages 16-24 are self-employed.  Every day, an average of 2,356 people go into business for themselves. More and more people start their own businesses every year.More and more people start their own businesses every year. To be successful, an entrepreneur must:To be successful, an entrepreneur must:  Have a passion for her/his business  Work harder than ever before It’s not easy, but if done right, can be rewarding and satisfying.It’s not easy, but if done right, can be rewarding and satisfying.

6. The Basics of Entrepreneurship Elise Macmillan and Bill Gates have one thing in common—they are both entrepreneurs.Elise Macmillan and Bill Gates have one thing in common—they are both entrepreneurs. What have they both done?What have they both done?  Started their own businesses  Created new products for the marketplace  Assumed the risks of starting and building their businesses  Received (and are still receiving) personal and financial rewards for their efforts

7. The Basics of Entrepreneurship Successful entrepreneurs help our society by:Successful entrepreneurs help our society by:  Creating new jobs  Helping our economy to grow  Helping us to save money and solve everyday problems in our lives

8. Entrepreneurs:Entrepreneurs: Who’s Who in Business Ownership  Start businesses to support their passions and interests  Develop and offer unique products  Are like leaders  Are creative  Take risks  Have a vision for the future  Motivate others to work toward that vision  Look for ways to improve  Learn from their mistakes  Work “on” their businesses  Focus on growing their businesses

9. Small-Business Owners:Small-Business Owners: Who’s Who in Business Ownership  Often sacrifice their own needs and interests to build their businesses  Don’t necessarily worry about offering unique products  Focus on running stable, secure businesses that generate income  Typically work “in” rather than “on” their businesses  Are generally content to keep their business operations small instead of always looking to grow and expand  Employ fewer than 500 people

10. Managers:Managers:  Plan, organize, staff, direct, and control the work of others in a systematic way  Set objectives  Formulate policy  Implement policies and procedures  Help make entrepreneurs’ visions a reality  Do not assume the risk involved in starting a business Who’s Who in Business Ownership

11. Why Become an Entrepreneur? To obtain personal satisfactionTo obtain personal satisfaction To make a difference in the lives of othersTo make a difference in the lives of others To pursue your passionsTo pursue your passions To become more independentTo become more independent To be more creativeTo be more creative To have a flexible work scheduleTo have a flexible work schedule To gain financial independenceTo gain financial independence To experience the adventure and excitement of business ownershipTo experience the adventure and excitement of business ownership

12. The Risks of Entrepreneurship Around 50% of all small businesses fail within the first five years.Around 50% of all small businesses fail within the first five years. Factors that contribute to business failure:Factors that contribute to business failure:  Poor management  Poor planning  Insufficient capital  Dismal sales  Overexpansion  Lack of experience

13. The Risks of Entrepreneurship Issues and challenges in entrepreneurship:Issues and challenges in entrepreneurship:  Financial concerns  Sole responsibility  Personal commitment

14. Technological advancements help entrepreneurs to:Technological advancements help entrepreneurs to: Operate exclusively via the InternetOperate exclusively via the Internet Own home-based businessesOwn home-based businesses Reach a much larger, often international audienceReach a much larger, often international audience Factors Contributing to Increased Entrepreneurship

15. Increased availability of resources and support systemsIncreased availability of resources and support systems Factors Contributing to Increased Entrepreneurship  These resources and support systems include:  Books  Magazines  Web sites  Specialized government agencies  Small business development centers  Private foundations devoted to entrepreneurship  These resources and support systems can help entrepreneurs to:  Decide what types of businesses to start  Find ways to secure financing  Develop components for a business plan  Other entrepreneurs who are successful can also be good resources.

16. More options in obtaining financingMore options in obtaining financing  Banks  Family  Friends  Government agencies  Professional associations  Corporate sponsors  Angel investors  Scholarships Factors Contributing to Increased Entrepreneurship

17. U.S. legislative reforms provide small businesses with tax breaks.U.S. legislative reforms provide small businesses with tax breaks.  Tax deductions are available for:  Home offices  Supplies and equipment  Mileage  Travel  Insurance premiums Factors Contributing to Increased Entrepreneurship

18. Explain factors that relate to entrepreneurial success. Objective

19. Entrepreneurs Are Self-Aware They know what their strengths and weaknesses are.They know what their strengths and weaknesses are. They work hard to develop or enhance needed traits and skills.They work hard to develop or enhance needed traits and skills.

20. Entrepreneurs Have Passion For What They Do Entrepreneurs’ businesses are successful because they enjoy their work.Entrepreneurs’ businesses are successful because they enjoy their work. Many entrepreneurs start their businesses to enjoy or share a natural talent, interest, or hobby that is important to them.Many entrepreneurs start their businesses to enjoy or share a natural talent, interest, or hobby that is important to them. Ashley Qualls, Whatever Life

21. Entrepreneurial Traits and Characteristics CreativityCreativity InnovationInnovation DeterminationDetermination ConfidenceConfidence OptimismOptimism EnthusiasmEnthusiasm OrganizationOrganization Willingness to take risksWillingness to take risks Open-mindednessOpen-mindedness

22. Entrepreneurial Know-How Risk-management skillsRisk-management skills Sales and marketing skillsSales and marketing skills Financial skillsFinancial skills Administrative skillsAdministrative skills Time-management skillsTime-management skills Technical skillsTechnical skills Communication skillsCommunication skills Leadership skillsLeadership skills Decision-making and problem-solving skillsDecision-making and problem-solving skills

23. Professional Development Entrepreneurs should continue to seek training and education throughout their careers.Entrepreneurs should continue to seek training and education throughout their careers. Professional development sources include:Professional development sources include:  The Internet  Publications  Workshops, seminars, classes, trade shows  Trade and entrepreneurial organizations  Networking  Internships  Volunteer work Since there are many ways to obtain professional development, the path you take depends on the business you are starting.Since there are many ways to obtain professional development, the path you take depends on the business you are starting.

24. Be on the Lookout for New Opportunities Entrepreneurs find inspiration for new business ventures by:Entrepreneurs find inspiration for new business ventures by:  Looking for gaps between what is currently being done and what needs to be done.  Taking note of trends in:  Society  Technology  The economy  The government Fred Smith, FedEx

25. Be on the Lookout for New Opportunities Some of the latest trends include:Some of the latest trends include: Fred Smith, FedEx  An aging population  The growth of e-commerce  The increasing number of dual wage-earner families  The government’s focus on terrorism and homeland security  Environmental protection

26. A New Breed of Entrepreneurs: Ecopreneurs There are two types of ecopreneurs:There are two types of ecopreneurs:  Entrepreneurs who use recycled materials in their products and utilize alternative sources of energy for business operations  Entrepreneurs who have developed businesses that focus directly on the environment  Recycling facilities  Water treatment plants  Renewable energy businesses Tom Szaky, Cofounder and CEO, Terracycle

27. Do you want to start your own business? Do you have the entrepreneurial traits, skills, and knowledge that are needed to be successful? Think about your personal strengths, as well as your weaknesses. What hobby, talent, or interest are you passionate about?  How could you use those strengths to your advantage when starting a business?  How could you improve your weak areas?  How could you turn that passion into a profitable business?

28. Jack truly enjoyed his work at first. Then, the company’s focus changed. Jack is no longer happy with his job. He dreams of owning his own agency. Two coworkers are also upset with the company. Jack wonders whether Rick and Gary would be interested in going into business with him. Should Jack tell them about his plans to start his own advertising agency? Is it ethical for him to talk with them about becoming partners in the new venture? Why or why not?

29. MBA Research Acknowledgments Original Developers Christopher C. Burke, April J. Miller, MBA Research Version 2.0 Copyright © 2009 MBA Research and Curriculum Center

30. Digital-based photography sources: DIGITAL VISION LTD. Teenager Today Obj. B: #130271 Photos copyright Digital Vision Ltd., all rights reserved. 833 Fourth Ave. SW, Suite 800 Calgary, AB, Canada T2P 3T5

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