1. 1 Lesson 6-1 Becoming an Entrepreneur Objectives:  Identify characteristics of successful entrepreneurs.  Recognize the importance of entrepreneurship in the economy.  Describe opportunities and risks of entrepreneurship.

2. Do Now  http://knowledge.wharton.upenn.edu /article/ted-leonsis-its-the-greatest- time-to-be-an-entrepreneur/ http://knowledge.wharton.upenn.edu /article/ted-leonsis-its-the-greatest- time-to-be-an-entrepreneur/  Listen to blog and take notes  After blog: Why does Leonsis thinks that now is a great time to be an entrepreneur? How does he define today’s consumer? Do you agree that, as consumers, they possess these qualities? 2

3. 3 Characteristics of Entrepreneurs  An entrepreneur is someone who takes a risk in starting a business to earn a profit.  Entrepreneurship is the process of starting, organizing, managing, and assuming the responsibility for a business.  Entrepreneurs create new product ideas and new businesses. Their ideas often respond to customer needs that are not being satisfied with current businesses.

4. 4 What Does it Take?  It takes unique skills and personal characteristics to develop a new idea for a product or service. Not all people who own or manage a business are entrepreneurs.  It is important to have an understanding of business operations and management.  Entrepreneurs come from all age, racial, gender and ethnic groups.  Many entrepreneurs own their first business while in their teens while others may not take that step until retirement.

6. 6 Advantages of an Entrepreneurship  Satisfaction from taking a risk and becoming a success.  Showing expertise and skills.  Working from home / flexible schedule.  Gaining profit.

7. 7 Disadvantages of an Entrepreneurship  Total responsibility for the business.  Long hours. Time and effort are important pieces to making a company successful.  Financial risks.

8. 8 Entrepreneurship and the Economy  Entrepreneurship is a key part of the U.S. economy.  Nearly 1 in 10 of all Americans 18-64 years old is involved in some type of entrepreneurship activity.  About 40 percent of new business owners run their own businesses with no help.

9. 9 Financing  Most of the money needed to start a new business comes from the entrepreneur and his or her family and friends.  1 in 5 Americans has invested in a business of someone they know well.  Family and friends invest over $100 billion in new businesses each year.  Venture capital is another source of money. It is money provided by large investors to finance new products and new businesses that have a good chance to be very profitable.  Loans from banks and financial institutions and credit from businesses are other sources of financing.

10. 10 Productivity  Small businesses are responsible for nearly half of the U.S. gross domestic product each year.  Small businesses account for 55 percent of all innovative products and services developed.

11. 4 Questions You Must Think Critically About Before Starting a Business http://www.entrepreneur.com/article/238279 Toys and Spinning Brushes: How John Osher Found His Way to Profits http://knowledge.wharton.upenn.edu/article/toys-and-spinning-brushes-how-john-osher-found-his- way-to-profits/ 7 Musts to Make Part-Time Entrepreneurship Work for You http://www.entrepreneur.com/article/238169 Microsoft CEO Criticized for Suggesting Women Not Ask for Raises http://www.entrepreneur.com/article/238347 3 Steps to Happier Customers http://www.entrepreneur.com/article/238284 7 Surprising Truths About Mentors http://www.entrepreneur.com/article/238244 3 Proven Strategies for Running a Great Business That Will Also Work in Our Personal Lives http://www.entrepreneur.com/article/238263 How This Savvy 10-Year-Old Launched a Budding Cookie Business http://www.entrepreneur.com/article/238303 7 Tips For Hiring The Best Startup Talent http://www.entrepreneur.com/article/238073 Four success strategies I took from the NFL to my business http://www.entrepreneur.com/article/238380 Six qualities smart businesses strive to embody http://www.entrepreneur.com/article/238587 11

12. 12 New Business Opportunities  Opportunities begin with the creation of new or improved products and services.  An innovation is an invention or creation that is brand new.  Not all entrepreneurship opportunities emerge from inventions and innovations. Many come from an improved design, more effective procedures, or greater attention to quality.  An improvement is a designed change that increases the usefulness of a product, service, or process.  Example of a product that is an innovation.  Example of an improved product.

13. 13 Recognizing Risks  Developing a successful new business is not easy. Many more new businesses fail than succeed.  The National Federation of Independent Business reports that of all new businesses, about 1/3 are profitable, 1/3 do not make a profit but continue to operate, and the remaining 1/3 lose money.  Over a ten year period, well over 50 percent of all new businesses are discontinued.  What is the difference between an opportunity and risk? Are all opportunities risk?

14. 14 Primary Reasons New Businesses Close  Lack of adequate capital  Low sales  Higher than expected expenses  Goals are NOT realistic  Competitive pressure  The owner is unprepared to manage a growing business  Operations require more time than the owner is willing to commit  Can you think of a business that has recently closed down?