Entrepreneurship 30Vanier Collegiate – Ms. Lapointe

Just Do Right

Act Justly, Love Tenderly, and walk humbly

Lord Teach Us To Pray

How are we going to learn?

LATERIce Breaker:

- Knots- Ball- Tent- Laughing

Entrepreneurs/Case Studies/Characteristics and Skills Levi Strauss

Henry Ford

George Westinghouse

Timothy Eaton

George Stafford Parker

Dorothy Gerber

Elizabeth Arden

Indian Bands

Brian Adams

Lulu Lemon

Tim Hortons

Bombardier

Canadian Tire

Hallmark

McCain

Blackberry

• TELEMIRICALE

• BILL GATES

• ESTE LAUDER

• WALD DISNEY

• TERRY FOX

• RICK HANSEN

Introduction to Entrepreneurship

Introduction

What is Business and what does it involve? – concept map

Entrepreneur (characteristics, meaning)– concept map

Why Become an Entrepreneur?

Important info for Entrepreneurship (components, types of ventures, forms of organization, factors, benefits

Take a look at what it takes to be an Entrepreneur within our society

Dragon’s Den – Assignment #1 and #2

Road to Riches - http://www.youtube.com/watch?v=TnRITR8VWeE

Student Edition - http://www.youtube.com/watch?v=tFL9LdAIQaA

“Whether you think you can or you can’t you’re right.” – Henry Ford

Entrepreneur Are people who take hold of opportunities when they see them;

willing to assume calculated risks as they look for ways to satisfy the needs and wants of others through innovation.

Four Important Components:

1. Organization – Arrange or facilitate the development of a working enterprise or operation. See something from the first idea to the final implementation.

2. Management – To handle or direct the operations of business or venture.

3. Responsibility – Means that an individual is liable to be called to account for the actions, operations or results of an enterprise.

4. Ownership – Inherent to the entrepreneur is that of ownership. Means that you are not only responsible for the actions of the enterprise, but that you reap the benefits of success or suffer the disappointments and penalties of failure.

Business owners, employees, community organizations, volunteers = can all be considered entrepreneurs and/or enterprising people.

Need – essential for human survival

Want – human desires that go beyond basic needs and are not essential for survival.

Both can be met through and provide a market for goods and services.

Market Niche – a specific segment of the market (ex: television, ESPN, TSN target a niche of sport lovers; water proof hiking boots for me; toothpaste for kids, gluten, organic)

Characteristics of Entrepreneurial Ventures

Local – National - International Service - Goods Profit or Not-For-Profit Large Scale/Small Scale Physical/Virtual Note: GNP (gross national product) and Trade Agreements

(NAFTA, GATT) See Handout

Local/National/Multinational

Operate on three geographic scales – becomes more complex as the area expands

Local Exist in your school, local community, larger urban centres

nearby – gives the town or city it’s personality and strength

Most basic venture, restricted to a well-defined market area (rural grocery store, family farms – total income for family), urban centre has an increased population base, more possibilities to expand, start operating a chain of video outlets or pizza stores in the city

National Typically the national retail chains, or nationally based professional firms.

(The Bay, Zellers, Saan, Eaton’s, Safeway, Superstore, Deliotte Touche, Price Waterhouse – accounting firms)

They all usually start with one store, or idea Ex: Timothy Eaton

Multinational Very powerful, represent money, capital, and even political power. Large and have the ability to influence Becoming more of an option than before with globalization and technology Ex: Exxon Corporation: oil and gas Ex: manufacturing pulp and paper, tobacco, etc.

Profit/Non-Profit

Profit Ventures A commercial venture is created b/c of a desire to provide a

product or service to the public in exchange for a monetary benefit (profit).

Profit – is the value that remains after all of the expenses (cost of purchasing goods, salaries, rent, utilities, supplies) of running the business have been paid.

Revenue – expense = net profit or loss Most entrepreneurs make their living off of their venture. Have to pay ee’s, however, owner’s take home pay depends

on the success of the venture that month.

Non-Profit In the business to raising money for other people or causes

Any surplus in funds after expenses will be used for the benefit of others, and not to increase the asset value of the owners, there are no owners in the sense of profit takers

Typically run by community groups, religious organizations, governments, and other civic-minded people.

Supported by volunteers (cuts down on costs) – food bank

Ex: international non-profit – International Red Cross

Examples Local/Provincial/Canada Non-profit

Big Brothers, Children’s Wish Foundation (SK), Canadian Cancer Society (MJ office), girl guides, 4-H, multicultural centre, human society

International Non-profit YMCA, girl guides, Red Cross, United Way, Amnesty International,

Local / Goods Hoopla, New Board Shop, Yvette Moore

International / Service McDonalds, Shereton, Law companies, Markeing companies

Indian policy and early reserve period Does everyone have a right to run their own business?

Should they be restricted based on their ethic origin?

Dark Spot on Saskatchewan History:

- Indian Policy and Early Reserve Period

- Two articles- http://

www.ammsa.com/publications/windspeaker/indian-act-permit-control-culture

- http://esask.uregina.ca/entry/indian_policy_and_the_early_reserve_period.html

What does the venture offer?

Service/Good Provision

Service ProvisionNo good or things just a service, typically for a

feeSpecialized areas – service then feeInclude:

Transportation (STC), house cleaning, dry cleaning, real estate, custom combining, autobody work, interior design, lawyers, and accountants are just a few.

Examples:

Mobile pet grooming

Diaper delivery

Mobile locksmith

Golf club cleaning

Adventure tours

Self defence instructor

Pet sitting

Personal chef

Resume and cover letter service

Tax consultant

Mystery shopping

Professional organizer

Tutoring

Packing and unpacking service

Bookkeeping

Language translator

Limousine service

Catering

Welcoming service

Good Provision

Ventures that operate in the retail/wholesale sector are in the business of supplying goods to the public, or to other retailers.

Retailers sell directly to the public.Ex: gas stations, corner store, department stores,

specialty storesWholesalers sell to retailers

Take out contracts with producers to purchase their produce, wholesalers then sell the produce to the retailers for a profit.

“middleman”In many situations the company owns the

wholesaler and the retail enterprise.

Manufacturing: The process of converting raw materials, 

components, or parts into finished goods that meet a customer's expectations or specifications. Manufacturing commonly employs a man-machine setup with division of labor in a large scale production.

Types of Business Ownership

Sole Proprietorshi

pPartnership

Corporation (private, public, crown)

Cooperative Franchise

Forms of Business Organizations

Which type of business is most common?

Sole Proprietorships Partnerships Corporations

Which type of business has the largest sales volume?

Sole Proprietorships Partnerships Corporations

What are some factors that influence entrepreneurs and ventures?T/P/SBrainstorm

Factors that influence entrepreneurs

The Economy: Economy: activities related

to the production and distribution of goods and services in a particular geographic region

Economic Cycle: Boom, Slow Down, Recession and Recovery

Markets Exists wherever

buyers and sellers come together, exchange

Market share – advertising can expand or move market preference

Supply and Demand Activity Later on

Supply – the quantity for goods and services that producers and sellers are willing or able to sell consumers

Demand – the desire for goods and services. It represents the consumer side of the market

Demand is greater than supply? Demand is less than the supply? Supply decreases – demand is still present (California oranges freeze before they

get picked) Supply increases – demand stays the same or decreases extra inventory but no

increase in demand Competitors – what are they willing to sell? Consumers – what are they will to buy at?

The Law of Supply and Demand: The price of an item will go down if the supply increases or if the demand for the item decreases. The price of an item will go up if the supply decreases or if the demand for the item increases. In general, the price of an item is usually pushed toward the level at which the quantity supplied will equal the quantity demanded.

Technology Is technology available to produce or support your idea/venture? New

technology? Finance research and development? Production? Communication? Ex: ebay/paypal

Agricultural Diversification SK – very important factor; diversifying operations; manufacturing;

processing plants; Prairie Berry; McDougal Pulse partnership with overseas company;

Environmental Concerns Dragon’s Den Season 3 Episode 7 Time 17:48

Industrial revolution up to 1960s did not worry about the environment

Keystone Pipeline – US; Farming – chemicals

Plastic bags

Ten Tree Apparel - http://www.cbc.ca/dragonsden/2012/09/ten-tree-apparel-2.html

Availability of Financing Can you afford to get your project up and running? Can you do it by

yourself or will you have to raise capital from outside sources? (owner investment and/or borrowing)

Economic Cycle – relation to financing – interest rates!

Trends and fads Both trends and fads influence consumer needs and

wants

Trends: a general direction in society that may last for a long time. Major impact on consumer buying habits and on business (trend – women in the workforce, convenience foods, extended shopping and banking hours, flexible hours, technology, self help)

20 Weird Inventions that made millions of dollars

https://www.youtube.com/watch?v=b8K_J9kPmp4

Inventions

https://www.youtube.com/watch?v=mJ05s4W8jPk

Current Trends Economy (urban vs rural)

Word of mouth trumps advertising (social media)

What’s App

Online shopping vs bricks and mortar

Regional hubs – Industrial corridor

 Google data reveals that small businesses with websites grow 40 percent faster than those without.

Get Mobile (aps, coupons, etc.)

 Influence marketing focuses on what consumers are saying about certain products and brands. People buy what their friends and family say good things about, underlining the importance of getting people to say good things about you.

Educated customers

Home based businesses

Fashion Personal tastes of the consumer, are you offering a product or service which will be

popular, or even wanted? Distinct? Fashion influences the music, clothing, housing, textile, automobile food and recreation industries, just to name a few. A shift in the tastes of consumers will result in a corresponding shift in their shopping habits.

Globalization/Technology/Environmental Job loss – Job creation (outsourcing/automation)

Larger market – micro economics and macro economics

Advantages: production, simplification, energy, security, cost, safety …

Disadvantages: crime, unemployment, misuse, privacy

Demographics The study of the characteristics of people in a population

As demographics change(data about groups of people including age, ethnic origin, religion, family size, income, etc.)

- consumer buying habits change

How quickly can smaller businesses vs larger ones chang?

Trend watchers – better predict what people will want to buy (ex: baby boomers – increase in births in early 1960s – products/services?)

Ex: Sobey’s organic/natural/raw/traditionally different foods

Impact on community Job Creation

Those employed by the business have money to buy goods and services.

Provided locally – people will spend their money there and more jobs will be created.

People move to the area.

New Ideas Generate even more ideas and new ways of doing things. Innovation! (cell phones,

smartphones, microwaves, fridges, etc.)

Economic Benefits Competition – lowers prices; improve society’s standard of living; more wealth to

distribute.

Discussion about wireless service – North America

Political Benefits Recession – governments try to stimulate growth! Capital growth projects –

Gardner Dam

Entrepreneurship needs a supportive environment (SK vs NDP)

Canada Ranked among the top 5 best places to start a business

As a result, Canada is near the top among G20 nations in numbers of entrepreneurs starting new businesses.

“Entrepreneurs are the backbone of economies around the world – economies grow when entrepreneurs grow,” says CBC business commentator Nisha Patel.

“They grow their personal wealth and grow the wealth of the economy. It also sparks innovation if you have new ideas at the table,” she said.

http://www.cbc.ca/news/business/story/2013/08/27/business-entrepreneurship.html

Start Up Canada - Handout

Role Demands of a Business Venture Inventors

Play an extremely important role in developing new products and services

Self-motivated, strong commitment to success, cope with setbacks, work alone, reject the conventional way of doing things, desire to try things completely new

Must be prepared to face criticism, frustration, and disappointment

Poutine/snowmobile 1937 ?

Canadian Inventors - http://www.dealathons.com/blog/2011/05/09/10-canadian-inventors-who-changed-the-world

Fox 40 whistle - http://www.foxnews.com/sports/2012/04/04/fox-40-pea-less-whistle-story/

Concussions - https://www.triaxtec.com/sim-p/

Roles

Innovator Do not necessarily develop something entirely new or

different, but may simply create an improved way of doing business

Ex: grocery shopping by phone/orders – innovators

Ex: Henry Ford did not invent the automobile but his innovative methods of _________________________________ revolutionalized the industry (lean approach).

Youth is on your side – new ways of thinking of things or how to do things.

http://www.entrepreneur.com/article/236621 (cars, keyboards, ads, clothing)

Roles

Manager 4 components Planning, assigning,

implementation, evaluate

Administrators Have none of the

characteristics of an entrepreneur – their task is to ensure that the business continues to function smoothly

Day-to-day execution of repetitive tasks and assignments

Entrepreneur Undertake initial

risk, creativity, organizations, business plan, …

Need, want, opportunity

ETHICS –WHO DO YOU WANT TO BE? HOW DO YOU WANT YOUR BUSINESS TO BE PRECEIVED AND REMEMBERED?

What guides your decision making in your life?

What will guide you in business? Are there lines you will not cross?

Handouts (Business Ethics: The Foundations of Effective Leadership, Ten Questions, Case Study, Student Exercise Questions)

Vocabulary Ethics

Study of values (right vs wrong), of how we ought to live, reflection upon a particular behaviour, philosophical

Actions and decisions/professional standards

Values

Standards or ideals which serve as guidelines/standards by which we live and make decisions

Typical values include honesty, integrity, compassion, courage, honor, responsibility, patriotism, respect and fairness.

Morals

Practical applications of ethical principles, modes of conduct, social system, personal character, bigger belief system (societal, religious)

Business Ethics

business actions in light of some aspect of human value.

it requires the evaluation of business practices/professional standards

Business Ethics Image/Reputation/Values/Integrity/

Character – has become very IMPORTANT in the marketplace (competitive/commercial dealings) (Paul Hill)

Entrepreneurs are responsible for generating economic growth, but they must also consider right and wrong business conduct.

Many businesses establish codes of ethics, which outline appropriate behaviour in operating a business. Much like our legal systems, beliefs and expectations can change.

Examples: Diet Pills

Bug Zapper

Diarrhea

Nike/Apple

Smoking

Pesticides

Environment issues (working conditions of employees, oil/gas, carbon footprint)

Foreign country, standards, regulation, child labour, fair trade

Conscientious marketers face many moral/ethical dilemmas. However if the company has a code of ethics and policies that guide everyone it helps!

Two philosophies: Free market/legal system (do

what you want)

Social Conscience – responsibility in the hands of individual companies/managers

Work out a philosophy of socially responsible and ethical behaviour.

International Business (gift giving vs bribes – GM)

Business Ethics/Integrity/Law Building trust with customers, suppliers, employees, investors, and

potential partners are important and a code of ethics can help!

Code of Ethics – written, displayed, trained

Entrepreneur – in a position of leadership (power, control)

Cheat/shoddy goods – what happens?

Legal – even if something is allowable by law, it may not necessarily be right

Law defines the minimum acceptable standard of behaviour, the rest depends on the entrepreneur’s personal values and on what he/she wants the new venture to stand for

The ethics of the free market, with an emphasis on profit making, will always drive private enterprise. However, integrity and honesty have a strong and valuable role to play in venture creation.

Where do you buy your chocolate?

http://www.cbc.ca/news/politics/canadian-chocolate-companies-pressed-to-ethically-source-cocoa-1.2534144

Live your life with integrity!

“a steadfast adherence to a strict ethical code”

Decisions are easier to make and more than likely right when you bse your venture on what you value most.

Case Study

Hand outs

Case

Intrapreneurship Definition: entrepreneurship operating within a

corporation Entrepreneurs are those individuals who exhibit the ability

to organize, manage, take responsibility and who have a direct stake in the success of the venture (4 components).

Stake/Level of ownership – emotional or financial Therefore, that definition does not work for employees of

a firm because they do not have any ownership rights. More and more companies are encouraging

intrapreneurship activity in order to become more competitive, improve their productivity, or keep pace with changing markets, technology and new opportunities.

Methods: smaller teams (new products, service or process), inviting customers to give them ideas, reward opportunities

Goal: maintain and gain more market share

Examples: Java, post-it notes, E.D. Smith (jams rewards with employees with bonus), Google

Companies who do not stimulate intrapreneurship are at a disadvantage – business today requires you to respond to and anticipate market demands or you could lose market share

Anyone can be an intrapreneur: Anyone willing to take a risk, innovate, provide leadership and provide

opportunities for others.

How? Smaller teams, customer feedback, innovation,

Very important human resource

Best Examples:

3M

Henry Ford

E.D. Smith

Google - earth

http://www.vocoli.com/blog/may-2014/10-inspiring-examples-of-successful-intrapreneurship/

3. Massachusetts Department of Correction

Idea: A guard suggested a change in the way Massachusetts Department of Correction stored their inmate photos. Instead of taking pictures with film and storing them the old fashioned way, why not use digital cameras and use a database for image storing.

Benefit: The department has sixteen correctional facilities and in the first year of implementation alone it saved $56,000 dollars on film and most likely a lot of clerical headache. Side note—if you haven’t read Ideas are Free there are many examples like this one, small ideas can be just as beneficial as sweeping innovation efforts.

- See more at: http://www.vocoli.com/blog/may-2014/10-inspiring-examples-of-successful-intrapreneurship/#sthash.1pvwwqID.dpuf

http://www.vocoli.com/blog/may-2014/10-inspiring-examples-of-successful-intrapreneurship/

6. Google

Idea: Just like W.L .Gore, Google allows time for personal projects. Some of Google’s best projects come out of their 20 percent time policy. One of these is something you probably use multiple times a day, Gmail.

Benefit: Paul Buchheit, the creator of Gmail, started on the project in 2001 and worked up to its launch on April 1, 2004 (April Fools but not really.) Gmail became the first email with a successful search feature and the option to keep all of your email (hello 1GB of storage) instead of frantically deleting to stay under your limit. The initial launch was by invite only, quite the hot commodity. Now, it’s considered a faux pas not to have an email address ending in @gmail.com.

- See more at: http://www.vocoli.com/blog/may-2014/10-inspiring-examples-of-successful-intrapreneurship/#sthash.1pvwwqID.dpuf

Modifying an Entrepreneurial Concept Take a concept that someone else has used and

modify it in a way that will improve it.

McDonald’s – 1954, salesman named Ray Kroc visited a hamburger stand in California owned by Dick and Mac McDonald. Impresses by the quality of the food and speed of service – he knew that this type of restaurant could be successful all over the country. 1955 – Ray obtained franchising rights from the brothers. Agreement allowed him to open other, similar restaurants under one central management. Eventually, he bought out the brothers and in 1965, McDonald’s went public.

1400 restaurants in Canada, 77 000 ee’s, 31 000 world wide employing 1.5 million, over 119 countries

Entrepreneurs – AGENTS OF CHANGE

Terry Fox• Continually challenging the status

quo.

• Respond to a perceived need or want?

David Opie• When entrepreneurs see an

opportunity, they have the courage to act.

• Entrepreneurs carefully weigh opportunities against risks before acting.

You’re hacked• Make things happen!

• Have a vision. They work towards clearly defined goals.

Debate:Are entrepreneurs made or born?

Other PowerPoint Presentation

Characteristics – Self Assessment

Handout Assignment

HAND – IN

Review Agencies

Innovation – Ideas – videos

Chapter 2/3 Handout Goals Setting

Chapter 4 – Challenges and Changes in the Labour Market Agricultural Age, Merchant, Industrial Age, Labourer, Command and control, trade

union, strike

New economy, Information Age, Trends, labour market, attrition, war for talent

Life work balance, what motivates talent (page 75), home-based employment (pg. 78), Intellectual Capital – knowledge and skills learned, what the employee has to offer,

Invention, Innovation and the Creative Edge

Every venture starts with an idea – but where does the idea come from? Examples

Good ideas come from many forms: They are innovative – offering something new, nothing ever done or

made before

Suggest a way to satisfy a need

What is invention? Creation of something new What is innovation? Is a change to something that already

exists

Observe? Patters? Develop Ideas?

To become aware of the business ideas that surround you every day, you need to be a good observer.

Once you become more aware of your surroundings, you will likely begin to notice what the people in your community are doing. Where do they like to shop? Eat? Have fun?

WATCH FOR CHANGE – CHANGE CAN SPUR A NEW IDEA FOR A NEW VENTURE

Develop your ideas – Agency Reviews Assignment Page 92 – Your Turn

Take this test with a partner and discuss the results. What kinds of things are you good at observing? Not so good? With your partner, discuss techniques people can use to improve their observation skills.1. If you were looking for an odd-numbered address, would you look on the north or the south side of the street?

2. What colour are the walls in the hallway outside your classroom?

3. How many cupboard doors are there in your kitchen at home?

4. How many places are there to buy coffee within 1 km of your school?

5. Describe what your teacher wore to class yesterday?

6. Name 10 things you can see from your locker.

7. About how many steps is it from one end of the school ym to he other?

8. Name one new business that recently opened in your community.

9. When you enter the mail office at school, does the door swing in or out?

10.Look carefully around your classroom. Name one feature of the room that you never notices before.

Invention

By accident (Silly Putty)Solution to a problem (Jacques Plante, NHL)

Innovation

By accident or by design – what if?Ruth Wakefield – creator of the chocolate

chip cookie

How do you Protect your ideas?

Once you’ve come up with an idea, or invention, or an innovation, there are a number of ways to protect it so potential competitors can’t take advantage of it.

In Canada there are several ways to protect your intellectual propery.

definitions Patents

Is a grant made by the government that gives the creator of an invention the sole right to make, use and sell the invention for a set period of time.

Copyrights

Protects literacy works, musical works, artistic works, and software. Copyright to any original work they have created unless they were hired or employed to create it.

Copyright act – can’t use without the persons permission

Trademarks

Industrial Design Act

Integrated Circuit Topography Act

Problem Solving

Lateral thinking

Tje

Push or pull market

Opportutnies/ideas/creative thinking/hat thinking/videos

Module 4 seeking opportunities/six hats/Guest Speakers

Problem Solving – hats – inventions/innovation

Test

Big One

Made/Born

Pushed or Pulle

What does an entrepreneur Do?

Ideas and opportunities/aware/outside the box

Identify needs for products or services

Generate ideas on how to provide the needed products or services

Evaluate whether an of the ideas present a venture opportunity

Evaluate ideas and opportunities for development of a venture

Develop a plan

Implement the plan

Product Development – Individual Assignment

Individual Protocols

Dragons’ den presentation

Groupd decision

JA hear we go

Guest speakers

Business model

Mini Simulation – crash course

Junior Achievement and Guest Speakers

Sample JA companies

http://www.jacompanyprogram.com/apps/links/

21st Century learning

http://www.youtube.com/watch?v=2XIQkDldpmI – The Changing Workforce and skills

http://www.youtube.com/watch?v=c0xa98cy-Rw – guy speaking

http://www.youtube.com/watch?v=yuKu6PZXCIY – like did you know

Tom Byers – idea/opportunity

https://www.youtube.com/watch?v=gzPprVoacr8

Trends

http://www.trendwatching.com/briefing/