Entrepreneurship

Ag. Business, Lesson 2-1

Objectives1. Define and describe entrepreneurs and their role in the U.S. Economy.

2. Analyze the entrepreneurial process.

3. Identify and discuss examples of successful past and current entrepreneurs in the agriculture industry.

4. Describe the advantages and disadvantages of being an entrepreneur.

Terms•Entrepreneur

•Entrepreneurial process

Entrepreneurs are …. A. Entrepreneurs, sometimes

called innovators, have essentially created the U.S. economy by creating products and industries that have sparked franchises and enterprise development all over the world.

B. Several important qualities characterize a successful entrepreneur. 1. Entrepreneurs are good managers

of money. 2. Entrepreneurs are competitive.

3. Entrepreneurs utilize their time wisely. 4. Entrepreneurs are progressive thinkers and risk-

takers. 5. Entrepreneurs like to set short-, intermediate-, and

long-term goals for the business. They work hard to achieve the goals in a timely manner

and can motivate those around them to do the same.

The entrepreneurial process involves …

The entrepreneurial process involves several important steps.

A. The first part of the entrepreneurial process is to identify and analyze an opportunity to start or develop a business enterprise.

B. The second step is to develop a business plan, which should include short-, intermediate-, and long-term goals for the business.

C. The third step is to evaluate needed resources and to determine how to obtain necessary resources that could include capital investments of money, equipment, machinery, buildings, land, or other necessary items.

D. The final step in the entrepreneurial process is the actual management of the enterprise that has been created.

There are several important successful past and current entrepreneurs who have been important to the agriculture industry.

A. Some of the most successful agricultural equipment and manufacturing companies were started by John Deere, Cyrus McCormick, and Jon Kinzenbaw.

1. John Deere developed the steel plow in 1837 and began his business, which became an international company.

2. Cyrus McCormick invented and developed the reaper in 1831.

3. Jon Kinzenbaw is the founder of Kinze Manufacturing, Inc.

B. Some of the most successful individuals and businesses related to seed and grain production, storage, and manufacturing are Pioneer Hi-Bred International, Inc.; Asgrow and DeKalb Seed; ADM; and Cargill.

1. Henry A. Wallace founded Pioneer Hi-Bred International, Inc. in 1926 because of his desire to improve seed genetics and yields for farmers.

2. Asgrow and DeKalb Seed was originally known as the Everett B. Clark Seed Company and was founded in 1856. world.

3. Archer Daniels Midland (ADM) was originally founded in 1902 by George A. Archer and John W. Daniels when they began their linseed-crushing business.

4. Cargill was founded in 1865 by W.W. Cargill as the first grain storage facility in the United States.

C. There are several successful livestock businesses and entrepreneurs.

A few of those business include King Ranch in Texas and Christensen Family Farms.

1. Captain Richard King was a successful entrepreneur in the steamboat transportation industry before purchasing 15,500 acres of land in Texas for King Ranch.

2. Christensen Family Farms was started in 1974 by brothers Bob and Glen Christensen who purchased two bred gilts from a neighbor to start the business.

D. Other successful entrepreneurs and businesses include agricultural sales companies.

1. Rural King was founded in 1960 and has its main headquarters in Mattoon, Illinois.

2. Originally founded by Charles E. Schmidt in 1938 as a mail-order business, Tractor Supply Company (TSC) is the largest retail chain of farm and ranch stores in the United States with more than 430 stores in 30 different states.

3. Blain’s Farm and Fleet was founded in 1955 by brothers W.C. (Claude) Blain and N.B. (Bert) Blain. Blain’s Farm and Fleet has 34 stores located throughout Wisconsin, Illinois, and Iowa.

Like any risky business or life decision, there are advantages and challenges to consider before becoming an entrepreneur and starting a business.

A. There are four major advantages to being an entrepreneur.

1. Money is one major advantage.

2. Entrepreneurs also have more opportunities than the average worker.

3. Successful entrepreneurship businesses can instill entrepreneurs with a sense of accomplishment that they would not otherwise be able to experience.

4. Time can be an advantage as well.

B. Although there are some significant advantages to being an entrepreneur, there are also disadvantages that must be considered.

1. One of the major challenges for entrepreneurs is money.

2. Entrepreneurs may initially feel prepared for the challenge of starting their own businesses, but there is a considerable amount of skill and knowledge required to begin, maintain, and operate any business.

3. When entrepreneurs start their small businesses, they may face the challenges of isolation and lack of feedback. It takes time to build up a

business, and sometimes success requires long hours in isolation.

Even though financial figures may not show growth in the business, it is sometimes necessary to consult others for feedback regarding business growth.

4. Time can be a major challenge for entrepreneurs. Depending on family or other work

obligations, it could be difficult to find adequate time to develop a business.

Most entrepreneurs will invest more time in their own business than they ever would have for an employer.

REVIEW•What are entrepreneurs, and what is their role in the U.S. economy?•What is the entrepreneurial process?•What are some examples of successful past and current entrepreneurs in the agriculture industry?•What are the advantages and disadvantages of being an entrepreneur?