goals entrepreneurship: ideas in action© south-western publishing chapter 1 should you become an...
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GOALSGOALS
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1Chapter 1SHOULD YOU BECOME AN ENTREPRENEUR?
• Define entrepreneurshipDefine entrepreneurship• Identify advantages and disadvantagesIdentify advantages and disadvantages• Identify characteristics of entrepreneursIdentify characteristics of entrepreneurs• Identify types of businessesIdentify types of businesses• Identify opportunitiesIdentify opportunities• Identify goalsIdentify goals
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 2
WHAT IS AN ENTREPRENEUR?Definitions
People who own, operate, and take the risk of a business venture are called entrepreneurs.
Entrepreneurship is the process of running a business of one’s own.
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 3
WHAT IS AN ENTREPRENEUR?Employees vs. entrepreneurs
1 works for someone else1 takes risks
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 4
ADVANTAGES OF ENTREPRENEURSHIPEntrepreneurs are their own bosses.Entrepreneurs can choose a business
that interests them.Entrepreneurs can be creative.Entrepreneurs can make lots of money.
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 5
DISADVANTAGES OF ENTREPRENEURSHIPEntrepreneurship is risky.Entrepreneurs face uncertain and
irregular incomes.Entrepreneurs work long hours.Entrepreneurs must make all decisions
by themselves.
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 6CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS
Independent and able to act quickly Self-confident Have determination and perseverance Goal-oriented Have a need to achieve and to set high
standards for themselves
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 7
ASSESS YOUR SUITABILITY FOR ENTREPRENEURSHIPSelf-Assessment
Hobbies and interests Past experiences Strengths and weaknesses
Assess your aptitude Ability to learn a particular kind of job
Assess the advantages & disadvantages of entrepreneurship
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 8JOB ATTRIBUTES CHECKLIST I enjoy working with numbers. I enjoy working outdoors. I enjoy working with my hands. I enjoy selling. I like working with people. I prefer to work alone. I like supervising other people. I like knowing exactly what it is I am
supposed to do.
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 9TYPES OF ENTREPRENEURIAL BUSINESSESManufacturingWholesalingRetailingServiceAgriculturalMining and extracting
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 10MANUFACTURING BUSINESSES Make/create products:
Apparel and other textile products Chemicals and related products Electronics and other electrical equipment Fabricated metal products Food products Industrial machinery and equipment Printing and publishing Rubber and miscellaneous plastic products Stone, clay, and glass products
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 11WHOLESALING BUSINESSES The Middle Man – distribute products to other
companies: Apparel Electrical goods Groceries and related products Hardware, plumbing, heating equipment Lumber, construction materials Machinery, equipment, supplies Motor vehicles, automotive equipment Paper, paper products Petroleum, petroleum products
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 12
RETAILING BUSINESSES Sell to the final end user:
Auto and home supply stores Clothing stores Florists Furniture stores Gift, novelty, and souvenir stores Grocery stores Jewelry stores Retail bakeries Sporting goods and bicycle stores
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 13
SERVICE BUSINESSES Provide INTANGIBLE goods:
Appliance repair Automotive repair Babysitting Bookkeeping Consulting Dance instruction Electrical services Exterminators
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 14AGRICULTURAL BUSINESSES Generate produce and farm products
MINING/EXTRACTING BUSINESSES
Take resources out of the ground so they can be consumed
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 15SMALL BUSINESSES DOMINATE THE U.S. ECONOMY
90%
9%1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Number of employees
Perc
enta
ge o
f all
U.S
. bus
ines
ses
20 or fewer employees
21 to 500 employees
More than 501 employees
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 16
COMPARE DIFFERENT OPPORTUNITIES Is there a market? Will people buy? How much money would it take? Will I be able to
borrow that much? How many hours a week are required? Am I willing to
commit that much time? What are the risks? What is the rate of business
failure? Do I have the right background? Do others who own
this kind of business have more experience? How much money could I make?
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 17
WHERE TO INVESTIGATE OPPORTUNITIESLibrarySmall Business AdministrationTrade shows – events where
companies can display their products
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 1
Slide 18
SETTING GOALSFinancial goals
RevenuesStartup costsProfitsReasonable & attainable1-5 years
Nonfinancial goalsPersonal satisfactionServe the community