Entrepreneurship

Ch. 1.1

Do you know anyone who owns a business?

Entrepreneurs

• People who own, operate, and take the risk of a business venture.

• They try to meet the needs of the marketplace by supplying a service or product & make a profit by doing so.

Entrepreneurship

• The process of running a business of one’s own.

• When their business flourishes, the profits go to them.

• When their business fails, they may go out of business and lose money.

Employees vs. Entrepreneurs

• Entrepreneurs assume RISK, employees don’t

• Both may make decisions, but only the entrepreneur is directly affected by the consequences of those decisions

• Employees – people who work for someone else

Group Activity

Advantages of Being an Employee

1.2.3.

Disadvantages of Being an Employee

1.2.3.

Advantages of Being an

Entrepreneur1.2.3.

Disadvantages of Being an

Entrepreneur1.2.3.

Types of Businesses

• Manufacturing – produce items

• Wholesaling – sell to other businesses

• Retailing – sell to the consumer

• Service – sell services rather than products

Group Work

• List 3 specific businesses for each category– Manufacturing– Retail– Service– Wholesale (we skip this one)

Other Business Areas

• Agriculture – farming

• Mining & Extracting – coal mines, oil, etc.

Entrepreneurs in Colonial Times

• Rice & Tobacco Farmers

• Bankers

• Merchants

• Silversmiths

• Candlemakers

After American Revolution

• During Industrialization, entrepreneurs invented machines that increased productivity and helped the economy grow.

Entrepreneurs Change the World

• They strengthen the economy

• They fill unmet needs

• They change how things are done

• They increase productivity

19th Century Entrepreneurs

• Cyrus McCormick – International Harvester & International Trucks (year 1831)

• Lydia Moss Bradley – investments & real estate; founded Bradley University in 1896

• John D. Rockefeller – oil (1870s)

20th Century Entrepreneurs

• Henry Ford – cars anyone can afford; assembly line

• Olive Ann Beech – Beech aircraft co.

• Clarence Birdseye – packaged frozen foods

• Rose Knox – Knox Gelatine; employee sick leave and 5 day work week

Small Businesses Today

• 5.8 million + in the U.S.

• Employ more workers than all of the U.S. large corporations combined

• Can be more creative and take more risks

• Lead technological change & can be innovative

Motivational Video