Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Lesson 1.1

All About Entrepreneurship

Goals Define entrepreneurship. Recognize the role entrepreneurs play

in the U.S. economy. Determine the reasons that businesses

succeed or fail.

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Entrepreneurship Many of the small businesses in the

U.S. are owned and operated by men and women who created their own companies.

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Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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What is an Entrepreneur? entrepreneurs

people who own, operate, and take the risk of a business venture

entrepreneurship running a business of one’s own

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Employees vs. Entrepreneurs employees

people who work for someone else Additional earnings go to the business

owner, not to the employee.

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Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Why Do People Become Entrepreneurs? to set your own schedule to work out of your home to pursue a personal dream

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Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Business Success or Failure Sixty-seven percent of new businesses

survive at least two years. Forty-four percent of new businesses

survive at least four years. Success rates can be enhanced if

businesses have adequate capital are large enough to have employees

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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the owner lacks business knowledge Having an idea for a product or service

is different than knowing how to run a business.

Businesses may fail if

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Characteristics of Successful Entrepreneurs Successful entrepreneurs are:

independent self-confident determined goal-oriented achievement-oriented with high

standards

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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able to act quickly technologically current

creative

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Are You Right for Entrepreneurship? self-assessment

an evaluation of your strengths and weaknesses

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Assess Your Interests choose a field that

interests you you will enjoy

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Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Assess Your Aptitude aptitude

the ability to learn a particular type of job

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Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Assess the Advantages of Entrepreneurship Entrepreneurs

are their own bosses can choose a business that interests them can be creative can make large sums of money

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Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Assess the Disadvantages of Entrepreneurship Disadvantages of entrepreneurship

include: risk uncertain and irregular incomes long hours all decisions are made independently

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Look for Ideas opportunities

possibilities that arise from existing conditions

ideas thoughts or concepts that come from

creative thinking

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Financial Goals Financial goals should be:

realistic measurable easily attainable in the time allotted

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Nonfinancial Goals Nonfinancial goals may include:

personal satisfaction serving a community need doing something you like enjoying personal independence

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Use the Problem-Solving Model problem-solving model

helps people solve problems in a logical manner

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Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Problem-Solving Skills Communicate

communicate clearly and confidently be a good listener

Brainstorming a creative problem-solving technique generates a large number of fresh ideas

Entrepreneurship: Ideas in Action 5e© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Mistakes are a learning experience.

Learn from Mistakes