What is anEntrepreneur?

Someone who takes risks in starting a business.

EntrepreneurJay-Z

Risks???

• Venture- business undertaking involving risks

• Risks- possibility of damage, injury, or loss

• Can you be successful without taking risks?

6 Types of Entrepreneurial Business

• Manufacturing- actually produce the products they sell

• Wholesaling- sell the products to people other than the final customer

• Retailing- selling products to people

• Service- sell services

6 Types of Entrepreneurial Businesses

• Agricultural- generate fresh produce & other farm products

• Mining & extracting- take resources like coal out of the ground so they can be consumed

Entrepreneurs

What isEntrepreneurship?

Ability andwillingnessto develop,organizeand managea business.

EntrepreneurOprah Winfrey

Goal: Profit

Challenge: Risk

Personal Traitsof SuccessfulEntrepreneurs

Entrepreneurs are…• Competitive

• Creative

• Energetic

• Goal oriented

• Independent

• Inquisitive

• Persistent

• Reliable

• Self-confident EntrepreneurMark Zuckerberg

Entrepreneurs can…• Partner with others

• Secure resources

• Spot opportunity

• Learn from failure

• Self-motivate

• Problem solve

• Maintain integrity

• Deal with ambiguity

• Work hardEntrepreneurTed Turner

Entrepreneur Economy

• 1 in 10 Americans, Ages 18-64 involved in entrepreneur activities

• 625,000 new businesses/year

• Very risky

• Almost as many close each year

• Start with $10K or less

Opportunitiesand Risks in Starting a Business

Opportunities• Independence

• Personal satisfaction

• Make a profit

• Adventure

• Income

• Control over your own business

• Contribute to society EntrepreneurTruett Cathy

Risks• Income

• Might lose investment

• Long hours, hard work

• Quality of life

• Stress

• Discouragement

• Responsibility

• Competitive pressure

• Expenses, lack of money

• Lack of experienceEntrepreneurDonald Trump

Reasons for Failure

Failure: Top 10 Reasons• Management mistakes**

• Lack of experience

• Poor financial control

• Weak marketing efforts

• Lack of a strategic plan

• Uncontrolled growth

• Poor location

• Improper inventory control

• Incorrect pricing

• Inability to make the “entrepreneurial transition”

Success

•Effective planning

•Good management

Failure in Perspective

The venture fails,not theentrepreneur.

DiscussionQuestions

Entrepreneurs can fail even if they are committed and have the characteristics needed to be successful.

Why do you think this can happen?

Why is it important for entrepreneursto choose a field that they will enjoy?

Do you thinkthe advantages of entrepreneurship outweigh the disadvantages?