AUGUST 23, 2010Objective: Students will learn about the entrepreneurial startup process.

For Seniors:Pair up with a Senior and discuss:

The difference between a Good and a Service

What are the four Factors of Production?

What is Scarcity?What are the two parts to Demand?Elastic Goods versus Inelastic Goods

Everyone’s Back

My website is working!!!

http://www.ops.org/high/burke/STAFF/FacultyNZ/NieburNichole/tabid/647/Default.aspx

Surplus – Too much supply for demand Shortage – Too much demand for supply Equilibrium – The point where consumers

buy all of a product, leaving neither a surplus or a shortage.

Suppy

The Entrepreneurial Process

1. The entrepreneur2. The environment3. The opportunity4. Start-up resources5. The new venture organization

The Entrepreneur

Sees the opportunity Gathers the resources to take advantage

of the opportunity Creates a company to execute that

opportunity

The Environment

All those variables NOT controlled by the entrepreneur

1. The nature of the environment (uncertain, fast, changing, stable, conservative…)

2. Availability of resources (skilled labor, start-up capital…)

3. Realized value (favorable taxes, good market, supportive government policies)

4. Incentives (enterprise zones)

The Opportunity

An idea of commercial value

http://www.thesocialnetwork-movie.com/

Start-up Resources

May include: Skilled labor Management Expertise Legal and financial advise Location Equipment Customers

Organization

The last step in the entrepreneurial process is to formally organize the business and open for operations.

How many new businesses fail? Talk to your neighbor… what percentage

of new businesses do you think fail within 10 years?

According to Dun & Bradstreet 69.7% of new businesses are still in business 10 years later.

Ways a Business May Look Like a Failure Discontinuance – a business operating under

a new name or a business that has been purposely discontinued to start a new one.

Organization change – example: switching from sole proprietorship to a corporation.