Chapter 7

The Business of Free Enterprise

Question of the Day

• In what sport might you hear the term, “long pips?”

• Not something that you have to go to a stadium or other special place to play.

Activity Rules

• Blindfolded Person• No running.• When you come to a desk ask, “Do you

have the extra credit voucher?”• Everybody Else

• Clear the aisles of your bags/stuff.• No talking, unless asked by blindfolded

person if you have the extra credit voucher.

Debriefing

• Was it difficult to volunteer for something when you did not know the purpose or outcome?

• When observing the students wearing the blindfolds, how did they differ in how they moved to pursue extra credit points?

• What were the risks taken by the blindfolded students?

• What happened to the blindfolded students when they were given an incentive?

• Did some students behave more aggressively than others in pursuing the incentives? What was the result of this behavior?

• What is the correlation between the blindfold activity and the Bill Gates quote?

Entrepreneur

• A person who takes a risk to create a new product or to develop a better way to operate a business.

Your Entrepreneurship Project

• You will be creating an “investor’s packet.”• Your job is to convince a venture capitalist

to invest in your product or service.

• Product or service description due Monday, February 9th.

• Final project due Friday, February 20th.

Who becomes an entrepreneur?

• Some start at an early age• Some develop and sell ordinary products• Some find new ways to sell• Some spot new markets and develop new

products for them.• Some work to perfect ideas they have had

for years.• Some work within existing businesses.

What strategies do entrepreneurs use?

• Unexpected opportunities• Changing market conditions• Improving a product or process• Providing an alternative good or service• Identifying population trends

What are the challenges facing small business?

• Poor management• Inadequate financing• Inability to hire highly qualified workers

Famous Entrepreneurs

• Shared characteristics?• Personality traits?