Entrepreneurship Test

Entrepreneurs and Enterprising People

- An Entrepreneur is a person who saw an opportunity to satisfy a need or a want, and responded by initiating a change. In the process, they brought together the resources they needed to start a venture. - Entrepreneurs are often ages of change. - Entrepreneurs identify, measure, and then minimize the risks associated with their ventures. By taking controlled and calculated risks, they are able to increase their chances for success.

Steppingstones VS milstones

- Each stepping stone can be achieved in a relatively short time. - Milestones are more significant events that you can reach by completing a number of stepping stones. Steppingstones—>Milestones

Entrepreneurship and The Economy

- If something is in heavy demand, but in short supply, prices will go up. - If something is in heavy supply, but in short demand, prices will go down. - Because supply and demand are continually shifting in the marketplace, the change creates surpluses, shortages, and equilibrium. - The degree to which demand for a product is affected by its price is either governed by elastic demand or inelastic demand.

To identify creative ideas:

- Observe the world around you - Watch for demographic changes - Be an avid reader - Consider your own experiences- interests, hobbies, and work experience - consult outside sources for information

Thinking Creatively about Opportunity

- Practice brainstorming - Look at ordinary items in NEW ways - Find creative solutions to common problems - Connect unrelated items

Understanding Entrepreneurial Trends

- The ability to recognize new opportunities and to think creatively is essential for success in today's global market - one way to identify business petunias is to study current trends that provide opportunities for entrepreneurs

Values

- The beliefs and principles by which you choose to live that define who you are, shape your attitudes and choices, and help you identify priorities - Your value system must correlate with the way you go into business

common features of ventures:

- They are innovative- offering something that no one has thought go before, to that has never worked before - They suggest a way to satisfy a need

Forecasting trends

- a forecast is a prediction about the about the future - It is difficult to predict the future with any degree of accuracy; however a careful analysis of past events can help you make educated guesses about whats most likely to occur.

Rewards of Entrepreneurship

- being your own boss - doing something you enjoy - being creative - setting your own schedule - having job security - making more money - being recognized in the community

Why set goals?

- the future eventually arrives in the present, whether you plan fo it or not. - goal setting ultimately results in change. It can lead to happiness, a different lifestyle, or more money. - Goal setting is a way of managing change, to minimize the negative possibilities. It allows people to look into the future and choose the path that looks best.

Risks of Entrepreneurship

- working long hours - having an uncertain income - being fully responsible - risking ones investment

Using Research

- you can identify trends by plotting and analyzing data as well as conducting research - The research process should be designed so that it will provide the kind of information you need to help identify opportunities or evaluate ideas effectively

Current Entrepreneurial trends

1. Internet business 2. Service business 3. Home-based business 4. Green business 5. Social Entrepreneurship 6. Focus on technology 7. Outsourcing and strategic alliances 8. Corporate ventures

How Entrepreneurs Can Succeed?

1. Recognize Opportunity 2. Test the Opportunity in the marketplace 3. Assemble an expert team to execute the business concept 4. Plan and Manage 5.Effectively

What is a fad?

A FAD is a product, service or idea that is extremely popular for a brief period of time and then it becomes unpopular just as quickly, vanishing soon after from the marketplace. (ex: fidget spinner, silly bands, hover boards) Could be movies, books, songs, TV shows or even phrases, or gestures.

What is a trend?

A TREND is different from a fad in that it has more lasting effect on the marketplace. A trend is a mass movement towards a particular style or value. (uggs, ripped jeans) - fads can occasionally develop into trends

Goal: A purpose and/or objective

A goal is the purpose of your work - the objective you wish to reach. To see how you are progressing toward a goal, you need to measure small steps along the way. You might think of these small steps as stepping stones and milestones.

Venture

A new business undertaking that involves risks.

Service

Actions performed by a business to satisfy customers needs and wants. They are not intangible; cannot be touched or seen.

Economic Systems:

All iconic systems attempt to answer 4 basic questions: 1.What goods and services should be produced? 2.What quantity of good and services should be produced? 3.How should goods and services be produced? 4.From whom should good and services be produced?

Free Enterprise System

An economic system in which people have important rights. To make economic choices of what products to buy, to own a private property, and to choose to start a business and compete with other businesses

Product-Driven/Service-Driven Entrepreneurship

An entrepreneur comes up with an idea first, and then looks for a marketing opportunity.

Market - Pulled Entrepreneurship

An entrepreneur will identify a problem, see an opportunity, and then come up with an idea to take advantage of the situation.

Entrepreneur

An individual who undertakes the creation, organization, and ownership of a business.

Good

Concrete visible things that satisfy human needs and wants that can be touches and that last a period of time. Products that have been grown, produced and manufactured for sale.

The Meaning of Entrepreneurship

Entrepreneurs are people who take hold of opportunities and see them. they are willing to assume calculated risks as they look for ways to satisfy and wants of others though innovation.

What Entrepreneurs Contribute

Entrepreneurs can have a powerful impact on a local economy in terms of job creation, new ideas, and economic and political benefits. (Turn demand into supply, provide venture capital $$$, provide jobs, promote changes in society, create MORE wants!)

Following Market Trends

Entrepreneurs can take advantage of fads for a short time, but only trends provide opportunities for a business to thrive over the long term.

What is Entrepreneurship?

Entrepreneurship is a process, not a theory. It is a way of thinking and a way of being. There is a difference between simply understanding what it is, and making the process of what you do, how you do it and how you think.

Goods VS services

Goods: Physical objects 1.Technology 2.Clothes 3.School supplies Services: a person offering a service 1.Doctors 2.Transportation 3.Nanny

Want VS Need

Need: survival - Food, Shelter Want: Desire - Money, Entertainment, Vacation - Entrepreneurs respond to consumers wants and needs with goods and services

Pros and Cons of Buying an existing business

Pros: Already have an existing product, Already know the audience it's targeted for,You can see revenue, profit and expenses before you get into business You have the ability to adapt and make changes, Already has a name in the marketplace Cons: You might not be passionate about the product If it was a very successful might not live up to that success, You have to spend more money to buy an existing business, Not as much room for creativity, Has pre existing problems, Not your idea

Pros and Cons of Starting your own business

Pros: you're your own boss creativity, opportunity to be creative and come up with your own ideas, flexible hours and days, no risk of not having a job (if business is successful), following your dreams/ values, more pride Cons: income is not specific (can go either way), could work long hours at first, risk of failure, difficult to come up with a business and marketing plan at first, must be well rounded

Pros and Cons of Buying a franchise

Pros:Already exists, There's low risk (benefit from brand name), Good for people who want to create their own business, Easier to recruit staff, Support from company, Existing customer base, Able to buy other locations (desire for expansion) Cons: You wont have as much freedom, A lot of set rules you have to follow Royalty Payments, Cant change anything (signing a contract that you wont change the business)

Pros and Cons of Entering a family business

Pros:Work with the people you already know + trust, business already has experience + client base, built before you came, loyalty- more loyal to a family business, easy to attract buyers from community, stronger market appeal because people see them as hardworking, members tell their friends and create a strong word of mouth to share their business, start working faster- no interviewing process Cons:may cause issues within the family, hard to separate work and home, family can be distracting, business problems could tear the family apart, hard to have new ideas bc non-family members may have trouble joining business, close minded bc family members have similar viewpoints, leaders may be more reluctant to make a tough decision if it would impact a family member

SMART principal

Simple Measurable Achievable Realistic Timely

Inelastic Demand

Situations in which a change in price has little or no effect on the demand for products.

What is the definition of Supply?

The amount of good or service that producers are willing to provide and therefore is available for distribution. (supply line on chart)

Entrepreneurial

The process of recognizing an opportunity, testing in the market, and gathering the resources necessary to go into business.

What is the definition of demand?

The quantity of goof or service that customers are willing and able to buy at various prices. (the demand curve) In a free enterprise system, the price of a product is determined by Demand

Economics

The study if how people allocate scarce resources to fulfill their unlimited wants

Innovation

a change to something that already exists

Copyrights

a copyright protests literacy works, musical works, artistic works, and software —> by law, all Canadians hold the copyright to any original work they have created unless they were hired or employed to create it(then the employer who paid owns the creations) —> under the Copyright Act, no one can publish, preform, translate, or adapt another person's work without permission

invention

a creation of something new

Patents

a grant made by the government that gives the creator of an invention the sole right to make, use and sell the invention for a set period of time. —> provides an incentive for people to explore and do research, and makes it safer for people to discuss their work —> anyone can apply for a patent through the federal government

Skills important for Entrepreneurship

creative thinking, research, planning, decision making, organization, communication, team building, marketing, financial management, record keeping, strategic planning, goal setting

Lateral thinking

generates ideas by being flexible and creative

Why do we need to differentiate between Goods and Services?

marketing is different technology can impact it differently business operation of a service and a product are different the types of labour and therefore necessary skills differ

Characteristics of Successful Entrepreneurs...

self-confident, preceptive, hard-working, motivated, resourceful, able to manage risk, creative, goal-oriented, optimistic, flexible, independent, visionary, able to get along with others

profile

set of characteristics or qualities that identifies a type of category of person. Stepping outside of your comfort zone is where the magic happens

How Well Do You Observe?

to become aware of the business ideas that surround you everyday, you need to be a good observer (be aware of whats going on around you)

Trademarks

words, symbols, or designs- or a combination of these- used to identify a product or service and distinguish it from its competitors. —> trademarks are valuable because they have come tot represent the reputation of the producer as well as the products that bear them

So what does success look like?

—> When the supply is greater than the demand, the price fo the good or service goes down. —> When the demand is greater than the supply, the price goes up. Equilibrium—> A situation in which the quantity of a product demanded equals the quantity supplied - there is no pressure to change price.