Bessie Moore Center for Economic Education

1. Who Wants to be an Entrepreneur??? Bessie Moore Center for Economic Education

2. How do you define success??? • Becoming a millionaire • Being happy • Completing college • Getting a good job that you enjoy • Having a family • Having a lot of friends • Owning a BIG house • Driving a very cool car • Owning your own business 11/29/2011 2 Bessie B. Moore Center for Economic Education

3. True or False Entrepreneur is a French word and means the one who undertakes enterprise. Bessie B. Moore Center for Economic Education

4. True In it’s purest form, the entrepreneur is the person who combines productive resources to produce a new good or service. She assumes the risk and is motivated to do so by the incentive of profit. Social entrepreneurs are motivated to make the world a better place. Bessie B. Moore Center for Economic Education

5. Do you want to be an Entrepreneur? Bessie B. Moore Center for Economic Education

6. Important Traits of Entrepreneurs • Independent • Responsible • Goal oriented • Self-confident • Creative problem solver • Willing to take calculated risks • Not afraid to fail

7. Entrepreneur Facts! • Entrepreneursidentify market opportunities. • Profit is the incentive but they are driven by passion! • Entrepreneurs are critical thinkers and creative problem solvers. • Entrepreneurs have a ‘can do’ attitude. • Entrepreneurs like to shoulder the responsibility. • Center website – bmcee.uark.edu – look for Entrepreneurship: Arkansas Style! Bessie B. Moore Center for Economic Education

8. True or False 1. Most millionaires work for big Fortune 500 companies. Bessie B. Moore Center for Economic Education

9. True About three out of four millionaires are self employed and consider themselves to be entrepreneurs. Most of the others are professionals, such as doctors, accountants, and lawyers. Bessie B. Moore Center for Economic Education

10. True or False 2. Samuel Moore Walton was the founder of Walmart Stores Inc. headquartered in Bentonville, AR. Bessie B. Moore Center for Economic Education

11. True Sam Walton founded Walmart. His first store was in Rogers, AR in 1962. Sam was 44 years old. Today Walmart employs more than 2 M associates working in 9000 stores in 15 countries. Ticker: WMT. Bessie B. Moore Center for Economic Education

12. True or False 3. Most millionaires work fewer than 40 hours a week. Bessie B. Moore Center for Economic Education

13. True About 2/3 of millionaires work 45-55 hours a week. Bessie B. Moore Center for Economic Education

14. True or False 4. Sam Walton studied economics in college. Bessie B. Moore Center for Economic Education

15. True Sam Walton did study economics at the University of Missouri. While earning his way through school he worked on a dairy farm, delivered newspapers, waited tables, and lifeguarded. When operating his own store he discovered the value of buying in bulk and passing on the savings to the customer. Bessie B. Moore Center for Economic Education

16. True or False 5. Most millionaires are college graduates. Bessie B. Moore Center for Economic Education

17. True Four of five millionaires are college graduates. • 18% have Master’s degrees, • 8% law degrees, • 6% medical degrees, and • 6% Ph.D. degrees. 80% Bessie B. Moore Center for Economic Education

18. True or False 6. Patricia Upton used Arkansas botanicals to create Aromatique in 1982 in Heber Springs, AR. Bessie B. Moore Center for Economic Education

19. True Patty Upton used wood chips and botanicals that are scented to make her decorative room fragrances. Her company, Aromatique has been in business almost 30 years and is a multi-million dollar international enterprise. Bessie B. Moore Center for Economic Education

20. True or False 7. College graduates earn about 65 % more than high school graduates earn. Bessie B. Moore Center for Economic Education

21. True In recent years, the average college graduate earned 66% more than the average high school graduate did. People with professional degrees earned 150% more than high school graduates did. Bessie B. Moore Center for Economic Education

22. True or False 6. Forest Wood is from Dallas, TX and is internationally known as the ‘father of the modern bass boat’. Bessie B. Moore Center for Economic Education

23. False Forest and Nina Wood founded Ranger Boats in Flippin, AR. Forest originally made fiberglass showers. He and Nina loved fishing. They believed that people worked hard for their money and deserved to have quality free time for fishing. Ranger boats are built by fishermen for fishermen and women! Bessie B. Moore Center for Economic Education

24. True or False 7. If you want to be a millionaire, avoid the risky stock market. Bessie B. Moore Center for Economic Education

25. False Long term (starting in 1926 and including the Great Depression), the Standard & Poor’s 500 Stock Index has increased at about an 11 percent compound annual rate of return, exceeding the return on any other investment. • Another way of looking at this is that $1.00 invested in the S&P 500 on January 1, 1926, was worth $1,828 on December 31, 1997. • One dollar invested in long-term government bonds during the same period was worth $39 on December 31, 1997. It probably paid to take the additional risk of buying stocks. Bessie B. Moore Center for Economic Education

26. True or False 8. Lorena Larson always wanted to be an interpreter when she was a young child in Ecuador. Bessie B. Moore Center for Economic Education

27. False Lorena Larson wanted to be a teacher when she was a child in Ecuador. When she moved to Arkansas she found her language skills to be very useful for translations and teaching of Spanish. She sold her property in Ecuador to start Larson’s Language Center in Rogers, AR. Bessie B. Moore Center for Economic Education

28. True or False 9. Many poor people become millionaires by winning the lottery. Bessie B. Moore Center for Economic Education

29. False Few people get rich the easy way. If you play the lottery, the chances of winning are about one in 12 million. • The average person who plays the lottery every day would have to live about 33,000 years to win once. • In contrast, you have a one in 1.9M chance of being struck by lightning. Bessie B. Moore Center for Economic Education

30. True or False 10. Charles Murphy, Jr. was emancipated by his father at age 16 so he could legally transact business on his own. Bessie B. Moore Center for Economic Education

31. True Charles Hayword Murphy Jr. became leader of the family business at age 21 after his father’s stroke. The family businesses included timber land, oil interests, and banking in Southern Arkansas. Murphy Oil Corporation (MUR), an international operation, is based in El Dorado, AR. He was a voracious reader. Timber interests became Deltic Timber – DEL. Bessie B. Moore Center for Economic Education

32. True or False 11. At age 18, you decide not to smoke and save $5.00 a day. You invest this $5.00 a day at 8% annual interest until you are 65. At age 65, your savings from not smoking are $938,070. Bessie B. Moore Center for Economic Education

33. True Because of the power of compound interest, small savings can make a difference. It pays to resist temptation and live below your means – and to save smoking money! Bessie B. Moore Center for Economic Education

34. True or False 12. William T. Dillard borrowed $8,000 from his father to open a small store in Little Rock, AR. Bessie B. Moore Center for Economic Education

35. False William Dillard’s first store was in Nashville, AR, his wife’s hometown. Dillard, a University of Arkansas graduate, effectively used marketing and location as keys to success as he built his chain of stores across Texas, Oklahoma and Arkansas. The headquarters are located in Little Rock. Bessie B. Moore Center for Economic Education

36. True or False 13. Ben Pearson was a riffle builder from Pine Bluff, AR. Bessie B. Moore Center for Economic Education

37. False Ben Pearson was an archer and bowyer from Pine Bluff, AR. In 1926 Pearson came in next to last in a state archery championship. In 1927 he became the AR state champion using his own equipment. Ben Pearson Inc. produced bows and arrows. Ben was noted for making an archery a popular sport. Bessie B. Moore Center for Economic Education

38. True or False 14. Most millionaires work in glamorous jobs, such as sports, entertainment, or high tech. Bessie B. Moore Center for Economic Education

39. False A majority of millionaires are in ordinary industries and jobs. They are proficient in targeting marketing opportunities. Bessie B. Moore Center for Economic Education

40. True or False 15. Because African Americans had no chance for an education beyond eighth grade in Arkansas, Johnny Johnson and his mother moved from Arkansas City to Chicago where he could attend high school and college. Bessie B. Moore Center for Economic Education

41. True John Harold Johnson, third generation descendent of slaves, founded Johnson Publishing Company with a $500 loan using his mother’s furniture as collateral. The company publishes Ebony and Jet. These publications gave a voice to millions of black Americans. Johnson rose out of abject poverty and racial discrimination. Bessie B. Moore Center for Economic Education

42. True or False 16. Sissy Jones grew up in Little Rock where she had many business contacts to start her antique business. Bessie B. Moore Center for Economic Education

43. False Sissy Jones grew up on a Delta farm. She used her Southern belle savvy to become a successful business women. She began with an antique business in a log cabin. Then she discovered the slide bracelet whose demand propelled her to become the state’s largest independent jewelry store. Her initial store was located in Pine Bluff. Bessie B. Moore Center for Economic Education

44. Money Management for Entrepreneurs Making good financials decisions is necessary for entrepreneurs. Here are some pointers to help you start on the right foot! Bessie B. Moore Center for Economic Education

45. Rules for Improving Your Financial Life • Get a good education. • Work long, hard, and smart. • Learn money-management skills. • Gather information before making decisions. • Manage your credit to maintain a high credit score. • Spend less than you could spend. • Save early and often. • Invest in common stocks for the long term. Bessie B. Moore Center for Economic Education

46. Bessie B. Moore Center for Economic Education Sam M. Walton College of Business University of Arkansas