Entrepreneurship 3209

1. Entrepreneurship 3209

2. Themes/Topics and Percentage of Instructional Time: • Unit 1: Business and the Marketplace (40% ) • Sept to Jan • Unit 2: Entrepreneurship and New Ventures (25%) • Jan to Feb • Unit 3: Creating a Venture (25%) • Feb to May • Unit 4: Social Entrepreneurship (10%)

3. Assessment and Evaluation Plan: • Tests and Quizzes 20% • Entrepreneurship Portfolio* 20% • Project 1(Individual) 10% • Dragon’s Den Project (Group) 15% • Venture Marketing Plan 25% • Social Entrepreneurship Project 10%

4. Entrepreneurship Portfolio (EP) • Over the course of the year we will be building a portfolio consisting of the following: • news articles analyses (at least 10 by year’s end), journal entries, responses to case studies, classroom activities, specific performances indicator activities, responses to field trips and/or guest speakers Con’t…

5. Business in the News: Possible Topics (Newspaper Articles) • the role technology has played in the evolution of a company or product • the connection between supply, demand and price of a product or service • changes or challenges facing a sector of the economy • innovation that resulted from meeting consumer demand (may include trend/fad) Con’t

6. Business in the News: Possible Topics • the challenges, risks and strategies used by a new local business • the challenges, risks and strategies used by a long established business • unethical behavior of a business • a business demonstrating social responsibility • a successful entrepreneur.

7. Business in the News: Format • The articles in the portfolio should include the following: • 1. A copy of the article • 2. Source and the date of publication • 3. Analysis (I will provide you with templates to work with) • The EP should be submitted as a binder, scrapbook, blog or other suitable medium, and include a table of contents.

8. Unit 1: Business and the Marketplace Starter: Business Basics (we will revisit many of these later) Topic 1: Essential Concepts in Business Topic 2: How a business Functions Topic 3: Factors affecting the success of a business

9. Business Basics (pp 6-9): • Read pp 6-9 • Business synonyms (e.g. firm, organization , career, vocation, job, etc) • All shapes and sizes • Local (You tell me!) • Regional (Purity, SubC Control – will be a presenter later in the year) • National (Tim Horton’s) • Global (McDonald’s)

10. Business Basics • Profit vs Non Profit organizations • Profit = income • Profit organizations operate with making a profit being its goal • Non-profit organizations do not seek a profit and operate for the good of the community • Expenses • Expenditures that are involved in running a business (e.g. wages, paper, ink)

11. Business Basics • Revenue • The total amount of money a money a business takes in • Revenue – Expenses = Profit (or Loss) • Solvency • The ability to pay you debts and meet financial obligations

12. Business Basics • Small or medium sized business (SMB) • Fewer than 500 employees • Over two million SMBs in Canada, employing 60% of the private sector workforce • Forms of Business Ownership • Sole Proprietorship – owned by one person • Partnership – usually owned by two or more partners • Corporation – business is an ‘artificial’ person created by law and is owned by shareholders • Co-operative – owned by its workers or by members who buy from the business • Franchise – one business licenses another to use its name, operating procedure and so on; as a hybrid, can have any form of ownership

13. Business Basics • Goods – Items that can be seen or touched and, if attractive enough, bought! • Services – Assistance provided, usually in return for a payment, that satisfies needs and wants • Channels of distribution: • Brick and mortar stores – Wal-Mart • Telephone • Catalogues • Internet

14. Topic 1: Essential Concepts in Business 3 Parts: • Relationship between consumer needs and wants • Relationship between supply, demand and price • Economic Sectors

15. Consumer Needs and Wants Unit 1 Topic 1.1

16. Consumer Needs and Wants • Read pp 16-17 ‘Consumer Need and Wants’ • Need – An item necessary for survival • Examples include: Food, clothing or shelter

17. Consumer Needs and Wants Con’t • In this context, we’re referring to physiological needs

18. Consumer Needs and Wants Con’t • Want – An item not necessary for survival but that adds pleasure and comfort to life • Examples include: … • How would you describe what a business is?

19. Consumer Needs and Wants Con’t • A business can be understood to be the process of using resources to provide a good or service to meet consumer needs and wants with the intent of earning a profit • Answer the following in your notes • P22 #11 • How does the way you meet your needs and wants differ from your parents? From your distant ancestors?

20. Consumer Needs and Wants Con’t

21. Consumer Needs and Wants Con’t • Economic Systems (the way people meet their needs and wants): • Substance; • Barter; and • Market economies

22. Consumer Needs and Wants Con’t • Substance (or Subsistence) Economy • an economy which is not based on money • in which buying and selling are absent; and • which commonly provides a minimal standard of living • People provide their own needs and wants through physical means (catch/grow their own food, build their own shelter, etc) • Typically only found in very isolated regions as well as in your history books

23. Consumer Needs and Wants Con’t • Advantages of a substance economy: • Your food can’t get any more organic! • Very sustainable – they consume only what they need; relying on the renewable nature of the world • Greed, while undoubtedly present, is minimalized • Can you think of any more?

24. Consumer Needs and Wants Con’t • Limitations of a substance economy: • Very low standard of living • Would not produce many advances in technology (typically only tools that met only our needs and not our wants) • Very few wants would be met • Can you think of any more?

25. Consumer Needs and Wants Con’t • Barter Economy • A method in which goods and services are exchanged for other goods and services • In today’s world it is rarely the only system in any one society (usually have both a market place and bartering) • Think back to junior high social studies – merchants in NL! C’mon, think harder… • E.g. In Spain there is a growing number of exchange markets. These barter markets work without money. Participants bring things they do not need and exchange them for the unwanted goods of another participant. Swapping among three parties often helps satisfy tastes when trying to get around the rule that money is not allowed. • Can you think of any local or regional shops that barter?

26. Consumer Needs and Wants Con’t • Advantages of Bartering Economy: • Environmental impact – rather than disposing unwanted goods, many are reused • You don’t have to spend extra money • If you are not bartering for a profit, you do not have to pay income tax • Inflation has no affect • Can you think of any more?

27. Consumer Needs and Wants Con’t • Limitations of Bartering Economy: • Absence of a common measure of value – with money, it is easy to discern which objectively more valuable • Indivisibility (cannot be sold in pieces e.g. car, washer) of certain goods - If Person A wants a washer and Person B wants dishes and Person A does not haven enough dishes to equal the worth of a washer, a trade cannot be done. • Taxation – You are taxed if you barter for a profit • Can you think of more?

28. Consumer Needs and Wants Con’t • Market Economies • This is the economy we are most familiar with • An economy in which decisions regarding investment, production, distribution and prices are based on supply and demand • Money is introduced here • Everything is given a monetary value • Creates much more wealth than the other systems • Has brought us into the world we live in now

29. Consumer Needs and Wants Con’t • Advantages to Market Economies • Money flows to where it will get the greatest return, which causes the economy to grow (greater wealth in society) • If you have a great idea that meets the wants of consumers, it is possible to build great wealth • Has helped society build an overall greater quality of life • Allows for so many wants to be met • Can you think of any more?

30. Consumer Needs and Wants Con’t • Limitations to Market Economies • With consumption really high, there is negative environmental impact • For those who choose not to participate, have poor luck, or do not have a skill set to meet the demands of the world, poverty can be harsh • Some argue it places too much importance on meeting wants as opposed to needs • Can you think of any more?

31. Consumer Needs and Wants Con’t • Why did we go from one economic system to another? • Substance to Barter: • Barter to Market:

32. Consumer Needs and Wants Con’t • Closing Question • If our current economic system collapsed tomorrow, what might happen? How would people meet their needs and wants? How might people’s priorities change?

33. Supply, Demand and Price Unit 1 – Topic 1.2

34. Supply, Demand and Price:Establishing a talking point • In order to understand the complexities of supply and demand, it is important to first discuss how consumers can influence products, price, and services. • Read pp 10-14 • Complete questions 5-9

35. Supply, Demand and Price • Demand • The quantity of a good or service that consumers are able and willing to buy • Supply • The quantity (amount) of a good or service that producers can provide • determined by the costs of producing it and by the price people are willing to pay for it

36. Supply, Demand and Price Law of Demand Law of Supply The economic principle that supply goes up when prices goes up; and, conversely, comes down when prices come down See figure 1.4 on pg 30 • The economic principle that demand goes up when prices goes down; and, conversely, comes down when prices go up • See figure 1.3 • on pg 28

37. Supply, Demand and Price Activity #2 • What would you do if a good or service that you use suddenly increases in price? Think about purchases to meet both needs and wants.

38. Supply, Demand and Price • Factors That Can Increase or Decrease Demand • (Table 1.2, pg 29) • Changing Consumer income • As income increases, people tend to buy more than before. E.g. A cabin, or more electronics. • However, the opposite may be true as well. E.g. With a larger income one may buy less groceries as they may eat at restaurants more often • Changing Consumer Tastes • Increase or decrease. E.g. Fashionable items • Changing expectations for the future • If consumers anticipate that prices or income will increase, they will often purchase more • The opposite is true as well, when they anticipate a decrease in price or income • E.g. One is more likely to purchase something when they anticipate a raise. Also one is less likely to purchase a video game console if the price is rumoured to decrease. • Changes in population • An increase in population results in the demand of many sectors. This is particularly true when segments of population see a large increase in population

39. Supply, Demand and Price • Also consider: • Availability of substitutes • demand of certain products may lower if a perceived acceptable substitute is in the marketplace • Time period of adjustment • People are not likely to buy new gaming consoles if they were to release new ones every few months

40. Supply, Demand and Price • Factors That Can Increase or Decrease Supply • (Table 1.2, pg 29) • Changing in Number of Producers • An increase in producers will increase supply – if demand remains the same, price will drop! • Changes in Price • If price reduces then people may stop producing it. E.g. If cod prices fall, fishermen will catch other fish • Changes in Technology • Changes in technology can reduce the cost of production, encouraging more businesses to start producing. E.g. CPU wafers, continually getting smaller and smaller and are able to produce more per wafer Some CPU chips measure in as little as 22nm And are expected to be as small as 5nm in 2022 That’s 0.000000005 metres!

41. Supply, Demand and Price • Changing Expectations for the Future • Many producers attempt to predict economic conditions and consumer demand for two to five years in advance. E.g. Automobile companies • They increase or decrease supply accordingly. • Changing Production Costs • If a local baker owner finds a lower cost for ingredients, they can produce more goods for the same cost. • The opposite may be true as well, should the supplier increase costs

42. Supply, Demand and Price • Relating Price to supply and demand • If demand is high while supply is low, prices tend to be high • If demand is low while supply is high, prices tend to be low • When the quantity of goods that a producer is willing to supply at a certain price matches the quantity of goods that consumers are willing to buy at that price, then the equilibrium price has been met Why would there be a shortage and surplus as indicated in the diag diagram?

43. Supply, Demand and Price • Read pp 28-32 • Complete questions 18-21

44. Supply, Demand and Price • Elasticity: • How sensitive consumers are to a change in price • How much less will they buy if prices are raised? • How much more will they buy if prices are lowered?

45. Supply, Demand and Price • Consider the following situation: - Medication for high blood pressure - You need 30 pills per month - Will the price have any effect on what you will purchase? - Let’s see!

46. Supply, Demand and Price • Consider the following situation: - You have an unhealthy habit of eating 30 Twix bars per month - Will the price have any effect on what you will purchase? - Let’s see!

47. Supply, Demand and Price • Elastic vs Inelastic • Elastic - A good or service is elastic if a slight change in price leads to a drastic change in the quantity demanded or supplied • E.g. Going to the movies, vacations, soda pop, tvs, luxury goods • Rule of thumb - We can do without if price rises • Inelastic - inelastic good or service is one in which changes in price experience only small changes in the quantity demanded or supplied • E.g. Gas, life saving surgery, medications, drugs, cigarettes, necessity goods • Rule of thumb – Will be purchased regardless of price changes • *Quantity = amount

48. Supply, Demand and Price • Inelastic goods/services may be characterized by: • Less flexible – not as many options • No good substitutes • Lack of choices • Necessity • Cultural • Cannot live without • Inexpensive • Elastic goods/services may be characterized by: • Flexible – If prices of plasma TVs increase, you may still purchase an LED TV • Perceived substitutes • Many choices • Can learn to live without

49. Supply, Demand and Price • Are the following goods or services elastic or inelastic? • Designer shoes? • Game consoles? • Computers? • Earrings? • Engagement rings?

50. Supply, Demand and Price • The more inelastic: • Small changes in supply impact price a lot (Hurricane in Gulf of Mexico may stunt oil supply temporarily – gas can shoot up in price) • The more prices change (there is little consequence, it will still be bought) • Remember Law of Demand: if prices go up, demand goes down. However, if prices go up and demand goes down only a little bit – this is what we call an inelastic demand • E.g. We’re still buying lots of gas! • This is why you can see extra taxes on products like gas Link