Do you have what it takes to be an entrepreneur?

1. Do you have what it takes to be an entrepreneur? Small business entrepreneurship

2. Objective 2.01 • Explain the factors and personality traits that contribute to the success of a small business entrepreneur

3. Entrepreneur defined: • An individual who undertakes the creation, organization, and ownership of a business

4. Other key terms: • Venture – a new business undertaking that involves risks • Entrepreneurship – the process of recognizing an opportunity, testing it in the market, and gathering resources necessary to go into business • Entrepreneurial – acting like an entrepreneur or having an entrepreneurial mind-set

5. Other key terms: • Small business – a business that creates jobs for its owners, sometimes called “mom and pop” businesses Mission statement – a written description of the purpose of a company and the management’s philosopy (basic beliefs, concepts, and attitudes), usually 1-2 paragraphs

6. Other key terms: • Opportunity – an idea that has commercial value Manager – an employee who coordinates people, processes, and other resources of a business in order for the business to achieve success and make a profit

7. Other key terms: • Economics – the study of how people allocate (distribute, designate) scarce (limited) resources to fulfill their unlimited wants • Free Enterprise System – an economic system in which people have important rights: to make economic choices of what products to buy, to own private property, and to choose to start a business and compete with other businesses • Profit – money left over after all expenses of running a business have been deducted from the income

8. Small business success factors • Planning • Management • Resources • Image • Competence of the entrepreneur • Product/service • Financing

9. Entrepreneur QUALITIES • Observer of the marketplace – looks for what people want • Creative – has an idea that no one else has developed, looks for new ways to solve problems • Responsible – accountable for actions, does what is required

10. Entrepreneur QUALITIES • Inquisitive – researches the idea thoroughly, seeks advice and assistance from experts • Risk taker – looks for challenging opportunities, examines costs and benefits • Goal-oriented – develops a plan and makes decisions to achieve that plan • Action-oriented – wise decision maker, acts based on decisions

11. Entrepreneur Qualities • Good leader – brings together a team of people and resources • Self-demanding – sets high expectations and strives to achieve them • Persistent – works until the job is done, views failures as opportunities for growth and learning • Self-confident – believes in one’s self

12. Entrepreneur skills • Business skills – basic understanding of how the economy works as well as financial, marketing, and management concepts • Communication skills – required to gather information needed to organize and run the business, includes writing, speaking, and listening • Human relations skills – getting along with others, enjoys meeting and talking to people

13. Entrepreneur skills • Math skills – basic arithmetic skills are needed to keep records, make purchase decisions, calculate profit, and complete financial statements • Problem-solving and decision-making skills – used everyday by entrepreneurs • Technical Skills - basic computer use, including word processing, spreadsheets, databases, e-mail, and the Internet