Entrepreneurship 101

Chapter One

• Teen Millionaires ... How Did They Do It 8.11 min

 • Teenage Millionaires

• Self-made millionaire at age 14.

• http://www.youtube.com/watch?v=1C9tTUuWSfU&feature=related

• 8.45 min

• Quirky's Pivot Power• http://www.youtube.com/watch?v=vhX1MW-xijI• 38 sec

Entrepreneur

• One who organizes, manages and assumes the risks of a business or enterprise

• One who takes a risk and starts a business to solve a problem OR take advantage of an opportunity

Robert Fournier, 16, get's ready to take his sister Laura for a spin around the block on one of his rickshaws in Smith Falls.

It was a gutsy decision for Rachel Hill-Campbell, but one made easier to stomach through the help of entrepreneurial friends.

Eight years ago, Hill-Campbell started her St. Catharines mobile eyeglass-selling venture called Personal Optical.

She made use of the Niagara College Business Development Centre, which provides in-house training, business mentorship and provincial government funding for qualified people starting new businesses.

School project turns into small business opportunity for Fort Erie teen

Lakeshore Catholic high school student Gaetano Letizia didn’t have to go knocking on doors to find a summer job for himself. The 17-year-old Fort Erie resident created one for himself.

Cassie Rempel, 22, is the owner of Bark Fur Joy grooming salon. Rempel’s business specializes in providing quality dog and cat grooming, with extra love and affection for people's furry friends.

The owner of three pooches herself, she learned her craft during an intensive training course at a St. Catharines dog grooming school. She studied business at Hamilton's Mohawk College where she learned how to make a business plan.  Now she employs and trains several staff members at the busy salon that also serves as a doggy daycare for owners who drop their pets off for a "day at the spa".

Entrepreneur

The meaning of entrepreneurship?

• What is Entrepreneurship?

• Write down as many characteristics about an entrepreneur as possible.

• Also, read between the lines.

Characteristics of an entrepreneur?

Characteristics of an entrepreneur

• Innovative• Determine• Self-confident• Resilient• Driven• Adventurous• Don’t accept failure – Look at it as a challenge• Persistent

Characteristics of an entrepreneur

• Energetic• Motivated• Opportunistic• Brave• Flexible• Confident• Creative

Characteristics of an entrepreneur

• Experimental• Intelligent• Common Sense• Knowledgeable• Adaptive• Take initiative• Self-starter

Characteristics of an entrepreneur

• Personable• Organized• Risk Taker• Trust in self and others (self confident)• Trustworthy• Understanding• Hussel

Characteristics of an entrepreneur

• Visualization• Hard work -- insane amount of work• • • • •

Characteristics of Entrepreneurial Ventures

YouTube

• Sarah Blakely interviewed on NY 360

 • Sara Blakely, Speaker, Entrepreneur &

Founder of SPANX

• http://www.youtube.com/watch?v=kFx-RdVLheI

 

1. For-Profit / Not-for-Profit

For-Profit

- make money

Not-for-Profit

- offer something for society

- not make a profit

(Charities, United Way ...)

FOR-PROFITAmerican Eagle

Sport Chek

Canadian Tire

Black’s Cameras

Dell Computers

Radio Shack

General Motors

Donegan’s Haulage

Pizza Hut

Drains Are Us Plumbing

NOT-FOR-PROFITSalvation Army

Big Sisters

United Way

Boy Scouts of Canada

Rotary Club

Arthritis Society

Girl Guides

Cancer Society

Canadian Red Cross

Canadian Diabetes Association

Is this a “for-profit” or a “not-for-profit” business????

2. Large Scale / Small Scale • international vs local

3. Goods versus A Service

• Goods = $ value

Tangible

(can touch)

• Service = $ value

Intangible

(can see the result of)

Do these business provide goods or services????

• SERVICE / GOODS

Services Goods

Bender’s Auto Service Toyota Corp.

Hair Connection Spinrite Yarns Ltd.

Dr. Betty Ferguson Bauer Sports Ltd.

Abacus Computer Training Microsoft Corp.

Zebroski Chartered Accountant General Electric Ltd.

4. Physical / Virtual

• shopping malls, car dealerships• e-commerce (no store front)

5. Local /Provincial /National /International

• local = one community• provincial = within one province• national = includes several provinces• international = includes world

CANADIAN LOCAL, NATIONAL, INTERNATIONAL, BUSINESSES

• LOCAL – (list some local business)• NATIONAL BUSINESSES

– Canadian Tire -Radio Shack– Root’s -Hudson Bay– Canada Trust -Intrawest

• INTERNATIONAL BUSINESSES– NHL -CIBC– McCain’s Foods -Bombardier Corp.– Tim Horton’s -Nortel

List three advantages and three disadvantages

to selling a product in each type of market.

Market Advantages Disadvantages

Local

Provincial

National

International

Definitions

you need to know

Globalization: • make, sell, trade around the globe

Gross National Product (GNP)• the total monetary value of all the goods

and services produced in Canada in one year

• Trade Agreements:

• GATT General Agreement on

Tariffs & Trade

 • NAFTA North American Free

Trade Agreement

• Downsizing

• is the “conscious use of permanent personnel reductions in an attempt to improve efficiency and/or effectiveness”

Rightsizing

to reduce (as a workforce) to an optimal size

Outsourcing

means taking some specific, but limited, function that your company was doing in-house – and having another company perform that exact same function for you and then reintegrating their work back into your overall operation.

Offshoringis when a company takes one of its factories that

it is operating here and moves the whole factor offshore – to another country

Assignment:

List five ways in which technology has changed the lives of Canadians over the past 20 years.

Explain the positive or negative impact of each change. The first one has been done for you.

Change Positive or negative Impact

SEE EXAMPLE ON NEXT SLIDE

Change Positive or negative Impact

The invention and proliferation of cell phones

Positive impact:Cell phones allow individuals to be accessible anywhere in the world at any time of day, which results in quicker decisions and quicker responses to emergencies.Negative Impact:The use of cell phones in cars has caused many traffic accidents.

Supply and Demand

MediaNet

Supply and Demand (AD0504,SV) S 2000

Streaming Video29 min

• Demand:

– is the quantity of a good / service that consumers are willing and able to buy at a particular price

– i.e., iPad, High-Def TV

• Supply:

– is the quantity of a good/service that businesses are willing and able to provide within a range of prices that people would be willing to pay.

• i.e., limited edition prints (1/250)versus millions of iPads

• Conditions that create demand:• 1. Interest• 2. Ample supply• 3. Reasonable, competitive price

4. Accessibility

Factors that affect demand:

1. Income increases » you can afford more

2. Change in consumer’s tastes » need the latest in fashion, music

3. Change in expectations of

future conditions» buy now or gone

Conditions that affect supply

1. Change in number of producers

2. Price of related goods

3. Change in technology

4. Change in expectations

5. Cost of production

• Price: is determined by:

Supply,

Demand,

Cost of production

• Using basic economics to explain high gas prices

• http://www.youtube.com/watch?v=hg9FaMB54CA• 2.52 min

YouTube

• My Blackberry Is Not Working• funny

– http://www.youtube.com/watch?v=kAG39jKi0lI

An Entrepreneur’sImpact on the Community

1. Job Creation

• has a multiplier effect

2. New Ideas

• Invention

• Innovation

Invention or Innovation?

• QUICKIES: sticky notes of 21st Century

• http://www.youtube.com/watch?v=HQT5_4aVvHU• 1.45 min

• History of Post-it Notes• See Wikipedia -- Post-it Note

• market niche – Unique …. Only you sell the product

3. Economic Benefits • competition lowers prices thereby

improving standard of living

4. Political Benefits

• we have strong financial & legal institutions– money, education & training is available– regulations protect and trade exists

compared to communism

Demographics

Demographics

Data about groups of people including age,

ethnic origin, religion, family size, income ...

• Demographics is the study of people in a population.

 • Some frequently used demographic variables are:

• Age • Sex / Gender • Race/ Ethnicity • Location of residence • Socioeconomic status (SES) • Religion • Marital status • Ownership (home, car, pet, etc.) • Language • Mobility • Life cycles (fertility, mortality, migration)

Entrepreneurs who study the demographics of their customers will find it easier to predict what these customers will want to purchase.

 

Look at:• spending power• attitudes• careers / education

Demographic -- Age

• See next page

Cohort Year of birth

Age in

2012

Avg Number of births per

year

Size

Silent Generation

before 1946

65+   Relatively small

Baby Boomer

1946-1964 47-65 426,000 Very large

Baby buster

1965-1981Gen X

30-46 362,000 Relatively small

Children of the boomers

1982-1995Gen Y

16-29 382,000 Relatively large

Children of the buster cohorts

1996 on 0-15 344,000 Relatively small

• Video– MultiGen Workforce, Generation X

• Karen McCullough Loves Generation X– http://msgenevieve.typepad.com/enterprisingemployee/

5 min

– MultiGen Workforce, The Baby Boomers

What is Generation Y?

• Hmm, I've always wondered this myself. Now I know.?

- The Silent generation, people born before 1946. - The Baby Boomers, people born between 1946 and 1959.- Generation X, people born between 1960 and 1979.- Generation Y, people born between 1980 and 1995.

Why do we call the last one generation Y?

……… .>

• Y should I get a job?• Y should I leave home and find my own place?

• Y should I get a car when I can borrow yours?

• Y should I clean my room?• Y should I wash and iron my own clothes?

• Y should I buy any food? and….

• They call this the

The entitled generation

The techno savvy generation

The Y generation

• YouTube.ca

 • Demographics Explained 3.34 min

• What the speaker lacks in charisma, she gives in knowledge of her topic

• Generation Y 4.04 minhttp://www.youtube.com/watch?v=WsyZ4HRiu40&feature=related

The Enterprising Person

How Does an Entrepreneur Differ from an

Enterprising Person?

• Enterprising people have most of the characteristics and skills of an entrepreneur but work for a company, not themselves.

• Reason: They often do not want to take the financial risk to own their own business.

Examples of Enterprising People

• Terry Fox – Run for Cancer• June Callwood – Home for Abused Women• Herb Carnegie – Future Aces• Rick Hansen – World Motion Tour for Handicapped• Arthur Fry – 3M post-it• Lee Iacocca – Chrysler mini van• Sarah McLachlan – Lilith Fair Tour• Peter Dalglish – Street Kids International

Work Environment

• More and more corporations are encouraging employees to be enterprising people in order to become more competitive, improve their productivity, or keep pace with changing markets, technology, and new opportunities.

Ways a Corporation can Encourage Employees to be Enterprising People.

Suggestion box• e.g., High Schools, General Motors, Honda

Profit sharing• e.g., Chez Piggy’s restaurant – Kingston, E.D. Smith

Team concept• e.g., 3M – creative groups for new ideas

Stock purchase plan• e.g., Canadian Tire

Pay for courses employees take to upgrade skills Encourage Professional Development Innovative and fun work environment

Provide support for enterprising people Evaluate ideas Reward efforts and results Provide freedom from constraints (flex hours) Encourage passion and commitment Share power Reward commitment and innovation Build teams and collaborative problem solving Lead by example Celebrate achievement Recognize efforts Establish a system to accept ideas and invest in idea

generation

How do Employers Support Enterprising Employees

• Create a workplace culture where employees feel their input is valued and where the employee can learn from his or her mistakes

• Provide tools needed to achieve desired results

• Provide them with meaningful work opportunities

• Provide alternative work arrangements: flex-time; telecommuting

• Support employees with benefit packages that are tailored to the needs of the employee

Intrapreneurship

• Intrapreneurship is the practice of entrepreneurial skills and approaches within a company

– See article• Great Intrapreneurs in Business History

– By Jake Swearingen

• http://www.cbsnews.com/8301-505125_162-51196888/great-intrapreneurs-in-business-history/

• Enterprising employees engage in special projects within a larger firm and behave as entrepreneurs even though they are employees and have the resources and capabilities of the larger firm to draw upon– trying things until successful– learning from failures– attempting to conserve resources

• May work as a small team

• Provides an environment for creative thinking

• Maintains a high level of satisfaction

• A level of excitement is maintained and greater achievement results

Starting a BusinessApproaches to Entrepreneurship

What kind of business

should it be ???

How starting a business may change your life.

• Less time for friends and family• More responsibility• Feel more independent and in charge of your life• Feel successful• Respect• Sense of accomplishment• May lose your savings and other assets• May make a lot of money• May have the stress of carrying a lot of debt• May have to sacrifice weekends and holidays• Feel challenged

Choices in starting a business

1. Start the business from nothing

2. Buy an existing business

3. Modify an existing business

4. Buy a Franchise

Create the following table. List as many adv/disadv as possible.

Choice Advantages Disadvantages

Start a business from scratchBuy an existing businessModify an existing businessBuy a franchise

Are Entrepreneurs

Born or Made

???

Are Entrepreneurs made or born???

YouTube

• The Call of the Entrepreneur 3.58 min

• you are more likely to start a business IF your parents have a business?? 

• must have vision for the future and

a willingness to take a risk

• may inherit basic traits

Quote:

Herb Kelleher current chairman & past CEO of Southwest Airlines

In a conversation some years ago I asked Herb to discuss whether he believed that entrepreneurs were born with their notable qualities or whether they were made through training and experience.

Are Successful Entrepreneurs Born Or Made?

We asked Herb whether he felt there were any natural born characteristics that a person would need to achieve entrepreneurial success. In answering he indicated that his experience taught him that there were six personal attributes that are important contributors to entrepreneurial success that cannot be trained into people. These include:

• a reasonable intelligence, • good health, • optimistic disposition, • lengthy attention span, • perseverance, and • a love of people.  

ATTITUDE is the most important!!!

Six personal attributes that are important contributors to entrepreneurial success that cannot be trained into people.