Introduction to Entrepreneurship

What is the purpose of this unit?

Upon completion of the introductory unit to Entrepreneurship, you will be able to describe and identify the characteristics and skills of entrepreneurs using real-world examples of successful entrepreneurs. You will also gain an understanding of their skills and characteristics as they are related to business competencies. You will be able to identify and describe the different types of businesses as well as the ways that an entrepreneur may enter a business. Finally, you will complete a project where you will explore the fundamental concepts of setting-up a new business (this is the fun part of this unit!).

How do I navigate through this unit?

This unit is set up in with 9 objectives (sections). In most sections we will have class notes, discussion, and activities (which can be found in this web site). Some of the activities will be completed with a group and some of them will be completed independently. If you have any questions or need any help be sure to ask!

Days 1-3: Objective #1Identify, describe, analyze, define, and share the characteristics of entrepreneurs learned through direct instruction (including using notes), reading articles and watching brief video segments about successful entrepreneurs, and working in small groups to evaluate characteristics of local entrepreneurs.

I. Define entrepreneur and entrepreneurship (Day 1)a. With a partner brainstorm and write a definition of both entrepreneur and entrepreneurship on index cards

** The 2 best definitions will be given a “lemon” (lemons will be collected in lemonade stand groups – see final objective – and groups with the greatest number of lemons will have first choice of location and available resources).

b. Combine definitions (with tape) on the white board and group definitions with similaritiesc. After reviewing the class definitions original partners will rewrite their definitions on the back of index cards

*This is your chance to organize and compare what you already know with new relevant informationd. Notes: Expert definitions of entrepreneurship will be given to you to record in your notes.

II. Characteristics of Entrepreneurs (Days 2-3)a. Listen to the article about Chris Gardner. Individually list the entrepreneurial characteristics that you believe this example of a real entrepreneur

exhibits.b. Class will share list of characteristics and will discuss/brainstorm additional characteristics that entrepreneurs possessc. Notes: A list of 10 characteristics will be given to you to record in your notes.d. Review the list of approved entrepreneurs and select one that you would like to research

e. Go to the table of entrepreneurial characteristics find information about the entrepreneur you selected and list examples you find of each characteristic **The the best submission will receive a “lemon” (see objective #1 for details)

f. Get another copy of the table of entrepreneurial characteristics. You will watch a short 20 minute video (in class) on Noble Peace Prize winner Mohammad Yunus (Pennies a Day) for an example of a social entrepreneur and write about examples of characteristics that this entrepreneur possesses.

Day 4: Objective #2Identify and analyze the technical skills needed by entrepreneurs.

I. In groups of no more than 5, brainstorm a list of skills that you believe an entrepreneur possesses** Each student in the group with the best list of skills (most in number and most legitimate) will be given a “lemon” (see objective #1 for details)

II. Notes: You will be given a group of skills that you will be responsible for knowing to record them in your notesIII. Select a different entrepreneur from the approved listIV. Research the entrepreneur and list the relevant skills that each demonstrates

**The best submission will receive a “lemon”

Day 5: Objective #3Describe and discuss the need for and importance of business ethics through evaluating case studies of real-world business situations including circumstances, key players, final decisions, and results or consequences.

I. With partners use the internet to research definitions and components/aspects of business ethics. Answer the following questions:a. Define business ethicsb. What are the components/aspects of business ethics?c. Why are business ethics important?d. Why do people/businesses choose to ignore ethics?e. What are benefits/consequences related to ignoring ethics?

II. Class discussion on findings and share significant findings from partner questions III. Read the case study of an ethical situation write a short paper in response to the case study. The paper should include: defining ethics, summarize the

ethical situation, summarize the outcome of the case study, write any decisions and why that would have/should have been made differently** A “lemon” will be awarded to the 2 best papers submitted

Homework: Objective #4: Completed outside of class

Apply characteristics, skills, and ethics learned about entrepreneurs through creating and conducting an interview with a local entrepreneur.

I. Select a local entrepreneur to interviewII. Go to the list of questions to ask a local entrepreneur. Review these questions and also create 5 questions of your own.

III. Conduct your interview asking each question plus your 5 new questions.IV. Write a short biography of the entrepreneur you interviewed

** A “lemon” will be awarded to the 2 best biographies submitted

Days 6-7: Objective #5Evaluate and classify characteristics of varying types of business ownership as an advantage, disadvantage, or both using discovery methods in small groups (types of business including sole proprietorship, partnership, corporation, s-corporation).

I. You will be placed in groups of 4 and will be given direction for a game to identify the advantages and disadvantages of: sole proprietorship , partnership , and corporations . The group will be given a game board (1 of the 3 listed above) and cards. Your group will have to place the cards in the advantages or disadvantages column (you may use your. books). Once your group has completed a card, copy down the advantages and disadvantages for your notes. Once you have completed one game board trade with another pair for a different game board and repeat.

II. We will have a class discussion to review correct answers once all groups have completed and copied all 3 game boards.III. Complete the given handout where you will review the advantages and disadvantages of business ownership methods by listing

Days 8-9: Objective #6Evaluate and classify the conditions of acquiring a business as an advantage, disadvantage, or both using discovery methods in small groups (methods of acquisition include purchase an existing business, enter a family business, purchase a franchise, or start a new business).

I. You will be placed in groups of 4 and given directions for a game to identify the advantages and disadvantages of: purchasing an existing business, entering a family business, buying a franchise, or creating a new business . The group will be given a game board (1 of the 4 listed above) and cards. You will have to place the cards in the advantages or disadvantages column (you may use your books). Once your group has completed a card, copy down the advantages and disadvantages for your notes. Once you have completed one game board trade with another pair for a different game board and repeat.

II. We will have a class discussion to review correct answers once all groups have completed and copied all 4 game boards.III. Complete the given a handout to review the advantages and disadvantages of business ownership methods by listing

Day 10: Objective #7Use the internet to select, research, and evaluate an existing franchise opportunity.

I. Use the given a handout to guide your franchise research. Be sure to completely answer each question given on the handout. II. Use the internet to select a franchise to research

III. Research the franchise and answer the related questions about the franchiseIV. We will have a class discussion about findings on different franchises

** Best franchise papers will receive “lemons”

Day 11: Objective #8Use internet resources to conduct and analyze an entrepreneurial self-analysis to identify potential entrepreneurial interests.

I. You will be given a URL for an entrepreneurship self-test of aptitudes, interests, characteristics, and skills. Complete the self-test and review results.II. Write a brief summary of results explaining the significance in areas of strengths, weaknesses, and general observations.

Days 12-14: Objective #9Form small Lemonade Stand Business (no more than 5) to be set up during lunch for the purpose of exploring fundamental concepts in setting-up a business and serving to help transition to future units.

I. You will be placed in groups of 5 to form your new lemonade stand businessII. Go to the handout detailing the instructions for the business and answer related questions

III. Work in groups to prepare for salesIV. You will sell lemonade during lunch for 1 dayV. Complete questions for a quiz grade to reflect on experiences related to sales of lemonade and working in business/groups

VI. We will have a class discussion of the experiences and discuss how your businesses relate to what we have already learned and what we will learn throughout the course

Days 15-17: Review/Wrap-up/Final TestI. Create one wiki page per lemonade group to review major concepts. They will create a page for:

a. Characteristics and skills of entrepreneursb. Advantages and disadvantages of types of ownershipc. Advantages and disadvantages of types of acquisitiond. Business ethics (brief)e. Lemonade Sales (to be set-up in this unit and used more in future units)

II. Independently complete the review sheet/study guide for the testIII. You will take a formal test of multiple choice, true/false, and short answer questions to demonstrate learning from unit

Materials Required for Objectives:

Characteristics of Entrepreneurs

Persistent Creative Responsible Inquisitive Goal-Oriented

Independent Self-Demanding/Confident Risk-taking Restless Action Oriented

Interview an Entrepreneur

Write a brief biography of the entrepreneur you are interviewing

1. When, under what circumstances, and from whom did you become interested in entrepreneurship and learn some of the critical lessons?

2. How did you spot the opportunity? How did it surface?3. How did you evaluate the opportunity in terms of the crucial elements for success? The

competition? The market? Did you have specific criteria you wanted to meet?4. What outside help did you get? Did you have experienced advisors? Lawyers?

Accountants? Tax experts? Patent experts? How did you develop these networks and how long did it take?

5. What did you learn from both success and failure?6. What do you consider your most valuable asset (the thing that enabled you to make it)?7. If you had it to do over again, would you do it again, in the same way?8. What things do you find personally rewarding and satisfying as an entrepreneur? What

have been the rewards, risks, and trade-offs?9. What advice would you give an aspiring entrepreneur? Could you suggest the most

important lessons you have learned?10. Create five questions of your own to ask the entrepreneur you are interviewing.

Sole Proprietorship

Advantages Government exercises very

little control

May be any size (large or

small)

Get to keep 100% of profits (don’t have to split profits)

Disadvantages

Hard to raise money and

funding

Higher risk (even of personal assets)

Partnership

Advantages Shared decisions

Shared investment

Shared risk and little

government control

Disadvantages

Share responsibility

and profits

Both parties are liable (even for

personal assets)

Disagreements

Corporation

AdvantagesLiability for

share holders, not

owners

Raise money by

selling stock

Easier to borrow from

lenders

Shareholders do not

directly affect the

management of the

corporation

Disadvantages

More complicated

and more governance

(more paperwork)

Must pay incorporation

costs

Articles of incorporation

may be limiting

Income is taxed twice

Deve

lop

a Ne

w Advantages Disadvantages

Personal satisfaction.

Must estimate demand for the

product or service offered.

Ability to make all/most

decisions (location, prices,

products, employees, …)

Ability to make all/most decisions (location, prices,

products, employees, …)

Ability to be independent and

keep 100% of profits.

A lot of time and effort is required.

Ente

rpri

seEnjoy the

challenge of creating

something entirely new. Risk of failure.

Buyi

ng Advantages Disadvantages

The existing business already has customers, suppliers, and procedures.

Many businesses are for sale

because they are not making profit (the business is

failing).

an E

xist

ing

Busin

ess

The seller may train the new

owner and may have

experienced employees.

(some resources are already in

place)

Serious problems may be inherited.

There are prior records of revenues,

expenses, and profits.

More capital (money) is

required to buy the business.

Financial arrangements may be easier.

Taki

ng o

ver a

Fam

ily

Advantages Disadvantages

Enjoy pride and sense of mission that comes with being part of a

family enterprise.

Senior management positions are often

held by family members,

regardless of ability. (May lead to poor business

decisions)The business may

remain in the family for multiple

generations.

It is difficult to retain good

employees that are not family members.

Busin

ess

Some people enjoy working with and for relatives and

people they care about.

Family politics are a part of decisions.

The line is blurred between business and family life can affect family life.

Purc

has Advantages Disadvantages

An entrepreneur is provided with an established

product or service.

Franchises can cost a lot of money and

cut down on profits.

ing

a Fr

anch

iseFranchisors offer

management, technical, and

other assistance.

Owners of a franchise have less freedom to make

decisions than other entrepreneurs.

Equipment and supplies can be less expensive.

Franchisees are dependent on the performance of

other franchisees in the chain.

A guarantee of consistency

attracts customers.

The franchisor can terminate the

franchise agreement.

Self-Assessment of Entrepreneurial Skills

Before taking on a new business, it is important to evaluate your skills and interests.  One of the ways to do this is to take a self-evaluation.  There are many, many tests you can take (we'll look at doing a personality test one day when I get back which should be fun).  Today, you will take a self-assessment - remember that the results of this do not indicate whether you should start your own business or not or whether you will be successful or not - it just points out some characteristics that typical entrepreneurs have and compares your results to theirs.

Follow each step in these directions:

1.  Go to the following website, click the "Continue" button and a screen should pop up with the first questions.  Take the entire evaluation (there are only about 50 questions).

http://www.bdc.ca/en/business_tools/entrepreneurial_self-Assessment/Entrepreneurial_self_assessment.htm?

cookie_test=2 

2.  The last window will contain your results.  Carefully review your results and copy and paste them into a Word document.

3.  Write at least 2 paragraphs explaining what you think your results mean (there are no right answers - you must really think to do a good job here).  Remember a paragraph is 4-5 sentences.

4.  List each characteristic of an entrepreneur and give at least 1-2 examples of how you exemplify each characteristic (all of us have something that would qualify for each one).

5.  Make sure your name is in your document - print.  This is due at the end of class today.

Lemonade Business Questions

1. Choose a group leader (C.E.O.) and give everyone in the group a title (ex. VP Finance, VP Marketing, VP Human Resources, VP Information Technology, VP Sales …) and list names and titles below.

2. Choose a team name and explain how and why the name was choose below.3. What type of marketing research will you do? Write your plan for marketing research below.4. Develop a marketing strategy (signs, layout, …) and write it below.5. Develop a price strategy (this will also include the type/size of cup).6. Write a fiscal management plan below.7. What is your plan to make sure everyone is involved? What will you do if a group member is not

participating?8. Write your sales strategy below. How will you deal with the competition in your market?9. Develop a backup plan and write it below.10. List other basic business principles that you should use in your lemonade business below (you

must have at least 2).

Name __________________________________________ Date _______________Entrepreneurship Quiz #1

Lemonade Sales

1. What were the main strategies that your team used? 2. Did your strategies work? Why or why not?3. Did your team change strategies when you saw what the other teams were doing?

Did your strategy change as the lunch period progressed? How?4. What were some problems that your team encountered? How did your team problem

solve to get around those problems?5. What preparation did your team have to do to get ready to sell? 6. What was it like to depend on your team members to do what they were supposed to

do? Did all of your team members do what they were supposed to do?7. What would you do differently next time?8. What basic business principles do you think you learned from setting up a lemonade

business?

Entrepreneurship Test #1 Study Guide

Name __________________________________________ Date _______________

1. How are entrepreneurs different from employees?2. Name all the different kinds of entrepreneurial businesses and describe what each produces.3. Give an example of all the different entrepreneurial businesses.4. What are all the characteristics of a successful entrepreneur?5. List the 4 advantages of entrepreneurship6. List the 4 disadvantages of entrepreneurship7. Define business ethics.8. List some sources of business ethics (How do people determine what is ethical? What are some

factors?)9. What are the 3 steps in the model for determining if an action is ethical or not10. List 2 things that writing skills are important for11. List 2 things that speaking skills are important for12. What are some strategies that you should use to make the most of personal contacts?13. What are some good strategies to use for listening skills?14. Describe the problem solving process15. Define brainstorming16. What is the purpose of brainstorming?17. Define consensus