Chapter 3.1 Vocabulary & Notes
Understanding Entrepreneurial Trends
Entrepreneurship
Understanding Entrepreneurial Trends
businesses that conduct business mainly on the internet
Advantages:◦ potential to attract a huge amount of customers◦ faster business growth
Internet Businesses/Online Businesses
Provide services to people for many different reasons◦ biggest and fastest growing part of the American
economy◦ Examples: Banking, Insurance, Education,
Advertising, Real Estate, Trades, Tax Preparation
Service Businesses
Businesses that are run out of an individuals home◦ Rapid business growth since the late 1990’s◦ Examples: Consultants, Sales Reps, Writers,
Graphic Artists, Web Designers, Survey Takers
Home-based Businesses
A business that focuses on a goodwill mission to better society
Examples: United Way, Salvation Army, Feed the Children, YMCA, American Red Cross
Nonprofit Businesses
Trend in business to improve processes, efficiency and marketing to gain a competitive advantage over competition
Technology
Contracting with other companies for services
Outsourcing
Partnering with another company for mutual benefit
Strategic Alliances
Starting another company within a company
Corporate Ventures
1. Brainstorming – thinking freely to generate new ideas
2. Recognize Needs as Opportunities3. Evaluate Products & Services4. Observe the world around you and the
people5. Learn about different types of businesses
and industries
Learning to Recognize Opportunity
Thinking creatively that results in a new way of doing something
Innovation
A small specialized market
Niche
Personal characteristics that describe a population◦ Age◦ Gender◦ Income◦ Ethnic background◦ Education◦ Occupation
Demographics
Interests Hobbies Work
Consider Your Own Experiences
Trade Magazines◦ Periodical published for specific types of business
or industries
Consider Outside Sources
Specialty Magazines◦ periodical that targets people with a specific
interest◦ Examples: Sports, Fashion, Computers &
Electronics, Entertainment, Autos, Cooking
Consider Outside Sources
Trade Show◦ Show or exhibition in which vendors promote new
products and do demonstrations to market products
Consider Outside Sources
Newspapers Internet Government Agencies
Consider Outside Sources
Ch. 3.2Starting vs. Buying a
BusinessEntrepreneurship
Beliefs and principles that you choose to live by◦ Define who you are◦ Shape your attitudes and choices◦ Identify priorities
Influenced by◦ Family◦ Religion◦ Friends◦ Society◦ Personal Experiences
Personal Values & Goals
a business in which one or more members of a family have a significant ownership interest in the business◦ Typically small businesses◦ Exceptions: Marriot, Mattel Toys◦ Only 1/3 survive to the second generation
Family Business
Shared feeling of trust and togetherness Family working as a team can achieve great
things Family profits
Rewards of Family Business
It is tough to separate business and family Can’t get away Trouble viewing problems objectively
without emotion Backstabbing
Challenges to Family Business
Could I work for someone in my family? Do we share similar values & goals? Clear Expectations? Can we separate family & business when we
go home each night? Can we keep relationships positive?
Questions to Ask?
Buying the rights to set up a new business patterned on an existing model
A legal agreement to begin a business in the name of the recognized company
Examples: ◦ Subway◦ Dunkin Donuts◦ UPS Store◦ Super 8◦ McDonald's
Buying a Franchise
Franchisee – buyer of the rights◦ Example: John Doe, Susan Smith
Need initial investment in $30,000 - $250,000 range
Franchisor- seller of the rights
◦ Example: McDonald’s, Subway
Franchisee vs. Franchisor
Usually less risky Facility, employees, equipment, procedures
are usually established Customer base Goodwill – loyalty to existing customers
Buying an Existing Business
Read pg. 60 thru the end of the Section 3.2 on pg. 63
◦ Franchises◦ Evaluating a Business Opportunity◦ Starting Your Own Business
◦ Answer #3 and #4 on pg. 63 in your journal
In Your Book