Unit 1
Introduction to Small Business Operations
• DECA’s House of Grounds is a School Based Enterprise (SBE).
• This specialty coffee shop opened for business in January 2009.
The School Based Enterprise (SBE)
Frameworks 1.2
Before and After
What is a School Based Enterprise?
“School-based enterprises are effective educational tools in helping to prepare students for the transition from school to work or college. For many students, they provide the first work experience; for
others, they provide an opportunity to build management, supervision and leadership
skills.”
Frameworks 1.2Source: www.schoolbasedenterprises.org
Gold Level Certification
www.schoolbasedenterprises.org
The SBE Funds Scholarships
• Students who operate the SBE receive the profits in the form of scholarship payments.
• Scholarship payments are NOT distributed evenly.
• The scholarship amounts are based on quality of work, amount of work time, attitude, and initiative.
DECA
• DECA prepares emerging leaders and entrepreneurs in marketing, finance, hospitality and management in high schools and colleges around the globe.
• DECA enhances the preparation for college and careers by providing co-curricular programs that integrate into classroom instruction.
• DECA is a co-curricular student organization.• Co-curricular means that DECA activities are
directly related to classroom instruction.
Frameworks 1.3Source: www.deca.org
DECA’s Guiding Principles
DECA prepares the next generation to be:
• Academically Prepared– DECA members are ambitious,
high-achieving leaders equipped to conquer the challenges of their aspirations.
Frameworks 1.3Source: www.deca.org
DECA’s Guiding Principles
Frameworks 1.3Source: www.deca.org
DECA prepares the next generation to be:
• Community Oriented– Recognizing the benefit of service
and responsibility to the community, DECA members continually impact and improve their local and broader communities.
DECA’s Guiding Principles
Frameworks 1.3Source: www.deca.org
DECA prepares the next generation to be:
• Professionally Responsible– DECA members are poised
professionals with ethics, integrity and high standards.
DECA’s Guiding Principles
Frameworks 1.3Source: www.deca.org
DECA prepares the next generation to be:
• Experienced Leaders– DECA members are empowered
through experience to provide effective leadership through goal setting, consensus building and project implementation.
• DECA was officially founded in 1946 at the National level.
This photograph is from one of the early National DECA meetings.
History and Growth of DECA
History and Growth of DECA
• The Harrison DECA Chapter was officially chartered in 1957.– Dwight Eisenhower was President of the United States.– The Soviets launched the first artificial satellite – Sputnik.– The Brooklyn Dodgers moved to Los Angeles.
Harrison’s Original Charter
from 1957
DECA
• There are over 185,000 high school DECA students in 5,000 chapters, located in the U.S., Canada, Germany, Mexico, Puerto Rico and Guam.
• DECA helps students to develop skills for successful business careers, build self–esteem, experience leadership and practice community service.
Frameworks 1.3Source: www.deca.org
The DECA Theme Changes Each Year
Our Theme for 2013-14
“DECA: Make It Count”
DECA Facts and Information
Watch the DECA Membership Video
DECA Facts and Information
• Arkansas DECA– The State DECA
Advisor is Mr. Jim Brock.
– There are 35 DECA chapters in Arkansas.
– The State DECA Publication is called the Arkansas DECA Chronicle. Mr. Jim Brock has also served as
the President of the National DECA Board of Directors year.
DECA Facts and Information
International Career Development Conference
May 2-7, 2014
Atlanta, Georgia
DECA Facts and Information
State DECA Competition
Arkansas State Career Development Conference
Holiday Inn Convention Center
Springdale, Arkansas
March 2nd and 3rd, 2014
DECA Facts and Information
2014 State DECA Competition
The Holiday Inn
Convention Center
Springdale
In order to participate in any DECA activities you must pay your dues!
$18 due Friday August 30
The Entrepreneur
Watch the VideoEntrepreneurs Can Change the World
Watch the VideoWill It Be You?
The Entrepreneur
An entrepreneur is someone who takes the risk to start a new business.
Entrepreneurship is the process of planning, creating, and managing a new business.
Fred Smith, founder of FedEx, wrote a business plan as a student at Yale University outlining his business idea for transporting packages overnight throughout the United States. Frameworks 1.4Source: Marketing, 3e, page 587
Benefits of an Entrepreneurial Career
Entrepreneurs often start their businesses while working for another company, this allows them to add to their income while still employed with another company.
Personal satisfaction from developing an idea into a business, providing jobs for people in the community, completing work that is interesting, and being able to control the profits of the company.
Frameworks 1.4Source: Marketing, 3e, page 587
Entrepreneurs Develop Small Businesses
Over 600,000 small businesses (with 20 or fewer employees) are started each year.
Over 10% of the working population of the US is self-employed.
Small businesses make up 97% of all businesses. Small businesses employ 52% of all non-government
workers and 38% of workers in high-tech occupations.
Small businesses are responsible for over half of all goods and services produced.
Over 95% of all companies involved in exporting are small businesses.
Frameworks 1.4Source: Marketing, 3e, page 590 – Figure 21-1
Characteristics of Entrepreneurs
Focused and goal oriented.Risk-taking – a willingness to risk the
chance of failure in order to be successful.Driven to achieve. Independent minded.Self-confident – believe in themselves and
their abilities and expect to be successful.Creativity – the ability to use imaginative
skills to find unique ways to solve problems.
Frameworks 1.6Source: Marketing, 3e, page 593
Forms of Business Ownership
Proprietorship – a business owned and managed by one person. A proprietor is a person who has sole ownership of a business.
Partnership – a business that is owned and operated by two or more people who share in the decision making and profitability of the company. A partnership agreement is a legal document that specifies the responsibilities and financial relationships of the partners.
Corporation – a business owned by people who purchase stock in the company. Corporations are granted a charter by the state in which they are formed.
Frameworks 1.7Source: Marketing, 3e, page 603
Corporation
A charter is a legal document allowing the corporation to operate as if it were a person.
Source: Marketing, 3e, pages 605-606
Proprietorship: Advantages
The proprietorship is the most common form of small business ownership.
The owner is the boss and makes all decisions.
The proprietor receives all profits from the operation of the business.
This is the most flexible form of ownership.This is the easiest form of ownership to
create.
Frameworks 1.7.1Source: Marketing, 3e, page 604
Proprietorship: Disadvantages
The proprietor may not have all the skills needed to run the business.
Most new businesses require a lot of money to start, this could be more than one owner can provide.
The risk can be great and must be carried by the proprietor, includes personal liability.
The business will not be able to continue if the owner becomes ill or dies.
Frameworks 1.7.1Source: Marketing, 3e, page 604
Proprietorship
Little Bell Wedding Chapel
Proprietorship
The Queen Anne House Bed & Breakfast
Proprietorship
Shelby's, a family owned and operated business, is a 25-year tradition in the Ozark area. Pictured left to right: Shirley, Heidi, Erin, Shelby (owner), Susan, Ada and Genie.
Partnership: Advantages
Partners are able to combine their knowledge, skills, and abilities.
Partners usually will have greater financial resources to bring to the business.
If one partner decides to leave the business, the business does not have to close.
Frameworks 1.7.1Source: Marketing, 3e, page 605
Partnership: Disadvantages
Disagreements on important decisions can occur among partners.
All partners are responsible for any actions and decisions made by another partner.
Profits, as well as losses, are shared by the partners.
Frameworks 1.7.1Source: Marketing, 3e, page 605
Partnerships
Neighbor's Mill Bakery & Café is owned by Mike and
Karin Nabors. The business specializes in handcrafted, all-natural breads, grilled and cold
sandwiches, soups, salads, pizzas, desserts and espresso coffees.
Corporation: Advantages
Offers the owners limited liability.The business can exist indefinitely, beyond
the life of the owners.Ownership is easy to transfer by the selling
of stock.
Frameworks 1.7.1Source: Marketing, 3e, page 606
Corporation: Disadvantages
Corporations face more government rules and regulations than other forms of business ownership.
Stockholders tend to be focused only profits. Individuals tend to avoid responsibility for the
actions of the corporation.Corporations are usually taxed at a higher
rate than other forms of ownership.
Frameworks 1.7.1Source: Marketing, 3e, page 606
Corporation
The world’s largest retailer and private employer.
Corporation
FedEx Express was founded in 1971 by Fred Smith. The corporation was created in 1998 as FDX Corp. and became FedEx Corp. in January 2000. The company handles more than 6 million shipments daily. FedEx has more than 250,000 employees.
Corporation
Pace Industries, Inc., is a 635,000 square foot facility located in Harrison, Arkansas that specializes in commercial and consumer castings.
Developing a Business Plan
A business plan is a written document prepared to guide the development and operation of a new business.– The sections of a business plan usually include:
• An executive summary – which provides an overview of the business concept and the important points covered in the business plan.
• Description of the proposed business, product/service, community, potential target market, organizational structure, and owners.
• Description of the proposed marketing activities.• Description of the proposed financial plans.
Frameworks 1.8Source: Marketing, 3e, page 609
End of Unit 1
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