And Others TITLE The New Youth Entrepreneur, Study notes of Business

Download And Others TITLE The New Youth Entrepreneur and more Study notes Business in PDF only on Docsity! DOCUMENT RESUME ED 393 527 JC 960 237 AUTHOR Kourilsky, Marilyn; And Others TITLE The New Youth Entrepreneur: Getting Ready for Entrepreneurship. Entrepreneur? Who, Me? YESSI You. Module 1. INSTITUTION Education, Training, and Enterprise Center, Inc., Camden, NJ.; Ewing Marion Kaufmann Foundation, Kansas City, MO. Center for Entrepreneurial Leadership. PUB DATE 95 NOTE 34p.; For Modules 2-12, see JC 960 238-248. AVAILABLE FROM EDTEC Education, Training, & Enterprise Center, Inc., 313 Market Street, Camden, NJ 08102. PUB TYPE Guides Classroom Use Instructional Materials (For Learner) (051) EDRS PRICE MF01/PCO2 Plus Postage. DESCRIPTORS *Business Education; *Business Skills; *Economic Opportunities; Education Work Relationship; *Entrepreneurship; *Free Enterprise System; Late Adolescents; Learning Activities; Risk; *Self Employment; Small Businesses IDENTIFIERS *Business Role ABSTRACT The New Youth Entrepreneur curriculum is a series of 12 youth-oriented educational modules containing instructional materials, learning activities, and checkup exercises designed to teach students key elements of entrepreneurship. This document is the first module in the series, and introsluces the concept of entrepreneurship by defining characteristics of entrepreneurs, examining ways in which students can become entrepreneurs, and highlighting the roles and contributions of entrepreneurs to society. Following introductory materials describing the module and characteristics of entrepreneurial people, the first section, "What Is an Entrepreneur?" presents activities designed to help students do the following: (1) define an entrepreneur and an entrepreneurial person; (2) understand how problems can be opportunities for entrepreneurs and why opportunities are so important for entrepreneurs; (3) understand how "wants" and "demands" create opportunities for entrepreneurs; (4) understand the key role of entrepreneurs in the development of the economy; and (5) identify the key steps involved in setting up an entrepreneurial venture. The second section, "Can You Be an Entrepreneur?" presents checkup exercises and activities designed to help students identify the entrepreneurial characteristics that they possess. Finally, a list is presented of the roles of entrepreneurs and their contributions to society. (CELCEE, an Adjunct ERIC Clearinghouse on Entrepreneurship Education) (MAB) *********************************************************************** * Reproductions supplied by EDRS are the best that can be made * * from the original document. * *********************************************************************** Art. Anbk LI , U S DEPARTMENT OF EDUCATION ol Educational Fletaarch and irnprovament EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) )11,. This document has been reproduced as received from the person or organization originating it 0 Minor changes have been made to improve reproduction quality Points of view or opinions stated In this document do not necessar ly represent official OERI position ty policy a 0 a a ryg PERMISSION TO REPRODUCE AND DISSEMINATE THIS MATERIAL HAS BEEN GRANTED BY D. Strom TO THE EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) I I BEST COPY AVAILABLE 4 IEntrepreneur? Who, Me? YESS! You! What is an entrepreneur? Can you be an entrepreneur? Roles and contributions of entrepreneurs to society 4-1Entrepreneur? Who, Me? Yess! You The Entrepreneurial Person BRAIN For generating creative, innovative Ideas EAR For keeping the ground and sensing change and opportunity WISE EYES For establishing a vision and setting goals SHARP EYES For seeking out opportunities EAR For listening to the advice of those with knowl- edge and experi- ence WRINKLES For smiling during the fun times MOUTH For effective communication and being able to sell an idea NECK For sticking out and taking calculated risks BACKBONE For the confidence and determination to believe in one's self and to move ahead FiNGERS For counting the positive learning opportunities from any mistakes/failures STRONG LEGS For leaping over the many barriers and obstacles you will encounter NOSE For smelling signs of trouble and possible problems GLANDS For adrenaline: for the "rush". For sweat during the hard work HEART For the passion, commitment and perseverance to stick with it and burst with pride when goals are reached and accomplishments achieved ARMS For hugging members of the team that will determine your success HANDS For shifting gears when necessary\ KNEE For staying flexed to adapt to change STRONG FOOT/ For kicking ideas around FLEET FEET For anticipating and keeping ahead of the competition EtEntrepreneur? Who, Me? Yess! You Do you know any entrepreneurs? Are you an entrepreneur? Would you be interested in being an entrepreneur? These questions may be hard to answer if you don't know what it is that entrepreneurs do. That is what we hope to help with in this module. In this module, we will introduce you to "entrepreneurs" - who tiey are, what they do and why they do it. By the end of this module, you should be able to: 1. Define an entrepreneur and an entrepreneurial person. 2. Understand why problems are opportunities for entrepreneurs and why opportunities are so important for entrepreneurs. 3. Understand how "wants" and "demands" create opportunities for entrepre- neurs. 4. Understand the key role of entrepreneurs in the development of our economy. 5. Identify the key steps involved in setting up an entrepreneurial venture. 6. identify the characteristics and skills that are important for entrepreneurs. 7. Determine your interest in entrepreneurship. What Is An Entrepreneur? Complaints: What might be done? Let's return you to our story. This group of young people was complaining that they were bored. Even on weekends there never seemed to be anything to do. They felt like they had been to the mall about 10,000 times and had little interest in doing that again. The movies that were playing were lousy. There were no organized games to speak of. The group discussed the fact that, because there was nothing to do, some kids were getting into trouble - doing things they shouldn't be doing. On this particular weekend, the group was sitting on two benches at the end of a little park in town. Traffic was busy. People were shopping and doing chores. Those of the younger generation were generally busy doing nothing. One person in the group recalled that on yesterday's announcements there was an announcement about a basketball game taking place today. Their school team (Franklin) was going up against Central. This caught the interest of the group and they set off for the school. When they got there, they were surprised to see so many of their friends - even some of their friends who they knew couldn't stand basketball. That, to them, was a real sign that there was a need for something else to do. As they watched the game, a person in the group noticed that the uniforms on Central looked, cool and practically brand new while those on their own team looked tattered and worn. They felt somewhat embarrassed for how their team looked. EtWhat Is An Entrepreneur? This got them to thinking - and talking about what they could do. They started discussing what they might do for fun, or something interesting, and what they might be able to do to help raise some money to help the team buy new uniforms. One member of the group had just had a business class that day in which they talked about entrepreneurs. It was suggested that the group try their hand at being entrepreneurs. There was general agreement, but only one problem what were they going to do? It just so happened that, as the group was sitting in the gym, they noticed that a person a couple of rows behind them had brought along a tape player and was playing music. Like good entrepreneurs they had their eyes and ears open for signs of opportunities. When they looked around at the people who could hear the music, they noticed that they were watching the game but in tune to the music. Feet were tapping, shoulders were moving, bodies were bouncing. They were watching the game to the beat of the music. It became obvious to the group that, what many of the young people wanted to do was to dance. So they came up with the idea for a weekend dance club with great music, great dancing, lessons and demonstrations. They decided to include lip-sync shows and arrange for special guests and activities. Within their group they had considerable talent. One of them had an outstandina music collection and knowledge of music. One was generally regarded as the best dancer in the school. One was studying business. One had experience in advertising and promotion, having organized those activities for the school dance in the fall. 11 What Is An Entrepreneur? This group was doing just what entrepreneurs do - looking for an opportunity, coming up with an idea, bringing the resources and talent together as a team and then putting together a plan for a new venture. What happened with this group of friends is not uncommon. Many times entre- preneurs get their start at difficult or troubled times times when they are bored; times when they aren't happy; times when unpleasant things happen - like losing a job. Furthermore, people often turn their hobbies and what they enjoy into busi- nesses. And many times, friends and family members work together on ventures, each bringing their own set of skills to the business. In the case of the group of young people we have just discussed, they had identified three problems people were bored, some young people were getting into trouble because they were bored, and the school uniforms needed to be replaced. How would you try to solve any of these problems? Let's consider what an entrepreneur would do when looking for a venture - and adventure. The key thing for an entrepreneur is to look for an OPPORTUNITY. And the nice thing is that opportunities are all around you - if you take the time to notice them! Let's take a look at one opportunity to which many entrepreneurs have responded. 12 0 EtWhat Is An Entrepreneur? Just think about it. Where did all of the caps come from? Did people make their own? Not usually. Most people bought them at a store. In most cases, when you bought a cap, you bought a cap that was produced and sold by a business. You bought a cap that was produced and distributed by one or more entrepreneurs. When entrepreneurs 'saw lots of people wanting caps, they found an opportunity. They began to produce all sorts of caps different sizes, shapes, colors, logos, quality, and prices. Almost any kind of cap you wanted was available, at a wide range of prices. Entrepreneurs see wants as opportunities. Once they see an opportunity, they come up with new ideas, new ventures and new products and services. When lots of people want something, that's like filling up the gas tank for entrepreneurs they rev up and take off on the "production highway". But they always remember to keep their eyes on the road. They look to see what it is that people really want. And they look to see if peoples' wishes (the market) change. Most entrepreneurs put their heart and their soul, along with a great deal of hard work, into their business. They set goals and try to reach them. When they suc- ceed, it usually feels great. In fact, the feeling can be as good, if not better, than the feeling from earning a profit. One way to think about what people want and how people try to respond to wants is to think about movies that you have seen. Just like our communities, the mov- ies are full of entrepreneurs - and very entrepreneurial people. Try your hand at the following activity. ACTIVITY: Identify three movies in which an entrepreneur appeared - or some- one who you think was very entrepreneurial. Explain why you think they were entrepreneurial and identify the opportunity (want, demand) they were focusing upon. Movie #1 #2 #3 Character Why They Were Entrepreneurial 15 2Aithat,_b An Entrepreneur? Not everyone who sets up and runs a business succeeds. There are a number of things that can go wrong. The person may have identified a poor opportunity or may have thought people wanted something they didn't really want. On the other hand, the idea may not have been a good one. Then again, maybe somebody just had a better idea or the competition was better in some way. The location may have been wrong. They may not have had enough money to set the business up properly or to keep it running in the tough early goings. It may have been that they didn't do enough research or their business planning may have been poor. There are many reasons why a venture might not succeed and that is why it is important to do your homework before launching a new venture. Well-thought out, well-researched, well-planned businesses can help an entrepreneur to increase the chances of success and lower the risks of failure. ACTIVITY: Think about, or look for, any businesses in your community that have closed. Why do you think they closed? Were there any obvious problems that the business was experiencing? Were they in the right location? Were they producing an appropriate good or service? Were they producing it well and offering a quality product or service? Was there competition? If so, how did they stack up? Try to identify three businesses that have closed and offer your opinion as to why they didn't work. 16 ii is difficult to find an exact definition of an entrepreneur. Entrepreneurs are better defined by what they do. They identify opportunities. They come up with ideas (hopefully good ones). They bring together resources to set up and run a venture to provide a product or service. That's what they do. But there are many people who see opportunities and there are many people who can come up with good ideas. What makes entrepreneurs different from them? The difference is that the entrepreneur takes action. The entrepreneur brings together (mobilizes) resources to create a venture. Those resources can be human, or physical (capital goods such as machinery, technology or natural re- sources such as land and water). , , a lb. gm. vill 17 Im k111=4_ --..c.g1P11"6" 11111 0 What Is An Entrepreneur? An Entrepreneur's Dozen An Entrepreneur E: xamines wants for which he/she can do something to improve the way wants are met. N: arrows the possible opportunities down to one specific opportunity. T: hinks of an innovative idea. R: esearches the opportunity and idea thoroughly. E: nlists the best sources of advice and assistance that can be found. P: lans the venture and looks for possible problems that might arise. R: anks the risk and the possible rewards. E: valuates the risk and possible rewards and makes a decision. N: ever hangs on to an idea, as much as it is loved, if research shows it won't work. E: mploys the best team of people possible and brings together the other resources necessary for the venture (if the decision is made to go ahead). U: nderstands that any entrepreneurial venture will take a great deal of long, hard work. R: ealizes a sense of accomplishment from successful ventures and learns from failed ones to achieve success in the future. By looking for what people want, identifying demand and then producing a product or service, entrepreneurs serve as one of the key engines in our economy. They help to get our economy moving. They help to keep it moving. And they are always looking for ways to do a better job and take on new challenges. 20 What Is An Entrepreneur? ACTIVITY: Look at the Entrepreneur's Dozen again and then consider the idea for a weekend dance club. What steps would the group of young entrepreneurs nave to take before starting the dance club business? QUESTIONS: Suppose the group of friends came to you and asked you to invest in their dance club business. What questions would you want them to answer before you could decide? List the five key questions you would ask below: Question #1: Question #2 Question #3 Question #4 Question #5 21 tp What Is An Entrepreneur? VCheck Point! Cheek Your Understanding 1. What is an entrepreneur and what does an entrepreneur do? 2. What is an entrepreneurial opportunity? 3. What is the difference between "wants" and "demands?" 4. What are some key steps involved in becoming an entrepreneur? 5. Why do entrepreneurs face risk when setting up a business? 6. What might cause a business to fail? 7. How do entrepreneurs view failures and mistakes? Xes &or A GREAT EMG/NE; To0. geeP IT PlAR/A/¢ A1,4Al* A 1.0,%4 06 Kan PREP VP AND 12ut.ININ4 ON AlL cyamotes! 22 Can You Be An Entrepreneur? Explanations For Entrepreneur's Quiz Question 1: Entrepreneurs do tend to be independent, self-reliant individuals. They may try to work through a problem alone. They do have a high need to achieve. But successful entrepreneurs are not so committed to the purely individual achieve- ment of goals that they will not seek aid. Entrepreneurship is difficult and requires the help of others. Successful entre- preneurs will seek out those who can be most helpful whether they are friends or strangers. The need to achieve will likely be greater than the social need to work with friends. The best choice is (b). Question 2: Entrepreneurs often have a tremendous amount of energy and drive, with a capacity to work for long hours. Good general physical health is necessary in order to withstand the stresses of running their own ventures. One of the risks they must evaluate is that their work will likely put physical, social and emotional strains on them. Few entrepreneurs pursue initiatives for the good of their health although many seem to thrive on the work-related stress. Entrepreneurs tend to compete against standards of achievement they set for themselves rather than standards set for them by others. Entrepreneurs are most like the runner who races to beat the clock. To achieve a new "personal best" time will likely be more rewarding than beating others. The best choice is (c). Question 3: Those who are motivated by a need to gain attention, get recognition and con- trol others are motivated by power. They are more active in political life or large organizations where they concentrate on controlling the channels of communica- tion both up to the top and down to the bottom so that they are more in charge. By cont-ast, entrepreneurs are motivated more by their need for personal achievement than personal power. Power and power recognition may be the result of success but they are not the motivating goals. The best answer is (a). 25 Can You Be An. Entrepreneur? Question 4: Successful entrepreneurs likely have a high level of self-confidence. They tend to believe strongly in themselves and their own abilities to achieve the goals they set. They also believe that what happens to them in their lives is determined mainly by what they themselves do. They are not reluctant to place themselves in situations where they are personally responsible for the success or failure of an operation. They will take the initiative to solve a problem and provide leadership where nu le existed before. The best choice is (c). Question 5: The entrepreneur is thought of as a risk taker. There are many risks involved in entrepreneurial activity. But psychological testing of entrepreneurs has indicated that they are no more motivated to do something by risk than anyone else. They are not daredevils or reckless gamblers. Successful entrepreneurs are very good at assessing the amount of risk involved in a venture and will choose to accet that risk if they feel their personal chances for success are relatively high. They may well choose to do something when the odds of success are only one in three if they believe they have the abilities and experience needed to succeed. The entrepreneur would most likely choose (b), to work on the problem even though rolling dice is obviously less work. Entrepreneurs avoid situations where the results depend mainly on chance or the efforts of others. The opportunity for personal achievement is more important than the size of the reward offered. Question 6: Entrepreneurs tend to be positive, optimistic types who focus their attention on their chances of success rather than the chances of failure. Individuals who fear failure tend to select tasks which are either very easy or where the risk is very high. By selecting an easy task, the chances of failure are reduced. By selecting a task with little chance of success, failure can be rationalized, "Oh well, it was just a long shot anyway." The entrepreneur avoids both extremes and selects those tasks which are challenging but where the opportunities for success are reason- ably good. The best choice (a). 26 (t Can You Be An Entrepreneur? Question 7: It is a popular misconception that entrepreneurs are, at heart, greedy, acquisitive individuals who enter into ventures for the purpose of accumulating personal wealth. Such a description would be more aptly applied to some promoter who's a fast buck artist. Entrepreneurs are driven to build a venture rather than simply to get in and out in a hurry with someone else's money. They will enjoy the benefits a higher income brings but will usually spend only a portion of their gain on personal consumption. Entrepreneurs are primarily interested in the creation, not the consumption, of wealth. The best choice is (a). 2i 0 lEt Can You Be An Entrepreneur? Entrepreneurial Characteristics: A Personal Reflection "How about you?" 41. gl Look at yourself and answer the questions below to consider if you have what it is that makes entrepreneurs tick: Yes No I have a spirit of adventure I have a strong need to achieve and seek personal accomplishment I am confident and self-reliant I am goal-oriented I am innovative, creative, versatile I am willing to adapt to/respond to change I am persistent I am hardworking and energetic I have a positive attitude I have a strong sense of commitment If you have said "yes" to many of the above (and you have been truly honest), then you have the traits to be an entrepreneur. 30 sCt Can You Be An Entrepreneur? Entrepreneurial Skills: A Personal Reflection I believe I poPsess the following entrepreneurial skills to some degree. (Indicate such skills with a check mark and then assess the extent to which you feel these are developed by circling the appropriate number.) Skill Developed a little Skill Level Well-developed creative thinking 1 2 3 4 5 research 1 2 3 4 5 planning 1 2 3 4 5 decision making 1 2 3 4 5 organization 1 2 3 4 5 communication 1 2 3 4 5 team building 1 2 3 4 5 marketing 1 2 3 4 5 financial management 1 2 3 4 5 recordkeeping 1 2 3 4 5 leadership 1 2 3 4 5 goal setting 1 2 3 4 5 networking 1 2 3 4 5 negotiation 1 2 3 4 5 Add up the circled numbers and see what the total is. Total: If your score is over 48 (and you have been truly honest with yourself), you have the skills to be an entrepreneur. 2(i 31 EtCan You Be An Entrepreneur? Entrepreneurial Characteristics In addition to characteristics and skills, you may have already begun to develop hobbies, interests and skills that might relate to a business--if not today, then eventually. Think about that. What hobbies do you have? Could any of these lead to a business some day? What skills have you developed or begun to develop? (e.g. sports, music, mechanics, art, etc.). Hobbies I have: Possible business activities: Interests I have: Business activities that may relate to my interests: Skills I have developed (am developing): Business activities to which my skills might relate: So, what do you think? You've now had an introduction to entrepreneurs and entrepreneurship. Has it caught your interest? Is it something that might appeal to you? Are you a potential entrepreneur? Take some time to think about that and, if you decide to try a business venture, GOOD LUCK TO YOU! 32 0