BDI3U – Grade 11 Entrepreneurship – Unit 1 Notes

Entrepreneurship Notes

Unit 1

Venture Plan​: a written summary of what a business of product will accomplish and how they will accomplish it
Entrepreneur:​ a person who organizes, operates and assumes the risk for a business venture

Characteristics of an Entrepreneur:​ driven, creative, self-confident,etc.
Attitudes of an Entrepreneur:​ integrity, flexible, bravery, passion, etc.
Motivations to be an Entrepreneur:​ money, own boss, satisfaction of pleasing people, change the world, not for profit, etc.
Entrepreneurship​: to start your own business or to be employed in your own business Supply Resources:​ things you need for your business that you need to continually buy Capital Resources: ​things you need for your business that you only have to buy once Entrepreneurial characteristics that contribute toward success:
Health​ – Be continually enthusiastic, caring and self-disciplined
Independence​ – Have a strong “BYOB” (be your own boss) drive; choose to be responsible for your own success or failure
Self-confidence​ – Constantly believe in yourself
Urgency – ​Success moves too fast to be put off until tomorrow
Awareness​ – Entrepreneurs do not wear blinders – be aware of your environment
Realism​ – No room for wishful thinking or fantasizing; face your problems
Anti-status​ – Focus single-mindedly on developing the business, even if this means sweeping the floor
Orderliness​ – Always see the order among chaos
Objectivity -​ Situations, relationships, and employees must be judged with objectivity, do not become subjective
Emotions​ – Keep them in check
Risk-taking​ – The more knowledgeable you are the less risk, but taking calculated risks is inevitable for success

Invention:
• The creation of something completely new
•Tend to be rarer in nature, rely heavily of the creativity of the inventor

Innovation:

  • A change to something that already exists
  • Much more common
  • Based on the what if question – What if I shrank it? Enlarged it? Made it lighter? Changed its shape? Reversed it? Added something? Subtracted something? Sold it at another place? Sold it in a different way? Changed its name? etc.

    Intrapreneurship:​ Entrepreneurship within an section of an existing business Characteristics of an Entrepreneur:​ Independent, risk-taking, confident, patience, optimistic, creative, have goals, needs, wants, proper networking, problem solving, can take responsibility

Skills of an entrepreneur:​ communication skills, knowledge of market and business, ability to bond and create networks, trustworthy, has technical knowledge of their field, manages time and money effectively
Patent:​ a documentation that licenses the rights to an idea only for the inventor

Intellectual Properties:​ intangible property as a result of creativity and engineering Patent Trolls​ file vague patents and then sue large companies for infringement. Large companies choose to settle because it’s cheaper than fighting (and winning) in court

Ways to Start a Business Starting from scratch Advantages:

  • –  You can do whatever you want
  • –  It’s all your idea Disadvantages:
  • –  A lot of work, money & risk
  • –  Profits will be slow coming

    Inherit an existing business

    Advantages:

  • –  Already established
  • –  No money, less risk
  • –  Already know the business

    Disadvantages:

  • –  Not your idea, not your dream job
  • –  You take over all the pluses and all the minuses

    Buying an existing business

    Advantages:

  • –  Name & business is established
  • –  Profits come quicker

    Disadvantages:

  • –  Hard to make changes/rebrand
  • –  Buy their problems
  • –  Employee change

    Buying a franchise

    Advantages:

  • –  Guaranteed profits
  • –  Name is known
  • –  Training/head office support

    Disadvantages:

  • –  Share profits
  • –  You are told what to do- no room for creativity
  • –  Not your business

    Needs:​ something that is essential for survival (ex. Water, food, shelter, clean air)
    Want:​ luxury items that make life easier and enjoyable (ex. education, electronics, Internet access)

    Characteristics of Ventures
    Large Scale Business
    A company that’s national or international and has more than 50 employees Advantages:​ bigger profits, job security, more momentum
    Disadvantages:​ more risks, expenses, lower quality and customer relationship

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Small Scale Business

A company that’s provincial or local and has less than 50 employees Advantages:​ less risks, higher quality, better customer relationship Disadvantages:​ limited profit, increased workload with smaller spaces and people For Profit

The company wants to make money
Advantages:​ flow of money, independent, innovation comes from money Disadvantages:​ susceptible to lowering quality for more profit, less care for what they’re doing
Not for Profit
The company has a goal to raise money to satisfy a want or need
Advantages:​ supports a local cause, has care in what they’re doing
Disadvantages:​ funds very limited, changes very strict, would collapse if without sponsors Service Production:​ Provides services for people (intangible)
Goods Production: ​Provides goods for people (tangible)
Physical: ​A brick & mortar company that you can visit
Virtual: ​A company that is run online on a website
Other characteristics: ​local, provincial, national, international
Self Employment:​ working at home for someone or a company that you’ve created Benefits:​ flexible hours, save commute, less stress, office costs, more time with family Features:​ share workweek, anytime vacations, custom work schedule
Disadvantages:​ no benefits, days you don’t work you lose money, no fixed salary, boredom

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