1.01 Nature of Entrepreneurship

1.

01: The Nature of Entrepreneurship

Today we start begin to explore entrepreneurship with our first objectives.
Essential Questions:

By the end of this unit, you should be able to answer these questions.
 What are the characteristics of entrepreneurship?

 What is the difference between entrepreneurs and intrapreneurs?
 What is the importance of the entrepreneurial process?
 What are the types of entrepreneurship?
 What are factors and trends impacting entrepreneurship?
 How does globalization impact entrepreneurship?
Characteristics of Entrepreneurship
As we begin to focus on the course, we need to understand the characteristics of entrepreneurship

and entrepreneurs in general.
 It is important to understand that a a good understanding of the continuous economic

activity involved in for-profit businesses.
 you will learn a term call entrepreneurial discovery and designed thinking. These are all
focuses of innovation which is a prime activity of entrepreneurship.
 Entrepreneurship is all about making money, with few exceptions. Entrepreneurs tend to
be people who are profit focused. Their goals include creating a business and maximizing
profits.
 Entrepreneurs take risks, but they also reap the rewards of those risks. It is important to
understand that in entrepreneurship, the risks are very calculated and not simply done
haphazardly.
Entrepreneur, Ethics, Etiquette, Globalization, Innovation, Intrapreneur, risk
What is an entrepreneur?: An entrepreneur is an individual who seeks out new opportunities to

create profits. Most entrepreneurs develop and open their own businesses to create wealth.
What is an intrapreneur?: Like an entrepreneur, intrapreneurs take on the risk by developing

products and or business concepts, but work for someone else. Whereas entrepreneurs work for
themselves, intrapreneurs tend to be employed by other businesses.
Business Etiquette: In every career there are business cultures and various forms of etiquette.
Think of proper manners which will guide individuals to remain professional in their businesses.
We will explore this more in this unit.
Globalization: The U.S. population only consists of about 5% of the world's total population.
Imagine being a business owner in the U.S., you would have about 325 million people as your
potential customers. In today's society, businesses (even small) may become a multi-national
company. By selling your products globally, you have a lot more potential customers to buy
from you and make additional profits.
Innovation: Innovation is the foundation of entrepreneurship. People who create their businesses
tend to be more innovative. Products around the world are always innovating to create new
products for sell or to improve current products on the market.
Risk: Risk is a key characteristic in entrepreneurship. Entrepreneurs take many calculated risks
in their development, but they also reap the rewards that come from those risks. These are not
risks that simply arise and are put aside. These are clearly calculated to prevent a negative impact
on the business.
The entrepreneurial process
Think of the entrepreneurial process as a step-by-step, however, depending on the type of

business, these steps could change.
 Step 1-Innovation: It is important for entrepreneurs to be innovative. Using concepts

like brainstorming as well as research and development, entrepreneurs create new
products and businesses using their own innovation skills. This step is quite long as
entrepreneurs tend to do a lot of research and planning in this stage.
 Step 2-Triggering Event: The triggering event can be anything from your own
motivation, dissatisfaction with the current career, or even education level.
 Step 3-Implementation: This stage is the grunt work. In order to implement from the
innovation, entrepreneurs go into the building or creation phase in which the physical part
of the business or product development begins to take shape.
 Step 4-Growth: Growth takes place after the business has been open. In order for
businesses to be successful they must have constant growth. It is important for
entrepreneurs to stay abreast of new business trends to keep up with products the
consumer wants.
Types of entrepreneurship
There are typically four types of entrepreneurs

1. Small Business Entrepreneurs: Although we tend to think about the large corporate
businesses like Walmart, Lowe's, Target, or Food Lion, 97% of the businesses in the
U.S. are small businesses owned by entrepreneurs. Currently there are about 5.7 million
small businesses (100 or less employees) in the United States.
2. Scalable Startup Entrepreneurs: Think of entrepreneurs like Jeff Bezo's, Bill Gates, or
Steve Jobs. These are all scalable startup entrepreneurs. Generally they are in the tech
industry, but these people startup a brand new company with the intent on growing the
business using innovation that will change the world.
3. Large Company Entrepreneurs: We already mentioned intrapreneurs which is where
we would find this type of entrepreneur. These people come into a large company and
implement programs through innovation to make things better and more appealing to
customers. Often these entrepreneurs or consultants are hired to focus on the problems
and find solutions within the business.
4. Social Entrepreneurs: Social entrepreneurs are innovators who focus on creating

products and services that solve social needs and problems. But unlike scalable startups
their goal is to make the world a better place, not to take market share or to create to
wealth for the founders. Generally, social entrepreneurs create organizations like non-
profit or charity type businesses.
1.01: KIMs chart

Instructions: Create a KIMs chart for each of the vocabulary terms for this lesson. At the end of
each standard, you will submit your KIMs chart for grading.
A Kim's chart will look similar to the one below.
 Key Term: In the first column, simply put the vocabulary term.
 Definition: in the second column, write your own personal definition of the term. No
copy and pasting from the internet and no sharing with other students.
 Memory Clue: The third column is to help you remember the term. Some people
may put a picture, a logo, or some other icon to help them remember the term.
Let's do the first one together.
Key Term Definition Memory Clue

Money A medium of exchange $$$$$
One who organizes,

manages, and assumes
Entrepreneur
the risks of a business or
enterprise
To start your KIMs chart, simply press this button. Then save this in your Google Drive as
"KIMs Chart" and place it in the folder called "Entrepreneurship."
Blank KIMs Chart
The first units terms are already included on the KIMs chart
Entrepreneur:
Ethics:
Etiquette:
Globalization:
Innovation:
Intrapreneur:
Risk:
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1.

01: The Nature of Entrepreneurship

 What are the characteristics of entrepreneurship?

As we begin to focus on the course, we need to understand the characteristics of entrepreneurship

 It is important to understand that a a good understanding of the continuous economic

Entrepreneur, Ethics, Etiquette, Globalization, Innovation, Intrapreneur, risk

What is an entrepreneur?: An entrepreneur is an individual who seeks out new opportunities to

What is an intrapreneur?: Like an entrepreneur, intrapreneurs take on the risk by developing

The entrepreneurial process

Think of the entrepreneurial process as a step-by-step, however, depending on the type of

 Step 1-Innovation: It is important for entrepreneurs to be innovative. Using concepts

There are typically four types of entrepreneurs

4. Social Entrepreneurs: Social entrepreneurs are innovators who focus on creating

1.01: KIMs chart

A Kim's chart will look similar to the one below.

Let's do the first one together.

Key Term Definition Memory Clue

One who organizes,

Blank KIMs Chart

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