Entrepreneurship

1. ENTREPRENEURSHIP
Unit 1.2
Students will identify and
assess entrepreneurial traits

2. Students will identify and assess
entrepreneurial traits
Students will be able to:
• Describe desirable entrepreneurial character traits and
skills
• Evaluate personal goals and capabilities to determine
entrepreneurial potential
• Assess personal interests
• Assess ROI objectives
• Assess capital required
• Identify ethical issues in business
• Assess external resources needed to supplement
entrepreneur’s expertise

3. Entrepreneurial Characteristics
The following are distinctive traits and qualities
entrepreneurs need to run and operate a successful
business:
• Persistent
• Creative
• Responsible
• Inquisitive
• Goal-Oriented
• Independent
• Self-Demanding
• Self-Confident
• Risk-Taking
• Restless
• Action-Oriented
• Enthusiastic

4. Entrepreneurial Skills
The following are foundational skills entrepreneurs need to
run and operate a successful business:
• Communication Skills
– Writing, Speaking & Listening
• Human Relations Skills
• Math Skills
• Problem Solving & Decision Making Skills
• Technical Skills
• Basic Business Skills

5. Personal Goals and Capabilities
In order to be a successful entrepreneur you must have an
interest in being an entrepreneur and have a strong
commitment to a business and a lot of energy.
 Make your goals realistic and easily attainable.
 Financial goals should specify how much money you
will earn and how quickly you will pay off debts.
 Non-financial goals could be to own your own business
or personal satisfaction.

6. Do You Have the Potential to be a
Successful Entrepreneur?
Everyone has the potential to become an entrepreneur. But,
if you do not feel you have the potential, and you have the
desire, you can strengthen your characteristics and skills
if you:
• Read articles and books about entrepreneurs
• Write about individuals who overcame obstacles to
achieve success
• Watch films about business people, athletes, or others
who are achievement-oriented
• Practice case studies that involve goal-oriented behavior,
creativity, and moderate risk-taking

7. Assess Personal Interests
Choose a field that interests you and will provide you with
an experience you will enjoy
If you enjoy:
Book collecting Open a business that sells and trades
new, used and rare books
Skateboarding Open a skate shop
Eating Open a restaurant

8. Assess ROI objectives
Return on Investment (ROI)
Investment: What it costs to make and market a product
Identify the percentage return you want from the
investment
The profitable objective involves pricing products to obtain
a certain % return on investment
Your goal might be 20% ROI

9. Return on Investment
X

BIG # %
Little #
The best way to calculate ROI–or profit–
is to use circle formulas. Remember these
simple rules:
Division line:
Divide numbers below
the line into the top
number
Multiplication line:
Multiply bottom
numbers

10. Return on Investment
X

Investment
(Big #)
Expected
Return
(%)
$ Profit
(Little #)
$50,000 x 20% = $10,000 profit
If you have $50,000 to invest and want to
make a 20% return on your money, how
much will you profit?

11. Return on Investment
X

Investment Expected
Return (%)
$ Profit
(ROI)
$10,000  $75,000 = 13.33%
If you want to make $10,000 in profit
from a $75,000 investment, what %
return must you get?

12. Return on Investment
X

Investment Expected
Return (%)
$ Profit
(ROI)
$5,000  25% = $20,000
If you made a 25% return on your
investment for a $5,000 profit, what was
your original investment?

13. Capital
Capital:
The buildings, equipment, tools, and other goods
needed to produce a product, or the money used to
purchase these items.
 Businesses can have cash flow problems if they start
off with too little capital
 If your cash flow is inadequate, you may want to
obtain more capital for your business

14. Ethical Issues
• Code of Ethics: Behavior guidelines that
describes appropriate conduct for a business or
organization.
• Not everyone has the same ethical standards.
Businesses, employees, customers, and even
countries all have their own set of acceptable
standards.
– As a result, business owners should clearly
communicate what is and is not acceptable conduct in
business.

15. Discussion of Ethics
Discuss your views on these ethical questions:
Is it ethical for an employee to use company equipment
or supplies for personal use?
Is it okay for a business person to accept gifts from
clients? How about gifts from suppliers?
Your dad asks you to create a budget for yourself each
month that he will pay for; school clothes, lunch money,
gas money, and entertainment/miscellaneous
expenses. Is it ethical to “pad” your numbers to get
more money?

16. Discussion of Ethics
Discuss your views on this ethical question:
 In order to meet the “Christmas buying season” deadline, you are
forced to use a cheaper grade of screws than the engineer’s
specifications require. The ones you want are delayed by a strike at
the shipping docks (the screws are imported) and will not arrive on-
time. It could be days or months until the strike is resolved…no one
knows. The screws look exactly the same, but the load-rating is 1/10th
less than the specs.
You know the engineers usually over-compensate in this area. You
also know any delay in the deadline will cost your company $1,000
each day.
 What do you do?
 What if missing the deadline cost your company $100,000 a day?

17. Discussion of Ethics
Create a “Code of Ethics” for your classroom.
1.
2.
3.
4.
5.
6.

18. External Resources Needed to
Supplement Entrepreneur’s Expertise
Consult outside resources:
• Trade Magazines
• Specialty Magazines
• Newspapers
• Tradeshows and Exhibitions
• Internet
• Government Agencies
• Counselors
• Local Chamber of Commerce
• Professional Business Consultants

19. Let’s Review
• Describe desirable entrepreneurial character traits
and skills
• Evaluate personal goals and capabilities to
determine entrepreneurial potential
• Assess personal interests
• Assess ROI objectives
• Assess capital required
• Identify ethical issues in business
• Asses external resources needed to supplement
entrepreneur’s expertise