Entrepreneurship in a Free-Market Economy

Objectives Describe the role of the entrepreneur

and how entrepreneurs start businesses

Explain how innovative entrepreneurial ventures have impacted society

Key Vocabulary Business Model Business Plan Due Diligence Entrepreneur Executive

Summary Market Research Market Share

Target Market Venture Capital Vetting

Market Opportunity and Entrepreneurial Innovations The world is rapidly changing for all of

you but in different ways Analyze the given scenario Be creative, but realistic

Market Opportunity and Entrepreneurial Innovations Be practical business people that

understand an idea as an opportunity and then go out and create an organization with the necessary human and financial resources to create the value inherent in that idea

Market Opportunity and Entrepreneurial Innovations Discuss and list ideas for new technologies,

products, and services that would address the demands generated by these new market conditions

You will select one of these ideas to develop into a poster describing the value of the idea

Keep in mind such things as market demand, cost of production, and competition.

Market Opportunity and Entrepreneurial Innovations You should be as creative and

outlandish as possible to start and then work as a group to pare down to four or five ideas that the team feels have real potential

Rank your ideas from most to least viable.

Be ready to defend your ranking

Evaluating a New Idea Create a simple table with a header,

divided into four columns and three rows plus a headed row, so that there is equal room to write in each cell

In the header, write “Business Idea,” “Target Market,” “Pros,” and “Cons.”

Evaluating a New IdeaBusiness Idea

Target Market

Pros Cons

Gardener/Catering: company provides gardening and public park clean-up, then uses gathered food to cater parties

Urban market for gardening/public park clean-up services and then city for catering

Company earns money collecting the products that it will sell on to another client (low overhead)

Can’t control menu, labor and capital intensive, lots of opportunity for competition

Evaluating a New Idea Write out a description of top three

ideas under the first column Explain the target market for each of

these ideas under the second column Assess the Pros and Cons of each idea

as a group to help get the best and worst out of each idea

Evaluating a New Idea Charts will be posted around the room

for viewing and critique by all the class What makes entrepreneurs so critical to

the free-market system is not just their ability to come up with new ideas, but their ability to distinguish good ideas from bad ones, and realistic business opportunities from those that are not as promising

Evaluating a New Idea One of the most useful tools in

determining these differences is the process sometimes referred to as peer vetting

Business Idea Peer Review Through peer vetting, you will learn the

value of exposing their ideas to others in order to detect and eliminate weaknesses as well as to strengthen their ability to persuade another important audience: investors

Nominate one group member to stand by your poster to answer questions

Use sticky notes to comment, question, or leave concerns

Business Idea Peer Review Download: Worksheet- Venture Capital

Investor Checklist Entrepreneurs find that bouncing an

idea off trusted friends and colleagues is a great way to assess its viability and sharpen its focus

It is also a great way to clear out unrealistic ideas

Business Idea Peer Review The vetting process in which you are

about to take part only works when the comments are clear, concise, and constructive.

It also helps if they try to avoid redundancy by reading the comments already made and not repeating them

Incorporating Peer Vetting into Business Ideas To review and incorporate peer comments

into the three business ideas using a separate sheet of paper

Go through the comments to determine which of them they can and should address

Teams do not need to respond to all comments

You should be ready to explain why you chose to disregard a comment

Incorporating Peer Vetting Into Business Ideas Write the improved version of the business

idea, its target market, and its pros and cons on a new sheet of chart paper

Order the ideas from most to least promising using the information from the vetting process to help you decide the order

However, you can only choose one idea to create into a poster

Investor Proposal Download: Worksheet- Building a

Business Plan Based on this information transfer key

ideas and concepts from the plan to the poster for potential investors

Posters will be shown to the class and questions about their posters will have to be answered, no more than 5 mins.

Investor Posters Download: Assignment-Investor poster Download: Assignment Criteria-Investor

Poster

Investor Posters Groups reassemble into new groups When looking at the posters of other

teams, you will act as an investor Presenters discuss ideas as a way to get

funding 5 mins to analyze each poster

Investor Posters Which ideas would you invest in? Why?

Has this lesson’s activities made the prospect of launching your own entrepreneurial venture someday more or less likely? Why?

Enrichment Part 1 Pick one famous entrepreneur (e.g., Steve

Jobs, Sean Combs, Vera Wang, Oprah Winfrey) and create a biographical presentation that highlights their entrepreneurial experiences and personality traits that made them successful.

Include your own analysis as to why the highlighted traits and experiences proved important

Enrichment Part 2 Join up with a classmate of my choosing

to combine your Power Points. Compare and contrast your

entrepreneur’s creations and personality types

In your opinions, what made your entrepreneurs successful?

Groups Evan Spiegel & Ellen Elon Musk & Walt

Disney Oprah & Kevin

Systrom Coco Chanel &Mark

Cuban S. Truett Cathy &

Kim Kardashian

Tom Ryan & Beyonce Howard Shultz &

Dale Earnhardt Jr. Rachel Ray & Ken

Black Steve Jobs & Danica

Patrick Vera Wang & Nikola

Tesla

Cross-Curricular Integration Choose a single chapter (or subchapter) from one of your

science textbooks—for example, electromagnetism from physics or virology from biology—and conduct research into entrepreneurial businesses that have been started in this area

The goal is not to focus exclusively on one entrepreneurial venture

Instead, it is to compile a list of companies in that area of science that have turned a field of study that many students consider boring into an exciting profit-generating opportunity

The list should include brief summaries of what each company does and how it relates to the specific aspect of science.

Cross-Curricular Integration Research an invention from the last 200 years

that has changed the way the world works. The term invention: both new products and new ways of doing things. Examples of both of these (products can include the cotton gin, the PC, the radio, the motor car, the Internet, and the television; new ways of doing things (process) can include harnessing steam power for mechanization, the assembly line, just-in-time inventory).

Cross-Curricular Integration Address the following aspects of the

chosen invention: a description of the invention, the person or people who brought it about, the problem the product or the service solved, or the need that it fulfilled. Confirm your choice with me prior to beginning research