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CHAPTER 1

21 ENTREPRENEURSHIP
AND MARKETING

21-1 Understanding Entrepreneurship


21-2 Characteristics of Entrepreneurs
21-3 Business Ownership Opportunities
21-4 Legal Needs for Entrepreneurs
21-5 Developing a Business Plan

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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Focus Questions:
 General Electric was
formed from the business
ideas of inventor and
entrepreneur Thomas
Edison. Why do you
believe GE focuses on
innovation and new
product ideas in many of
its advertisements?
 What image do you have
©GENERAL ELECTRIC

of the company after


viewing and reading the
ad shown here?

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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21-1 UNDERSTANDING
ENTREPRENEURSHIP
GOALS
 Describe the importance of
entrepreneurship to the U.S. economy.
 Provide examples of successful
entrepreneurs and the businesses they
started.

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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Starting a Business

 The American dream


 Entrepreneurship opportunities in
marketing

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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The Importance of
Entrepreneurship
 Economic role
 Personal benefits

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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The Role of Small Business


in the U.S. Economy
Small businesses…
 Make up over 97% of all businesses
 Employ 52% of all non-government workers
and 38% of workers in high-tech occupations
 Provide about 75% of the all-new jobs
 Are responsible for over half of all goods and
services produced
 Make up over 95% of all companies involved
in exporting

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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21-2 CHARACTERISTICS OF
ENTREPRENEURS
GOALS
 Identify personal characteristics of
entrepreneurs.
 Describe the education needed to
prepare for entrepreneurship.

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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What Does It Take?

 Characteristics of entrepreneurs
 Entrepreneurs are focused and goal oriented.
 Entrepreneurs are risk-takers.
 Entrepreneurs want to achieve.
 Entrepreneurs are independent.
 Entrepreneurs have a high level of self-confidence.
 Entrepreneurs are creative.
 Do you want to be an entrepreneur?

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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Preparing for Entrepreneurship

 Academic preparation
 Communications skills
 Math skills
 Scientific skills
 Using technology
 Business skills

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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21-3 BUSINESS OWNERSHIP
OPPORTUNITIES
GOALS
 Identify business opportunities related
to marketing functions.
 Describe how marketing can help you
identify business ownership
opportunities.

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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Business Opportunities
in Marketing
 Promotion
 Selling
 Distribution
 Pricing
 Financing
 Risk management
 Marketing-information management
 Product and service management
 Market planning

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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Identifying Business
Ownership Opportunities
 Identify a target market
 Study the competition
 Develop a unique offering

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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21-4 LEGAL NEEDS FOR
ENTREPRENEURS
GOALS
 Describe the legal forms of ownership
for a business.
 Discuss legal steps to follow in starting
a new business.

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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The Ownership Decision

 Proprietorship
 Advantages of proprietorships
 Disadvantages of proprietorships
 Partnership
 Advantages of partnerships
 Disadvantages of partnerships
 Corporation
 Advantages of corporations
 Disadvantages of corporations

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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Starting Your Business

 Form of ownership
 Name
 Licenses and permits
 Patents, copyrights, and trademarks
 Building and equipment
 Business records
 Insurance needs
 Personnel policies and procedures
 Business forms and procedures

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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21-5 DEVELOPING
A BUSINESS PLAN
GOALS
 Discuss the importance of a business
plan for a new business.
 Identify and describe the parts of a
business plan.

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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The Importance of Planning

 The business plan


 Using the business plan
 Prospective partners and stockholders
 Bankers and investors
 Employees of the business
 Other business people

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning


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Developing a Business Plan

 Introduction to the business


 Description of the industry
 Market analysis
 Operations
 Marketing
 Financial plans

Chapter 21 MARKETING © 2009 South-Western, Cengage Learning

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