Entrepreneurship 110

1. Entrepreneurship 110 Answers to Reading Assignment

2. Needs – essential for human survival. • “Real” (or basic) Needs – tangible; food, shelter, water, etc. • “Psychological” – emotional; companionship and security.

3. Wants – human desires; goes beyond basic needs; not essential for human survival; make people feel good

4. Profit Venture – goal is to make money; to make a profit; for the Entrepreneurs and the business to be wealthy. • Example – McDonalds, American Eagle, etc. • Not-for-Profit Venture – goal is to help the community or society as a whole. Money does come into the venture, but only a limited portion is used to maintain operations (including, in some cases, to pay employees; some employees volunteer their labor). • Example – Cultures, The Red Cross, etc.

5. Good/Product Providing Venture – the venture provides members of society with a tangible object/thing, such as clothes, food, and items in general. • Examples of Goods/Products – shoes, bottled water, cars, popcorn, etc. • Service Venture – the venture does something for a member of society. • Examples of Service Ventures – hair salon, mechanic, lawn mowing, etc. • Ventures can provide both products and services. A salon might provide the service of cutting a customer’s hair, but also sell products such as shampoo.

6. Physical Venture – has an actual, physical location or “store” where customers can shop; customers purchase the product or service in person, face to face. • Example – any store that you physically go to to shop. • Virtual Venture – exists on the Internet; customers purchase or order products or services online. • Example – EBay, Kijiji, and many retail businesses. • Ventures can be both physical and virtual. You can go to the Sears physical location at the Regent Mall, or you can order products at their website/virtual location.

7. Demographics – data about groups of people in society including age, ethnic origin, religion, family size, income, etc. • Consider how demographics be important for Entrepreneurs to consider in order to be successful. • Consider how demographics differ from location to location – town, province, country, etc.

8. Enterprising People- • Those who poses the traits and characteristics of a entrepreneur but are not engaged in a venture. They could be helping a non profit, intrapreneral work or still dreaming.

9. #7 • The oldest company in Canada – The Hudson’s Bay Company, now referred to as simply HBC and owner of The Bay and Zellers.

10. # 2 Supply and Demand: • Supply is the quantity of goods that a supplier has available to sell • Demand is the amount of goods that consumers are willing/want to purchase • The best scenario is when supply equals demand, also called equilibrium.  This occurs at the price where supply and demand are equal. • Consider the following: Automobiles: Do you think you'd have to pay more for a 1962 Corvette or a 2004 Corvette (assuming that both are in good condition)?Rocks: Which costs more, diamonds or gravel?

11. #10 Continued Long ago, when houses made of wood were first being built, nails were very expensive. It seems funny to us today, but it's true. Each nail had to be made by hand, pounded into shape by a blacksmith. Though it wasn't difficult, it took time. Even a good blacksmith wouldn't be able to make more than a few hundred nails in an entire day. On the other hand, there are machines today that can manufacture thousands of nails an hour. Because they are so much easier to acquire now-that is, because there is a greater supply of nails-the price has dropped substantially. The price of an item will go down if the supply increases or if the demand for the item decreases. The price of an item will go up if the supply decreases or if the demand for the item increases

12. Entrepreneurs can impact a community in several ways, including: • Job Creation – employees, producers, etc. • New Ideas – new ways of doing things • Economic Benefits – improve standard of living – when more wealth is distributed throughout a community, everyone benefits.

13. Intrapreneurship: • Entrepreneurship that occurs within a company • Encourages competitiveness, productivity, etc. • May take the form of: teams within a company; inviting customers to be part of the creative process; offering rewards for innovation. • Google

14. Key Lecture Points for Chapter 1 • Entrepreneurship is about seeing opportunities and bringing about change • Entrepreneurs are agents of change • Calculated risk is much different than pure risk for the Entrepreneur.