MODULE 1: BECOMING AN ENTREPRENEUR

Table of Contents
MODULE 1: BECOMING AN ENTREPRENEUR .................................................................................................................1
Module Overview ..........................................................................................................................................................4
Learning Objectives: .................................................................................................................................................4
To-Do List .......................................................................................................................................................................4
Module 1 Key Vocabulary ..............................................................................................................................................5
Lesson 1: What is Entrepreneurship? ..........................................................................................................................11
What is entrepreneurship? .....................................................................................................................................11
What do most entrepreneurs have in common? ...................................................................................................11
What is the difference between an entrepreneur and a small business owner? ...................................................11
Reading Strategies: Previewing and Predicting ...........................................................................................................13
Lesson 2: Reading Strategies (Part 1) ..........................................................................................................................14
Step One: Preview the text .....................................................................................................................................14
Step 2: Read the whole article quickly and without stopping ................................................................................14
Practice reading quickly ...............................................................................................................................................15
Check your prediction. Was it correct?...................................................................................................................15
Can you finish reading in less than 5 minutes? .......................................................................................................15
Use a timer to test yourself. ...................................................................................................................................15
Is entrepreneurship a solution to South Africa's unemployment crisis? .....................................................................15
"I cannot sit and do nothing." .................................................................................................................................15
The waterless shower .............................................................................................................................................16
Education is key ......................................................................................................................................................17
After you finish reading: .........................................................................................................................................17
Lesson 3: Reading Strategies (Part 2) ..........................................................................................................................18
Step 3: Read again and take notes ..........................................................................................................................18
Step 4: Ask questions ..............................................................................................................................................18
Discussion: Reading Strategies: Asking Questions.......................................................................................................18
Lesson 4: Why Entrepreneurship? (Part 1) ..................................................................................................................19
What is economic development? ...........................................................................................................................19
How does entrepreneurship help economic development? ..................................................................................19

© 2020 by FHI 360. “Module 1: Becoming an Entrepreneur” for the Online Professional English
Network (OPEN), sponsored by the U.S. Department of State with funding provided by the U.S.
government and administered by FHI 360. This work is licensed under the Creative Commons
1
Attribution 4.0 License, except where noted. To view a copy of this license, visit
http://creativecommons.org/licenses/by/4.0/
 How does innovation help economic development? .............................................................................................19
Lesson 5: Why Entrepreneurship? (Part 2) ..................................................................................................................21
How can entrepreneurship increase private funding? ...........................................................................................21
What are the challenges of entrepreneurship? ......................................................................................................21
Lesson 6: Ideas, Products, and Opportunities .............................................................................................................22
How do people create new product ideas? ............................................................................................................22
Are ideas the same as products? ............................................................................................................................22
When can ideas be presented as products? ...........................................................................................................22
Summary .................................................................................................................................................................23
Quiz: Identifying Different Types of Products .............................................................................................................24
Lesson Seven: Creating Simple, One-Sentence Product Descriptions .........................................................................25
Why are simple product descriptions important? ..................................................................................................25
Sample Product Descriptions ..................................................................................................................................25
Sentence Structure .................................................................................................................................................26
Be specific ...............................................................................................................................................................26
Lesson 8: Creating Simple, One-Sentence Product Descriptions (Part 2) ....................................................................27
Three questions to help you write a product description ......................................................................................27
Case Study: Drybath Gel .........................................................................................................................................27
Grammar Review ....................................................................................................................................................27
Quiz: Creating Product Descriptions ............................................................................................................................28
Lesson 9: Deciding on a Type of Start-Up ....................................................................................................................29
What is a for-profit business organization? ............................................................................................................29
What is a non-profit business organization? ..........................................................................................................29
What is a hybrid organization? ...............................................................................................................................29
Listening Practice: Companies vs. Corporations ..........................................................................................................30
Lesson 10: Risks, Failures, and Important Steps ..........................................................................................................31
(Part 1) .........................................................................................................................................................................31
What are the risks of entrepreneurship?................................................................................................................31
What are the causes of failure? ..............................................................................................................................31
Lesson 11: Risks, Failures, and Important Steps ..........................................................................................................33
(Part 2) .........................................................................................................................................................................33
What can an entrepreneur do to decrease failure and increase success? .............................................................33
Summary .................................................................................................................................................................33
Quiz: Module 1 Vocabulary Review .............................................................................................................................34
Lesson 12: Comparative Structure (Part 1) ..................................................................................................................35
Sentence Connectors ..............................................................................................................................................35
Lesson 13: Comparative Structures (Part 2) ................................................................................................................36

2
 Subordinating Conjunctions....................................................................................................................................36
Correlative Conjunctions ........................................................................................................................................36
Summary .................................................................................................................................................................36
Quiz: Comparative Structures ......................................................................................................................................37
Module 1 Check ...........................................................................................................................................................37

3
Module Overview
Welcome to Module 1 of the English for Business and Entrepreneurship MOOC!

In this module, we will introduce you to the structure and goals of this course. You will learn about the different
options that you will have throughout the course.

After introducing you to the course goals and logistics, you will test your current knowledge of business and
entrepreneurship vocabulary in English.

We will then move into an introduction to entrepreneurship and related vocabulary, concepts, and issues.
This module will end with a language lesson and activities on comparing and giving your opinion.
LEARNING OBJECTIVES:
• Identify and use vocabulary related to business and entrepreneurship
• Develop effective reading strategies to identify main ideas and details
• Create a one-sentence product description
• Compare entrepreneurs and small business owners
• Weigh the advantages and disadvantages of entrepreneurship

TO-DO LIST
In order to successfully complete Module 1, please do the following:
1. Review: Module 1 videos, presentations, and articles.
2. Discuss: Optional: Join your colleagues in two group discussions on reading strategies
a. Practice Reading Quickly
b. Reading Practice: Learning New words
3. Reflect: Optional: Write a short reflection on the article "Is entrepreneurship a solution to South Africa's
Unemployment Crisis?"
4. Check-In: Complete the following quizzes:
a. Identifying Different Types of Products
b. Creating Product Descriptions
c. Module 1 Vocabulary Review
d. Module 1 Check

4
Module 1 Key Vocabulary
Module 1 will feature the following words. These words may appear in quizzes throughout the course.

day-to-day operations (n)

Payday by Vectors Point via the Noun Project is licensed under CC BY

Day-to-day operations are the things that happen on normal days in a business.

an entrepreneur (n)

Entrepreneur by Nithinan Tatah via the Noun Project is licensed under CC BY

An entrepreneur is a person who takes an idea and turns it into a successful new business.

entrepreneurship (n)

Entrepreneurship by remmachenasreddine via the Noun Project is licensed under CC BY

Entrepreneurship is the making of a new business.

5
a feature (n)

Featured by Creative Mahira via the Noun Project is licensed under CC BY

A feature is a noticeable or important characteristic or part of a product.

a function (n)

Function by Nithinan Tatah via the Noun Project is licensed under CC BY

A function is the way a product works.

a good (n)

"Product" by Nanda Ririz via the Noun Project is licensed under CC BY

A good is a type of product that is tangible.

6
Innovation (n)

“Innovation” by Icongeek26 via the Noun Project is licensed under CC BY

Innovation means a new idea or method.

market research (n)

“Market research” by joe pictos via the Noun Project is licensed under CC BY

Market research is the collection and study of information about what people
prefer to buy.

a non-profit (n)

“Non-profit” by Made by Made via the Noun Project is licensed under CC BY

A non-profit is an organization, corporation, or company that does not operate in

order to make a profit.

7
operations (n)

Payday by Vectors Point via the Noun Project is licensed under CC BY

Operations are activities that happen as part of running a business.

a prototype (n)

“Prototyping” by priyanka via the Noun Project is licensed under CC BY

A prototype is the first full-size working version of a product

risk (n)

“risk” by Sumit Saengthong via the Noun Project is licensed under CC BY

Risk is the possibility that something bad will happen.

8
a start-up (n)

"Start-up" by I Putu Kharismayadi via the Noun Project is licensed under CC BY

A start-up is a new business that did not exist before.

a service (n)

“service” by Adrien Coquet via the Noun Project is licensed under CC BY

A service is a type of product that is intangible.

a supplier (n)

“Supplier” by dDara via the Noun Project is licensed under CC BY

A supplier is a source for goods or services.

9
tangible (adj)

“touch” by Florent B via the Noun Project is licensed under CC BY

If something is tangible it can be touched.

a target market (n)

“target market” by Delwar Hossain via the Noun Project is licensed under CC BY

A target market is the people who are most interested in buying a product.

10
Lesson 1: What is Entrepreneurship?
In this lesson, we will define entrepreneurship and other related vocabulary and concepts. We will also compare
entrepreneurs and small business owners. We will look at how they are similar and how they are different. Let's
get started.

WHAT IS ENTREPRENEURSHIP?
This work is a derivative of "Untitled"
by Christina@wocintechchat.com ,
"Untitled”" by Mike Petrucci) , and
"Untiled by BlakeWisz under Unsplash
license This derivative is licensed CC BY
4.0 by FHI 360 for the Online Professional
English Network (OPEN), sponsored by
the U.S. Department of State with
funding provided by the U.S.
government.
Entrepreneurship is the making of a new business. A new business can be a start-up,
a business that did not exist before. A new business can also be an old business that
has changed so that it can be more successful. An example of changing a business
could be buying a restaurant and changing the menu.
An entrepreneur is a person who takes an idea and turns it into a successful new
business that is expected to grow. An entrepreneur needs more than just an idea,
passion, and willingness to work hard. Being an entrepreneur also requires business
skills.
WHAT DO MOST ENTREPRENEURS HAVE IN
COMMON?
They know how to identify an opportunity. An entrepreneur should know how to
find a business idea that has the potential to succeed and grow. In other words,
entrepreneurs should be good at finding the right opportunity.
They know how to identify needed resources. An entrepreneur knows how to find
resources like materials, people, and money. They also know how to find potential
customers that will support their business.

They know how to make a plan and get support. An entrepreneur should know and get support. They should be
able to share their plan clearly and confidently to attract employees and investors.

They know how to follow a plan and pursue growth. An entrepreneur should be able to do what the plan says.
They should be able to pursue growth or look for ways to increase the size of the business over time.
Entrepreneurs often begin with a start-up but may also buy an existing business and change it.

They may not be efficient at managing day-to-day operations. Day-to-day operations are the everyday activities
that keep a business running. Making products and selling them to customers is an example of day-to-day
operations.

They often sell a start-up or a new business once it grows to a certain size. They may own many businesses at the
same time. Also, they may own many businesses over their careers.

WHAT IS THE DIFFERENCE BETWEEN AN ENTREPRENEUR

AND A SMALL BUSINESS OWNER?
Entrepreneurs and small business owners share many skills and styles but they are not the same. A small business
owner is a person who owns and manages a small business. They are responsible for day-to-day operations. Just
like entrepreneurs, small business owners are very good at finding the right idea that has the potential to succeed.
They know how to identify needed resources and potential customers. They are good at making a plan, getting
support, and implementing a plan.

Small business owners are also good at maintaining success. This means they want their business to stay small.
They do not pursue growth like entrepreneurs.

11
Small business owners often begin with a start-up. But, some begin with buying an existing business that they may
or may not change.

Unlike entrepreneurs, a small business owner efficiently manages day-to-day operations and often owns the
business for a long time. This is because a small business owner is often more focused on stability than growth.
They want to keep the business stable or safe.

A small business owner also often owns only one business at a time and may own that one business for his or her
entire life.

Some small business owners may start as entrepreneurs. Later, they decide that they enjoy managing day-to-day
operations more than looking for growth.

Entrepreneurs and small business owners are both important to economic development. They share many of the
same skills, but they are not the same.

In Module 1, we will learn more about business, entrepreneurship, and start-ups including the role of risk and
failure.

12
Reading Strategies: Previewing and Predicting
In this course, you will read several articles. The following reading strategies will help you read quickly and deepen
your understanding. We will use the article, “Is entrepreneurship a Solution to South Africa’s Unemployment
Crisis?” as an example, to practice the following steps.

1. Preview the text.

2. Read quickly and without stopping.
3. Read again and take notes.
4. Ask questions

The first strategy is previewing the text.

Look at the article below. The main text of the article has been removed. Look at the title, subtitles, photos, and
captions. What do you think this article will be about?

We will continue exploring reading strategies in the next lesson

13
Entrepreneurship seen as solution to South Africa’s
unemployment crisis
JOHANNESBURG—In South Africa, unemployment remains very high. More than one in four people are out of
work. Many people are turning to entrepreneurship to make ends meet but some have found it easier than
others.

“ I C A N ’T WA IT ”
Beginning from the grassroots is exactly what Ludwick Marishane did. Marishane started businesses as a teenager in

rural Limpopo, a northern province in South Africa with high levels of poverty. His friend did not to take a bath and

wondered why no one had invented a product to substitute for showering. A few years later Marishane created

Drybath Gel, a waterless shower alternative that could save time for some but also help those with no access to water.

“I scraped together whatever resources I had available. I didn’t have computers or resources like that so I would have

to use the local compu to use the local computer café, where it cost about $2 an hour to use the Internet. My
South Africans are finding ways to
create their own opportunities allowance was $5 - that w café, where it cost about $2 an hour to use the Internet. My allowance was $5 - that o use

“Untitled” by Frederik Schweiger
on Unsplash is licensed under the
Unsplash license
the loce the local computer café, where it cost about $2 an hour to use the Internet. My allowance was $5 - that wawa
T H E WA T E R L E S S S H O WE R
. Beginning from the grassroots is exactly what Ludwick Marishane did. Marishane started businesses as a teenager in
rural Limpopo, a northern province in South Africa with high levels of poverty. His friend did not to take a bath and

wondered why no one had invented a product to substitute for showering. A few years later Marishane created

Drybath Gel, a waterless shower alternative that could save time for some but also help those with no access to water.

“I scraped together whatever resources I had available. I didn’t have computers or resources like that so I wo

Beginning from the grassroots is exactly what Ludwick Marishane did. Marishane started businesses as a teenager in

rural Limpopo, a northern province in South Africa with high levels of poverty. His friend did not to take a bath and

wondered why no one had invented a product to substitute for showering. A few years later Marishane created
Ludwick Marishane created Drybath
Gel, a waterless shower alternative.
Drybath Gel, a waterless shower alternative that could save time shower alternative that could save time shower

© 2020 by FHI 360. "Dry Bath Gel"

alternative that could save time shower alternative that could save time shower alternative that could save time
for the Online Professional English
Network (OPEN), sponsored by the
U.S. Department of State with shower alternative that could save time shower alternative that could save time shower alternative that could save
funding from the U.S. Government,
and administered by FHI 360. This time shower alternative that could save time for some but also help those with no access to water. “I scraped together
image is an adaptation of “wash
hands” by Antistatique, “drought” whatever resources I had available. I didn’t have computers or resources like that so I would uld have to use the local
by Corpus Delicti, and ‘gel” by
Made via the Noun Project under
compu to use the local computer café, where it cost about $2 an hour to use the Internet. My allowance was $5 - that
CC BY-SA. This derivative is
licensed under CC BY-SA by FHI
360 for use in OPEN, sponsored by w café, where it cost about $2 an hour to use the Internet. My allowance was $5 - that
the U.S. Department of State.

© 2020 by FHI 360. “Entrepreneurship Seen as Solution to South Africa’s Unemployment Crisis” for the Online
Professional English Network, sponsored by the U.S. Department of State with funding provided by the U.S.
government and administered by FHI 360. This work is an adaptation of “Entrepreneurship Seen as Solution to S. 1
Africa’s Unemployment Crisis” by Gillian Parker / VOA News which is in the public domain. VOA News’ terms of
usage can be found here. Adapted content is licensed under the Creative Commons Attribution 4.0 License, except
where noted. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/
 E D U C A T I O N IS K E Y
. Beginning from the grassroots is exactly what Ludwick Marishane did. Marishane started businesses as a teenager in
rural Limpopo, a northern province in South Africa with high levels of poverty. His friend did not to take a bath and

wondered why no one had invented a product to substitute for showering. A few years later Marishane created Drybath

Gel, a waterless shower alternative that could save time for some but also help those with no access to water. “I scraped

together whatever resources I had available. I didn’t have computers or resources like that so I wo Beginning from the

“Entrepreneurship and education - grassroots is exactly what Ludwick Marishane did. Marishane started businesses as a teenager in rural Limpopo, a
that’s how you solve unemployment”
northern province in South Africa with high levels of poverty. His friend did not to take a bath and wondered why no one
“Graduates of Harambee Youth
Employment Accelerator in had invented a product to substitute for showering. A few years later Marishane created Drybath Gel, a waterless shower
Johannesburg” by Gabriel Diamond via
Wikimedia Commons is licensed under
CC BY-SA alternative that could

2
Lesson 2: Reading Strategies (Part 1)
STEP ONE: PREVIEW THE TEXT
Previewing means looking at and reading parts of a text to get a general understanding of the content and
organization before reading more carefully.

To preview, look at the title, subtitles, pictures, and captions. Subtitles are the smaller titles under the main title
and sometimes before different sections of a text. Captions are the descriptions under each of the pictures. Titles,
subtitles, pictures, and captions often include words and ideas that are important to the main point or argument.

You should also look at information about the author and when or where the text was written. This kind of
information can help you understand more about the author's connection to the topic, as well as how long ago the
article was published.

Finally, think about what you already know about the topic. This helps you to recall vocabulary that you might see
as you read.

Once you have looked through the titles, pictures, and other information about the author and the reading, make
a prediction. What do you think the article will be about?

Keep your prediction in mind as you read so you can stay focused and better understand what you are reading.
Now do another comprehension check. Use your prediction for the article to help you look through the possible
main ideas.
STEP 2: READ THE WHOLE ARTICLE QUICKLY AND WITHOUT
STOPPING
Do not stop reading. Read all the way to the end. Do not open your dictionary. Read all the way through. Stopping
to look up words will make you a slow reader and it will also be difficult to remember what you have read. When
you finish, check your prediction. Was it correct? Try to summarize the reading in one sentence.

Let's practice reading quickly on the next page. We will read the full article, "Is Entrepreneurship the key to
South Africa's Unemployment Crisis?"

14
Practice reading quickly
C H E C K Y O U R PR E D I C T I O N . W A S I T C O R R E C T ?

1. Read the full article below. (Remember: read quickly, don't stop, don't use your dictionary).
2. Summarize the reading in one sentence. Share your summary with your peers in the discussion board.
3. Read other participants' summaries. Did they have the same ideas as you?
4. Click "like" on the post that you think has the best summary.

C A N Y O U F I NI S H R E A D I N G I N L E S S T H A N 5 M I N U T E S ?
USE A TIMER TO TEST YOURSELF.

Is entrepreneurship a solution to South Africa's

unemployment crisis?
"I CANNOT SIT AND DO NOTHING."

Twenty-four-year-old Sibusiso Ngcobo says he can no

longer wait for someone to create a job for him. “It is
hard to find a job. I cannot sit and do nothing," he
said. "I can’t wait. I have to eat, I have brothers to
support, I have a family to feed.”

He and other South Africans like him, are finding ways to

South Africans are
finding ways to create their own opportunities.
create their own
opportunities
Ngcobo started up his own company in Johannesburg
“Untitled” by Frederik
Schweiger on Unsplash is
last year but he found it difficult to find the initial
licensed under the
Unsplash license
funding.

"Coming from a previously disadvantaged background,

you don't have security. Your house is just a small house.
Then you go to the bank - you have a great brilliant idea,
they say they want collateral. What do you have? You have nothing,"
Ngcobo said. "You have to begin from the grassroots.”

15
THE WATERLESS SHOWER

Beginning from the grassroots is exactly what

Ludwick Marishane did. Marishane started a
business as a teenager.

One day, his friend didn’t want to take a bath.

Ludwick Marishane created
Drybath Gel, a waterless
shower alternative.
There was no water. Marishane wondered why no
one had invented a product to substitute for
showering. A few years later Marishane created
Drybath Gel, a waterless shower alternative.
Drybath can save time for some and also help those
with no access to water.

© 2020 by FHI 360. "Dry Bath Gel"

“I used the resources I had. I didn’t have computers
for the Online Professional English
Network (OPEN). This image is an
or things like that. So, I used the local computer
adaptation of “wash hands” by
Antistatique, “drought” by Corpus
café, where it cost about $2 an hour to use the
Delicti, and ‘gel” by Made via the
Noun Project under CC BY-SA. This
Internet. My allowance was $5 - that was my
derivative is licensed under CC BY-SA
by FHI 360 for use in OPEN,
pocket money and lunch money,” Marishane said.
sponsored by the U.S. Department of
State.
In his last year of high school, Marishane drafted
an 8,000-word business plan on a simple phone. He
sent it to 80 venture capitalists, but none were willing to take a risk on
a young inventor with a product that they considered mostly for the
poor, he said.

“I looked at different sources. I looked at the different banking loans

and the different development loans that were available to small
businesses. I was unsuccessful - part of it was the red tape and the
amount of bureaucracy involved. It is hard to access those types of
funds. At the same time my business - it wasn’t a bankable idea,"
Marishane said.

He entered the product into competitions. Slowly, he gained some

funds to develop his business.

16
Marishane is now the youngest patent holder in South Africa. The
company has provided 445,590 baths. It has also saved over 35.6
million liters of water, crucial for a country facing a water crisis.
Marishane cites education as one of the biggest advantages in starting
a business.
EDUCATION IS KEY

Jason Basel feels the same way. Basel is the founder

and president of Akro Organization, which provides
practical, action-oriented training to young
entrepreneurs.

“Entrepreneurship and education - that’s how you

solve unemployment,” Basel said.

“Entrepreneurship and
He also said that the lack of practical business
education - that’s how you education is keeping people from realizing their
solve unemployment”
potential business ideas.
“Graduates of Harambee Youth
Employment Accelerator in
Johannesburg” by Gabriel Diamond While there is plenty of business potential among
via Wikimedia Commons is licensed
under CC BY-SA South Africa’s youth, the country lacks the services
to enable its young entrepreneurs.

What Marishane and others have shown is that you can overcome the
odds with one great idea.

AFTER YOU FINISH READING:

1. Summarize the reading in one sentence. Share your summary with your peers in the discussion board
below.
2. Read other participants' summaries. Did they have the same ideas as you?
3. Click "like" on the post that you think has the best summary.

17
Lesson 3: Reading Strategies (Part 2)

STEP 3: READ AGAIN AND TAKE NOTES

Take notes about what you do and do not understand. You can take your notes in the margins, the white space on
the side of the text, or on a separate piece of paper. This will help you easily find information to review later. You
can also mark or write on the text itself to help you identify the most important information in the reading later or
help focus your attention while you're reading.

Now is the time to look up any keywords that you still don't understand in your dictionary. This is the best time to
look up words because you already know the main idea of the article which will help you understand the
definitions.

STEP 4: ASK QUESTIONS

After you finish reading, ask yourself the following questions to help you remember what you read. These
questions help you think about the relationship between the reading, your local community, your country and the
rest of the world.

• How does the reading connect to your own life, ideas, or experience with business and
entrepreneurship?
• Does the reading remind you of something else you have read, heard or watched before? This
question helps you think about the relationship between the current reading and other learning you
have done in the past.
• How does the reading connect to your local community, your country, or the wider world? How do
the issues the author discussed, affect the local, or global economy?

Share your ideas with your classmates in the next discussion post.

Discussion: Reading Strategies: Asking Questions

You have just read the article, "Is Entrepreneurship a solution to South Africa's Unemployment Crisis?"

Choose one question below:

• How does the reading connect to your own life, ideas, or experience with business and
entrepreneurship?
• Does the reading remind you of something else you have read, heard, or watched before?
• How does the reading connect to your local community, your country, or the wider world?

Write a short response to one question (max 50 words)

18
Lesson 4: Why Entrepreneurship? (Part 1)
In this lesson, we will explain how entrepreneurship helps local and global economic development. We will discuss
why people become entrepreneurs and we'll talk about some of the challenges that entrepreneurs can have. As
we discussed in Lesson One, entrepreneurship means the making of a new business.

WHAT IS ECONOMIC DEVELOPMENT?

Economic development is the improvement of people's quality of life by creating and maintaining jobs, and
supporting or growing incomes. Jobs and incomes provide people with money to spend.

H O W D O E S E N T R E P R E N E U R S H IP H E L P E C O N O M I C
DEVELOPMENT?

Entrepreneurship can help economic development by creating jobs. It can do this in two
ways. A start-up, a new business that did not exist before, creates a job for the entrepreneur
and the people the entrepreneur hires. This can include family and friends or people in the
community. These people have money to spend to buy things and services in the economy. This
helps the people who sell those products or services so they also have more money to spend.
This creates economic development.
"Start-up" by I Putu
Kharismayadi via the
Noun Project is An example of this job creation can be seen in the article that you read, "Is entrepreneurship a
solution to South Africa's unemployment crisis?" Ludwick Marishane created a company that
licensed under CC BY
produced a Drybath gel. Ludwick Marishane now has a job and he hired other people to work
for his start-up, who also now have jobs. All of these people now have money to spend. Which
provides money to people who sell things. This creates economic development.

A start-up also creates jobs for suppliers. Suppliers are the people who provide things and services for the
company. Ludwick Marishane needs to buy things to make his Drybath gel from suppliers. Maybe he also needs to
buy services like electricity or tax advice. These are also suppliers. Some of these suppliers buy from other
suppliers or they employ people. A lot of money can pass to many people who provide supplies. This is good for
economic development. Entrepreneurship can help economic development in creating jobs. But it can also help
the economy by creating innovation.

H O W D O E S IN N O V A T I O N H E L P E C O N O M I C D E VE L O P M E N T ?

Innovation is a new idea or a method. Entrepreneurs often create innovation in a product or

service. It can improve people's lives and increase economic development. Innovation can lead
to increased access to resources. People now can do something that they could not do before.

An example of this kind of innovation is the use of smartphones in rural Africa to do banking.
People did not have access to banks before. This innovation allows for safe and efficient money
“Innovation” by
transfer. Small businesspeople can buy, sell, and save money more easily. They are more
Icongeek26 via the
Noun Project is confident to start a business.
licensed under CC BY
Innovation can also lead to better use of resources. People can do more with what they have
or use less of what they have but benefit the same. An example of this kind of innovation is
improved technology in car engines. Cars can use less gas or petrol to drive the same distance or farther. People do
not need to buy as much gas as a result. This saves them money and saves the resource of gas for the future.

19
Better use of resources can keep prices lower and can sometimes benefit the environment and society. If engines
use less gas, there might be more gas available, which could lower the price. People have money to spend on other
things now. If less gas is burned, the air might be cleaner. This also benefits the environment and society.

Innovation has another benefit; it can provide a better quality of life. Ludwick Marishane’s Drybath gel can help
people stay clean and more comfortable even though water is not available to wash in. Think of all the innovations
in transportation, medicine, and communication that have improved the quality of life for people in just the past
few years.

20
Lesson 5: Why Entrepreneurship? (Part 2)

We've talked about how entrepreneurship can create jobs and innovation. It can also help increase private
funding. Private funding is money that comes from individuals, not the government or NGOs. NGOs are non-
governmental organizations that promote economic development. An example is Oxfam, an organization that
helps reduce poverty throughout the world.

H O W C A N E N T RE P R E N E U R S H I P I N C R E A S E P R I V A T E
FUNDING?

If there are many entrepreneurs with good ideas, people with money will be interested in providing funding to
them. Usually the more entrepreneurs there are, the more private funders there are. The more private funding,
the more entrepreneurs can be successful. Silicon Valley, in California, has many famous start-up companies. This
is because it has a large number of both entrepreneurs and private funders. This combination creates economic
development.

WHAT ARE THE CHALLENGES OF ENTREPRENEURSHIP?

Being an entrepreneur can be a great career choice, but it also comes with risk. A
successful business can create more money for the entrepreneur, and more
opportunities for employees and suppliers. However, the risk is that it can take a long
time to make money. The entrepreneur needs to plan for that risk or the new business
will likely fail.

An entrepreneur is his or her own boss. That means an entrepreneur has a lot of
freedom. However, sometimes it is difficult to get training or needed knowledge to
“risk” by Sumit Saengthong know about managing money and government rules. Ludwick Marishane had this
via the Noun Project is challenge. This risk can also lead to failure.
licensed under CC BY

Another risk is stress. The entrepreneur is responsible for everything, and there is
always the risk of failure. An entrepreneur needs to be able to manage this stress.

Being an entrepreneur allows somebody to do what interests them or what is important to them. It's great to have
a job like that. The risk is that the strong desire to do something is not enough to be successful. An entrepreneur
must also have business skills and a product that people want to buy. It all starts with an idea.

In the next lesson, Ideas, Products, and Opportunities, we will begin to learn more about how entrepreneurs use
ideas to find products that people want to buy.

21
Lesson 6: Ideas, Products, and Opportunities
Ideas, products, and opportunities are all important to businesses. In this lesson, we will discuss these three
concepts.

HOW DO PEOPLE CREATE NEW PRODUCT IDEAS?

There are usually two ways that people create new product ideas. The first is to create an idea to fill a need in a
market. Many times, an idea for a new product is an idea to solve a problem. Some people want to do or have
something, and this idea would help them. The smartphone was a new kind of product that did not exist before.
People are now able to carry small computers in their hands and they could not do that before.

The second source or beginning of new product ideas is to bring something that already exists somewhere else.
This is also filling a need but in this case the idea is not the product. The idea is getting a product to a different
place.

ARE IDEAS THE SAME AS PRODUCTS?

Ideas are not the same as products. Sometimes ideas do not become products. Sometimes they are only ideas and
nothing more. This can happen because the idea never becomes fully defined or clear. Maybe
the entrepreneur has some understanding but cannot clearly communicate it to others. Maybe the entrepreneur
also could not understand it specifically.

Ideas also may not be possible to make into products because the technology or materials needed do not exist or
there are other challenges such as lack of social acceptance. The idea is ahead of its time. Let me give you an
example. When the US decided to send Americans to the moon, it did not have the technology to do so. The idea
was ahead of its time. What made it happen was the support and money from the US government. Most
entrepreneurs cannot find this support when they have the same challenge.
WHEN CAN IDEAS BE PRESENTED AS PRODUCTS?
Ideas can be presented as products when they have a specific design or blueprint that people can see and
understand. Ideas can also be presented as products when they have specific features and functions that people
can understand. A feature is a noticeable or important part. A function is how something works.

Let’s take shoes as an example. The size of the shoe and the amount of foot or leg that the shoe covers are
examples of features. Functions would be to protect the bottom of the foot or keep it warm.

Additionally, ideas can be presented as products when they can be physically seen. A drawing, or a prototype. A
prototype is a model of what it would look like.

When an idea is presented as a product, it should be one of three types. The first is a good. A good is
something tangible, something that can be touched. Often, people will mistakenly say the word “product” when
they mean “good”. Examples of a good would be a book, a car, a shirt.

The second type is a service. This is intangible. It cannot be touched, examples would be a taxi service, a medical
procedure, a travel booking.

The third is a hybrid product that combines a good and a service. Examples would be a bed and breakfast hotel, a
restaurant meal, a flight. Both goods and services are provided in these types of products. Ludwick Marshane's
Drybath gel is also a hybrid because it's a tangible product but provides a service that impacts society. It helps
people stay clean without water.

Now, let's talk briefly about opportunity. Opportunity is a chance to do something. If a new product has a chance
to succeed, if people are interested in buying it, it is an opportunity. Whether an opportunity exists can be found
by doing market research. This topic will be covered in more detail in Module Two.

22
 SUMMARY
Ideas and products are important to all businesses. Entrepreneurs and businesspeople usually have many new
product ideas. Some of these ideas become real designs or prototypes for new goods, services, or hybrid products.
Entrepreneurs in businesses must do research to see which new products people want to buy. The products
people want to buy are the opportunities.

Remember, not all new product ideas are opportunities. Entrepreneurs must do a lot of work to understand which
ideas can be products and which products are great opportunities. In this course we will learn more about this
process.

23
Quiz: Identifying Different Types of Products

Match these five products with their product type:

a coffee maker a formal restaurant a travel agency a shirt a taxi service

Coffee Maker by art shop "Business Lunch" by Gerald "travel agency" by "shirts" by LINECTORvia "taxi service" by
via The Noun Project is Wildmoser via The Noun corpus delicti via The The Noun Project is Victoruler via The Noun
licensed CC BY 4.0 Project is licensed CC BY Noun Project is licensed licensed CC BY 4.0 Project is licensed CC BY
4.0 CC BY 4.0 4.0

>>>> Please note that this quiz can only be completed in Canvas. <<<<

24
Lesson Seven: Creating Simple, One-Sentence
Product Descriptions
In this lesson, we will explore simple product descriptions. Before we look at sample sentences, let's take a
moment to talk about why simple product descriptions are an important first step when an entrepreneur wants to
take an idea and make a potential product.

WHY ARE SIMPLE PRODUCT DESCRIPTIONS IMPORTANT?

First, putting an idea into a short, simple, and specific sentence helps entrepreneurs think clearly about their
product.

Second, entrepreneurs can use the one-sentence product description to have easy, helpful conversations about
the new product. They can talk with family, friends, consumers, and investors and get their opinions about what
they like or what they want.

SAMPLE PRODUCT DESCRIPTIONS

Let's look at three simple one-sentence product descriptions, as you see the sentences on your screen, you will
notice different colors. These colors represent important parts of the product description. As you read, think about
what kind of information is presented with each color.

1. A paperclip is a tool that will help teachers and office workers hold papers together.

What kind of product is a paperclip? Is it a good, a service, or a hybrid product? It is a good because it is tangible.

2. A taxi is a travel service that will help people in cities move from place to place.

It's easy to guess what kind of product a taxi is. It’s a service.

3. Drybath is a personal product that will help people in dry places get clean and save
water at the same time.

Is Drybath a good, a service, or a hybrid product? It is a hybrid product because it is both a good and a service at
the same time.

Product is a Type of that will Target Market General function information

Product help

A is a tool that will teachers and office hold papers together.

paperclip help workers

A taxi is a travel service that will people in cities move from place to place
help

Drybath is a personal that will people in dry places get clean and save water at the
product help same time

25
SENTENCE STRUCTURE
In this simple sentence structure each color represents a different kind of information.

Product represents the name of the product.

Type of product describes what kind of product it is.

Target Market represents the group of people who are likely to use this product

General function information explains what your product will help people do.

Product + is a + type of product + that will help + target market + general function information

BE SPECIFIC
Avoid using the words good, service, or hybrid in your product description. Be more specific so that your
word choice shares more information. For example, if you say, “a paperclip is a good”, the word “good”
does not add much information. That is why the description says, “a paperclip is a tool”. A tool is a type
of good and shares more information about this product.

Similarly, if you say, “a paperclip is a tool for people”, the word “people” is too general. “People” means
all people, young and old. Not many products are for all people. Try to choose a specific noun, like
“teachers and office workers”, or “parents”, or a noun phrase like “people in cities”, that describes the
group as specifically as possible.

General function information explains what your product will help people do most products help people
with one simple need. For example, people use mobile phones for the simple need of easy
communication. Describing how a product helps people is a very important step in new product
development. We will discuss general function information in more detail on the next page.

26
Lesson 8: Creating Simple, One-Sentence Product
Descriptions (Part 2)
THREE QUESTIONS TO HELP YOU WRITE A PRODUCT
DESCRIPTION

If entrepreneurs can think about and describe the general function of a product, they can also begin to answer the
following questions.

1. Who needs what the product can do? This question helps entrepreneurs think about the target market
more clearly.
2. What other products can do the same thing, as this new product? This question helps entrepreneurs
think about competitors.
3. Who produces or sells products that may be related to this new product? This question helps
entrepreneurs think about where he or she might find investors. People who produce or sell related
products may be interested in supporting the new business either financially or operationally.

CASE STUDY: DRYBATH GEL

"Drybath helps people be clean"

• Who needs Drybath?

People who want to get clean. People who live in dry places.

• What other products can do the same thing as Drybath?

Soaps and shampoos, but they also require water.

• Who produces or sells products that may be related to Drybath?

Soap and shampoo companies.

© 2020 by FHI 360. "Dry Bath
Gel" for the Online Professional
English Network (OPEN). This
image is an adaptation of “wash
hands” by Antistatique, “drought” GRAMMAR REVIEW
by Corpus Delicti, and ‘gel” by
Made via the Noun Project under
CC BY-SA. This derivative is Now, let's do a quick grammar review of how to describe the general function of a
licensed under CC BY-SA by FHI product.
360 for use in OPEN, sponsored by
the U.S. Department of State.
The grammatical structure is a present tense verb and a complement. The
complement may be a direct or indirect object, a prepositional phrase, or an
adverbial phrase.

27
A complement can be a direct object, a prepositional phrase, or an adverb. These are all types of complements.

Degree Complements Sentence Structure

Simple Present Complement
Verb
Paperclips are a tool that will help office workers hold papers.
A taxi service is a travel service that will help people in cities move from place to place.
Drybath is a personal product that will help people in dry places get clean.

For paperclips, the general function is “hold papers”. “Hold” is a verb, and “papers” is a complement and a direct
object.

For a taxi service, the general function is, “move from place to place”. “Move” is a verb. “From place to place” is a
complement and a prepositional phrase.

For Drybath, the general function is “get clean”. “Get” is a verb and “clean” is a complement and an adverb.

Most products have one general function, but some hybrid products may have two. Social impact products like
Drybath are an example of this: Drybath is a personal product that will help people in dry places get clean and
save water at the same time.

When a product has more than one function, entrepreneurs should ask the three questions for each function.

1. Who needs what the product can do?

2. What other products can do the same thing, as this new product?
3. Who produces or sells products that may be related to this new product?

Writing simple, one-sentence product descriptions is not difficult but it takes a lot of practice and careful word
choice.

Play the next game to improve your understanding of one-sentence product descriptions and how to make them
both meaningful and useful.

Quiz: Creating Product Descriptions

Let's practice creating simple product descriptions. We will use the structure we studied in Lesson 7 and Lesson 8.

>>>> Please note that this quiz can only be completed in Canvas. <<<<

28
Lesson 9: Deciding on a Type of Start-Up

When entrepreneurs think of creating a start-up, they must decide what kind of business it will be. In this lesson,
we will explore three types of business organizations, for-profit, non-profit, and hybrid. We will also learn the
difference between a company and a corporation.

WHAT IS A FOR-PROFIT BUSINESS ORGANIZATION?

The term for-profit can be a noun or an adjective. That means we can say that a business is "a for-profit". Here, for-
profit is used as a noun. We can also say, that is "a for-profit business", where for-profit is used as an adjective.

The primary or most important goal of a for-profit business is making money. Most businesses are for-profit, some
common examples are restaurants, stores, and manufacturers.

WHAT IS A NON-PROFIT BUSINESS ORGANIZATION?

The term non-profit can also be a noun or an adjective.

The primary goal of a non-profit is helping the community. Making money is also
important for non-profits because money is needed to support the operation and
employees. However, the goal of making money is secondary, or less important, than the
primary goal of helping the community.

“Non-profit” by Made by
Made via the Noun Project is
licensed under CC BY
For example, the United Nations Children's Fund has a primary goal of helping children.
Its secondary goal is making money through donations. The United Nations Children's
Fund needs this money to help the children but also to pay for employees, offices, and
other expenses.

Not-for-profit is a newer term that is sometimes used to describe non-profit organizations. Not-for-profit has a
more general meaning than non-profit. The term not-for-profit includes three types of organizations: non-profits,
charities, and NGO's (Non-Governmental Organizations). A non-profit is a type of not-for-profit. Doctors Without
Borders and The American Red Cross are some examples of non-profits. For each of these organizations the
primary goal is to help local and global communities.

WHAT IS A HYBRID ORGANIZATION?

Like not-for-profit, the term hybrid organization is also relatively new. Currently, hybrid is mainly used as an
adjective to describe organizations or social ventures. A hybrid organization is a combination of a for-profit and a
non-profit. This means that the organization has two equally important primary goals: to make money and to help
local or global communities. Another common term for a hybrid organization is a social enterprise.

Entrepreneurs who start hybrid organizations, or social enterprises, are often called social entrepreneurs. Let's
look at an example:

Three Avocados is a social enterprise that sells coffee and uses all of its profits to provide clean water and
education in Uganda. Their for-profit goal is to make money by selling coffee. Their non-profit goal is to
provide clean water and education in Uganda.

29
Because both goals are equally important, this is a good example of a hybrid, or mixed, organization. This third
type of organization is becoming more popular around the world, but, because it is so new, social entrepreneurs
may have difficulty attracting funding.

Countries often have laws and regulations or rules about creating new businesses. When an entrepreneur chooses
a type of business for a start-up he or she has to understand and follow the laws and regulations. But those laws
and regulations are not the same in every country and can be very difficult to understand. Therefore, we will not
review any specific laws or regulations in this course.

One thing that is the same across all countries is the difference between a company and a corporation. Our guest
speaker, Professor Philip Nichols of the Wharton School of Business at the University of Pennsylvania will explain in
the next video. His video will be followed by a brief comprehension check.

Listening Practice: Companies vs. Corporations

When entrepreneurs create their startups, they must choose one of three types of businesses: a for-profit, a non-
profit, or a hybrid organization. Different countries have different laws and regulations for starting a new
business. But all countries agree on the difference between a company and a corporation. Our guest speaker,
Professor Philip Nichols of the Wharton School of Business at the University of Pennsylvania will explain.

Listen closely. This video will be followed by a brief comprehension check.

>>>> Please note that this quiz can only be completed in Canvas. <<<<

30
Lesson 10: Risks, Failures, and Important Steps (Part
1)

In this lesson, we will discuss:

• the risks in creating a start-up

• the causes of failure

Earlier, we discussed the challenges that entrepreneurs face when they create a new business. In this lesson, we
will be more specific about those challenges.

W H A T A R E T H E R I S K S O F E NT R E P R E N E U R S H I P?

Entrepreneurs often have to take risks with their career and their money when they
decide to create a new business. This happens because entrepreneurs usually do not
have time to start a company and have a regular job at the same time. If the start-up
does not succeed, they often have to find regular employment again, which could be
difficult. Entrepreneurs also often invest some or all of their personal savings in their
start-up. In addition, because they often do not have another job, they do not have
much money for daily living expenses. It can often take a few years for a start-up to
make money. This situation can be very stressful and risky, particularly if the start-up
“risk” by Sumit Saengthong does not succeed in the end. If an entrepreneur has family or other loved ones to
via the Noun Project is support, this stress can be even worse.
licensed under CC BY

WHAT ARE THE CAUSES OF FAILURE?

Experienced entrepreneurs work and plan to avoid failure, but there are several common reasons for failure that
the entrepreneur cannot control.

Let's look at three important causes of failure:

• the economy
• customer loyalty
• competition.

An economic crisis can cause failure for an entrepreneur

An economic crisis can cause failure for an entrepreneur. Customers may no longer have money to buy products.
The entrepreneur will sell many fewer products than expected and the business might fail.

An example of this is what happened in Greece for several years. Greece had an economic crisis. Many people lost
their jobs or had their wages or pensions reduced. They no longer had money to buy products and many
businesses failed.

Target market customers are not always loyal

31
Customer loyalty may also cause failure because target market customers are not always loyal. What does this
mean? If a customer is loyal, they buy the same product all or most of the time. When a customer buys toothpaste
it is always the same product. When a customer is not loyal, they buy a different product instead. Why do they do
this? One reason is customers aren't sure what they want, so they try many products to find what they like.

Competition can cause failure

Another reason for failure is competition. Other competitors come into the market with a new product, with a
different style or lower price. The customer likes this style and price better.

Summary

Entrepreneurs must always be aware of the risks of economic changes, changing customer loyalty, and
competition. These can all cause a new business to fail. An entrepreneur has no direct control over these risks.

32
Lesson 11: Risks, Failures, and Important Steps (Part
2)
W H A T C A N A N E N T R E P R E N E UR D O T O D E CR E A S E F A I L U R E
AND INCREASE SUCCESS?
There are three important steps that an entrepreneur should take. These are part of a long and detailed planning
process. They are:

• do market research
• write a business plan
• attract investors and get financial support

An experienced entrepreneur does market research

An experienced entrepreneur does market research. Market research It is the collection and
study of information about what products people prefer to buy.

Entrepreneurs may think that their product will be successful but how can they know for
sure? They may not know if people in their target market will actually buy their product.

Market research helps the entrepreneur understand if the new product presents an
Market Research opportunity. Will the target market want or need the new product? And will they pay for it?

“Market research” by joe pictos An experienced entrepreneur writes a business plan

via the Noun Project is licensed
under CC BY
Once entrepreneurs have done market research to show that they have an opportunity, they
need to do more research and planning for these important parts of their start-
up: operations, marketing and finance. All of this will be written in a business plan.

• The operations part of the business plan will discuss how to manufacture or distribute the products sold.
• The marketing section of the business plan will identify the target market and the best way to
communicate with them. It will also identify the competitors in the market.
• The finance section will discuss how the business will make money. It will discuss the cost to make or
distribute the product and if these costs may change in the future. It will discuss how much money is needed
to start and continue the business. This information will be supported by sales predictions.

An experienced entrepreneur attracts investors and gets financial support

Once entrepreneurs have written a business plan, they can use this to do the last important step, attract investors,
and get financial support. Most entrepreneurs do not have enough money to start and continue their own
businesses. They will need funding from outside sources. Entrepreneurs need to understand their funding options,
and how to present their new product and start-up ideas to other people.
SUMMARY
In this lesson, we've reviewed a number of reasons why new products and new businesses fail. Market research,
writing a business plan, and getting financial support are important steps to avoiding failure but there will always
be risks for entrepreneurs and their businesses.

33
Quiz: Module 1 Vocabulary Review
>>>> Please note that this quiz can only be completed in Canvas. <<<<

34
Lesson 12: Comparative Structure (Part 1)
Comparative language helps people describe similarities and differences between things. Entrepreneurs and
businesspeople often use comparative language. For example, they may use comparative language to explain the
similarities and the differences between their new product and a competitor's product.

There are three kinds of comparative structures:

• sentence connectors
• subordinating conjunctions
• correlative conjunctions.

In this lesson, we will focus on sentence connectors. In the next lesson, we will focus on subordinating and
correlative conjunctions.

SENTENCE CONNECTORS
Sentence connectors join two independent clauses. Independent clauses contain a subject and a verb or verb
phrase. Independent clauses are complete sentences.

Here are some examples.

1. Amy is always on time.

“Amy is..." is an independent clause because it has a subject (Amy) and a verb phrase (is always on time).

2. Her sister is not.

This is also an independent clause because it also has a subject (her sister) and a verb phrase (is not).

We can use a sentence connector to join these two independent clauses:

Amy is always on time; however, her sister is not.

Common sentence connectors used to discuss differences are:

• however
• in contrast
• on the other hand

Common sentence connectors used to discuss similarities are:

• similarly
• likewise
• at the same time.

Notice that you can use a semicolon or a period at the end of the first independent clause.

• Amy is always on time; however, her sister is not.

• Amy is always on time. However, her sister is not.

Always start the second independent clause with a sentence connector (e.g. "however"). Follow it with a comma
( , ) and then the next independent clause.

35
Lesson 13: Comparative Structures (Part 2)
SUBORDINATING CONJUNCTIONS
Another comparative structure is subordinating conjunctions. Which we can also use to discuss the similarities and
differences between two things. For example:

Amy is always on time while her sister is not.

When a subordinating conjunction joins two clauses it creates a main clause, “Amy is always on time”, and a
subordinate clause, “while her sister is not”.

A subordinate clause is a dependent clause or an incomplete thought. A dependent clause cannot stand alone. It is
not a complete sentence. “Her sister is not” is an incomplete thought and does not mean anything on it's own.

The information in the dependent clause is often less important than the information in the independent clause.

Subordinating conjunctions used for discussing differences:

• whereas
• while

A subordinating conjunction used for discussing a similarity:

• just as

Notice that there are two ways to structure sentences containing subordinating conjunctions. The main clause can
come first, or the subordinate clause can come first. When the sentence starts with the subordinate clause, use a
comma between the two clauses. When the sentence starts with the main clause no comma is needed.

CORRELATIVE CONJUNCTIONS
The last comparative structure we will review in this video is correlative conjunctions, which are useful for
discussing similarities. Here is an example of correlative conjunctions used to discuss two things that are true. For
example:

Both Amy and her brother are always on time.

The correlative conjunctions in that sentence are both and and.

Here is an example of correlative conjunctions used to discuss two things that are not true.

Neither Amy nor her brother are late for meetings.

The correlative conjunctions in that sentence are neither and nor. Look at these examples where correlative
conjunctions are used to join two nouns. Notice that the verb in the sentence must agree with the second noun in
the pair.

SUMMARY
This is the last video of Module 1. We have completed our review of three kinds of comparative structures:
sentence connectors, subordinate conjunctions, and correlative conjunctions.

36
Quiz: Comparative Structures
>>>> Please note that this quiz can only be completed in Canvas. <<<<

Module 1 Check
Please answer one question to verify that you have completed all activities in Module 1.
You must choose "Yes" in order to move on in the course.
This quiz will count as 1 point toward your grade.

>>>> Please note that this quiz can only be completed in Canvas. <<<<

37