• Telephone - Original model of Alexander
Graham Bell’s very first telephone from 1881
brings $40,000 at auction
• Facebook is a social media giant founded by
Mark Zuckerberg. It raised over $16 billion,
making it one of the largest tech IPOs at the
time.
• Uber is a ride-sharing and food delivery
company, raising around $8 billion when it
was opened to public for sale and
investment.
• Airbnb is a platform for short-term lodging
rentals and tourism activities, went public for
sale and investment during the COVID-19
pandemic, raising over $3.5 billion.
• Roblox is an online gaming platform and
game creation system, went public on the
New York Stock Exchange, raising over $2.3
billion.
• Early investors in Amazon have also reaped
substantial rewards as the company
expanded its e-commerce and cloud
computing businesses.
• Gold - Investors have historically turned to
gold as a store of value during economic
uncertainties, benefiting from its price
appreciation.
A business is an organization that provides
PRODUCTS or SERVICES usually in order to make
money.
PRODUCT – a physical, tangible item that a business
sells to a customer.
SERVICE – something that a business does for a
customer in exchange of money.
An ENTREPRENEUR (on-tra-prah-newr) - is someone
who creates and runs a business.
• If you have a business idea, you could
become an entrepreneur and create a
business. However, entrepreneurship is not
for everyone.
• Many chose to be an EMPLOYEE, a person
who works for a business owned by someone
else.
ENTREPRENEURIAL INVESTIGATION
• Gary Rayner founded his business, LifeProof,
as a smartphone case company in 2009.
• Gary came up with his idea because he loved
his iPhone, but also loved outdoor activities
like biking, running, and surfing.
• Not to mention, he had small children who
would destroy his phone by throwing it in the
garbage and bathtubs.
• He wanted to find a way to protect his phone
so that he would not worry about it anymore.
• Other items on the market were bulky. Or,
they made aspects of the phone, like the
camera, unusable.
• He decided he wanted to design a sleek, thin,
and functional case that was waterproof,
dustproof, and childproof!
• Today, LifeProof is valued at over $350 million
and makes cases for smartphones and
tablets. The company mantra is:
“Freedom—freedom to be connected
anywhere with your mobile device;
freedom to build relationships, gain
knowledge, exercise, and juggle work;
freedom for all people anywhere to go
everywhere.”
How Employees and Entrepreneurs Differ
• When an entrepreneur starts a new business,
it involves risk.
• Risk is the chance of losing something. An
entrepreneur makes an investment of money,
time, and energy in the hope of getting greater
rewards, or benefits.
• Because employees work for someone else,
but entrepreneurs work
for themselves, entrepreneurs risk more than
Employees Entrepreneurs
may risk risk not being
losing a job able to pay
if they do themselves if
not business is
perform “slow.” A
the job failed
well, but business
they are might also
paid for mean losing
their work. the money the
entrepreneur
invested into
it.
employees.
The rewards that employees and entrepreneurs get
from their work can also be different.
• A reward can involve money, but it can also
be something such as personal satisfaction
or independence. As a business owner, an
entrepreneur is in control of the money made
by his or her business. He or she also has the
“final say” in all business decisions.
• As a result, entrepreneurs are ultimately
responsible for the success or failure of their
businesses.
An example to understand the risks and rewards for
an entrepreneur vs. her employee.
• Carla Hernandez decides to start a fruit
“smoothie” drink shop in her neighborhood.
• Carla invests a lot of money, time, and effort
to get the business started.
• Tony Bertelli, one of her employees, creates a
new juice combination that Carla decides to
put on the menu.
 • By doing so, she risks the money spent on
ingredients. She also risks a drop in sales if
customers don’t like the drink.
• As it turns out, the new drink is a great hit with
customers, and sales dramatically increase.
• Tony receives a small raise as a reward.
• Carla will benefit the most because she
owns the business and took the bigger
overall risk.
• Risks involve making choices, and
entrepreneurs need to weigh their choices
carefully to achieve their goals for their
businesses.
VOCABULARY
• Reward—What entrepreneurs get in
exchange for starting a business; can include
money, personal satisfaction, or
independence.
• Risk—The chance of losing something. An
entrepreneur risks losing money, time, and
energy in the hope of getting greater rewards,
or benefits.
• Business — Organization that provides
products or services, usually to make money.
• Employee — Person who works in a business
owned by someone else.
• Entrepreneur — Someone who creates and
runs their own business.
• Product — A physical, tangible item that a
business sells to a customer.
• Service — Something that a business does
for a customer in exchange for money.
Big Business vs. Small Business
• When most people think about businesses,
they tend to think of big businesses, like
Walmart, Microsoft, or Nike.
• In reality, more businesses are considered
“small” than “big.” Small firms are the engine
to our economy.
• A commonly used size standard created by
the Small Business Administration (SBA)
defines a small business as having fewer than
100 employees.
• According to the SBA, 800,000 new
businesses were started in the United States
in 2011 — and about 750,000 close. This
means that many new small businesses
close right away, while others close after a
short period of success.
• Even though most businesses begin small,
they obviously don’t all stay that way.
• An entrepreneur’s goals will affect how large
a business becomes.
The Successful Story of Whole Foods Market, Inc.
• A business may become so successful that it
grows beyond the wildest expectations of its
owners. That is exactly what happened to
Whole Foods Market, Inc. It started in 1980 as
one small store in Austin, Texas.
• Four businesspeople decided the natural
food industry was ready for a supermarket
format. And they were right! Beginning with a
staff of 19, Whole Foods Market was an
immediate success.
• Now Whole Foods Market is the world’s
leader in natural and organic foods, with more
than 385 stores and over 58,000 employees
worldwide.
7 Reasons Why Start-Ups Fail
1. Lack of consumer Demand
2. Insufficient Money
3. Poor Management
4. Pricing Model
5. Poor Marketing
6. Customer Satisfaction
7. Legal Issues
ENTREPRENEURIAL CASE STUDY:
OPPORTUNITY RECOGNITION
Vincent Quigg — TechWorld
• At 18 years old, Vincent Quigg became the
CEO and founder of TechWorld
(www.techworldfix.com), a business he
launched while taking his entrepreneurship
course at Downey High School in California.
• His business specializes in customizing and
repairing iPhones. The business was so
successful that he kept operating it beyond
high school when he got to college, earning
over $1,500 a month.
• For his business, Vincent was the 2012
winner of the Network for Teaching
Entrepreneurship (NFTE)’s Youth
Entrepreneurship Challenge, besting more
than 15,000 students nationwide.
• Vincent always had a mind for business, even
at a young age. He was always finding
interesting ways to make extra dollars.
• However, it was a sudden event in his family
that required him to re-visit alternate ways of
making money.
• “My mom became single a couple of years
ago and I had to grow up. And in order to keep
my lifestyle, I had to find different ways to stay
financially ahead of the game, to keep my
phone, keep a car, transportation, and all that
stuff. So I had to find ways to be
entrepreneurial,” he said.
• Vincent identified a problem that he wanted
solved. Vincent always had an interest in
technology and even had a job working with
iPhones at Best Buy while he was in high
school. Since he was interested in the newest
gadgets, he would try to get his hands on the
newest iPhones, which would then soon
break unexpectedly.
• He was tired of driving far away any time he
needed any phone maintenance, so he taught
 himself how to repair iPhones and cracked
screens.
• Soon, he was advertising his services on
Craigslist, at a cheaper rate and faster than
Apple!
Entrepreneurs can decide how large or small they
may want their business to be.
• Not all entrepreneurs try to make their
business larger and larger. An entrepreneur
may limit the size of the business as a way of
keeping the work at a manageable level,
provided the financial goals are being met.
1. Personal Goals and Lifestyle
Entrepreneurs should align the size of their
business with their personal goals and
lifestyle choices. Some may prefer a smaller,
lifestyle business that allows for more
personal freedom and work-life balance,
while others may aspire to build a larger
enterprise.
3 GOALS – WHAT, WHY AND HOW
2. Market Opportunities
Assess and opportunities in the industry. If
there is significant market demand and
growth potential, entrepreneurs may decide
to scale up their business. Conversely, in a
niche market with limited growth prospects, a
smaller, specialized business might be more
appropriate.
3. Financial Resources
Consider the financial resources available.
Growing a business often requires significant
capital investment. Entrepreneurs need to
evaluate their access to funding, whether
through personal savings, loans, investors, or
other financing options.
4. Risk Tolerance
Assess the entrepreneur's risk tolerance.
Expanding a business involves inherent risks,
and some individuals may prefer a more
conservative approach with a smaller
business to minimize risk, while others may
be more comfortable taking on higher risks to
achieve greater rewards.
5. Industry Dynamics
The nature of the industry can influence the
optimal size of a business. Some industries
require economies of scale to compete
effectively, while others may thrive on
personalized services and niche markets.
Understanding industry dynamics is crucial in
making informed decisions.
6. Management Skills and Capacity
Evaluate the entrepreneur's management
skills and capacity. Running a larger business
often requires a different set of managerial
skills compared to managing a smaller
operation. Entrepreneurs should assess their
ability to lead and organize teams effectively.
TOP 10 MANAGEMENT SKILLS (TLE CNS PT
AC)
7. Technology and Innovation
Technological advancements can impact the
scalability of a business. Embracing
innovation and leveraging technology can
enhance efficiency and allow for growth. On
the other hand, some businesses may thrive
by staying small and agile, adapting quickly to
market changes.
INNOVATION- Taking two things that already
exist and putting them together in a new way.
8. Customer Focus
Consider the level of customer focus desired.
Smaller businesses often have the advantage
of providing more personalized and intimate
customer experiences. Entrepreneurs who
value direct customer relationships may opt
for a smaller business model.
Customer focus- a business-wide strategy
that involves building your operations,
products, and services around customer
needs, wants, and goals.
9. Regulatory Environment
The regulatory environment can influence the
scale of a business. Some industries face
stricter regulations that may require more
extensive resources for compliance.
Entrepreneurs should be aware of and
prepared for any regulatory constraints.
Regulatory environment – is any controlled
environment. Rules state which a company must
meet condition to produce valid results or goods of a
guaranteed quality level.
IN SUMMARY……
• The decision of how large or small to make a
business is a complex one that requires a
thoughtful analysis of various factors.
CHARACTERISTICS OF AN ENTREPRENEUR
1. VISSIONARY- Entrepreneurs often have a
clear vision of what they want to achieve.
They are able to see opportunities where
others may not and have the ability to
conceptualize and articulate their goals.
2. KIND –
• Daniel Lubetzky, founder & CEO of KIND
Snacks, is on a mission to make the world a
little kinder one snack and one act at a time.
• David Neeleman, founding CEO, JetBlue,
and founding CEO Azul -- two airlines that
practically over night grew from startup to
over a billion dollars, both transforming how
people travel.
 • Tariq Farid, founding CEO, Edible
Arrangements, who rapidly grew from startup
to become a beloved brand with over 1,200
stores.
• Michael Houlihan, founding CEO, Barefoot
Wines: From their garage, he and Bonnie
Harvey built America’s No. 1 wine brand and
then wrote the New York Times bestselling
book, The Barefoot Spirit.
3. PASSION - Passion is a driving force behind
entrepreneurship.
Successful entrepreneurs are deeply
passionate about their ideas, products, or
services, which fuels their determination and
perseverance, especially in the face of
challenges
Risk-taking propensity: Entrepreneurs are willing to
take calculated risks.
They understand that entrepreneurship involves
uncertainty and are willing to step out of their
comfort zones to pursue opportunities, even if it
means facing failure.
4. RESILIENCE - Failure and setbacks are
common in entrepreneurship.
8. LEADERSHIP SKILLS - Entrepreneurs need to
be effective leaders who can inspire and
motivate others to share their vision and work
towards common goals.
They must be able to delegate tasks, make
tough decisions, and build strong teams.
9. RESOURCEFULNESS - Entrepreneurs often
start with limited resources and must be
resourceful in finding creative solutions to
overcome challenges.
They know how to make the most out of what
they have and are adept at leveraging their
networks and connections.
10. PERSISTENCE - Building a successful
business takes time and persistence.
Entrepreneurs must be willing to persevere
through obstacles, rejection, and setbacks,
staying focused on their long-term goals
despite short-term setbacks.
3PS – PASSION, PATIENCE AND
PERSISTENCE

Resilient entrepreneurs are able to bounce

back from failures, learn from their mistakes,
and adapt their strategies accordingly.

They see failures as learning experiences

rather than insurmountable obstacles.
5. CREATIVITY AND INNOVATION -
Entrepreneurs are often creative thinkers who
are constantly looking for new and innovative
solutions to problems.

They challenge the status quo and are not

afraid to disrupt traditional industries with
their ideas.
6. ADAPTIBILITY - The business landscape is
constantly evolving, and successful
entrepreneurs are adaptable to change.

They are able to pivot their strategies, modify

their products or services, and adjust to
market demands to stay relevant and
competitive.
7. STRONG WORK ETHIC - Entrepreneurship
requires hard work, dedication, and
perseverance.

Successful entrepreneurs are willing to put in

the time and effort needed to build and grow
their ventures, often working long hours and
making sacrifices along the way.