Entrepreneurs The Business of Owning a Business. The News & Lemonade Stand My first business (5...

Entrepreneurs

The Business of Owning a Business

The News & Lemonade Stand

My first business (5th grade)

Ever dream of being your own boss someday?

Difficulties and risks

Economic Institutions “An organization or idea (formal or

informal) that influences economic behavior.”

Many products are designed with certain economic institutions in mind.

Examples: Families Businesses Workers

Which economic institution is in mind?

Which economic institution is in mind?

Which economic institution is in mind?

Which economic institution is in mind?

Which economic institution is in mind?

Which economic institution is in mind?

Which economic institution is in mind?

Which economic institution is in mind?

Starting a Business

The Entrepreneur “An individual who is

willing to organize and manage a business.”

They take risks to develop original ideas, start businesses, create new industries, and fuel economic growth.

They answer the basic economic questions of what, how, and how much.

Famous Entrepreneurs Magic Johnson

Enterprises ($700 Million):

Magic Johnson Movie Theaters

“The Magic Hour” (T.V. Show)

Magic Johnson Productions (Promo Company)

Magic Johnson Entertainment (Movie Studio)

Fat Burgers

Famous Entrepreneurs (Cont’d)

Various Cookbooks “30 Minute Meals”

(Food Network show) Every Day with

Rachael Ray (Magazine)

“The Rachael Ray Show” (Syndicated Talk Show)

Yum-O Organization

An Infamous Entrepreneur

Tom Vu, Real Estate Entrepreneur (Now in Prison)

Tom Vu Infomercial from the 1980’s

The Captains of Industry

John D. Rockefeller (Oil) Founded Standard Oil

Co. Philanthropy:

University of Chicago, Rockefeller University, & Spelman College

Rockefeller Foundation (medicine, health, & the arts)

Gave away $550 million

The Captains of Industry (Cont’d)

Henry Ford (Cars) Founded Ford Motor Co.

Invented the modern assembly line & mass production

Introduced the minimum wage ($5-per-day) & 40-hour work week

Philanthropy: The Ford Foundation

(education, arts, & human rights)

Gave away $530 million

The Captains of Industry (Cont’d)

Andrew Carnegie (Steel) Founded U.S. Steel Philanthropy

Founded Carnegie Mellon University

Carnegie Endowment for International Peace

Carnegie Corporation of New York

Carnegie Hall Gave away $350

million

Help for Entrepreneurs

Patents and copyrights The Small Business Administration

(SBA) Government agency created in 1953 Advises, helps, and protects the

interests of small businesses Provides loans to help begin or

expand businesses

Breakdown of Business Ownership

U.S. Ownership of Businesses

Corporations13%

Partnerships11%

Sole Proprietorships

76%

Do you have what it takes?

You have the entrepreneurial spirit if you: Seek out responsibility Are willing to take risks Believe in yourself Desire to reach your full

potential Have high energy levels Are upbeat and

optimistic

You have the entrepreneurial spirit if you: Look toward the future rather than the past Value achievement over money Maintain flexibility as you face new

challenges Are strongly committed to your goals

Do you have what it takes (Cont’d)?