The EntrepreneurThe Entrepreneur

Chapter 4Chapter 4

Characteristics of Successful Characteristics of Successful EntrepreneursEntrepreneurs

Entrepreneurs:Entrepreneurs:– Individuals who start their own business or Individuals who start their own business or

expand existing ones. expand existing ones. – Organize the factors of production for the Organize the factors of production for the

purpose of producing goods and services.purpose of producing goods and services.– Willing to take risks with the expectation of Willing to take risks with the expectation of

making a profit.making a profit.

Successful entrepreneurs have these Successful entrepreneurs have these characteristics…characteristics…

Keating Centre - Charles V. KeatingKeating Centre - Charles V. Keating

1. 1. OpportunismOpportunism – recognize – recognize opportunities that exist in situations. opportunities that exist in situations. “cup is half full rather than …..”“cup is half full rather than …..”

2. 2. Risk TakingRisk Taking – take risks where – take risks where their abilities can have a significant their abilities can have a significant impact on the outcome and where impact on the outcome and where profit can be made. profit can be made. – Entrepreneurs don’t gamble, but they Entrepreneurs don’t gamble, but they

don’t look for safe investments either.don’t look for safe investments either.

3. 3. Hard WorkingHard Working – creative and – creative and energetic, when entrepreneurs are energetic, when entrepreneurs are working they don’t notice the working they don’t notice the passage of time. passage of time. – They know the hard work involved in They know the hard work involved in

establishing a business.establishing a business.

4. 4. ObjectivityObjectivity – recognize the need – recognize the need for skilled help. for skilled help. – They will seek out skilled help rather They will seek out skilled help rather

than going it alone. than going it alone. – Don’t hire friends or family but the best Don’t hire friends or family but the best

people to do the job.people to do the job.

5. 5. MotivationMotivation – to work for – to work for themselves rather than anyone else, themselves rather than anyone else, to be the boss!! The other motivation to be the boss!! The other motivation is making money.is making money.

6. 6. Self-ConfidenceSelf-Confidence – believe that – believe that they can make a success of any they can make a success of any business they try. business they try. – Rely on themselves, not luck or friends, Rely on themselves, not luck or friends,

to be successful.to be successful.

Why Business failWhy Business fail

Personal characteristics of the Personal characteristics of the entrepreneur.entrepreneur.

Lack of understanding of the market Lack of understanding of the market for their goods and services.for their goods and services.

Insufficient start-up capital.Insufficient start-up capital. Poor judgment.Poor judgment.

The FranchiseThe Franchise

A license or privilege granted by a A license or privilege granted by a corporation (the franchiser) to corporation (the franchiser) to another corporation or individual (the another corporation or individual (the franchisee) to sell or use a franchisee) to sell or use a recognized brand name.recognized brand name.

Tim Tim HortonsHortons - Frequently Asked Questions - Frequently Asked Questions

To purchase a franchise you To purchase a franchise you must…must…

Pay a feePay a fee Give a % of sales to the franchiserGive a % of sales to the franchiser Maintain certain standardsMaintain certain standards Follow certain methods of operatingFollow certain methods of operating Purchase supplies from the Purchase supplies from the

franchiserfranchiser

In return you get…In return you get… Business adviceBusiness advice Financial adviceFinancial advice Training programsTraining programs Use of a widely recognized name, image or Use of a widely recognized name, image or

productproduct Free advertisingFree advertising A business with a proven record of successA business with a proven record of success High motivation to succeed because of the High motivation to succeed because of the

amount of money invested.amount of money invested. Good quality supplies and product.Good quality supplies and product.

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