Entrepreneurship

Credit: 0.50
Course Preface
Core Code: 32-02-00-00-220
Printable Version: Entrepreneurship (pdf)

Course Description
This course helps students gain an understanding of the business/marketing principles necessary to start and operate a business. Students will first learn basic economic principles related to business ownership. They will identify and assess common traits and skills found in entrepreneurs, explore business opportunities, and compare the risks and rewards of owning a business. The primary focus of the course is to help students understand the process of analyzing a business opportunity, determining feasibility of an idea utilizing research, developing a plan to organize and promote the business and its products/services, and finally, to understand the capital required, the return on investment desired, and the potential for profit. Entrepreneurship is designed for students enrolled in marketing, business, and upper-level courses who have an interest in developing the skills, attitudes, and knowledge necessary for successful entrepreneurs. The texts and performance objectives are designed to work in conjunction with DECA and FBLA, and students are encouraged to participate in these associations and their respective competitions.

Core Standards of the Course

Standard 08.0301-01
Students will understand the economic factors and opportunities associated with self-employment.

• Define entrepreneurship.
• Explain the profit motive.
• Describe effects of supply, demand and scarcity on businesses.
• Graph supply and demand curves.
• Describe concept of equilibrium.
• Describe the impact of small business/entrepreneur's contributions.
• Explain the role of competition and how "market structure" (i.e., monopolies) affects price.
• Describe government's role in business.

• Describe and demonstrate desirable entrepreneurial traits.
• Describe and develop necessary entrepreneurial skills (e.g., communication, business math, and career-building).
• Identify ethical issues in business.
• Evaluate personal goals and capabilities to determine entrepreneurial potential.
• Assess personal interests, ROI objectives, capital required, and external resources needed to supplement entrepreneur's success.

• Compare risks and rewards of owning a business.
• Determine essential factors needed to choose type of business to start.
• Assess business opportunities and trends; both domestic and global (Include new and existing ideas, franchises, and web-based enterprises).
• Apply idea-generation methods.
• Determine feasibility of ideas.
• Outline available resources and government agencies to assist small business owners.

Standard 08.0301-02
Students will develop and analyze market research.

• Define target market.
• Define market segmentation by demographics, psychographics, geographics, and buying characteristics.
• Distinguish the difference between primary and secondary research.
• Describe a focus group.
• Identify the steps of market research.

• Research competitors and identify their niche.
• Assess competitors' strengths and weaknesses.
• Assess industry characteristics.

Standard 08.0301-03
Students will understand and develop a business plan.

• Describe purposes of a business plan.
• List common components of a business plan.
• Identify available sources for business plan information.

• Construct a mission statement for a company.
• Explain rationale for starting business by utilizing market research.
• Describe business, it's products/services, and customers.
• Compare types of ownership for their business, and select best option for their business.
• Determine organizational structure and management skills needed to operate business.
• Assess locations for business.

• Determine product brands, product mix, and inventory systems: perpetual, physical, and Just-in-time (JIT).
• Understand and calculate pricing strategies utilized to make a profit: mark-up, cost-based, competition-based, demand-based, methods of psychological pricing, discounting, and credit.
• Identify the components of a promotional mix and how each will be utilized in a business.
• Describe channels of distribution, and determine best methods for their business.

Standard 08.0301-04
Students will make use of financial documents utilized in a business.

• Estimate start-up costs, Costs of Goods Sold, and operating expenses.
• Calculate gross income, net income, and break-even point.

• Differentiate between fixed and variable costs.
• Determine profitability of a business.

• Assess entrepreneurs' own collateral or equity.
• Evaluate need and ability to acquire a loan from an outside source.
• Calculate a loan's interest rate and monthly payments.
• Calculate capitalization rate on an investment.