Content goals:
Understanding simple business and entrepreneurship concepts as well as the difference between a small business owner and an entrepreneur.
The language goals:
- Reading skills
- Comparative structure
Content Focus -- What is Entrepreneurship?
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Entrepreneurs often begin with a startup. But may also buy
an existing business and change it. Entrepreneurs also share other management
styles. For example, they are efficient at starting a business and making plans
for growth, but they may not be efficient at managing day to day operations.
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In addition, entrepreneurs often sell a startup or a new business once it grows to a certain size and may own many business at the same time. Lastly, entrepreneurs often own many business over their careers. Entrepreneurs and 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 and is 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, identifying needed
resources and potential customers. Making a plan, getting support and
implementing a plan. Small business owners are also good at maintaining
success.
Harry and Frances Edelstein are good examples of small
business owners. In 1980, they opened Cafe Edison in New York City, New York,
In the United States. The restaurant was very popular for over 30 years and was
their only business. Small business owners, like Harry and Francis Edelstein
often being with a startup. But may also
buy 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. Keeping
the business stable or safe than on growth. A small business owner also often
owns only one business at a time and may own that on business for his or her
entire life. Some small business owners start as entrepreneurs.
But then 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.
Vocabulary Knowledge
Day to day operation -- The things that happen on normal days in a business.
Distribution -- The process of supplying something
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Entrepreneurship -- The making of a new business feature
Feature -- A noticeable or important characteristic or part
Function -- The way something works
Good -- A type of product that is tangible
Innovation -- A new idea or method
Manufacture -- To make a product or goods from raw material and/or by physical labor or machinery
Non Profit -- Describes an organization, corporation or company that does not operate in order to make a profit.
Operations -- Activities that happen as part of running a business
Prototype -- The first full - size working version of a product
Risky -- Involving the possibility of something bad happening
Service -- A type of product that is tangible
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Startup -- A business that did not exist before
Supplier -- A source for goods or services
Tangible -- Describes something that can be touched
Target market -- People who are most interested in buying a product
Language Focus – Reading skills
Basic:
Advanced: Entrepreneurship Seen as Solution to S. Africa’s Unemployment Crisis
Quiz -- Check your understanding
1. When this article was published, unemployment in south Africa was 25.2%. What was it in previous year?
a. 20.5 %
b. 24.1 %
c. 25.2 %
d. 35.1 %
2. Put the following events in order from first to last (left to right)
(a) Marishane wrote a business plan using a simple phone
(b) Marishane entered DryBath Gel into competitions
(c) Marishane got the idea for DryBath Gel
(d) Marishane was unsuccessful at getting a bank loan
a. a, c, b, d
b. d, c, a, b
c. c, d, a, b
d. c, a, d, b
3. How many people did Ludwick Marishane contract with the idea for his waterless shower?
a. 20
b. 445,590
c. 80
d. 50
4. According to Jason Basel, what is the key to starting a new business?
a. Education
b. One great idea
c. Computer Cafe
d. Red tape and bureaucracy
Content Focus – Why Entrepreneurship?
We will discuss why people become entrepreneurs and some of the challenges that entrepreneurs can have. Let’s review what entrepreneurship means, the making of a new business. First , let’s look at how entrepreneurship helps local and global economic
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A startup, a new business that did not exist before, creates job for the entrepreneur and 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 money to spend. This creates economic development. An example of this job creation can be seen in the article that you read: “Entrepreneurship Seen as Solution to S. Africa’s Unemployment Crisis”
Marshawn created a company that produced a DryBath gel. Marshawn now has a job and he hired other people to work for his startup, who also now have jobs. All of these people who sell things, this creates economic development. A startup also creates jobs for suppliers. Suppliers are the people who provide things and services for the company. Marshawn 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 in creating jobs. But it can also help the economy by creating innovation.
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Small business people can buy, sell and save money more easily. They are more confident to start a business. Innovation can also lead to better use or 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 them money and saves the resources of gas for the future.
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.
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Marshawn Dry gel
can help provide stay clean and more comfortable even the water is not
available to wash in. Think of all the innovations in transportation, in medicine,
and in
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 startup
computers. Because it has a large number of both entrepreneurs and private
funders. The combination creates economic development.
Content Focus – Ideas, Products and Opportunities
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Now let’s discuss about ideas and products. It’s important
to know that ideas are not the same as products. Sometimes ideas do not become
products, sometimes there only ideas and nothing more. This can happened
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. For example, when the US decided to send American 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 money from the US government.
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Most entrepreneurs cannot find the same challenge. When can ideas be presented as products? Ideas can be presented as products when they have a specific design. There are blueprint, or other design pictures 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. 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. This 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 on these three types of products. Marshawn’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.
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Now let’s discuss 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. Entrepreneurs and business people 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 product 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.
Quiz – Check your understanding “identifying different types
of products” (3 questions)
1. Select items that belong to the goods category. Items
belong to only one category (Choose two items)
a. Bed and breakfast
b. Coffee maker
c. Travel agency
d. Shirt
e. Taxi service
2. Select items that belong to the Hybrids category.
Items belong to only one category (choose two items)
a. Coffee maker
b. Formal restaurant
c. Shirt
d. Bed and breakfast
e. Travel agency
f. Taxi service
3. Select items that belong in the service category
(choose two)
a. Taxi service
b. Formal restaurant
c. Shirt
d. Travel agency
e. Coffee maker
f. Bed and breakfast
Content Focus – Creating Simple, One – Sentence Product
Description
We will explore a sample sentence structure for simple one sentence product descriptions. Before we look at sample sentences, let’s take a moment to discuss about why simple product descriptions are an important first step when an entrepreneurs want to take an idea and make a potential products. First, the action of putting an idea into it, one simple specific sentence, helps entrepreneurs think clearly about their product. Second, entrepreneurs can use the one – sentence product description do have easy, helpful conversations about the new product with family, friends, consumers and investors and get their opinions about what they like or what they want.
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Let’s look at three simple one sentence product descriptions. Here’s the first sentence, “A paperclip is a tool that will help teachers and office workers hold papers togethers”. Before you read the next sentence, what kind of product is a paperclip? Is it a good, a service or hybrid product? It is a good, because it is tangible. Here is the second sentence. “ 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 products that is . Here is the last sample sentence. “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, s service or a hybrid product? It is a hybrid product because it is both a good and a service at the same time.
If entrepreneurs can think about and describe the general function of a product they can also begin to answer these three questions, first who needs what the product can do? This question helps entrepreneur think about the target market, more clearly. Second, what other products can do the same thing, as this new product? This question helps entrepreneurs think about competitors. Third, who produces or sell products that may be related to this new product, and therefore, maybe interested in supporting the new business either financially or operationally? This question helps entrepreneurs think about where he or she might find investors. Let’s use DryBath as example. What does DryBath help people do? Be clean. Who needs Drybath? People who live in dry places. What other products can do the same thing as Drybath? Soap and shampoos, but they also require water. Who produces or sells products that maybe related to DryBath, and therefore, maybe interested in supporting the new business, either financially or operationally. Soap and shampoo Companies.
Quiz – Check your understanding “Creating Product
descriptions” (5 questions)
1. A paperclip is a tool that will help
..................... hold paper together.
a. People who are busy
b. People in the cities
c. Teachers and office workers
d. People in dry places
2. A taxi is a .............................
that will help people in cities move from place to place
a. Tool
b. Communication device
c. Travel service
d. Product
3. A DryBath is a personal product that will help
people in dry places...............
Communicate outside or in places
where portability is important
a. Make consistent, quick coffee
b. Move from place to place
c. Get clean and save water
4. A mobile phone is a
.............................. that will help people in or near cities
communicate outside or in places where portability is important.
a. Tool
b. Communication device
c. Kitchen tool
d. Personal product
5. A coffee maker is a kitchen tool that will
help .................. make consistent, quick coffee.
a. People who are busy
b. People in cities
c. Teachers and office workers
d. People in dry places
Language Focus – let’s do a quick grammar review of how to
describe the general function of a product.
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The grammatical structure is a present tense verb and a complement which is a direct or indirect object, a prepositional phrase or adverbial phrase. Here are some examples. For paperclips, the general function is hold papers. This is verb and a direct object. For a taxi service the general function is, move from place to place. This is a verb and two prepositional phrases. For a DryBath, the general function is, get clean this is a verb 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. So the Drybath product description includes, What does DryBath help people do? DryBath helps people get clean and save water. When a product has more than one function, entrepreneurs should ask the three questions for each function. Let’s use a comprehension check to work through the three questions for save water, just like we did for get clean. Writing simple, one sentence product descriptions is not difficult but it takes a lot of practice and careful word choice. The three questions entrepreneurs should ask about the function “save water” are:
- What other products can help people save water?
- Who needs to save water?
- Why do people take baths?
Who produces or sells products that may be related to saving
water and therefore, may be interested in supporting the new business either
financially or operationally.
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| Zero to One: Notes on Startups, or How to Build the Future Kindle Edition |
Deciding on a type of startup. When entrepreneurs think of creating a startup, they must decide what kind of business it will be. 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. The term for profit can be a noun or an adjective. That means we can say that a business is a for – profit, where for – profit is used as a noun or we can 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 manufactures. The term non – profit can also be a noun or an adjective. The primary goal of a no – profit is helping the community. Making money is also important for non-profits because money is needed to support the operation and employees. But the goal of making money is secondary or less important, than the primary goal. 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 Nation 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 – profit, charities and NGOs which are Non Governmental Organizations. That means we can say that a non – profit is a type of not for profit. Doctors without Borders and the American Red Cross are some examples of Non Profit for each of these organizations the primary goal is to help local and global communities like not for profit, the term hybrid organizations also relatively new.
Language Focus – Reading
“African Women Entrepreneurs Think Big and Share Dreams”
Quiz – Check your understanding (3 questions)
1. What do participants learn as
part of The African Women’s Entrepreneurship Program (AWEP)? Check all that
apply
a. Business Strategies
b. Manufacturing contratcs
c. Distribution methods
d. Advocacy
e. Innovative techniques
f. Investor pitches
2. Khadija Ally said started her Company on which special day?
a. Women’s entrepreneurship day
b. Her birthday
c. United Nations Day
d. Her mother’s birthday
3. Which two entrepreneurs created Companies that addressed the
issue of food waste?
a. Anick Natacha Kouadjo
b. Justine Lamah
c. Mariama Adoulaye
d. Amina Azia Ouro – Agoro
e. Zainab Mustapha Jaji
Content Focus – Deciding on a type of startup
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I would like to discuss the words company and corporation. A
company is any kind of business organization. Whereas a corporation is a
specific kind of business organization
or company. That means company and corporation have different meanings. One way
to think about is that a corporation is a type of company. Let’s
look at each
word more closely. The word Company means any kind of business organization. For
example, imagine two friends start a taxi service together. If the friends need
more money to run their business, they might go to a bank and ask for money. In
this case, the two friends must pay the money or debt back to the bank.
Similarly, if one of the friends accidently hits a sign post while driving a
taxi, the two friends are liable or responsible for paying to fix the signpost. Now, the word corporation means a legal entity separate from
its investors. Let’s look at the definition a little more closely. A legal
entity is a company or organization that has legal rights and responsibilities.
Separate is an adjective that means existing or happening
independently or without connection. Therefore a corporation has legal rights
and responsibilities that are independent from its investors. Here’s an example, Apple is a Corporation and therefore is liable or responsible for all of its
debts or obligations or commitments, that means Apple must pay debt owed to a
bank, not its investors. Similarly if an Apple product accidently causes harm to
someone or something. Apple, not the investors, is liable or responsible for
paying to fix the problem. Remember, a Company is any kind of business
organization, whereas a Corporation is a legal entity separate from its
investors.
Content Focus – Risk, Failure and Important Steps
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We will discuss the risks in creating a startup. We will
also talk about the causes of failure and important steps to take to reduce risks
and avoid failure. 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 startup 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 startup. In addition, because they often do not have
another job, they do not have much money for daily living expenses. Because it
can often take a few years for a startup to make money, this situation can be
very stressful and risky, particularly in the startup does not succeed in the
end. If an entrepreneur or other loved ones to support, this stress can be even
worse. Now let’s look at the causes of failure.
Experienced entrepreneurs work and plan to avoid failure,
but there are several common reasons for failure that the entrepreneur can not
control. Let’s look at three important ones:
- The economy
- Customer loyalty
- Competition
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We will look at each of these now. 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. Customer loyalty may also cause failure because target
market . Customers are not always loyal. What does this mean? If 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 customer are not sure what they want. So they try many
products to find out. Another reason is 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. Entrepreneurs must always be aware of the risks of
competitors. Economic changes. Changing customer loyalty, and competition.
These can all cause a new business to fail. An entrepreneur has no direct
control over these.
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What can an entrepreneur do to decrease failure 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.
Let’s briefly look at each of these now. An experienced entrepreneur does
market
research. What is 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 they may not know if people in their target market will
actually buy it. Market research helps the entrepreneur understand if the new
product presents an opportunity. Will the target market want or need the new
product? And will they pay for it? We will discuss market research in more detail. An
experienced entrepreneur also writes a business plan. 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 startup, operations,
marketing and finance. All of this will be written in a business plan.
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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 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. How
many products will be sold in year one? Year two? Year three? Year four? and
year five? We will discuss writing a business plan in more detail. 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.
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Entrepreneurs need to understand their funding options, and
how to present their new product and start up ideas to other people. We will
discuss attracting
investors and getting financial support in more detail. We have 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.
Language Focus – Comparative Structures
We will introduce comparative language, which help people describe similarities and differences between things. Entrepreneurs and business people 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. We discussed the similarities and the differences between an entrepreneurs and small business owner. We will use that comparison again to practice this language focus. Before we begin, use this quick comprehension check to remember the common business skills, strengths and styles of small business owners and entrepreneurs. Let’s review the answers to the comprehensions check.
Pay attention to the sample comparative structures that we use to compare the information in each sentence. Let’s begin. Small business owners focus on maintaining the success and profitability of their business, while entrepreneurs focus in rapid growth and high profitability. Small businesses often begin as start ups just as entrepreneurs ventures do. Both small business owners often own just one business over their careers, entrepreneurs may own several different businesses at a time and over their careers.
There are three kinds of Comparative structure: Sentence
Connectors, Subordinating Conjunctions and Correlative Conjunctions. We will
review each kind with examples. First, Sentence Connector. Sentence Connector
or Conjunctive Adverbs join two Independent Clauses. Independence Clause
contain a Subject and a Verb or Verb phrase. Independence Clause are complete
sentence. Here are some examples. Amy is always on time is an independent
clause because it has a subject and a verb phrase. Her sister is not is also an
Independent Clause because it also has a Subject and a Verb phrase. We can use
a sentence connector to join there two independent clauses. Amy is always on
time, however, her sister is not. Common sentence connectors used to discuss
differences are however, in contrast and on the other hand. Common sentence
connector used to discuss similarities are similarly, likewise and at the same
time.
Notice that you can use a semicolon or a period at the end of the first Independence Clause. There, start the next Independent Clause with a sentence connector. Follow it with a comma and then the next Independent Clause. Now, do a Comprehension check to practice.
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. While a
subordinating conjunction joins in two clause it creates a main clause, Amy is
always on time, adn a subordinate clause, while her sister is not.
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A subordinate clause is a dependent clause or an incomplete thought. A dependent clause can not stand alone. It is not a complete sentence. For example, 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. Common subordinating conjunctions used for discussing differences are whereas and while. A common subordinating conjunction used for discussing a similarity is, 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. Practice your knowledge of coordinating conjunctions in the following comprehension check.
The last comparative structure we will review in this is correlative
conjunctions, which are useful for discussing similarities. There is an example
of correlative conjunction used to discuss two things that are true. Both Amy
and her brother are always on time.
The correlative conjunctions in that sentence are “both”
and “and”. There 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 were correlative
conjunctions are used to joined two nouns. Notice that the verb in the sentence
must agree with the second noun in the pair. Here’s one more comprehension
check to practice correlative conjunctions.
We have completed our review of these kinds of comparative
structures. Sentence Connectors, Subordinate Conjunctions and Correlative
Conjunctions.
This is a discussion board post where you will compare and contrast selling goods to selling services. That means you should use
comparative structures to discuss both the similarities and the differences
between selling goods and selling services.
Quiz – Check your understanding “Correlative Connectors & Sentence Connectors”
1. Every year computer are .................... faster .................... cheaper.
a. Not only .................... but also ....................
b. Neither .....................nor .......................
2. She was hired to
cut costs;.................... she is being asked to increase production.
Choose the best connector for the sentence from the choices
below:
a. At the same time
b. While
c. However
3. Some examples or services include .................... a
taxi service .................... tutoring
a. Both .................... and ..................
b. Neither .................... nor ....................
4. ....................it is possible to have good
coffee or cheap coffee, it usually is impossible to have good, cheap coffee.
a. While
b. At the same time
c. In contrast
5. PNK taxi service was founded to help women; ....................;
pink ladies taxi service also tries to help women
a. However
b. While
c. Similarly
6. Goods are mostly tangible, meaning you can see or touch
them, ....................., services are mostly intangible.
Choose the best connector for the sentence from the choices
below:
a. In contrast
b. At the same time
c. Similarly
Source: Cousera
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