ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT

(Semester Course)

BURLINGTON CITY HIGH SCHOOL BURLINGTON, NEW JERSEY

SUBMITTED BY: JOHN ORLANDO

JULY 2001

 

 

ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT

 

 

COURSE STATEMENT

The goal of this course is to give students the knowledge to become entrepreneurs and the skills needed to start and manage a small business. Students will explore the global economy, analyze markets and business activities. Students will identify consumer and industrial products and services, develop pricing strategies, market products and services, and develop organizational and management skills. Students will develop an understanding of business financing and the preparation of financial documents needed to plan for a business. Students will develop a business concept, create a business plan and complete the necessary documents to register the business with the State of New Jersey.


 

 

COURSE PROFICIENCIES ATTITUDES

Ø      Students should recognize the role of entrepreneurs in our society and the impact they have on our economy.

Ø      Students should recognize the importance that entrepreneurs have in creating and bringing to market new and improved products and services.

Ø      Students should recognize the role that entrepreneurs have in the creation of jobs and job growth.

Ø      Students should recognize the risk vs. reward of starting their own business.

Ø      Students should recognize the advantages and disadvantages of owning their own business.

 

 

COURSE PROFICIENCIES SKILLS

Ø      To develop an understanding of the basic facts about entrepreneurship, the major fields of domestic and international business activity.

Ø      To develop an understanding of the advantages and disadvantages of working for oneself, the personal characteristics of successful entrepreneurs, the financial needs of a business and the manner in which one can conducts business activities.

Ø      To develop an understanding of how creativity is used to find ideas for new enterprises and to operate businesses more efficiently.

Ø      To develop an understanding of the concepts of sales forecasting, business location and ways to study competition.

Ø      To develop an understanding of the ways of defining a business, legal forms of business enterprises, human resource management, family-owned business issues, and sources of assistance.

Ø      To develop an understanding of the marketing a products/services, channels of distribution, pricing, personal selling, advertising, and sales promotion.

Ø      To develop an understanding of the types of sources of funds for starting a business, factors in the need for additional capital, and tips for requesting loans.

Ø      To develop an understanding of the preparation of financial statements, and how changes in price, volume of sales, costs of sales and operating expenses affect profit.

Ø      To develop an understanding of the forms that must be completed to register a business with the State of New Jersey.

Ø      To develop an understanding of how to create a business plan.

 

 

STANDARDS

Students will discover the world of entrepreneurship and the forms of business activity.

Students will be able to:

Identify the features most new enterprises have in common; define entrepreneurship; discuss why the study of entrepreneurship is important to them; distinguish between entrepreneurship and small business management; identify the important roles performed by small business; identify the major, fields of business activity: extractive, manufacturing, wholesaling, retailing and services; identify the forms of retailing: over-the -counter, mail-order, direct and vending machine; identify the types of services: personal, business, repair, entertainment and recreation and hotel/lodging; describe the growing importance of international business; discuss the future prospects for entrepreneurship and identify the types and reasons of business closure/failure

Core Curriculum #'s: Cross-Content Workplace Readiness Standards: Standard 3:1-3, 7-9, 12 and Standard 4:3, 9-10.

Students will examine entrepreneurship as a career, the personal characteristics of an entrepreneur, types of entrepreneurs, and the disadvantages and advantages of starting a business enterprise.

Students will be able to:

Discuss the advantages of working for yourself: personal satisfaction, independence, profit, job security, and status; discuss the disadvantages of working for yourself: possible loss of invested capital, uncertain or low income, long hours, and routine chores; list the eight types of entrepreneurs: solo self-employed individuals, team builders, independent innovators, pattern multipliers, economy-of-large-scale exploiters, capital aggregators, acquires and buy-sell artists; identify the characteristics common to successful entrepreneurs: moderate in taking risks, self-confident, hard-working, goal-oriented, responsible, innovative, knowledgeable about technical factors and knowledgeable about business factors; list the advantages and disadvantages of the three major ways of going into business: purchasing an existing business, starting a business from scratch, and purchasing a franchise and explain what sideline and home-based businesses are.

Core Curriculum #'s: Cross-Content Workplace Readiness Standards: Standard 1:2-3, 5, 7; Standard 3:1-3, 7-15; and Standard 4:1, 3, 9-10.

 

Students will develop a business enterprise/concept using their creativity, media, trade and public shows, surveys and individual ideas.

Students will be able to:

List and explain sources of developing new enterprise ideas: newspapers (classified advertising, business opportunities, business services and articles), magazines (special-interest magazines and trade publications), hobbies, merchandise shows (public and trade shows) and craft and hobby shows; describe the differences between a trade show and a public show; list and explain methods of generating new enterprise ideas: conduct a surveys (informal and formal), brainstorming, making observations, and keeping a notebook of ideas; list the rules for individual brainstorming; list ways to sharpen your observation skills and discuss how creativity can be used to find ideas that will make businesses run more efficiently.

Core Curriculum #'s: Cross-Content Workplace Readiness Standards: Standard 1:2-3; Standard 2: 3-4, 6-7; Standard 3:1-3, 7-9,12; and Standard 4:3, 9-10

Students will develop an understanding of our global economy, how to analyze markets and evaluate competition.

Students will be able to:

Define market and; market segments; differentiate between consumers and business users; describe the process of market segmentation; list ways in which you can learn about a target market; explain sales forecasting and why it is important to a new enterprise; describe the steps in the sales forecasting process; identify the characteristics of a good location and list the items that should be included in a study and the evaluation of competitors.

Core Curriculum #'s: Cross-Content Workplace Readiness Standards: Standard 3:1-3, 7-9, 12; and Standard 4:3, 9-10

Students will plan for a new business, identify the various types of businesses, develop organizational and management principles and practices.

Students will be able to:

Define industry; write a definition of the student's planned business (type, name, product/service offered, image desired, customer service, location and employees); list the advantages and disadvantages of the various types of business ownership: sole proprietorship, partnership and corporation; explain the basic organization of an enterprise; define and explain the purpose of an organizational chart; create an organizational chart; explain the purpose of human resource management: hiring, training, determining compensation and employee benefits; identify problems unique to family owned business; describe sources of assistance for planning the enterprise: attorneys, accountants, bankers, trade associations and small business administration and identify the role models and support systems for entrepreneurs.

Core Curriculum #'s: Cross-Content Workplace Readiness Standards: Standard 2:3, 6-7; Standard 3:1-4, 7-15 and Standard 4:3, 9-10.

 

Students will develop an understanding of how to market products and services associated with various business enterprises, differentiate between consumer and industrial products and services, price products and services, develop pricing strategies, and the ethical practices.

Students will be able to:

Define marketing, marketing strategy and marketing concept; distinguish between consumer products (convenience, shopping and specialty goods) and services and industrial products (raw materials, processed materials and parts, supplies, installations and accessory equipment) and services; describe the channels of distribution and intermediaries: producer, agent, wholesaler, retailer, consumer; explain the methods of pricing products and services: costs must be covered, affect image, affect sales volume; define and calculate markup: wholesalers and retailers; explain the pricing strategy for a new product or service: skimming and penetration pricing policy; discuss ways of promoting products and services: personal selling, advertising, promotion and identify the factors that can influence and define ethical behavior.

Core Curriculum #'s: Cross-Content Workplace Readiness Standards: Standard 2: 3, 6-7; Standard 3:1-4, 7-15 and Standard 4:3, 9-10.

Students will develop an understanding of how to obtain financing for a business enterprise.

Students will be able to:

Estimate the start-up cost for a new enterprise; differentiate between one-time costs and continuing costs; identify the types of funds: equity, debt and comparison (risk, control and availability); identify sources of funds: vendors, commercial banks, commercial finance companies; describe the differences between short-term and long-term capital needs; define capital; identify needs for additional capital: sales growth, expansion, opportunities to reduce costs, seasonal factors and economic conditions and describe the process for obtaining a loan.

Core Curriculum #'s: Cross-Content Workplace Readiness Standards: Standard 3:1-3, 7-9, 12 and Standard 4:3, 9-10.

Students will develop an understanding of the preparation of the financial documents needed to operate a business enterprise.

Students will be able to:

Prepare a cash budget: cash balance, cash receipts and cash disbursements; prepare an income statement (profit and loss statement): sales, cost of sales (cost of goods sold/manufactured/services), gross profit and expenses; prepare a balance sheet: assets, liabilities and net worth and describe how price, volume, cost of sales, and operating expenses affect net profit.

Core Curriculum #'s: Cross-Content Workplace Readiness Standards: Standard 1:12; Standard 3:1-3, 7-9,12-14 and Standard 4:3, 9-10.

 

Students will create a Business Plan for a business enterprise.

Students will be able to create a Business Plan:

Executive Summary: to give the reader an overview of the business, your company's distinctive competence and the factors that will make you successful in the marketplace, introduce the owners and management team, brief explanation of the product/service and target market, specific information on the market and how you will promote and sell the product/service, summary of financial projections and loan/investment requirements and time-frame for repayment of funds.

Company Profile: brief introduction of the type of businesses; location; product, history and/or start date of the business, form of business - sole proprietorship, partnership, corporation, owners, partners involved, and business advisors - lawyer, accountant, industry contacts/mentors

Market and Industry Analysis: industry trends, product/service, target market, marketing research, and competitive analysis

Marketing Strategy: pricing strategy, promotional strategy and distribution and location strategy.

Operational Plan: suppliers, manufacturing plans and operating procedures, operating regulations and human resources.

Financial Analysis: financial plan (justification for monthly sales projections, cash flow forecasting, projected income statement and projected balance sheet) and future plans/considerations.

Core Curriculum #'s: Cross-Content Workplace Readiness Standards: Standard 1:1-2, 12; Standard 2: 3-9; Standard 3:1-4, 7-15 and Standard 4:3, 9-10.

Students will complete the necessary forms to register a business with the State of New Jersey,

Students will be able to:

Prepare the forms necessary to register the name of their business and business type: sole proprietorship, partnership or corporation; identify the taxes a business must pay; Prepare new hire reporting forms and Identify request for change of registration forms.

Core Curriculum #'s: Cross-Content Workplace Readiness Standards: Standard 2: 3-9; Standard 3:1-3, 7-9,12 and Standard 4:3, 9-10.

 

 

EVALUATION TECHNIQUES

Ø      A variety of assessment techniques will be used in the student evaluation process. Student progress will be evaluated based on the following criteria:

Ø      Class Assignments

Ø      Test and Quizzes

Ø      Cooperative Learning Activities

Ø      Projects

Ø      Class Discussion, Participation and Presentations

Ø      Completion of a Business Plan

Ø      Preparation of State registration forms

 

 

BIBLIOGRAPHY

Hutt, Roger. Entrepreneurship - Starting Your Own Business. Cincinnati: South-Western, 1994. Lesonsky, Rieva. Entrepreneur Magazine - Start Your Own Business. Irvine: Entrepreneur Press,

2001. State of New Jersey Business Gateway Services, <http://www.state.nj.us/njbgs/services.html>. 16

July 2001. The Entrepreneurship Centre, <http ://www.entrepreneurship. com/busplan_eng.htm>. 16 July 2001.