Economic Growth and Development Powerpoint.pdf

Entrepreneurs and Economic Growth AKS 50, a, B, C  Entrepreneur Video (3 minutes) An entrepreneur is someone who takes a risk to produce new goods and services to start a business. Entrepreneurs are important to the growth of economies. Come up with new...

Entrepreneurs and Economic Growth AKS 50, a, B, C  Entrepreneur Video (3 minutes) An entrepreneur is someone who takes a risk to produce new goods and services to start a business. Entrepreneurs are important to the growth of economies. Come up with new ideas and innovations which utilizes both human capital and capital goods. Entrepreneur  Famous Georgia Entrepreneurs Alonzo Herndon (1858-1927): Barbershops and Atlanta Life Insurance Company Anne Cox Chambers (1919-2020): Cox Enterprises Ted Turner (1938-): media, producer, restaurants, Atlanta Braves, Goodwill Games, yachting Arthur Blank (1942-) and Bernie Marcus (1929-): Home Depot Truett Cathy (1921-2014): Chick-fil-A John Pemberton (1831-1888), Asa Candler (1851-1929), Robert Woodruff (1889-1985): Coca-Cola  Entrepreneur Do you have what it takes to be an entrepreneur? The following are traits of an entrepreneur. High motivation to achieve Solid Work Ethic Independent Strong leadership skills Good business instincts and skills Belief in themselves and their ideas Entrepreneur  Profit If a business’s expenses are less than the money it makes the business makes a profit. Profit is a company’s earnings after all expenses are paid. Profit provides an incentive for any entrepreneur. Profit keeps businesses growing and offers hope for a bigger return on investment.  Profit Entrepreneurs help increase GDP because they create jobs for citizens to fill and create products/services in order to make a profit. States with large number of entrepreneurs have a high number of jobs which create a positive economic impact on the state.  Profit The great Colonel Sanders, iconic founder of the fast-food chain Kentucky Fried Chicken (KFC), began pursuing his fried chicken dream only after reaching age 65. On top of that, Sanders was rejected 1,009 times before his recipe was accepted by a restaurant Today KFC makes over $3.1 billion willing to franchise. Talk in revenue and is one of the top about persistence! food chains in America.  Expenses Entrepreneurs create goods or services to generate income. The cost related to businesses are called expenses. Startup expenses include machinery, payroll, rent, office supplies, marketing materials, vehicles, inventory, etc.  The goal of owning a business is to make a profit. Businesses must sell goods or services to generate income. Recognize any of these companies started by entrepreneurs?  Risks Over 80% of all new businesses do not survive their first year of operation, 50% do not survive past 5 years. Those companies who have more expenses than what they are earning will not survive. It is simply costing them more money that what they are making to run their business.  Risks When an entrepreneur starts a new business, he or she takes a risk that it might fail and the investment might be lost. It is estimated that the average cost of starting ones on business is $30,000. Link to “7 Risks Every Entrepreneur Must Take”  Risks Most entrepreneurs are risk takers by nature. They sometimes face losing everything they invested into a startup business. When choosing this career path, you leave security as a wage earner behind as well as extra time to spend with your family, all in order to create something new. Examples  Examples Example: As a young boy Steve Jobs had a natural desire to learn about innovation in technology. Jobs did not believe that computers of their age had to be so massive and so they started designing microcomputer parts. At the age of 21 Jobs and his friend Steve Wozniac built their first computer in their garage. That same year they created their company together of which eventually evolved into one of the most successful brands of all time. You may know there company it as Apple!!!  Examples Example: In 1962 an entrepreneur named Sam Walton had an idea to start a store that supplied a vast number of goods so that customers could get everything they needed at one place. Today this store is one of the top stores on Earth. Do you know what it is called? Walmart  Agriculture Industry Video on Past and Future Georgia Farming (9:02) Leading industry in Georgia at over $71 billion annually Climate and weather make Georgia an ideal state for agriculture. Georgia is one of the leading producers cotton, peanuts, and soybeans. Georgia entrepreneurs have started new agriculture businesses such as artisan cheeses, olive oil and wine.  Agriculture Industry Many U.S. residents wouldn’t have fruit, meat, and nuts if it wasn’t for Georgia’s agriculture. The state is known as the No.1 pecan producer in the world, and is among the leading producers of blueberries, peaches, peanuts, and poultry produce. One in seven Georgians working in agriculture, forestry, or a related field, according to the Georgia Farm Bureau.  Entertainment Industry Georgia has recently become a hub for the film and entertainment industry (including music-Atlanta, Athens, and Macon have vibrant music scenes). Georgia’s governor Nathan Deal placed tax incentives in the film industry greatly increasing profitability for TV shows and movie films. Entertainment industry generates more than $10 billion annually for Georgia.  Entertainment Industry Deal set up the tax breaks to all companies who spend $500,000 or more in production cost to receive a 20% tax credit which saves a great deal of money and helps companies recoup more profit. The company gets another 10% tax credit by displaying the Georgia promotional logo on the end credits!  Entertainment Industry "Forrest Gump," "Glory," and "Sweet Home Alabama" are just some of the hit films that were made in Georgia. The state has the fourth largest entertainment industry in the nation with more than 800 film and television projects, 30,000-plus workers, and an economic impact of close to $7 billion in 2015 alone.  Manufacturing Industry Georgia’s manufacturing industry makes over $61 billion annually and employs over 270,000 production workers. Georgia’s 4 major transportation systems make it ideal for companies to produce their goods in Georgia. Four modes of transportation are water ports, railroads, highways, and airports.  Manufacturing Industry Kia Motors chose the state for its first U.S. manufacturing facility, and more than 20 percent of the East Coast’s automotive exports leave through Georgia’s ports, averaging $9.5 billion a year.  Service Industry Georgia receives over 105 million visitors annually which brings in over $53.6 billion. Georgia offers pristine beaches, gorgeous mountains, rich history, and unique cities that attack millions each year. Tourism helps create jobs, attracts investments, and provides residents with an improved quality of life.  Service Industry People visit each year in popular destinations such as Jekyll Island, the Georgia Aquarium, the Martin Luther King Jr. Memorial Park, and the World of Coca-Cola. The tourism industry also supports more than 411,000 jobs.  Technology Industry Georgia specializes in aviation, aerospace/space, information technology, and digital media. Georgia’s educational system produces skilled and highly trained workforce needed in the technology industry. Georgia ranks number 1 in Aerospace technology.  Technology Industry In 2019, Georgia ranked No. 1 among the top 10 U.S. states for aerospace manufacturing, while the U.S. remained number 1 globally! Aerospace has a $64 billion economic impact in Georgia, and this incredible win for our state puts a spotlight on the more than 800 aerospace companies that call Georgia home.