SECTION 130.384. Entrepreneurship (One Credit), Adopted 2015

(a) General requirements. This course is recommended for students in Grades 10-12. Recommended prerequisite: Principles of Business, Marketing, and Finance. Students shall be awarded one credit for successful completion of this course.

(b) Introduction.

(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.

(2) The Marketing Career Cluster focuses on planning, managing, and performing marketing activities to reach organizational objectives.

(3) In Entrepreneurship, students will gain the knowledge and skills needed to become an entrepreneur. Students will learn the principles necessary to begin and operate a business. The primary focus of the course is to help students understand the process of analyzing a business opportunity, preparing a business plan, determining feasibility of an idea using research, and developing a plan to organize and promote the business and its products and services. In addition, students will understand the capital required, the return on investment desired, and the potential for profit.

(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.

(5) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.

(c) Knowledge and skills.

(1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:

(A) communicate effectively with others using speaking, listening, and writing skills;

(B) demonstrate collaboration skills through teamwork;

(C) demonstrate professionalism by conducting oneself in a manner appropriate for the profession and workplace;

(D) demonstrate a positive, productive work ethic by performing assigned tasks as directed;

(E) demonstrate integrity by choosing the ethical course of action and complying with all applicable rules, laws, and regulations;

(F) demonstrate time-management skills such as prioritizing tasks, following schedules, and tending to goal-relevant activities in ways that use time wisely and optimize efficiency and results; and

(G) demonstrate leadership skills by participating in career and technical student organizations.

(2) The student demonstrates an understanding of entrepreneurship and the entrepreneurial way of life. The student is expected to:

(A) clarify the terms entrepreneurship and entrepreneur;

(B) define small business; and

(C) analyze the advantages and disadvantages of entrepreneurship.

(3) The student visits local businesses and franchises to investigate business opportunities. The student is expected to:

(A) identify and analyze the four functions of a small business; and

(B) evaluate the issues involved with starting, taking over, or expanding an existing small business.

(4) The student identifies the importance of a well-written business plan. The student is expected to:

(A) identify the need for and the characteristics of a well-orchestrated business plan;

(B) research business plan outlines, resources, and templates; and

(C) create and present a well-orchestrated business plan and critically explain the contents.

(5) The student explains the goal of a business and its unique proposition. The student is expected to:

(A) describe the nature of a business and list the marketplace needs that it satisfies;

(B) explain how a business's products and services meet the needs of the market;

(C) list the specific consumers, organizations, or businesses that a company targets or will target;

(D) explain the competitive advantages that make a business successful; and

(E) create a well-orchestrated company description.

(6) The student explains and demonstrates how to meet the needs of a growing organization. The student is expected to:

(A) describe the role of operations and organization in a growing business; and

(B) create an organizational chart that defines the structure of a company.

(7) The student explains investment and financial resources to achieve business goals and objectives. The student is expected to:

(A) determine the financial plan, including financial requirements and sources of financing;

(B) explain the idea of a growth strategy, including horizontal and vertical growth strategies; and

(C) explain the idea of an exit strategy, including selling a business, going public, and liquidating a business.

(8) The student demonstrates and explains financial and accounting terms and forms. The student is expected to:

(A) explain and define basic accounting functions, terms, assets, and types of assets, including cash; accounts receivable; fixed, liquid, and illiquid assets; and inventory goods on hand;

(B) identify liabilities and types of liabilities such as accounts payable, long-term debt, and short-term debt;

(C) calculate owner's equity or net worth;

(D) evaluate a balance sheet understanding the balance sheet equation (A = L + OE);

(E) analyze profit and loss statements;

(F) evaluate revenues and types of revenues;

(G) determine expenses and types of expenses;

(H) analyze alternative accounting and internal accounting controls;

(I) discuss the importance of budgeting and cash flow;

(J) use common accounting forms to demonstrate an understanding of their functions and results;

(K) analyze the impact of specialization and division of labor on productivity;

(L) explain the impact of the law of diminishing returns; and

(M) create projected financial statements.

(9) The student knows the effects of credit on price and profit. The student is expected to:

(A) identify types of consumer credit;

(B) recommend types of consumer credit a business might offer;

(C) explain the risks and benefits to entrepreneurs when accepting and extending credit; and

(D) describe how credit affects profit and the negotiated price.

(10) The student understands the importance of product management and how it meets the needs of the customer. The student is expected to:

(A) explain product management;

(B) describe supply chain management; and

(C) create product-mix strategies, including branding elements and extended product features, to meet customer needs.

(11) The student knows that pricing has policies, objectives, and strategies. The student is expected to:

(A) develop and analyze pricing objectives;

(B) compare and contrast pricing policies for an entrepreneurial venture; and

(C) recommend appropriate pricing strategies.

(12) The student knows the importance of managing the pricing structure. The student is expected to:

(A) communicate the differences among pricing structures for goods, services, and ideas;

(B) develop a pricing structure for an entrepreneurial venture; and

(C) demonstrate how to calculate prices, markups, and discounts.

(13) The student knows elements and processes of product planning. The student is expected to:

(A) explain the nature and scope of product planning;

(B) define the term product mix; and

(C) identify stages of the product life cycle for business products.

(14) The student knows the process for development, implementation, and evaluation of a marketing plan. The student is expected to:

(A) explain how market penetration strategies contribute to successful marketing;

(B) apply evaluation strategies to determine the effectiveness of market penetration strategies;

(C) illustrate the concept of promotional mix;

(D) use appropriate technology to create promotional materials;

(E) apply evaluation strategies to determine promotional campaign effectiveness;

(F) describe the development of a sales force; and

(G) apply evaluation strategies to determine the effectiveness of sales activities.

(15) The student knows that purchasing usually occurs in a continuous cycle. The student is expected to:

(A) demonstrate the process of selecting suppliers and sources; and

(B) analyze and discuss selection of goods and services based on operational needs.

(16) The student knows that entrepreneurial risk is the possibility of loss or failure. The student is expected to:

(A) categorize business risks such as human, natural, and economic;

(B) classify business risks as pure or speculative, controllable or uncontrollable, and insurable or uninsurable;

(C) explain security precautions and health, safety, and worker welfare regulations; and

(D) analyze examples of business risks to recommend and defend risk-management strategies.

(17) The student understands the importance of a business's social responsibility to society as it relates to shareholders, employees, customers, the community, and the environment. The student is expected to discuss the responsibility of business.

(18) The student understands business ethics and legal responsibilities. The student is expected to:

(A) explain ethical actions in business operations, including ethical considerations in providing information, confidential information, and information appropriate to obtain from a client or another employee; and

(B) manage internal and external business relationships to foster positive interactions by explaining the nature of human resources and workplace regulations, discussing employment relationships, and analyzing the impact of ethical decisions.

(19) The student acquires foundational knowledge of business laws and regulations to understand their nature and scope. The student is expected to:

(A) identify the legal issues affecting businesses; and

(B) investigate the impact of the legal issues.

(20) The student explains the civil foundations of the legal environment of business to demonstrate knowledge of contracts. The student is expected to:

(A) identify the basic torts relating to business enterprises; and

(B) describe the nature of legally binding contracts.

(21) The student explores the regulatory environment of business to understand the diversity of regulations. The student is expected to:

(A) describe the nature of legal procedure;

(B) discuss the nature of debtor-creditor relationships;

(C) explain the nature of agency relationships;

(D) discuss the nature of environmental law;

(E) identify the role of administrative law; and

(F) identify regulatory requirements affecting a business.

(22) The student knows the scope and nature of distribution. The student is expected to:

(A) define effective channels of distribution strategies, including activities associated with transportation, storage, product handling, and inventory control;

(B) explain how distribution can add value to goods, services, and intellectual property; and

(C) determine costs associated with distribution.

(23) The student knows that marketing research is a specific inquiry to solve a problem. The student is expected to:

(A) identify benefits and limitations of marketing research;

(B) identify components of the marketing research process;

(C) explain how to use the marketing research process in order to identify industry trends and potential markets, analyze demand, forecast sales, and make other decisions; and

(D) identify sources of primary and secondary data.

(24) The student knows the process of collecting marketing information to facilitate decision making. The student is expected to:

(A) conduct a market analysis;

(B) use appropriate technology to obtain information about the industry, customer, and competition; and

(C) conduct an analysis of strengths, weaknesses, opportunities, and threats.

Source Note: The provisions of this §130.384 adopted to be effective August 28, 2017, 40 TexReg 6601