foundations of entrepreneurship

 Foundations of Entrepreneurship challenges members to demonstrate their understanding of key entrepreneurial concepts through an objective test. This event covers topics such as business planning, innovation, opportunity recognition, risk management, and the fundamentals of launching and managing a business venture.

Event Overview

Division: Collegiate
Event Type: Individual
Event Category: Objective Test, 100-multiple choice questions (breakdown of question by competencies below)
Objective Test Time: 50 minutes

Career Cluster Framework Connection: Management & Entrepreneurship

NACE Competency Alignment: Career & Self-Development, Communication, Critical Thinking, Leadership, Professionalism, Technology

Items Competitor Must Provide: Pencil, Computer, Photo Identification, Attire that meets the Florida FBLA Dress Code

This event is intended for students who are early in their collegiate academic journey and just beginning their study of entrepreneurship. Only members who have completed no more than six credit hours on a semester schedule (or the equivalent number of quarter hours) of college-level entrepreneurship coursework by May 1, 2026, are eligible to compete.

 Competencies

·         Basic Plan
·         Community/Business Rleations
·         Legal Issues
·         Initial Capital and Credit
·         Personnel Management
·         Financial Management
·         Taxes
·         Government Regulations

Test questions are based on the knowledge areas and objectives outlined for this event. Detailed objectives can be found in the study guide included in these guidelines.

State

Eligibility

·         FBLA membership dues are paid by 11:59 pm Eastern Time on February 1st of the current program year.

·         Members must be registered for the SLC and pay the state conference registration fee in order to participate in competitive events.

·         Members must stay within the official FBLA housing block of the official FBLA hotel to be eligible to compete.

·         Each chapter may submit six students in this event.

·         On the state level, each member can compete in up to three different events in the following combinations: three objective tests OR two objective tests and one performance OR two objective tests and one production or one objective test and two production OR one objective test, one performance, and one production. Students may enter the Christopher Heider, Rob Kelleher, Who’s Who event, and one Chapter event (Community Service, State of the Chapter) in addition to their above chosen events.

·         Picture identification (physical or digital: driver’s license, passport, state-issued identification, or school-issued identification) matching the conference nametag is required when checking in for competitive events.

·         If competitors are late for an objective test, they may be either disqualified or permitted to begin late with no extension of the time as scheduled. This is at the discretion of the proctor.

·         Participants must adhere to the Florida FBLA dress code established by the Florida Board of Directors or they will not be permitted to participate in the competitive event.

Recognition

·         The number of competitors will determine the number of winners. The maximum number of winners for each competitive event is 4.

Event Administration

·         This event is an objective test administered prior to the SLC. Advisers will be sent information regarding testing requirements.

·         No reference or study materials may be brought to the testing site.

·         No calculators may be brought into the testing site; online calculators will be provided through the testing software.

Scoring

·         Ties are broken by comparing the correct number of answers to the last 10 questions on the test. If a tie remains, answers to the last 20 questions on the test will be reviewed to determine the winner. If a tie remains, the competitor who completed the test in a shorter amount of time will place higher.

Americans with Disabilities Act (ADA)

·         FBLA complies with the Americans with Disabilities Act (ADA) by providing reasonable accommodations for competitors. Accommodation requests must be submitted through the conference registration system by the official registration deadline. All requests will be reviewed, and additional documentation may be required to determine eligibility and appropriate support.Penalty Points

·         Competitors may be disqualified if they violate the Competitive Event Guidelines or the Honor Code.

Electronic Devices

·        Unless approved as part of a documented accommodation, all cell phones, smartwatches, electronic devices, and headphones must be turned off and stored away before the competition begins. Visible devices during the event will be considered a violation of the FBLA Honor Code.

National

If competing at the National level, be sure to see the National guidelines at https://www.fbla.org/collegiate/competitive-events/

Study Guide: Knowledge Areas and Objectives

A. Business Plan

1. Explain the benefits and liabilities of starting a business.

2. Evaluate the types of business ownership/organization structure and understand the advantages and disadvantages of each.

3. Conduct initial feasibility studies by identifying industry trends, competition, and market segment using various research techniques.

4. Select a business opportunity based on research.

5. Create a company vision, mission, and short-and long-term strategic goals and plans.

6. Develop and implement financial/budgeting plans including start-up costs and funding needed to begin the business.

7. Prepare a management plan that incorporates legal requirements, business protection, quality control, operations, milestone strategy, and harvesting the business.

8. Develop an organizational chart with staffing/human resource plans including job descriptions and recruitment techniques.

9. Prepare an in-depth presentation for potential investors including banks and venture capitalists.

10. Develop account reports for a two-year period.

B. Community/Business Relations

1. Recognize the importance of union-management relationships and contracts to ensure business continuity.

2. Develop and implement a public relations program for the company.

3. Develop an ethical code of conduct and implementation process to include business relationships and community activities.

4. Explain the role of business in the community.

5. Develop appropriate methods to communicate business activities with the community and clients/customers.

C. Legal Issues

1. Develop procedures for the legal review of documents and procedures, such as contracts.

2. Develop procedures to retain accurate records.

3. Demonstrate knowledge of social, ethical, and legal issues for small business.

4. Demonstrate knowledge of the implementation of consumer protection laws.

5. Apply legal interpretations to employee situations, retention of records, safety and security issues, and financial data.

6. Develop an expressed and implied warranty for sale and return of goods.

D. Initial Capital and Credit

1. Identify types of sources of credit and credit terms.

2. Compare costs, qualifications, and procedures for various forms of credit.

3. Describe concepts of risk management including factors that affect business risk and rate of return.

4. Complete credit forms and applications.

5. Describe methods of solving credit problems.

6. Identify and maintain records of the initial capital assets (current assets, investments, property, plant, and equipment, and intangible assets).

E. Personnel Management

1. Prepare organizational charts and job descriptions to expedite workflow.

2. Develop, explain, and maintain written personnel policies, rules, and procedures including a grievance system, to ensure consistency and to help employees perform their jobs.

3. Evaluate the effects of employee absenteeism, errors, or other negative employee relations on business productivity.

4. Plan, develop, and implement employee orientation and ongoing training programs.

5. Develop employee recruitment plans to obtain qualified employees.

6. Develop and manage an organization’s salary administration and benefits program to service employees with options and benefits.

7. Develop and implement a plan for evaluation of employee performance and productivity.

8. Develop separation, termination, and transition procedures for processing employee personnel actions.

9. Plan and manage work schedules and personnel to maximize operations.

10. Maintain safe and healthy working conditions in compliance with OSHA standards.

11. Identify and develop a professional growth plan for employees.

F. Financial Management

1. Select an accounting system consistent with GAAP standards.

2. Plan and maintain a budget.

3. Record business transactions to track business activities and manage cash and banking procedures.

4. Interpret financial data and statements to develop short-and long-term budgetary plans, to determine point of profitability and viability, and to analyze cash flow forecast.

5. Apply computational skills to computerized financial documents.

G. Marketing Management

1. Define industry characteristics, major competitors, and market segment.

2. Determine, maintain, and improve the marketing mix.

3. Apply strategies for determining and adjusting prices to maximize return and meet customer perception of value.

4. Develop a process for delivering effective customer relation skills.

5. Establish selling philosophies to develop customer loyalty and profitability.

6. Disseminate information about products, services, and the firm to achieve a desired outcome for a product or service.

7. Gather, access, synthesize, evaluate, and disseminate marketing information to make business decisions.

8. Identify current business trends to recognize changes needed in business operations.

9. Develop and implement a strategic plan for supply chain management.

H. Taxes

1. Demonstrate knowledge of the current state and federal regulations to apply the tax due.

2. Use tax preparation procedures to determine tax liability for the organization.

3. Analyze tax structure and consequences to assist in business decision making.

4. Apply regulations regarding employee/employer taxes.

I. Government Regulations

1. Define, interpret, and apply federal, state, and local regulations to small business ownership.

2. Exhibit ethical conduct in business negotiations and decisions.

3. Understand the role of government in business.

4. Identify and keep current with laws and regulations that affect business practices.