SS

• Entrepreneurs


  People that notice opportunities and take the initiative to mobilize resources to make new goods and services
• Intrapreneurs


  People that notice opportunities and take initiative to mobilize resources, however they work in large companies and contribute to the innovation of the firm
• Intrapreneurs often become entrepreneurs
• Advantages of a small business


  • Greater Opportunity to get rich through stock options
  • Feel more important
  • Feel more secure
  • Comfort Level
• Disadvantages of a small business

  • Lower guaranteed pay
  • Fewer benefits
  • Expected to have many skills
  • Too much cohesion
  • Hard to move to a big company
  • Large fluctuations in income possible
• Common traits of entrepreneurs

  • Original thinkers
  • Risk takers
  • Take responsibility for own actions
  • Feel competent and capable
  • Set high goals and enjoy working toward them
  • Self-employed parents
  • Firstborns
  • Between 30-50 years old
  • Well educated – 80% have college degree and 1/3 have a graduate level degree
• Characteristics of successful entrepreneurs

  • Creative and Innovative
  • Position themselves in shifting or new markets
  • Create new products
  • Create new processes
  • Create new delivery
• Characteristics of unsuccessful entrepreneurs

  • Poor Managers
  • Low work ethic
  • Inefficient
  • Failure to plan and prepare
  • Poor money managers
• Entrepreneurship (academic definition)


  The process by which individuals pursue opportunities without regard to resources they currently control
• Entrepreneurship (venture capitalist definition)

  The art of turning an idea into a business
• Entrepreneurs assemble and then integrate all the resources needed – the money, the people, the business model, the strategy — needed to transform an invention or an idea into a viable business
• Corridor Principle


  Using one business to start or acquire others and then repeating the process
• Serial Entrepreneurs


  A person who founds and operates multiple companies during one career
• Entrepreneurs are made, not born
• Need for Achievement


  A person's desire either for excellence or to succeed in competitive situations
• Desire for Independence


  Entrepreneurs often seek independence from others
• Self-Confidence


  Because of the high risks involved in running an entrepreneurial organization, having an "upbeat" and self-confident attitude is essential
• Self-Sacrifice


  Essential for entrepreneurs as success has a high price, and they have to be willing to sacrifice certain things
• Many entrepreneurs demonstrate strong technical skills, typically bringing some related experience to their business ventures
• Primary reasons people become entrepreneurs


  • Desire to be their own boss
  • Desire to pursue their own ideas
  • Financial Rewards
• Passion for the business


  The number one characteristic shared by successful entrepreneurs
• Product/customer focus


  A defining characteristic of successful entrepreneurs
• Tenacity despite failure


  A defining characteristic for successful entrepreneurs' is their ability to persevere through setbacks and failures
• Execution intelligence


  The ability to fashion a solid business idea into a viable business
• Start or buy a business


  • Start - cheapest, but very difficult. Requires most planning/research
  • Buy - expensive – may be out or reach. Requires less planning and research
  • Franchise (middle ground) - a business run by an individual (the franchisee) to whom a franchiser grants the right to market a certain good or service
• Planning & Research essential for the market
• Entrepreneurs often find that as their business grows, they feel more pressure to use formal methods to lead their organizations
• A successful business is one that delivers value to its customers and creates value for its owners
• Ways to deliver value to customers

  • Better
  • Cheaper
  • Faster
  • Cooler
  • Different
• Ways to create value for owners

  • Do more with their money than they could do with it themselves
  • Invest in productive activities that earn rates of return greater than their risk-adjusted costs of capital
  • The present value of future cash flows exceeds the startup costs
• Ways to create value


  • Exploiting proprietary physical resources
  • Possessing proprietary knowledge or expertise
  • Creating a new or improved product, process, or service
  • Staying ahead of the competition through constant improvement and innovation
• Types of start-up firms

  • Salary-substitute firms
  • Lifestyle firms
  • Entrepreneurial firms
• There were 6.2 million women-owned businesses in 2002 (the most recent statistics available), up 20% from 1997
• Minorities owned roughly 18% of U.S. businesses in 2002, up 10% from 1997
• The number of older people choosing entrepreneurial careers is rapidly increasing
• Interest among young people in entrepreneurial careers is growing, with 7 out of 10 high school students wanting to start their own business
• Small firms are twice as innovative per employee as large firms
• In the past two decades, economic activity has moved in the direction of smaller entrepreneurial firms, which may be due to their unique ability to innovate and focus on specialized tasks
• The innovations of entrepreneurial firms have a dramatic impact on society
• Many entrepreneurial firms have built their entire business models around producing products and services that help larger firms become more efficient and effective