ENTREP

• Entrepreneurship


  A dynamic process of vision, change, and creation that requires an application of energy and passion towards the creation and implementation of new ideas and creative solutions
• Entrepreneurs


  • Recognize opportunities where others see chaos, contradiction, or confusion
  • Are aggressive catalysts for change within the marketplace
  • Challenge the unknown and continuously create breakthroughs for the future
• Small Business Owners


  Manage their businesses by expecting stable sales, profits, and growth
• Entrepreneurs


  Focus their efforts on innovation, profitability and sustainable growth
• Entrepreneurship


  • Seeking opportunities
  • Taking risks beyond security
  • Having the tenacity to push an idea through to reality
• Entrepreneur


  One who undertakes to organize, manage, and assume the risks of a business
• No single definition of entrepreneur exists and no one profile can represent today's entrepreneurs, but research is providing an increasingly sharper focus on the subject
• Entrepreneurship (Robert C. Ronstadt)


  The dynamic process of creating incremental wealth by individuals who assume major risks in terms of equity, time, and/or career commitment of providing value for a product or service
• Essential ingredients of entrepreneurship

  • The willingness to take calculated risks—in terms of time, equity, or career
  • The ability to formulate an effective venture team
  • The creative skill to marshal needed resources
  • The fundamental skills of building a solid business plan
  • The vision to recognize opportunity where others see chaos, contradiction, and confusion
• Myths of entrepreneurship


  • Entrepreneurs Are Doers, Not Thinkers
  • Entrepreneurs Are Born, Not Made
  • Entrepreneurs Are Always Inventors
  • Entrepreneurs Are Academic and Social Misfits
  • Entrepreneurs Must Fit the Profile
  • All Entrepreneurs Need Is Money
  • All Entrepreneurs Need Is Luck
  • Entrepreneurship Is Unstructured and Chaotic
  • Most Entrepreneurial Initiatives Fail
  • Entrepreneurs Are Extreme Risk Takers
• Types of people involved with contemporary small businesses


  • The entrepreneur who invents a business that works without him or her
  • The manager who produces results through employees by developing and implementing effective systems and, by interacting with employees, enhances their self-esteem and ability to produce good results
  • The technician who performs specific tasks according to systems and standards management developed
• Corridor principle


  New pathways or opportunities will arise that lead entrepreneurs in different directions
• Unique elements in strategic formulation

  • Unique Markets—mountain gap strategies
  • Unique People—great chef strategies
  • Unique Products—better widget strategies
  • Unique Resources—water well strategies
• Integrative Approach


  Built around the concepts of input to the entrepreneurial process and outcomes from the entrepreneurial process, focusing on the entrepreneurial process itself and identifying five key elements that contribute to the process
• Dynamic States Approach


  Stresses dependency of venture on environment and the interaction of the dominant logic of the firm, the business model, and value creation
• Framework of Frameworks Approach


  Offers a more dynamic view of entrepreneurship, allows for the profession to move forward, and identifies the static and dynamic elements of new theories, typologies, or frameworks of importance
• Entrepreneurship is the symbol of business tenacity and achievement, and entrepreneurs were the pioneers of today's business successes
• The Global Entrepreneurship Monitor (GEM) provides an annual assessment of the entrepreneurial environment of over 100 countries, and the latest GEM study shows the U.S. outranks the rest of the world in important entrepreneurial support
• Entrepreneurs lead to growth by entering and expanding existing markets, creating entirely new markets by offering innovative products, and increasing diversity and fostering minority participation in the economy
• The GEM study found that entrepreneurship works best when there is a strong set of basic conditions in place
• Entrepreneurship is the symbol of business tenacity and achievement
• Two perspectives on entrepreneurship


  • Statistical
  • Academic
• Statistical


  Numbers that emphasize the importance of entrepreneurs to the economy
• Academic


  Trends in entrepreneurial research and education
• Latest GEM study: the U.S. outranks the rest of the world in important entrepreneurial support
• Ways entrepreneurs lead to growth


  • Entering and expanding existing markets
  • Creating entirely new markets by offering innovative products
  • Increasing diversity and fostering minority participation in the economy
• Entrepreneurship


  • Works best when there is a strong set of basic economic requirements in place to reinforce efficiency enhancers
  • Needs both dynamism and stability for the creation of new businesses and the exit of nonviable ones
  • Impacts economic measures for growth, innovation, and internationalization
  • Requires a variety of business phases and types and different types of entrepreneurs including women and age groups
  • Flourishes when there is broad societal acceptance of the entrepreneurial mind-set
• Entrepreneurs create over 400,000 new businesses each year
• 28.2 million small firms provide 49.6% of private-sector jobs and make up 99.7% of employing firms
• Over the past five years, the number of minority-owned firms increased 45.6% while women-owned businesses increased 20.1%
• 1 of every 150 adults participates in the founding of a new firm each year
• Reasons for the exceptional entrepreneurial activity in the U.S.


  • A national culture that supports risk taking and seeking opportunities
  • Americans' alertness to unexploited economic opportunity and a low fear of failure
  • U.S. leadership in entrepreneurship education at both the undergraduate and graduate level
  • A high percentage of individuals with professional, technological or business degrees who are likely to become entrepreneurs
• Gazelle


  A business establishment with at least 20% sales growth in each year for five years, starting with a base of at least $100,000 in annual sales
• Gazelles


  • Are responsible for 55% of innovations in 362 different industries and 95% of radical innovations
  • Produce twice as many product innovations per employee as do larger firms
  • Obtain more patents per sales dollar than do larger firms
• Myths associated with gazelles


  • Gazelles are the goal of all entrepreneurs
  • Gazelles receive venture capital
  • Gazelles were never mice
  • Gazelles are high-tech
  • Gazelles are global
• The simple answer is "none" - sooner or later, all companies wither and die
• In actuality, about half of all start-ups last between 5 and 7 years
• Entrepreneurial components of the U.S. Economy

  • Large firms have increased profitability by returning to their "core competencies through restructuring and downsizing
  • New entrepreneurial companies have been blossoming in new technologies and new markets
  • Thousands of smaller firms established by women, minorities, and immigrants have strengthened the economy
• Entrepreneurial firms


  • They are an integral part of the renewal process that pervades and defines market economies
  • They are the essential mechanism by which millions enter the economic and social mainstream of society
• 21st Century Trends in Entrepreneurship Research


  • Venture Financing
  • Social Entrepreneurship
  • Corporate Entrepreneurship
  • Entrepreneurial Cognition
  • Global Entrepreneurial Movement
  • Family Businesses
  • Women and Minority Entrepreneurs
  • Entrepreneurial Education