Download - Understanding entrepreneurship
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
UNDERSTANDING ENTREPRENEURSHIP
1
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Definition of Entrepreneurship… (a review)
“The process by which individuals—either on their own or in organizations—pursue opportunities without
regard to the resources they currently control.”
~ H. H. Stevenson
Entrepreneurship is a mindset that is:• Opportunity-focused• Risk taking• Innovative• Growth-oriented
An Entrepreneur…
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Role of Entrepreneurship Three schools of thought:1. An integrated input/output model 2. The career assessment approach 3. The new venture creation process
Affected by three categories of variables:• The entrepreneur and what he/she brings to
process• The environment (external variables)• The organization (strategic aspects of the new
venture)
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
New Venture Creation Process Figure 1.1
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Role of Entrepreneurship (cont’d)
Entrepreneurial process provides many benefits to society:• Economic Growth
• New Industry Formation
• Job Creation
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Industry Life Cycle
Source: Adapted from M. R. Darby and L. G. Zucker, “Growing by Leaps and Inches: Creative Destruction, Real Cost Reduction, and Inching Up,” Economic Inquiry (January 2003), pp. 1-19.
Figure 1.3
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Nature of Entrepreneurial Startups An entrepreneurial venture brings
something new to the marketplace.
Three primary characteristics:
1. Innovative2. Value-creating3. Growth-oriented
The Entrepreneurial Revolution… United States founded on the principle
free market economics (The Wealth of Nations-Adam Smith).
The term entrepreneur didn’t come into popular use until the 1980s.
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
New Venture Action Plan
Read broadly about entrepreneurs and new ventures.
Interview an entrepreneur.
Become more aware of new trends, particularly in an industry/market in which you’re interested.
End of Chapter 1…
Understanding Entrepreneurship