What is Entrepreneurship?
Academic Definition (Stevenson & Jarillo)
Entrepreneurship is the process by which individuals pursue
opportunities without regard to resources they currently control.
Venture Capitalist (Fred Wilson)
Entrepreneurship is the art of turning an idea into a business.
Explanation of What Entrepreneurs Do
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.
Corporate Entrepreneurship
Is the conceptualization of entrepreneurship at the firm level.
All firms fall along a conceptual continuum that ranges from highly
conservative to highly entrepreneurial.
The position of a firm on this continuum is referred to as its
entrepreneurial intensity.
CORPORATE ENTREPRENEURSHIP
Characteristics of Successful Entrepreneurs
Passion for the Business
–The number one characteristic shared by successful entrepreneurs is a
passion for the business.
–This passion typically stems from the entrepreneur’s belief that the business
will positively influence people’s lives.
Product/Customer Focus
–A second defining characteristic of successful entrepreneurs is a
product/customer focus.
–An entrepreneur’s keen focus on products and customers typically stems
from the fact that most entrepreneurs are, at heart, craftspeople.
Tenacity Despite Failure
–Because entrepreneurs are typically trying something new, the failure rate is
naturally high.
–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 is a key
characteristic of successful entrepreneurs.
Common Myths About Entrepreneurs
Although no one is “born” to be an entrepreneur, there are common
traits and characteristics of successful entrepreneurs
Myth 2: Entrepreneurs Are Gamblers
Most entrepreneurs are moderate risk takers.
The idea that entrepreneurs are gamblers originates from two
sources:
Entrepreneurs typically have jobs that are less
structured, and so they face a more uncertain set of
possibilities than people in traditional jobs.
Many entrepreneurs have a strong need to achieve
and set challenging goals, a behavior that is often
equated with risk taking.
Myth 3: Entrepreneurs Are Motivated Primarily by Money.
–While it is naïve to think that entrepreneurs don’t
seek financial rewards, money is rarely the reason
entrepreneurs start new firms.
–In fact, some entrepreneurs warn that the pursuit of
money can be distracting.
Types of Start-Up Firms
Changing Demographics of Entrepreneurs
YOUNG ENTREPRENEURS
Interest among young people in entrepreneurial careers
is growing.
According to a Gallop study, 7 out of 10 high school
students want to start their own business.
Over 2,000 two-year and four-year colleges and
universities offer entrepreneurship courses.
Economic Impact of Entrepreneurial Firms
•INNOVATION
–Is the process of creating something new, which is central to
the entrepreneurial process.
–Small firms are twice as innovative per employee as large
firms.
•JOB CREATION
–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.
Entrepreneurial Firms’ Impact on Society and Larger Firms
•IMPACT ON SOCIETY
–The innovations of entrepreneurial firms have a dramatic
impact on society.
–Think of all the new products and services that make our
lives easier, enhance our productivity at work, improve our
health, and entertain us in new ways.
•IMPACT ON LARGER FIRMS
–Many entrepreneurial firms have built their entire business
models around producing products and services that help
larger firms become more efficient and effective.
The Entrepreneurial Process
The Entrepreneurial Process Consists of Four Steps
Step 1: Deciding to become an entrepreneur.
Step 2: Developing successful business ideas.
Step 3: Moving from an idea to an entrepreneurial firm.
Step 4: Managing and growing the entrepreneurial firm.
Steps in the Entrepreneurial Process