Mission StatementTO ASSIST YOUNG PEOPLES DEVELOP THE ENTREPRENEUR SKILLS AND KNOWLEDGE TO EFFECTIVELY MANAGE THEIR CAREERS

Understanding Entrepreneurship

Learning Objectives

1. Define entrepreneurship2. Explain the role of entrepreneurship3. Distinguish entrepreneurial ventures

from small businesses4. Describe the evolution of

entrepreneurship5. Identify today’s broad trends in the

field of entrepreneurship.

Define Entrepreneurship

An Entrepreneur…

One who Organizes, Manages and

Assumes Risk of a Business or

Enterprise (Merriam-Webster)

Entrepreneurship

Entrepreneurship is a mindset

–Opportunity-focused

– Innovative

–Growth-orientedCan you add additional Characteristics and/or

Attributes…?

The Promise of Entrepreneurship

1. An integrated input/output model

2. The career assessment approach

3. The new venture creation process

The Entrepreneurship Process

Entrepreneurship and Technological Change

Outcomes of Entrepreneurship

• Economic growth

• New industry formation

• Job creation

> Knowledge, Wealth, Philanthropy, Self Actualization<

New Industry Formation…New industries are born when technological

change produces a new opportunity that an enterprising entrepreneur seizes.

Disruptive or metamorphic technologies that destroy previous technologies and create new industries and display a different pattern of behavior.

The pattern of growth, shakeout, stabilization, and decline of industry can be interrupted at any time by the entry of another disruptive technology.

Industry Life Cycles

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 (January 2003).

The Nature of Entrepreneurial Start-ups

• An entrepreneurial venture brings something to the marketplace.

• Three primary characteristics

1. Innovative2. Value-creating3. Growth-oriented

New Business Formation• Entrepreneurs use identifiable

milestones to measure their progress:–Deciding to start a business– Researching the concept– Preparing for launch– Securing the first customer–Obtaining the business license

And other activities which signal the business is in operation

Social, Political, and Economic Context of the Entrepreneurial Process

Source: Paul D. Reynolds. (2000) National Panel of U.S. Business Start-ups: Background and Methodology. Databases for the Study of Entrepreneurship, Amsterdam: JAI/Elsevier Inc. Vol. 4, pp. 153-227.

New Business Failure

• Not all entrepreneurs succeed in growing their start-up into an established business.

• Survival has been attributed to sufficient capital, having employees, and the entrepreneur’s intention in starting the business.

Socially Responsible Entrepreneurship

• Today, more and more companies and their employees are involved in philanthropy.

• Some business owners have chosen to define their businesses publically as “socially responsible businesses…”

The Entrepreneurial Revolution

Entrepreneurial Trends

• Women and minority-owned businesses

• Social responsibility

• The Internet

• Globalization

Can you think of additional trends…How about your ideas…

Do The Venture Checklist

• Keep as a Journal/Work Papers

• Bring to Every Class

• Your Ideas…Write Them Down On Paper…!!!

The Road Ahead…Launching New Ventures

Part One: The Opportunity1. Introduction to Entrepreneurship2. The Entrepreneur’s Perspective3. Opportunity Recognition4. The Business Concept and Model

Part Two: Feasibility AnalysisPart Three: The Business Plan Part Four: Growth and Change

Competition

• Summarize the competition.• Outline your company’s competitive

advantage.

The Team

• List CEO and key management by name.• Include previous accomplishments to

show that these are people with a record of success.

• Summarize number of years of experience in this field.

Market Summary

• Summarize your market in the past, present, and future.– Review those changes in market share,

leadership, players, market shifts, costs, pricing, or competition that provide the opportunity for your company’s success.

Opportunities

• Identify problems and opportunities.– State consumer problems and define the

nature of product/service opportunities that are created by those problems.

Business Concept

• Summarize the key technology, concept, or strategy on which your business is based.

Goals and Objectives

• List five-year goals• State specific, measurable objectives for

achieving your five-year goals.– List market-share objectives.– List revenue/profitability objectives.

Financial Plan

• Outline a high-level financial plan that defines your financial model and pricing assumptions.– This plan should include expected annual

sales and profits for the next three years.– Use several slides to cover this material

appropriately.

Resource Requirements

• List requirements for the following resources:– Personnel– Technology– Finances– Distribution– Promotion– Products– Services

Risks and Rewards

• Summarize the risks of the proposed project and how they will be addressed.

• Estimate expected rewards, particularly if you are seeking funding.

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