What-is-entrepreneurship

WhatisEntrepreneurship?MarkT.Schenkel,Ph.D.AgendaWhatisEntrepreneurship?–Historicaldevelopment–Definition–Myths–Process–CareerPathsTheEntrepreneurialRevolution“Weareinthemidstofasilentrevolution–atriumphofthecreativeandentrepreneurialspiritofhumankindthroughouttheworld.”“Ibelieveitsimpactonthe21stcenturywillequalorexceedthatoftheIndustrialRevolutiononthe19thand20th.”“Thedeathknellforbrontosauruscapitalismofyesteryear.”--JeffryA.Timmons(TheEntrepreneurialMind,1989)DevelopmentofEntrepreneurshipEarliestPeriod-MarcoPoloMiddleAges-Theater,ArchitecturalWorks17thCentury-MississippiCompany18thCentury-Edison&Whitney19th&20thCenturies–Organize/Operate–InnovationTheOpportunityStatistics–Arandomnationalsample(Galluppollsurvey,1994)ofhighschoolstudentsrevealsthat70%ofthesestudentssaytheywanttoowntheirownbusinesssomeday(Timmons,2004:7)–AnnualChroniclesurvey:40%ofincomingstudentshaveentrepreneurshipasmajorgoalforwhytheyaregoingtocollege–Fortune500employmentdecline:1970(20%)–1996(8.5%)–Smallfirmsconstitutemorethan90percentoftheentirebusinesspopulationVirtuallyofUSA’seconomicgrowthiscomingfromentrepreneurialventuresofallsizesandtypesNotyettaintedbycorporatewayoflifeGoodtimetotakerisk!!!EntrepreneurshipAprocess,notatypeofpersonCreatingand/orbuildingsomethingofvalueIdentifyinganopportunityPullingtogethertheneededresourcestopursuetheopportunityDevelopingandimplementingaBusinessPlanInvolvesuncertaintyandtheacceptanceofriskTheNatureofEntrepreneurialRiskFailure–“SinkingtheBoatRisk”OpportunityCost–“MissingtheBoatRisk”MythsaboutEntrepreneurshipTheLoneCowboyMyth.TheExperienceMyth.TheI’mOnlyinitfortheMoneyMyth.TheEntrepreneursareGamblersMyth.MythsaboutEntrepreneurshipTheEntrepreneursDon’tHavetoWorryaboutNumbersMyth.TheAllYouNeedisMoneyMyth.TheI’veGotaSecretMyth.TheIPOMyth.OtherOpportunitiesforLearningCurbeventcenterretailspaceHatcheryPracticingentrepreneursactivitiesEntrepreneurshipclubInternshipsMentorsNetworking!!!TheEntrepreneurialProcessWorkingDefinitionofEntrepreneurship“Entrepreneurshipisawayofthinking,reasoningandactingthatisopportunityobsessed,holisticinapproach[emphasisadded],andleadershipbalanced”(Timmons,1999:27).TheEntrepreneurialProcess(Timmons,2000)OpportunityResourcesTeamCommunicationBusinessPlanFitsandGapsCreativityLeadershipCapitalMarketForcesUncertaintyAmbiguityExogenousForcesFounderAnalysisStrategyFormulationEval.,Review,&FeedbackImplementationTheEntrepreneurialProcessTheEntrepreneurialProcessStrategyLuckPlanningThreePartProcessCourage:RiskandtheDimensionsofWorkLifeCycleofaBusinessVenturePre-LaunchProcess:IdeaGenerationUnderstandingtheGenesisofNewBusinessesintheEconomySourcesofIdeas:WheretoLookTheEntrepreneurialProcessChallengeTraditionalDefinitionsofValueEntrepreneurshipthrivesonmarketinefficienciesCustomersseekimprovementinthefollowing:–Speed–Convenience–Personalization–PricePre-LaunchProcess:EvaluatingIdeasGenerationDoestheIdea=anOpportunity?–Market–Margin–MissionTheRightTeam?TheNecessaryResources?TheStart-upProcessFillingtheGapsTheBusinessPlan–ExecutiveSummary–MarketAnalysisandMarketingPlan–OperatingPlanandTeam–FinancialPlanGrowingtheBusinessCASHFLOWMANAGEMENTBuildingaCultureMarketingStaffingBuildingManagement&AdministrativeSystemsExitorSuccessionEntrepreneurialCareersDoitnow!NotnecessarilyaoneshotdealSentryPosition(inconsultingfirmorinindustry)FamilyorexistingSmallBusinessCorporateTrackKeyTakeawayPoints...Nofullysatisfactorydefinitionofentrepreneurshiphasbeendevelopedtodate(i.e.,onethatgarnerscollectiveagreementamongscholars&practitionersalike).“Entrepreneurship”reflectscreative,innovative,andarbitrageorientedbehaviors.Isaprocess;involvesplanning,strategizing,andalittlebitofluck.InterconnectednessofresourcesandopportunitiesKeyTakeawayPoints...Entrepreneurshipcanoccur–andfailtooccur–infirmsthatareoldandnew;smallandlarge,fastandslowgrowing;intheprivate,not-for-profit,andpublicsectors;inallgeographicpoints;andinallstagesofanation’sdevelopment.