Entrepreneurs and Entrepreneurship

Entrepreneurs and Entrepreneurship

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Description: What is Entrepreneurship?:- The process whereby an individual or group of individuals use organized efforts to pursue opportunities. To create value and grow by fulfilling wants and needs through innovation and uniqueness–regardless of personal resource situation. Small Business and Entrepreneurial Ventures – The Differences: Small Business–Independently owned, operated, and financed, has fewer than 100 employees, doesn’t engage in new or innovative practices, Has relatively little impact on its industry.

Entrepreneurial Ventures–An organization pursuing opportunities, Characterized by innovative practices, Main goals are profitability and growth.

 
Author: California State University Northridge   | Visits: 482 | Page Views: 634
Domain:  Business Category: Entrepreneurial 
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Contents:
Entrepreneurs and
Entrepreneurship

Learning Objectives
 Define entrepreneurship
 Describe the historical perspectives of entrepreneurship
 Distinguish between entrepreneurship and








intrapreneurship
Explain how entrepreneurial ventures differ from small
businesses
Explain why entrepreneurship is important
Discuss entrepreneurial activity around the globe
Outline the steps in the entrepreneurial process
Describe who entrepreneurs are and what they do
Discuss the different types of entrepreneurs
Discuss the rewards and challenges of being an
entrepreneur

2

What is Entrepreneurship?
 Common Themes in Definitions of

Entrepreneurship









The role of the entrepreneur
Innovation
Organization creation
Creating value
Profit or Not-for-Profit
Growth
Uniqueness
Process
3

What is Entrepreneurship?
 Entrepreneurship
– The process whereby an individual or
group of individuals use organized efforts
to pursue opportunities
• To create value and grow by fulfilling wants and
needs through innovation and uniqueness
– regardless of personal resource situation.

4

Historical Perspectives on
Entrepreneurship

5

Misconceptions About
Entrepreneurship
 Five Misconceptions
1. Successful entrepreneurship needs
only a great idea
2. Entrepreneurship is easy
3. Entrepreneurship is a risky gamble
4. Entrepreneurship is found only in small
businesses
5. Entrepreneurial ventures and small
businesses are the same thing
6

Small Business and Entrepreneurial
Ventures – The Differences
 Small Business





Independently owned, operated, and financed
has fewer than 100 employees
doesn’t engage in new or innovative practices
Has relatively little impact on its industry

 Entrepreneurial Ventures
– An organization pursuing opportunities
– Characterized by innovative practices
– Main goals are profitability and growth

7

Current Importance of
Entrepreneurship
 Three areas of importance

1. Innovation
• Process of creating, changing, experimenting,
transforming, and revolutionizing

2. Number of New Start-ups
• Important because new firms contribute to
economic development through benefits such
as product-process innovation

3. Job Creation
• Vital to the overall long-term economic health
of communities, regions, and nations
8

The Impact of
Entrepreneurship Globally

9

The Entrepreneurial Process
1. Exploring the Entrepreneurial Context
2. Identifying Opportunities and Possible

Competitive Advantage
– Opportunities are positive external trends or
changes that provide unique and distinct
possibilities for innovating and creating value
– Competitive advantage is what sets an
organization apart; it’s competitive edge

3. Starting the Venture

4. Managing the Venture
10

Types of Entrepreneurs
 Novice Entrepreneur
– Has no prior business ownership experiences as a
business founder, inheritor, or purchaser
 Habitual Entrepreneur
– Has prior business ownership experience
 Nascent Entrepreneur
– In the process of starting a new business
– Can be either a novice or a habitual entrepreneur

11

Types of Entrepreneurs
(cont’d)
 Serial Entrepreneur
– Has sold or closed an original business and
establishes another new business
– Continues the cycle of selling/closing and
establishing
 Portfolio Entrepreneur
– Retains an original business and builds a
portfolio of additional businesses
• Through inheriting, establishing, and purchasing the
businesses

12

Demographic Profile of
Entrepreneurs
 Family birth order and gender
– Tend to be “first born” and men more likely to
start businesses than women
 Work experience
– Prior entrepreneurial experience positively
correlated to being an entrepreneur
 Education
– Having a high school diploma sharply raises
odds of trying to start a business
 Entrepreneurial family
– Tend to have parents who were entrepreneurial
13

Personality Profile of
Entrepreneurs
 Personality Characteristics Include:









High level of motivation
Abundance of self-confidence
Ability to be involved for the long term
High energy level
Persistent problem solver
High degree of initiative
Ability to set goals
Moderate risk taker

14

What Entrepreneurs Do
1.

Initially, an entrepreneur is engaged in
assessing the potential for the
entrepreneurial venture,


2.

Then dealing with start-up issues

Once the entrepreneurial venture is up and
running,


The entrepreneur’s attention switches to
managing the venture

15

The Rewards and Challenges of
Being an Entrepreneur

16