The Myth of Entrepreuneurship (Donald F. Kuratko and Richard M. Hodgetts, 1995): 1.Entrepreuneur are doers, not thinkers 2.Entrepreuneur are born, not made 3.Entrepreuneur are always inventor 4.Entrepreuneur are academic and social misfits 5.Entrepreuneur must fit the “Profile” 6.All you need is money to be an entrepreuneur 7.All you need is luck to be an entrepreuneur 8.Ignorance is bliss for an entrpreuneur 9.Entrepreuneur seek success but experience high failure rates 10.Entrepreuneur extreme risk takers (gamblers)

The potentials drawback of entrepreuneur Norman M. Scarborough, 2000: 1.Uncertainty of income 2.Risk losing your entire invested capital 3.Long hour and hard work 4.Lower quality of life until the business get estabilished 5.High level of stress 6.Complete responsibility

The causes of business failure 1.Management incomplete 2.Lack of experience 3.Poor financial control 4.Lack of strategic management 5.Uncontrolled growth 6.Inappropriate location 7.Lack of inventory control 8.Inability to make “entrepreunial transition”

The “dark” side of entrepreuneurship: 1. Financial risk 2. Career risk 3. Family and social risk 4. Psychic risk The Entrepreunerial Ego: 1.An overbearing need for control 2.Sense of distrust 3.Overiding desire for success 4.Unrealitic optimism

Four causes of enrepreunerial stress Boyd and Gumpert (1983): 1.Loneliness 2.Immersion in business; most entrepreuneur are married to their business. They work long hours, leaving them with little time for civic organizations, or further educations. 3.People problems 4.Need to achieve

Five specific ways to cope with stress: 1. Networking 2. Getting away from it all 3. Communicating with subordinates 4. Finding satisfaction outside the company 5. Delegating

Typology of Entrepreunial Styles Level of Personal Risk Low High Low risk avoiding risk accepting activity seeking activity seeking Level of Profit Motive High risk avoiding risk accepting profit seeking profit seeking

Variables in New-venture Creation INDIVIDUAL(S) ORGANIZATION PROCESS ENVIRONMENT INDIVIDUALS Need for achievement Locus of control Risk-taking propensity Jon satisfaction Previous work experience Entrpreunial parents Age Education

ORGANIZATION Overall cost leadership Differentiation Focus The new product or service Parallel competition Franchise entry Geographical transfer Supply shortage Tapping unutilized resources Customer contract Becoming a second source Joint ventures Licensing Market relinquishment Sell-off division Favored purchasing by government Govermental rule changes

PROCESS Locates a business opportunity Acucumulates resources Markets product and services Produces the product Biilds and organization Respon to government and society

ENVIRONMENTAL Venture capital availability entrepreuneurs Precence of experinced entrepreuners Technial skill lobor force Accesibility of suppliers Accesibility of customer or new markets Govemental influences Proximity of universities Availability of land or facilities Acessibility of transportation Attitude of the area population Availability of supporting services Living conditions High occupational and industrial differentiation

ENVIRONMENTAL (CONTINUED) High percentage of recent immigrants in the populaton Large industrial base Larger-size urban areas Availability of financial resources Barriers to entry Rivalry among existing competitors Pressure from substitute products Bargaining power of buyer Bargaining power of suppliers

A MODEL OF ENTREPREUNIAL MOTIVATION PC PE PG BE IDEA EXPECTATION/OUT COME COMPARISON INTRINSIC/EXTRI NSIC REWARDS DECISION TO BEHAVE ENTREPREUNE URIALY ENTRPREUN ERRIAL STRATEGY FIRM OUTCOMES ENTREPREUNE RIAL MANAGEMENT IMPLEMENTATI ON/OUTCOME PERCEPTION

Notes: PC = personal characteristic PE = personal environment PG = personal goals BE = business environment

INTRAPREUNIAL DEVELOPMENT: JOINT FUNCTI0N OF INDIVIDUAL AND ORGANIZATION FACTOR INDIVIDUAL FACTORS JOB ATTITUDES “Noise” “ Noise” include stability of product, econ cond. ORGANIZATIONAL BEHAVIORAL FACTORS INTENTIONS Attributes and Role Requrements Values Behavioral Orientations Organizational Commitmnet Job Satisfaction Structure Reward System Propensity to leave