Understanding entrepreneurship 1 Understanding entrepreneurship

Definition of Entrepreneurship… (a review) “The process by which individuals—either on their own or in organizations—pursue opportunities without regard to the resources they currently control.” ~ H. H. Stevenson Entrepreneurship is a mindset that is: Opportunity-focused Risk taking Innovative Growth-oriented An Entrepreneur…

The Role of Entrepreneurship Three schools of thought: An integrated input/output model The career assessment approach The new venture creation process Affected by three categories of variables: The entrepreneur and what he/she brings to process The environment (external variables) The organization (strategic aspects of the new venture)

New Venture Creation Process Figure 1.1

The Role of Entrepreneurship (cont’d) Entrepreneurial process provides many benefits to society: Economic Growth New Industry Formation Job Creation

The Industry Life Cycle Figure 1.3 The Industry Life Cycle 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.

The Nature of Entrepreneurial Startups An entrepreneurial venture brings something new to the marketplace. Three primary characteristics: Innovative Value-creating Growth-oriented The Entrepreneurial Revolution… United States founded on the principle free market economics (The Wealth of Nations-Adam Smith). The term entrepreneur didn’t come into popular use until the 1980s.

New Venture Action Plan Read broadly about entrepreneurs and new ventures. Interview an entrepreneur. Become more aware of new trends, particularly in an industry/market in which you’re interested. End of Chapter 1… Understanding Entrepreneurship