Chapter 1 What is Entrepreneurship?

The Meaning of Entrepreneurship  Word descended from the Latin word, prendre (means, “to take”)  Entrepreneurs are people who take hold of opportunities when they see them  They are willing to assume calculated risks, as they look for ways to satisfy the needs and wants of others

Needs  Are essential for human survival  They are classified as either “real” or “psychological”  Real needs are things like food, and shelter (they are tangible)  Psychological needs are things like companionship and security (they are emotional)

Entrepreneurship…..  Is the creation and building of a venture to fill a market niche

Characteristics of Entrepreneurial Ventures  For profit (goal is to make money) vs not- for-profit (goal is to fulfill a social need)  Large scale (at a national or international level) vs small scale (at a local level)  Service production vs goods production  Physical (bricks and mortar locations) vs virtual (online or e-commerce business)

Technology and Change  The internet has allowed small businesses to compete with larger ones  Small businesses can access information about demographics (data about groups of people including age, ethnic origin, religion, family size, income)  Software packages developed for small businesses include tools for accounting, marketing research, finance, sales and more

Impact on the Community  Job creation (when entrepreneurship happens in a community, it has a multiplier effect – people spend more money, more jobs are created)  New ideas – entrepreneurs think of new ways of doing things  Economic benefits – entrepreneurs help lower prices via competition, and also improve a society’s standard of living

Impact on the Community…con’td  Political benefits – entrepreneurship happens more easily in places where there are not laws and regulations that deter new venture creation. (ie, entrepreneurs need a supportive environment)

Intrapreneurship  Intrapreneurship is entrepreneurship that occurs within an existing organization or corporation  Often large corporations restructure their organizations into small, more innovative teams  They are often responsible for launching a new product, service or process

Entrepreneurs: Made or Born?  There is some debate about how people become entrepreneurs  Some say that people who are born into a family of entrepreneurs are more likely to become entrepreneurs themselves  Others say that the entrepreneurial trait is one that you either have, or you don’t.

Classwork:  Form groups of 2 or 3  1. prepare a list of 10 successful ventures in your community. Choose from a variety of fields such as athletics, entertainment, music, community service, and home decorating.  2. think of companies that fit into each of the following categories: Try to avoid the obvious ones!!  a) for profit b)not-for-profit c)service  d) goods e)local f)national  g)physical h)virtual

Homework:  Research 3 entrepreneurs who have started new ventures. What have they created? How did they start?  What are some of the characteristics that you believe are common to all 3 of the people you have researched?