2. The Nature and Importance of Entrepreneurs1
Chapter
The Nature and Importance of Entrepreneurs

3. Development of Entrepreneurship
Earliest Period- Marco Polo
Middle Ages- Theater, Architectural Works
17th Century- Mississippi Company
18th Century- Edison & Whitney
19th & 20th Centuries
Organize/Operate
Innovation

4. Environmental Factors Affecting Organizations
Hypercompetition
Changing Technology
Short Product Life Cycles
New Markets
Changing Employee Drives/Motives
Focus on Sales/Profits
Available Capital

5. Innovation Orientation Entrepreneurship Culture
Economies
Market-Oriented
Controlled
UNITED STATES
CUBA
Market Conditions
Innovation Orientation
Investment Community
Entrepreneurship Culture

6. Market Conditions Large Market Easy To Form Company
Positive Tax Structure
Positive Media Coverage
Code of Business/Contract Law
Strong Gov’t Agencies- No Corruption
Standard-Setting Associations
Individual Investment Mentality

7. Principles for Successful New Venture
Define Market
Durable Products- 18 Month Customer Payback
Market Growth = 30-50% in 5 Years
Patent Protection
No Product Substitutions Available
Products Variants
No Strong Competition Present
Quick Market Dominance
Gross Margin 30-50%
Staged Financing
ROI = 10X in 5 Years (25-30%/Year)
Positive Cash Flow in 18 Months
Strong Management in Industry

8. Infrastructure Needed for Innovation
Long-Term Thinking
Investment Community
Banks
Venture Capitalists
Informal/Informed Private Investors (Angels)

9. Entrepreneurship Culture
More New Ventures Than Anywhere In The World
Concentrated Areas

10. Successful Entrepreneur
Initiates Creation Process
Devotes Time/Effort
Assumes Risk
Receives Rewards
Independence
Satisfaction
Money

11. Entrepreneurial Decision
Present Lifestyle
Catalyst
New Enterprise
Desirable
Possible

12. Drivers of New Venture Formation
Desirability Influences
Culture/Subculture
Family/Peers
Teachers
Possibility Factors
Government
Background
Marketing
Role Models
Finances

13. Types of Startups
Lifestyle
Foundation
High Potential
Gazelles

14. Entrepreneur & Economic Development
Product-Evolution Process
Iterative Synthesis
Innovation
Technological
Breakthrough
Government
Technology Transfer
Intrapreneurship vs. Entrepreneurship

15. Product Evolution Need Recognition Industrial Initiate Innovation
Development
Press To Invent

16. Careers/Education Life Space Skills Required Work/Occupation
Individual/Personal
Nonwork/family
Skills Required
Technical
Business Management
Personal

17. Skills Required of Entrepreneur
Technical
Business Management
Personal
Writing
Planning
Inner Control
Oral Communication
Decision Making
Risk Taking
Monitoring The Environment
Human Relations
Innovative
Use Technology
Marketing
(Selling)
Change-Oriented Visionary

18. Ethics & Social Responsibility
Ethics- Behavior/Morals in Business
Value System
Peer Pressure
Social Norms
Competitors
Individual vs. Community

19. Future Entrepreneurial Education Government- Promotion
Society’s Support
Corporate Intrapreneurship

20. Entrepreneurial Universities
Activities
Seminars
Consulting
Research
Case Development
Technology Development & Transfer
Joint Ventures & Strategic Alliances
Structures
Business Assistance Centers
Incubators
Innovation Centers
Industrial Parks
Enterprise Development Centers
Venture Capital Exchanges
Inputs
Guest Lectures
Board of Advisors/Trustees
Internships
Student Projects
Source of Funds