1. Understanding entrepreneurship1
Understanding entrepreneurship

2. 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…

3. 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)

4. New Venture Creation Process
Figure 1.1

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

6. 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

7. 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.

8. 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