1. America’s Entrepreneurial Revolution Goes Global Chapter Two
Dowling
BA 560
Fall Term 2006

2. BA560 Venture Planning Prof. Dowling
A Global Movement
Significant impact on the U.S. cultural and economic landscape
Model for business, education, and policymakers around the globe
Exploding in India, China, and the former Soviet bloc
Adoption of the entrepreneurial mind-set is growing exponentially larger and faster
BA560 Venture Planning Prof. Dowling

3. Innovation + Entrepreneurship = Prosperity and Philanthropy
Entrepreneurship is an important political phenomenon
The linkage between entrepreneurship and public policy is increasingly important
BA560 Venture Planning Prof. Dowling

4. BA560 Venture Planning Prof. Dowling
Job Creation
Research findings by U.S. Small Business Administration’s Office of Advocacy:
Small businesses and entrepreneurs created more than 34 million new jobs since 1980
Small businesses represent 99 % of all employers
Small businesses provide about 75 % of all new net jobs
BA560 Venture Planning Prof. Dowling

5. BA560 Venture Planning Prof. Dowling
New Venture Formation
Creates economic and social mobility
Is opportunity-centered and rewards talent and performance
Entrepreneurship is not about religion, gender, skin color, social class, or national origin
Women and a number of ethnic and racial groups are excelling at entrepreneurship
BA560 Venture Planning Prof. Dowling

6. BA560 Venture Planning Prof. Dowling
Exhibit 2.1
BA560 Venture Planning Prof. Dowling

7. BA560 Venture Planning Prof. Dowling
The Self-Employed
The highest level of personal satisfaction
Challenge
Pride
Remuneration ($)
Love of work - it is:
Invigorating
Energizing
Meaningful
BA560 Venture Planning Prof. Dowling

8. Mega-Entrepreneurs Who Started in Their 20s
Microsoft—Bill Gates and Paul Allen
Dell Computers—Michael Dell
Apple Computers—Steve Jobs and Steve Wozniak
Federal Express—Fred Smith
Polaroid—Edward Land
Nike—Phil Knight
BA560 Venture Planning Prof. Dowling

9. New Industries Launched by the E-Generation (1 of 2)
Personal computers
Biotechnology
Wireless cable TV
Fast oil changes
PC software
Desktop information
Wireless communications/handheld devices
BA560 Venture Planning Prof. Dowling

10. New Industries Launched by the E-Generation (2 of 2)
Healthy living products
Electronic paging
Voice mail information technology services
Cellular phone services
CD-ROM
Internet publishing and shopping
Desktop computing
Virtual imaging
BA560 Venture Planning Prof. Dowling

11. BA560 Venture Planning Prof. Dowling
Exhibit 2.4
BA560 Venture Planning Prof. Dowling

12. BA560 Venture Planning Prof. Dowling
Innovation
Small entrepreneurial firms (since WWII) are:
Responsible for half of all innovation
Credited with 95 percent of all radical innovation
BA560 Venture Planning Prof. Dowling

13. BA560 Venture Planning Prof. Dowling
Exhibit 2.5
BA560 Venture Planning Prof. Dowling

14. Venture and Growth Capital
Classic venture capitalists:
Work as coaches and partners with entrepreneurs and innovators
At very early stages of development
To shape and accelerate the development of the company
BA560 Venture Planning Prof. Dowling

15. BA560 Venture Planning Prof. Dowling
Angel Investors
Moderately wealthy to very wealthy individuals
Successful entrepreneurs
Bring experience, learning curves, networks, wisdom and maturity
Serve as coach, confidant, mentor and cheerleader
BA560 Venture Planning Prof. Dowling

16. BA560 Venture Planning Prof. Dowling
Exhibit 2.6
BA560 Venture Planning Prof. Dowling

17. BA560 Venture Planning Prof. Dowling
Exhibit 2.7
BA560 Venture Planning Prof. Dowling

18. BA560 Venture Planning Prof. Dowling
Exhibit 2.7
BA560 Venture Planning Prof. Dowling

19. America’s Self-Made Millionaires
The Millionaire Next Door by Thomas J. Stanley and William D. Danko
Millionaire—a person with a net worth of $1 million or more
Traits of these millionaires
Two-thirds are self-employed
Over 80 percent accumulated their wealth in one generation
BA560 Venture Planning Prof. Dowling

20. The New Age of Equity Creation
Long-term perspective
Venture capital industry has followed overall economics
Over 95 percent of the nation’s wealth has been created since 1980 – a direct result of the entrepreneurial revolution
BA560 Venture Planning Prof. Dowling

21. U.S. Venture Capital Investment by Year
Number of Average per Sum Investment
Time Period Companies Company ($millions)
$ ,767.1
$ ,511.1
$ ,120.6
$ 10,992.9
$ 20,899.8
$ 104,827.4
$ 21,579.3
$ 21,004.4
BA560 Venture Planning Prof. Dowling

22. Building an Entrepreneurial Society
The poor get richer
Equal opportunities (not equal incomes) are created
Economic mobility increases
Social mobility increases
BA560 Venture Planning Prof. Dowling

23. BA560 Venture Planning Prof. Dowling
Exhibit 2.9
BA560 Venture Planning Prof. Dowling

24. BA560 Venture Planning Prof. Dowling
Exhibit 2.10
BA560 Venture Planning Prof. Dowling

25. BA560 Venture Planning Prof. Dowling
Exhibit 2.11
BA560 Venture Planning Prof. Dowling