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    • 2. Learning Objectives
      • Explain the role of entrepreneurship in economic growth.
      • Discuss the characteristics and behaviors of entrepreneurs.
      • Distinguish entrepreneurial ventures from small businesses in terms of their purpose and goals.
    • 3. Learning Objectives (continued)
      • Describe the evolution of entrepreneurship as a field of study since the 1960s.
      • Identify the three broad categories of research in entrepreneurship.
    • 4. Definition of Entrepreneurship
      • Entrepreneurship is a mindset or way of thinking that is:
        • opportunity-focused
        • innovative
        • growth-oriented
    • 5. The Promise of Entrepreneurship
      • Technological innovation is the biggest engine of growth for the U.S. economy.
      • Technological change has facilitated the globalization of economic growth.
      • It is responsible for the biggest productivity gain achieved in the US in 19 years posted in Q1 of 2002.
    • 6. Figure 1.1: Entrepreneurship and Technological Change
    • 7. Outcomes of Entrepreneurship
      • Globalization
      • New industry formation
      • Job Creation
      • New business formation
    • 8. New Industry Formation
      • New industries are born when technological change produces a new opportunity that an enterprising entrepreneur seizes.
      • Disruptive or metamorphic technologies that destroy previous technologies and create new industries display a different pattern of behavior.
      • The pattern of growth, shakeout, stabilization, and decline of industry can be interrupted at any time by the entry of another disruptive technology.
    • 9. Figure 1.2: Industry Life Cycles
      • 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 (January 2003).
    • 10. Job Creation
      • Entrepreneurial ventures are responsible for significant job creation.
      • SBA estimates that three-quarter of all net new jobs in 2000 were created by small business.*
      • * U.S. Bureau of the Census; Administrative Office of the U.S. Courts; Endogenous Growth and Entrepreneurial Activities.
    • 11. New Business Formation
      • Entrepreneurs use identifiable milestones to measure their progress:
        • Deciding to start a business
        • Researching the concept
        • Preparing for launch
        • Securing the first customer
        • Obtaining the business license
        • Other activities which signal the business is in operation.
    • 12. Figure 1.3: Social, Political, and Economic Context of the Entrepreneurial Process
      • Source: Paul D. Reynolds. (2000) National Panel of U.S. Business Start-ups: Background and Methodology. Databases for the Study of Entrepreneurship, Amsterdam: JAI/Elsevier Inc. Vol. 4, pp. 153-227.
    • 13. New Business Failure
      • Not all entrepreneurs succeed in growing their start-up into an established business.
      • Survival rates of new businesses vary by industry and demographics.
      • The vital lesson for an entrepreneur is to minimize the cost of a possible failure: start with robust business mode and test it in the marketplace prior to starting the business.
    • 14. Table 1.1: Starts and Closures of Employer Firms, 1990-2002
    • 15. Figure 1.4: Entrepreneurship in the United States by Gender, Age, and Education
      • Source: H. Neck, A.L. Zacharakis, W. Bygrave, and P. Reynolds (Eds.). Global Entrepreneurship Monitor 2002 Executive Report, p. 14.
    • 16. The Nature of Entrepreneurs
      • Entrepreneurial Characteristics:
        • Risk-taking
        • Need for achievement
        • A sense of independence
        • Internal locus of control
        • Tolerance for ambiguity
    • 17. Entrepreneurial Behavior
      • The entrepreneurial act is the act of creating a business by:
        • perceiving an opportunity
        • assessing the opportunity
        • risking resources to exploit the opportunity
        • managing the process of building a venture from and idea
        • managing creative value
    • 18.  
    • 19. Entrepreneurial Behavior (continued)
      • Entrepreneurs:
        • have a passion to build innovative businesses from the idea stage.
        • continue to act entrepreneurially, making strategic decisions that engage the business in risk-oriented activity, growth, and consequent high performance.
    • 20. Theresa Bergeron Thermohair, Inc
      • Founder and President of Thermohair, Inc.
      • Company produces goods made from mohair (fleece from angora goats)
      • Discusses marketing, business planning and entrepreneurship
    • 21. Types of Entrepreneurs
      • The Home-Based Entrepreneur
      • The Cyber Entrepreneur
      • The Serial Entrepreneur
      • The Traditional Entrepreneur
      • The Nonprofit Entrepreneur
      • The Corporate Venturer
    • 22. Nature of Entrepreneurial Start-Ups
      • Primary characteristics:
        • Innovative
        • Value-creating
        • Growth-oriented
    • 23. Daniel Stein JDS Capital and eMusic
      • President of JDS Capital, based in New York City
      • CEO of Dimensional Associates – operating company which manages JDS Capital’s digital media assets including eMusic
      • Discusses entrepreneurship, risk, managing people, leadership, business planning and work-life balance
      • Bachelor’s degree from Cornell University
    • 24. Figure 1.5: The Entrepreneurial Revolution
    • 25. The Entrepreneurial Phenomenon
      • What constitutes the study of Entrepreneurship?
        • Sources of opportunities
        • Processes of discovery, evaluation, and exploitation of opportunities
        • Individuals and teams who recognize the opportunities, evaluate them, and exploit them.
    • 26. The Entrepreneurial Phenomenon (continued)
      • “ Entrepreneurship: The intersection of lucrative opportunities and enterprising individuals.” *
      • * Finkle, T.A., and D. Deeds (2001). “Trends in the Market for Entrepreneurship Faculty During the Period 1989-1998.” Journal of Business Venturing, 16(6):613.
    • 27. Essentials for Entrepreneurship
      • Opportunity Recognition
      • Opportunity Exploitation
      • Networking