1-3Development of Entrepreneurship (1 of 2) Earliest Period Entrepreneurs would sign contracts with a money person. Example: Marco Polo Middle Ages Entrepreneurs were actors and people who managed largeproduction projects. 17th Century Entrepreneurs entered into contractual arrangements with thegovernment. Example: Mississippi Company
1-4Development of Entrepreneurship (2 of 2) 18th Century With global industrialization taking place, entrepreneurs weredistinguished from capital providers. Inventions developed during this time were reactions tothe changing world. Example: Edison & Whitney 19th and 20th Centuries Entrepreneurs were not distinguished from managers. They were viewed mostly from an economic perspective. Concept of innovation and newness was an integral part. Example: Andrew Carnegie
1-5Definition of Entrepreneurs Today Entrepreneurship is the process of creating something newand assuming the risks and rewards. Four aspects of being an entrepreneur today: Involves creation process. Requires devotion of time and effort. Involves rewards of being an entrepreneur. Requires assumption of necessary risks.
1-6Entrepreneurs Versus Inventors Inventor: Creates something for the first time; highlydriven and motivated by his or her own work andpersonal ideas. Differentiating characteristics of an inventor: Education. Level of experience. Problem-solving skills. Level of self-confidence. Willingness to take risks. Ability to tolerate ambiguity and uncertainty. View of monetary benefits in measuring success.
1-7The Entrepreneurial Process Four distinct phases: Identify and evaluate the opportunity. Window of opportunity. Develop a business plan. Determine the resource requirement. Manage the resulting enterprise.
1-8Aspects of the Entrepreneurial ProcessTable 1.1<<Insert Table 1.1>>
1-9Types of Start-Ups Lifestyle firm Privately held; usually achieves only modest growth. Foundation company Created from research and development. Lays the foundation for a new business area. High-potential venture Receives the greatest investment interest and publicity. Starts out like a foundation company, but attains rapid growth. Also called gazelles, is integral to the economic developmentof an area.
1-10Role of Entrepreneurship inEconomic Development Innovation is depicted as a key to economicdevelopment. Product-evolution process: Process through whichinnovation is developed and commercialized. Iterative synthesis: Critical point in the product-evolutionprocess. Three types of innovation: Ordinary Technological Breakthrough
1-11Product EvolutionNeed RecognitionNeed RecognitionInitiate InnovationInitiate Innovation DevelopmentDevelopmentIndustrialIndustrialPress to InventPress to Invent
1-12Government as an Innovator One channel for commercializing the results of thesynthesis of social need and technology. Frequently called technology transfer. Relatively few innovations reach commercial markets. Lacks business skills necessary for successfulcommercialization. Government bureaucracy and red tape act as inhibitors.
1-13Corporate Entrepreneurship Strengths of an existing business: Financial resources. Business skills. Marketing and distribution systems. Factors that inhibit successful commercialization: Bureaucratic structure. Emphasis on short-term profits. A highly structured organization. In the current era of hypercompetition, strategicbusiness units (SBUs) are emerging.
1-14Independent Entrepreneurship Factors that inhibit commercialization: Managerial skills. Marketing capabilities. Financial resources. Unrealistic inventions. Lack of awareness on interfacing with necessary entities(banks, suppliers, customers, venture capitalists,distributors, and advertising agencies).
1-15Ethics and Social Responsibility Entrepreneurs usually develop an internal ethical code. Personal value systems tend to be influenced by: Peer pressure. General social norms in the community. Pressures from their competitors.
1-16Future Entrepreneurship has gained mileage through a number ofways: Entrepreneurial education. Increase in academic research. Societal support (media coverage). Corporate entrepreneurship.
1-17Entrepreneurial Universities Activities Seminars Consulting Research Case Development Technology Development &Transfer Joint Ventures & StrategicAlliances Structures Business Assistance Centers Incubators Innovation Centers Industrial Parks Enterprise DevelopmentCenters Venture Capital Exchanges Inputs Guest Lectures Board of Advisors/Trustees Internships Student Projects Source of Funds