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Introduction
- 1. 1-1 EntrEprEnEurship & small BusinEss managEmEnt Introduction to Course
- 2. Course Objectives 1of 2 • To possess a well grounded understanding of essential entrepreneurial business principals. • To develop an understanding of important business issues as they relate to new ventures. • To identify, appreciate, and assess the knowledge, attitudes, and skills of an entrepreneur ©2010 Pearson Education 1-2
- 3. Course Objectives 2of 2 • To study and observe entrepreneurial settings and entrepreneurial role models through exposure to actual business settings and experiences • To have an expanded awareness of the resources available for creating a business plan • To establish a level of confidence in creating a business plan as a tool to assess, create and communicate a business concept. • ©2010 Pearson Education 1-3
- 4. Resources Textbook Essentialsof Entrepreneurship and Small Business Management, 6th Edition, Scarborough, Norman M., Upper Saddle River, NJ: Pearson Prentice Hall Publishing Co., 2011 Optional Software Business Plan Pro® by Palo Alto Software This software may be included with your text as an optional resource Business Feasibility Analysisä by Palo Alto Software This software may also be included with your text as an optional resource ©2010 Pearson Education 1-4
- 5. Course Components Case Assignments Entrepreneur Interview Group Project: Feasibility Study and Business Plan Development ©2010 Pearson Education 1-5
- 6. Exam/ Grading Adesignated number of midterm exams and a final exam will test your grasp of the materials discussed in class and in the assigned readings. GRADING Percentage Points Class Participation 5% 5 Case Assignments (2 at 40 points each) 10% 10 Entrepreneurial Interview 5% 5 Project Work 20% 20 Midterm Exam(s) 10% 10 Final Exam 50% 50 TOTAL POINTS 100 ©2010 Pearson Education 1-6
- 7. Introduction to Entrepreneurship There is tremendous interest in entrepreneurship in the U.S. and around the world. According to the 2007 GEM study, 9.6% of Americans are actively engaged in starting a business or are the owner/manager of a business that is less than three years old. ©2010 Pearson Education 1-7
- 8. Indications of IncreasedInterest in Entrepreneurship • Books – Amazon.com lists over 45,000 books dealing with entrepreneurship and 118,000 focused on small business. • College Courses – In 1985, there were about 250 entrepreneurship courses offered across all colleges in the United States. – Today, more than 5,000 entrepreneurship courses are offered in two-year and four-year colleges and universities in the United States. ©2010 Pearson Education 1-8
- 9. What is anEntrepreneur? Entrepreneur: A person who organizes and manages an enterprise, especially a business, usually with considerable initiative and risk. – Initiative: Readiness and ability in initiating action. – Risk: The hazard or chance of loss. ©2010 Pearson Education
- 10. What is anEntrepreneur? “An entrepreneur is someone who perceives an opportunity and creates an organization to pursue it.“ In the U.S., approximately 4% of the adult population is actively involved in starting a business at any given time. One out of every two adults has tried to start a business at some time in his or her life. ©2010 Pearson Education
- 11. What Does itTake to Be Successful? “In entrepreneurship, luck is where preparation and opportunity meet.” ©2010 Pearson Education
- 12. What is Entrepreneurship? • Academic Definition (Stevenson & Jarillo) – Entrepreneurship is the process by which individuals pursue opportunities without regard to resources they currently control. • Venture Capitalist (Fred Wilson) – Entrepreneurship is the art of turning an idea into a business. • Explanation of What Entrepreneurs Do – Entrepreneurs assemble and then integrate all the resources needed –the money, the people, the business model, the strategy—needed to transform an invention or an idea into a viable business. ©2010 Pearson Education 1-12
- 13. Corporate Entrepreneurship 1of 2 • Corporate Entrepreneurship – Is the conceptualization of entrepreneurship at the firm level. – All firms fall along a conceptual continuum that ranges from highly conservative to highly entrepreneurial. – The position of a firm on this continuum is referred to as its entrepreneurial intensity. ©2010 Pearson Education 1-13
- 14. Corporate Entrepreneurship 2of 2 Entrepreneurial Firms Conservative Firms • Pro active • Innovative • Risk taking • Take a more “wait and see” posture • Less innovative • Risk adverse ©2010 Pearson Education 1-14
- 15. Why Become anEntrepreneur? The three primary reasons that people become entrepreneurs and start their own firms Desire to be their own boss Desire to pursue their own ideas Financial rewards ©2010 Pearson Education 1-15
- 16. Characteristics of SuccessfulEntrepreneurs 1 of 3 Four Primary Characteristics ©2010 Pearson Education 1-16
- 17. Characteristics of SuccessfulEntrepreneurs 2 of 3 • Passion for the Business – The number one characteristic shared by successful entrepreneurs is a passion for the business. – This passion typically stems from the entrepreneur’s belief that the business will positively influence people’s lives. • Product/Customer Focus – A second defining characteristic of successful entrepreneurs is a product/customer focus. – An entrepreneur’s keen focus on products and customers typically stems from the fact that most entrepreneurs are, at heart, craftspeople. ©2010 Pearson Education 1-17
- 18. Characteristics of SuccessfulEntrepreneurs 3 of 3 • Tenacity Despite Failure – Because entrepreneurs are typically trying something new, the failure rate is naturally high. – A defining characteristic for successful entrepreneurs’ is their ability to persevere through setbacks and failures. • Execution Intelligence – The ability to fashion a solid business idea into a viable business is a key characteristic of successful entrepreneurs. ©2010 Pearson Education 1-18
- 19. Common Myths AboutEntrepreneurs 1 of 5 • Myth 1: Entrepreneurs Are Born Not Made – This myth is based on the mistaken belief that some people are genetically predisposed to be entrepreneurs. – The consensus of many studies is that no one is “born” to be an entrepreneur; everyone has the potential to become one. – Whether someone does or doesn’t become an entrepreneur, is a function of the environment, life experiences, and personal choices. ©2010 Pearson Education 1-19
- 20. Common Myths AboutEntrepreneurs 3 of 5 • Myth 2: Entrepreneurs Are Gamblers – Most entrepreneurs are moderate risk takers. – The idea that entrepreneurs are gamblers originates from two sources: • Entrepreneurs typically have jobs that are less structured, and so they face a more uncertain set of possibilities than people in traditional jobs. • Many entrepreneurs have a strong need to achieve and set challenging goals, a behavior that is often equated with risk taking. ©2010 Pearson Education 1-20
- 21. Common Myths AboutEntrepreneurs 4 of 5 • Myth 3: Entrepreneurs Are Motivated Primarily by Money. – While it is naïve to think that entrepreneurs don’t seek financial rewards, money is rarely the reason entrepreneurs start new firms. – In fact, some entrepreneurs warn that the pursuit of money can be distracting. ©2010 Pearson Education 1-21
- 22. Common Myths AboutEntrepreneurs 5 of 5 • Myth 4: Entrepreneurs Should Be Young and Energetic. – The most active age for business ownership is 35 to 45 years old. – While it is important to be energetic, investors often cite the strength of the entrepreneur as their most important criteria in making investment decisions. • What makes an entrepreneur “strong” in the eyes of an investor is experience, maturity, a solid reputation, and a track record of success. • These criteria favor older rather than younger entrepreneurs. ©2010 Pearson Education 1-22
- 23. Closing Thoughts “Ifind that the harder I work, the more luck I seem to have.” Thomas Jefferson ©2010 Pearson Education
- 24. Closing Thoughts “Whetheryou think you can, or that you can’t, you are usually right.” Henry Ford ©2010 Pearson Education