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EntrepreneurshipLearningObjectivesLO1Describewhypeoplebecomeentrepreneursandwhatittakes,personally.LO2

Summarizehowtoassessopportunitiestostartanewcompany.LO3Identifycommoncausesofsuccessandfailure.LO4Discusscommonmanagementchallenges.LO5

Explainhowtoincreaseyourchancesofsuccess,includinggoodbusinessplanning.LO6

Describehowmanagersoflargecompaniescanfosterentrepreneurship.EntrepreneurshipEntrepreneurship

theprocessbywhichenterprisingindividualsinitiate,manage,andassumetherisksandrewardsassociatedwithabusinessventureEntrepreneurshipSmallbusinessAbusinesshavingfewerthan100employees,independentlyownedandoperated,notdominantinitsfield,andnotcharacterizedbymanyinnovativepractices.EntrepreneurshipEntrepreneurialventureAnewbusinesshavinggrowthandhighprofitabilityasprimaryobjectives.SomeMythsAboutEntrepreneurshipAnyonecanstartabusinessEntrepreneursaregamblersEntrepreneurswantthewholeshowtothemselvesEntrepreneursaretheirownbossesandcompletelyindependent.Entrepreneursworkharderthanmanagersinbigcompanies.EntrepreneursexperienceagreatdealofstressSomeMythsAboutEntrepreneurshipEntrepreneursaremotivatedsolelybythequestforthedollarEntrepreneursseekpowerandcontroloverothersIfanentrepreneuristalented,thansuccesswillhappenquicklyAnyentrepreneurwithagoodideacanraiseventurecapital.Ifanentrepreneurhasenoughstart-upcapital,s/hecan’tmiss.UnlessyouattainedahighscoreonyourSATsorGMATs,you’llneverbeasuccessfulentrepreneurEntrepreneurshipEntrepreneur

Individualswhoestablishaneworganizationwithoutthebenefitofcorporatesponsorship.Intrapreneurs

New-venturecreatorsworkinginsidebigcompanies.WhoisTheEntrepreneur?Figure6.2TheIdeaAgreatproduct,aviablemarket,andgoodtimingareessentialingredientsinanyrecipeforsuccess.TheOpportunityTechnologicaldiscoveriesDemographicchangesLifestyleandtastechangesEconomicdislocationsCalamitiesGovernmentinitiativesandrulechanges.Anentrepreneurshouldconsideropportunitiesin:TheOpportunityFranchisingAnentrepreneurialalliancebetweenafranchisor(aninnovatorwhohascreatedatleastonesuccessfulstoreandwantstogrow)andafranchisee(apartnerwhomanagesanewstoreofthesametypeinanewlocation).Question WhichInternetmodelchargesfeestoadvertiseonasite?TransactionfeemodelSubscriptionmodelAdvertisingsupportmodelAffiliatemodel

TheInternetTransactionfeemodelChargingfeesforgoodsandservices.SubscriptionmodelChargingfeesforsitevisits.AdvertisingsupportmodelChargingfeestoadvertiseonasite.TheInternetIntermediarymodelChargingfeestobringbuyersandsellerstogether.AffiliatemodelChargingfeestodirectsitevisitorstoothercompanies’sites.SideStreetsSidestreeteffectasyouheaddownaroad,unexpectedopportunitiesbegintoappearWhatDoesitTake,Personally?Commitmentanddetermination

LeadershipOpportunityobsessionToleranceofrisk,ambiguity,anduncertaintyCreativity,self-reliance,andabilitytoadaptMotivationtoexcelEntrepreneurialStrategy

MatrixFigure6.3SuccessandFailureAnticipateriskConsidertheroleoftheeconomicenvironmentUtilizebusinessincubatorsRealizetherearecommonmanagementchallengesGoingpublicwithaninitialpublicoffering(IPO)PercentageofCompaniesUsingSourceofCapitalQuestion A_____________isaprotectedenvironmentforsmallbusinesses.BusinessincubatorSmallbusinessofficeSBAServiceincubator

SuccessandFailureBusinessincubatorsProtectedenvironmentsfornew,smallbusinessesCommonManagementChallengesExhibit6.4GoingPublicInitialpublicoffering(IPO)Saletothepublic,forthefirsttime,offederallyregisteredandunderwrittensharesofstockinthecompanyPlanningOpportunityanalysisAdescriptionofthegoodorservice,anassessmentoftheopportunity,anassessmentoftheentrepreneur,specificationofactivitiesandresourcesneededtotranslateyourideaintoaviablebusiness,andyoursource(s)ofcapital.OpportunityAnalysisPlanningBusinessplanAformalplanningstepthatfocusesontheentireventureanddescribesalltheelementsinvolvedinstartingit.OutlineofaBusinessPlanOutlineofaBusinessPlanFiveKeyFactorsThepeopleTheopportunityThecompetitionThecontextRiskandrewardNonfinancialResourcesLegitimacyNetworksTop-ManagementTeamsAdvisoryBoardsPartnersNonfinancialResourcesLegitimacy

People’sjudgmentofacompany’sacceptance,appropriateness,anddesirability,generallystemmingfromcompanygoalsandmethodsthatareconsistentwithsocietalvalues.NonfinancialResourcesSocialcapitalAcompetitiveadvantageintheformofrelationshipswithotherpeopleandtheimageotherpeoplehaveofyou.BuildingSupportforyourIdeaCleartheinvestmentwithyourimmediatebossMakecheerleaderswhowillsupportyourideaHorsetradingforsupport,time,money,andotherresourcesGettheblessingofrelevanthigher-levelofficialsBuildingIntrapreneurshipSkunkworksAprojectteamdesignatedtoproduceanew,innovativeproduct.BuildingIntrapreneurshipBootleggingInformalworkonprojects,otherthanthoseofficiallyassigned,ofemployees’ownchoosingandinitiative.ManagingIntrapreneurship

isRiskyFailingtofosterinnovation

OverrelianceonasingleprojectSpread

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