Entrepreneurship

Entrepreneurship: A Field and An Activity

Ch. 1

Introductions/Expectations Course Outline/Objectives Lecture/Tutorial Sessions Informal Curriculum Assessment

Participation Entrepreneur Interview

Paper and Presentation Feasibility Plan

Paper and Presentation Exam

Communication (e-mail; phone; office hours) Lecture Slides Course Notice Board

Jim KozlowskiTexas Growth Fund Management

Corporation

“Much of our American progress has been the product of the individual who had

an idea; pursued it; fashioned it; tenaciously clung to it against all odds;

and then produced it, sold it and profited from it.”

--Hubert Humphrey, 1966

A DefinitionEntrepreneurship seeks to understand how opportunities to create something new arise and are discovered or created by specific persons who then use various means to exploit or develop them, thus producing a wide range of effects.

Key Activities Identifying an opportunity Exploiting or developing this

opportunity Running a new business

successfully

IntrepreneursPersons who create something new, but inside an existing company rather than through a new venture.

Toyota FINE-S concept car( "Fuel Cell Innovative Emotion” – Sport)

A product of an intrepreneur

Trend toward Entrepreneurship Media accounts of success Change in “employment contract” Change in basic values

Foundations in Other Disciplines Economics Technology Psychology, cognitive science Behavioral science Business and finance Law Sociology Political science

Macro and Micro Micro perspective—focuses on the

behavior and thoughts of individuals Macro perspective—focuses primarily

on environmental factors Both are key in understanding the

entrepreneurial process

The Process Recognition of an opportunity Deciding to proceed and assembling

resources Launching a new venture Building success Harvesting the rewards

A Confluence of Factors

NewMarkets

NewMarkets

TechnologyTechnology

EconomicChange

EconomicChange

Social Change

Social Change

OpportunityOpportunity

Variables

Societal Group

Individual

EntrepreneurialProcess

The Essence of Entrepreneurship

The intersection of valuable opportunities and enterprising individuals is the essence of entrepreneurship.

“There are three principal means of acquiring knowledge: observation,

reflection and experimentation. Observation collects facts; reflection

combines them; experimentation verifies the result of that

combination…”--Diderot (italics added)

Systematic Observation Observe aspects of the world

systematically Generate and test hypothesis Use this information as a basis for

conclusions Doesn’t resolve question of causation

Experimentation Systematically changes one variable in order to

see if changes affect one or more other variables

Involves active interventions Determines causation Not often used in the study of entrepreneurship

Reflection Combining facts in a careful and

systematic way to reach conclusions Central to case method and other

qualitative methods of research

Theory Moves beyond efforts to merely

describe phenomena Moves to the point at which we can

explain why and how things happen as they do

Prospect theory of decision making

Developing a Theory A theory is proposed Hypothesis is made Hypotheses is tested by research Positive results increase confidence in

accuracy; negative results lead to modification of theory and further testing

Theory is accepted or rejected

Two Final Points Theories are never

proven in any final, ultimate sense

Research should never be undertaken to prove or verify a theory

“’Tis a sort of duty to be rich, that it may be in one’s power

to do good…”--Lady Mary Montagu

Lady Mary Montagu

To Do Good Entrepreneur’s products and services improve

the lives of countless millions of persons Entrepreneurs are often extremely generous in

their donations to worthy causes

Bill and Melinda Gates sharing literature in Mozambique