What is entrepreneurship.ppt

7/25/2019 What is entrepreneurship.ppt

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What is Entrepreneurship?What is Entrepreneurship?

Mark T. Schenkel, Ph.D.Mark T. Schenkel, Ph.D.



Agenda Agenda

What is Entrepreneurship?What is Entrepreneurship?

– Historical developentHistorical developent

– De!initionDe!inition

– M"thsM"ths

– ProcessProcess

– #areer Paths#areer Paths



The EntrepreneurialThe Entrepreneurial

$evolution$evolution “We are in the midst of a silent revolution – a triumph of thecreative and entrepreneurial spirit of humankind throughoutthe world.”

“I believe its impact on the 21st century will eual or e!ceedthat of the Industrial "evolution on the 1#th and 2$th.”

“%he death knell for brontosaurus capitalism of yesteryear.”

-- Jeffry A. Timmons (The Entrepreneurial Mind , 1989)



Developent o! EntrepreneurshipDevelopent o! Entrepreneurship

Earliest Period% Marco PoloEarliest Period% Marco PoloMiddle Ages% Theater,Middle Ages% Theater, Architectural Works Architectural Works

&'&'thth #entur"% Mississippi#entur"% Mississippi

#opan"#opan"&(&(thth #entur"% Edison )#entur"% Edison )Whitne"Whitne"

&*&*thth ) +) +thth #enturies#enturies

– -rganie/-perate-rganie/-perate – 0nnovation0nnovation



The -pportunit"The -pportunit"

StatisticsStatistics – A rando national saple 12allup poll surve", &**34 o! high A rando national saple 12allup poll surve", &**34 o! highschool students reveals that '5 o! these students sa" the"school students reveals that '5 o! these students sa" the"6ant to o6n their o6n 7usiness soe da" 1Tions, +38 '46ant to o6n their o6n 7usiness soe da" 1Tions, +38 '4

– Annual Annual #hronicle#hronicle surve"8 35 o! incoing students havesurve"8 35 o! incoing students haveentrepreneurship as a9or goal !or 6h" the" are going toentrepreneurship as a9or goal !or 6h" the" are going to

collegecollege – :ortune ; eplo"ent decline8 &*' 1+54 – &**< 1(.;54:ortune ; eplo"ent decline8 &*' 1+54 – &**< 1(.;54 – Sall !irs constitute ore than * percent o! the entireSall !irs constitute ore than * percent o! the entire

7usiness population7usiness population

=irtuall" o! >SAs econoic gro6th is coing=irtuall" o! >SAs econoic gro6th is coing

!ro entrepreneurial ventures o! all sies and!ro entrepreneurial ventures o! all sies andt"pest"pes

@ot "et tainted 7" corporate 6a" o! li!e@ot "et tainted 7" corporate 6a" o! li!e

2ood tie to take risk2ood tie to take risk



EntrepreneurshipEntr

epreneurship

A process, not a t"pe o! person A process, not a t"pe o! person

#reating and/or 7uilding soething o! value#reating and/or 7uilding soething o! value

0denti!"ing an opportunit"0denti!"ing an opportunit"

Pulling together the needed resources toPulling together the needed resources topursue the opportunit"pursue the opportunit"

Developing and ipleenting a BusinessDeveloping and ipleenting a BusinessPlanPlan

0nvolves uncertaint" and the acceptance o!0nvolves uncertaint" and the acceptance o!riskrisk



The @ature o!The @ature o!

Entrepreneurial $iskEntrepreneurial $isk

:ailure –:ailure –

CCSinking the Boat $iskSinking the Boat $isk

-pportunit" #ost –-pportunit" #ost –

CCMissing the Boat $iskMissing the Boat $isk



M"ths a7outM"ths a7out

EntrepreneurshipEntrepreneurship

The one #o67o" M"th.The one #o67o" M"th.

The EFperience M"th.The EFperience M"th.

The 0 -nl" in it !or the Mone" M"th.The 0 -nl" in it !or the Mone" M"th.

The Entrepreneurs are 2a7lersThe Entrepreneurs are 2a7lers

M"th.M"th.



M"ths a7outM"ths a7out


The Entrepreneurs Dont Have toThe Entrepreneurs Dont Have to

Worr" a7out @u7ers M"th.Worr" a7out @u7ers M"th.

The All Gou @eed is Mone" M"th.The All Gou @eed is Mone" M"th.

The 0ve 2ot a Secret M"th.The 0ve 2ot a Secret M"th.

The 0P- M"th.The 0P- M"th.



-ther -pportunities !or earning-ther -pportunities !or earning

#ur7 event center retail space#ur7 event center retail space

Hatcher"Hatcher"

Practicing entrepreneurs activitiesPracticing entrepreneurs activities

Entrepreneurship clu7Entrepreneurship clu7

0nternships0nternships

MentorsMentors

@et6orking@et6orking



The Entrepreneurial ProcessThe Entrepreneurial Process



Working De!inition o!Working De!inition o!


“ “ Entrepreneurship is a way ofEntrepreneurship is a way of

thinking, reasoning and acting thatthinking, reasoning and acting that

is opportunity obsessed,is opportunity obsessed, holistic inholistic in

approachapproach ephasis addedephasis addedII, and, and

leadership balanced” (Timmons,leadership balanced” (Timmons,

1999: !"#1999: !"#



The Entrepreneurial ProcessThe Entrepreneurial Process1Tions, +41Tions, +4

&pportunity "esources

%eam

'ommunication

(usiness )lan

*its and +aps

'reativity,eadership

'apital -arket *orcesncertainty

/mbiguity0!ogenous *orces

*ounder



Anal"sis

Strateg":orulation

Eval., $evie6,

) :eed7ack

0pleentation





StrategyLuck

Planning

Three Part Process



P r e %

l a u n c h

S t a r t % u p 2

r o 6

t h

T r a n s i t i o n

E F i t / S u c c e s s i o n

Life ycle of a !usiness "enture



Pre%aunch Process8Pre%aunch Process8

0dea 2eneration0dea 2eneration

>nderstanding the 2enesis o! @e6>nderstanding the 2enesis o! @e6

Businesses in the Econo"Businesses in the Econo"

Sources o! 0deas8 Where to ookSources o! 0deas8 Where to ook




#hallenge Traditional De!initions o! =alue#hallenge Traditional De!initions o! =alue

Entrepreneurship thrives on arketEntrepreneurship thrives on arket

ine!!icienciesine!!iciencies

#ustoers seek iproveent in the#ustoers seek iproveent in the

!ollo6ing8!ollo6ing8

– SpeedSpeed

– #onvenience#onvenience

– PersonaliationPersonaliation

– PricePrice



Pre%aunch Process8Pre%aunch Process8

Evaluating 0deas 2enerationEvaluating 0deas 2eneration

DoesDoes the $deathe $dea JJ an %pportunity an %pportunity ?? – MarketMarket

–MarginMargin

– MissionMission

The $ight Tea?The $ight Tea?

The @ecessar" $esources?The @ecessar" $esources?



The Start%up ProcessThe Start%up Process

:illing the 2aps:illing the 2aps

The Business PlanThe Business Plan

–EFecutive Suar"EFecutive Suar"

– Market Anal"sis and Marketing PlanMarket Anal"sis and Marketing Plan

– -perating Plan and Tea-perating Plan and Tea

– :inancial Plan:inancial Plan



2ro6ing the Business2ro6ing the Business

#ASH :-W MA@A2EME@T#ASH :-W MA@A2EME@T

Building a #ultureBuilding a #ulture

MarketingMarketingSta!!ingSta!!ing

Building Manageent ) AdinistrativeBuilding Manageent ) Adinistrative

S"stesS"stes



EFit or SuccessionEFit or Succession



Entrepreneurial #areersEntrepreneurial #areers

Do it no6Do it no6

@ot necessaril" a one shot deal@ot necessaril" a one shot deal

Sentr" Position 1in consulting !ir or inSentr" Position 1in consulting !ir or inindustr"4industr"4

:ail" or eFisting Sall Business:ail" or eFisting Sall Business

#orporate Track#orporate Track



Ke" Takea6a" Points . . .Ke" Takea6a" Points . . .

o fully satisfactory definition of o fully satisfactory definition ofentrepreneurship has been developed to dateentrepreneurship has been developed to datei.e.3 one that garners collective agreementi.e.3 one that garners collective agreementamong scholars 4 practitioners alike5.among scholars 4 practitioners alike5.

““0ntrepreneurship” reflects creative30ntrepreneurship” reflects creative3innovative3 and arbitrage orientedinnovative3 and arbitrage oriented behaviors.behaviors.

Is aIs a process process6 involves planning3 strategi7ing36 involves planning3 strategi7ing3

and a little bit of luck and a little bit of luck ..Interconnectedness of resources andInterconnectedness of resources andopportunitiesopportunities



Ke" Takea6a" Points . . .Ke" Takea6a" Points . . .

• 0ntrepreneurship can occur – and fail to occur0ntrepreneurship can occur – and fail to occur

– in firms that are old and new6 small and – in firms that are old and new6 small and

large3 fast and slow growing6 in the private3large3 fast and slow growing6 in the private3

not8for8profit3 and public sectors6 in allnot8for8profit3 and public sectors6 in all

geographic points6 and in all stages of ageographic points6 and in all stages of a

nation9s development.nation9s development.

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What is entrepreneurship.ppt