Entrepreneurship Basics

Rewards and Drawbacks of Entrepreneurial Careers

Profit Independence Satisfying way of life Drawbacks of entrepreneurship

Entrepreneurial Incentives
Rewards of Entrepreneurship

Profit
Freedom from the limits of standardized pay for standardized work

Independence
Freedom from supervision and rules of bureaucratic organizations Escape from an oppressive culture

Personal Fulfillment
Freedom to achieve a satisfying way of life Escape from routine and unchallenging work

Make Money

Be Your Own Boss

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Enjoy a Satisfying Life

Entrepreneurial Characteristics
Need for achievement Willingness to take calculated risks Self-confidence Need to seek refuge

Process
Identify Opportunities

Structure Business

Marshal Resources

Initiate Business

Capture Value

Re-Initiate?
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Process
The Entrepreneurial Process

Opportunity
Forming The ` Entrepreneurial Vision Fashioning The Opportunity Initiating The Business Capturing The Opportunity Managing The Entrepreneurial Process

Environment

Process
The Entrepreneurial Process

Opportunity
Forming The ` Entrepreneurial Vision Fashioning The Opportunity Initiating The Business Capturing The Opportunity Managing The Entrepreneurial Process

Regeneration

Environment
Revitalization Stagnation Bureaucratization

Behavior
Basic Observations

Entrepreneurs Come From All Walks Of Life No Genetic Links Have Been Found Limited Links With Family Background No Clear Aberrant Psychological Profile Exists Desire For Money Is Not Overpowering Virtually Anyone Can Be An Entrepreneur
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Behavior
A Comparative Framework

Managers
Resources Controlled Long-Term, Sustained Single-Staged Purchase/Own Hierarchical Efficiency-Based

Dimension:
Strategic Focus Commitment To Opportunity Commitment of Resources Control of Resources Management Structure Management Incentives
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Entrepreneurs
Opportunities Available Short-Term, Episodic Multi-Staged Rent/Borrow Networked Effectiveness-Based

Behavior
Some Entrepreneurial Traits Initiative And Persistence Commitment And Responsibility Integrity And Reliability Decisiveness And Action-Orientation Risk Management Failure Management Management Of Personal Needs And Biases

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Behavior
Some Observations

Age Bias: Initiative Of The Young Balance Of The Middle-Aged Experience And Renewal Of Mature Context Dependence (But Not Much): Culture Business Firm Size

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Summary
Some Realities

Not Everyone Wants To Be Entrepreneurial Not Everyone Will Be Continually Entrepreneurial Entrepreneurial Behavior Is Not Easy To Realize Entrepreneurial Behavior Is Very Easily Eliminated

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Summary
The Individual Entrepreneur

Remaining Committed Until The Opportunity Is Captured Leveraging Existing Organizational Assets And Capabilities Ensuring That Their Efforts Don't Disrupt Others Letting Go So The Organization May Fully Exploit Opportunity Training The Next Generation ...
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Summary
The Organization

Encouraging People To Identify Opportunity Providing Them With The Capabilities And Resources Required For Development Providing Them With The Coaching And Training Required For Success Permitting Them The Organizational Access Required To Seize The Opportunity

Rewarding Them For Their Efforts: Recognition And Compensation

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What is a Small Business?

Size criteria and standards:
Sales Employees Assets Relative size Geographic scope Financing

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Special Contributions of Small Business

Provide jobs Introducing innovation Stimulating economic competition Aiding big business Producing goods and services efficiently

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Survival Rates for New Businesses (Baldwin, 2000)

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 2 3 4 5 6 7

Micro Businesses (<5 employees) Small Businesses (5-99 employees)

Age

10

11

17

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Take Aways
Better sense of those individuals who start and operate small businesses The entrepreneurial process involves risk Better sense of criteria used to define small business Unique contributions that help preserve nations economic well being
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