The Nature and Importance

of Entrepreneurs

||

evelopment of Entrepreneurship

ÚEarliest Period-
Period- Marco Polo
ÚMiddle Ages-
Ages- Theater,
Architectural Works
Ú17th Century
Century-- Mississippi
Company
Ú18th Century
Century-- Edison & Whitney
Ú19th & 20th Centuries
Ú Organize/Operate
Ú Innovation

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 Environmental Factors
Affecting Organizations
Ú½ypercompetition
ÚChanging Technology
ÚShort Product Life Cycles
ÚNew Markets
ÚChanging Employee
rives/Motives
ÚFocus on Sales/Profits
ÚAvailable Capital
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 Economies
Market--Oriented
Market Controlled
UNITE
STATES CUBA

Market Innovation Investment Entrepreneurship

Conditions Orientation Community Culture

|
 Market Conditions
ÚLarge Market
ÚEasy To Form Company
ÚPositive Tax Structure
ÚPositive Media Coverage
ÚCode of Business/Contract Law
ÚStrong Govt. Agencies-
Agencies- No
Corruption
ÚStandard
Standard--Setting Associations
ÚIndividual Investment Mentality
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 Principles for
Successful New Venture
1)
efine Market 8) Quick Market
2)
urable Products-
Products-
ominance
18 Month Customer
Payback 9) Gross Margin 30-
30-
3) Market Growth = 50%
30--50% in 5 Years
30 10)Staged
10) Staged Financing
4) Patent Protection
5) No Product 11)ROI
11) ROI = 10X in 5 Years
Substitutions (25--30%/Year)
(25
Available 12)Positive
12) Positive Cash Flow
6) Products Variants in 18 Months
7) No Strong 13)Strong
13) Strong Management
Competition
Present in Industry
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 Infrastructure
Needed for Innovation
ÚLong
Long--Term Thinking
ÚInvestment Community
ÚBanks
ÚVenture Capitalists
ÚInformal/Informed Private
Investors (Angels)
|
Entrepreneurship Culture

ÚMore New
Ventures Than
Anywhere In The
World
ÚConcentrated
Areas
|
Successful Entrepreneur
£Initiates Creation Process
£
evotes Time/Effort
£Assumes Risk
£Receives Rewards
  Independence
  Satisfaction
  Money
|
Entrepreneurial
ecision
Present
Lifestyle
Catalyst

New Enterprise
£
esirable
£Possible
| |

rivers of New
Venture Formation
Ú
esirability Influences
Ú Culture/Subculture
Ú Family/Peers
Ú Teachers
ÚPossibility Factors
Ú Government
Ú Background
Ú Marketing
Ú Role Models
Ú Finances
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 Types of Startups
ÎLifestyle

ÎFoundation

νigh Potential

ÎGazelles
| |

 Entrepreneur &
Economic
evelopment
Ú Product
Product--Evolution Process
Ú Iterative Synthesis
Ú Innovation
Ú Technological
Ú Breakthrough
Ú Government
Ú Technology Transfer
Ú Intrapreneurship vs. Entrepreneurship
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 Product Evolution
Need Recognition Industrial

Initiate Innovation
evelopment

Press To Invent

| |
 Careers/Education
ÚLife Space
Ú Work/Occupation
Ú Individual/Personal
Ú Nonwork
Nonwork/family
/family
ÚSkills Required
Ú Technical
Ú Business Management
Ú Personal

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 Skills Required
of Entrepreneur
Business
Technical Management Personal

Writing Planning Inner Control

Oral
ecision
Risk Taking
Communication Making
Monitoring The ½uman
Innovative
Environment Relations
Marketing Change-
Change-
Use Technology Oriented
(Selling) Visionary
| |
Ethics & Social Responsibility
ÚEthics
Ethics-- Behavior/Morals in
Business
ÚValue System
Ú Peer Pressure
Ú Social Norms
Ú Competitors
Ú Individual vs. Community
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 Future
ÚEntrepreneurial Education

ÚGovernment
Government-- Promotion

ÚSociety¶s Support

ÚCorporate Intrapreneurship

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Entrepreneurial Universities
 Structures
 Activities  Business Assistance
Centers
 Seminars  Incubators
 Innovation Centers
 Consulting  Industrial Parks
 Enterprise
evelopment
 Research Centers
 Venture Capital Exchanges
 Case
evelopment
 Inputs
 Technology
evelopment  Guest Lectures
 Board of
& Transfer Advisors/Trustees
 Internships
 Joint Ventures &
 Student Projects
Strategic Alliances  Source of Funds
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