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Introduction to Entrepreneurship, Chapter 1 The Revolutionary Impact of Entrepreneurship And Successful Entrepreneur.

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Presentation on theme: "Introduction to Entrepreneurship, Chapter 1 The Revolutionary Impact of Entrepreneurship And Successful Entrepreneur."— Presentation transcript:

1 Introduction to Entrepreneurship, Chapter 1 The Revolutionary Impact of Entrepreneurship And Successful Entrepreneur

2 1–2 ROSLI BIN MOHD SAAD ROSLI BIN MOHD SAAD Program Keusahawanan, Program Keusahawanan, COB, UUM. COB, UUM. Telephone No : Telephone No : Address: Address:

3 1–3 Chapter Objectives 1.To examine the historical development of entrepreneurship 2.To explore and debunk the myths of entrepreneurship 3.To define and explore the major schools of entrepreneurial thought 4.To explain the process approaches to the study of entrepreneurship 5.To set forth a comprehensive definition of entrepreneurship 6.To examine the Entrepreneurial Revolution taking place today 7.To illustrate today’s entrepreneurial environment

4 1–4 Entrepreneurs—Challenging the Unknown Entrepreneurs Entrepreneurs  Recognize opportunities where others see chaos or confusion  Are aggressive catalysts for change within the marketplace  Challenge the unknown and continuously create the future

5 1–5 Entrepreneurs versus Small Business Owners: A Distinction Small Businesses Owners Small Businesses Owners  Manage their businesses by expecting stable sales, profits, and growth Entrepreneurs Entrepreneurs  Focus their efforts on innovation, profitability and sustainable growth

6 1–6 The Evolution of Entrepreneurship Entrepreneur is derived from the French entreprendre, meaning “to undertake.” Entrepreneur is derived from the French entreprendre, meaning “to undertake.”  The entrepreneur is one who undertakes to organize, manage, and assume the risks of a business.  Although no single definition of entrepreneur exists and no one profile can represent today’s entrepreneur, research is providing an increasingly sharper focus on the subject.

7 EVOLUSI KEUSAHAWANAN

8 1–8 Entrepreneurship: A Mindset Entrepreneurship is more than the mere creation of business: Entrepreneurship is more than the mere creation of business:  Seeking opportunities  Taking risks beyond security  Having the tenacity to push an idea through to reality Entrepreneurship is an integrated concept that permeates an individual’s business in an innovative manner. Entrepreneurship is an integrated concept that permeates an individual’s business in an innovative manner.

9 1–9 A Summary Description of Entrepreneurship Entrepreneurship (Robert C. Ronstadt) Entrepreneurship (Robert C. Ronstadt)  The dynamic process of creating incremental wealth.  This wealth is created by individuals who assume major risks in terms of equity, time, and/or career commitment of providing value for a product or service.  The product or service itself may or may not be new or unique but the entrepreneur must somehow infuse value by securing and allocating the necessary skills and resources.

10 1–10 An Integrated Definition Entrepreneurship Entrepreneurship  A dynamic process of vision, change, and creation. Requires an application of energy and passion towards the creation and implementation of new ideas and creative solutions.Requires an application of energy and passion towards the creation and implementation of new ideas and creative solutions.  Essential ingredients include: The willingness to take calculated risks—in terms of time, equity, or career.The willingness to take calculated risks—in terms of time, equity, or career. The ability to formulate an effective venture team; the creative skill to marshal needed resources.The ability to formulate an effective venture team; the creative skill to marshal needed resources. The fundamental skills of building a solid business plan.The fundamental skills of building a solid business plan. The vision to recognize opportunity where others see chaos, contradiction, and confusion.The vision to recognize opportunity where others see chaos, contradiction, and confusion.

11 Entrepreneurship Entrepreneurship is important: engine of economic growth, creates wealth, generates innovations & job opportunities, increases income & living standard of the society etc. Entrepreneurship is important: engine of economic growth, creates wealth, generates innovations & job opportunities, increases income & living standard of the society etc. Entrepreneurship is the main source of rezeki – “ 9/10 of the ‘rezeki’ comes from the business activities ” – Muhammad SAW. Entrepreneurship is the main source of rezeki – “ 9/10 of the ‘rezeki’ comes from the business activities ” – Muhammad SAW.

12 Entrepreneurship Knowing its importance, developing entrepreneurship becomes a priority to every government through out the world. Knowing its importance, developing entrepreneurship becomes a priority to every government through out the world. Great number of support programs are created. (Loan & financing schemes, consultation, tax incentives, provision of affordable premises & good infra, R&D for commercialization, biz info centres, incubators, training & education, trade fairs & promotions local and abroad etc. Great number of support programs are created. (Loan & financing schemes, consultation, tax incentives, provision of affordable premises & good infra, R&D for commercialization, biz info centres, incubators, training & education, trade fairs & promotions local and abroad etc.

13 Support Programs Malaysia - arrays of support schemes & programs were initiated & implemented. At least 15 ministries & more than 60 government agencies were promoting & providing assistance to potential or existing entrepreneurs (M.Khairuddin,’07) Malaysia - arrays of support schemes & programs were initiated & implemented. At least 15 ministries & more than 60 government agencies were promoting & providing assistance to potential or existing entrepreneurs (M.Khairuddin,’07)

14 Becoming an entrepreneur? Despite the promotions & supports, not many wanted entrepreneurship to be their career of choice. Despite the promotions & supports, not many wanted entrepreneurship to be their career of choice. Even among educated citizens, the rate of entrepreneurship is low. Studies: only 1.2% of graduates started up their own businesses & now many are still unemployed. Even among educated citizens, the rate of entrepreneurship is low. Studies: only 1.2% of graduates started up their own businesses & now many are still unemployed.

15 Why not? Not Willing to Take Risk Not Willing to Take Risk  Financial risk  Career risk—loss of employment security  Family & social risk—competing commitments of work & family  Psychic risk—psychological & mental impact of failure on the well-being of entrepreneurs  Physical risk – become sick, too much of hard work

16 Other Major Barriers limited access of finance limited access of finance regulations & bureaucracy, delay in obtaining licenses, permits, approvals, taxes & compliance costs associated with government legislation regulations & bureaucracy, delay in obtaining licenses, permits, approvals, taxes & compliance costs associated with government legislation lack of biz idea/market awareness lack of biz idea/market awareness

17 Other Major Barriers Lack of information Lack of information Lack of skills & experience Lack of skills & experience Lack of support networks, absence of business contacts & mentoring impede biz start-ups, especially to the small, new & inexperienced firms Lack of support networks, absence of business contacts & mentoring impede biz start-ups, especially to the small, new & inexperienced firms Fear of intense competition Fear of intense competition

18 Other Major Barriers Entrepreneurship & self-employment are not always valued traits to every culture or society (Harding, Cowling & Ream, 2003); (Likanen & Mira, 2004). Entrepreneurship & self-employment are not always valued traits to every culture or society (Harding, Cowling & Ream, 2003); (Likanen & Mira, 2004). Negative attitudes to entrepreneurship, culture of pessimism & parents not supportive of entrepreneurship are significant barriers to start-ups Negative attitudes to entrepreneurship, culture of pessimism & parents not supportive of entrepreneurship are significant barriers to start-ups

19 Other Major Barriers Lack of motivation & confidence Lack of motivation & confidence Perceiving starting up a biz as involving too much ‘hassle’, ‘stress’ & ‘hard work’ Perceiving starting up a biz as involving too much ‘hassle’, ‘stress’ & ‘hard work’ Fear of debt & failure Fear of debt & failure Future uncertainty, too risky! Future uncertainty, too risky!

20 KEUSAHAWANAN PERSPEKTIF ISLAM -Agama yang menyokong pembangunan keusahawanan dikalangan umatnya; *Islam mengajar manusia membentuk budaya keusahawanan dengan cara hidup dan cara kerja yang diterima oleh Allah *Islam ialah agama yang menggalakkan aktiviti keusahawanan dengan menggariskan etika keusahawanan, menjanjikan ganjaran di dunia dan akhirat

21 PERKARA PENTING BAHAWA ISLAM MENYARANKAN KEUSAHAWANAN 1. Allah telah menghalalkan jualbeli dan 1. Allah telah menghalalkan jualbeli dan mengharamkan riba (B2:275) mengharamkan riba (B2:275) 2. Sembilan daripada sepuluh bahagian rezeki adalah 2. Sembilan daripada sepuluh bahagian rezeki adalah dari perniagaan dari perniagaan 3. Tidak ada dosa mencari kurnia / rezeki hasil 3. Tidak ada dosa mencari kurnia / rezeki hasil perniagaan dari tuhanmu (B2:198) perniagaan dari tuhanmu (B2:198) 4. Keusahawanan merupakan jihad fisabilillah 4. Keusahawanan merupakan jihad fisabilillah 5. Keusahawanan dijadikan sebagai satu ibadah 5. Keusahawanan dijadikan sebagai satu ibadah

22 1–22 The Myths of Entrepreneurship Myth 1:Entrepreneurs Are Doers, Not Thinkers Myth 1:Entrepreneurs Are Doers, Not Thinkers Myth 2:Entrepreneurs Are Born, Not Made Myth 2:Entrepreneurs Are Born, Not Made Myth 3:Entrepreneurs Are Always Inventors Myth 3:Entrepreneurs Are Always Inventors Myth 4:Entrepreneurs Are Academic and Social Misfits Myth 4:Entrepreneurs Are Academic and Social Misfits Myth 5:Entrepreneurs Must Fit the “Profile” Myth 5:Entrepreneurs Must Fit the “Profile” Myth 6:All Entrepreneurs Need Is Money Myth 6:All Entrepreneurs Need Is Money Myth 7:All Entrepreneurs Need Is Luck Myth 7:All Entrepreneurs Need Is Luck Myth 8:Ignorance Is Bliss For Entrepreneurs Myth 8:Ignorance Is Bliss For Entrepreneurs Myth 9:Entrepreneurs Seek Success But Experience High Failure Rates Myth 9:Entrepreneurs Seek Success But Experience High Failure Rates Myth 10:Entrepreneurs Are Extreme Risk Takers (Gamblers) Myth 10:Entrepreneurs Are Extreme Risk Takers (Gamblers)

23 1–23 Figure 1.1 Entrepreneurial Schools-of-Thought Approach

24 1–24 Macro View: External Locus of Control The Environmental School of Thought The Environmental School of Thought  Considers the external factors that affect a potential entrepreneur’s lifestyle. The Financial/Capital School of Thought The Financial/Capital School of Thought  Based on the capital-seeking process—the search for seed and growth capital. The Displacement School of Thought The Displacement School of Thought  Alienation drives entrepreneurial pursuits Political displacement (laws, policies, and regulations)Political displacement (laws, policies, and regulations) Cultural displacement (preclusion of social groups)Cultural displacement (preclusion of social groups) Economic displacement (economic variations)Economic displacement (economic variations)

25 1–25 Micro View: Internal Locus of Control (cont’d) The Entrepreneurial Trait School of Thought The Entrepreneurial Trait School of Thought  Focuses on identifying traits common to successful entrepreneurs. Achievement, creativity, determination, and technical knowledgeAchievement, creativity, determination, and technical knowledge The Venture Opportunity School of Thought The Venture Opportunity School of Thought  Focuses on the opportunity aspect of venture development—the search for idea sources, the development of concepts, and the implementation of venture opportunities. Corridor principle: New pathways or opportunities will arise that lead entrepreneurs in different directions.Corridor principle: New pathways or opportunities will arise that lead entrepreneurs in different directions.

26 1–26 Table 1.2 Definitions And Criteria Of One Approach To The Micro View Entrepreneurial ModelDefinitionMeasuresQuestions “Great Person”“Extraordinary Achievers”Personal principles Personal histories Experiences What principles do you have? What are your achievements? Psychological Characteristics Founder Control over the means of production Locus of control Tolerance of ambiguity Need for achievement What are your values? ClassicalPeople who make innovations bearing risk and uncertainty “Creative destruction” Decision making Ability to see opportunities Creativity What are the opportunities? What is your vision? How do you respond? ManagementCreating value through the recognition of business opportunity, the management of risk taking... through the communicative and management skills to mobilize... Expertise Technical knowledge Technical plans What are your plans? What are your capabilities? What are your credentials? Leadership“Social architect” Promotion and protection of values Attitudes, styles Management of people How do you manage people? IntrapreneurshipThose who pull together to promote innovation Decision makingHow do you change and adapt? Source: Adapted from J. Barton Cunningham and Joe Lischeron, “Defining Entrepreneurship,” Journal of Small Business Management (January 1991): 56.

27 1–27 Micro View… (cont’d) The Strategic Formulation School of Thought The Strategic Formulation School of Thought  Emphasizes the planning process in successful venture development. Ronstadt’s View Ronstadt’s View  Strategic formulation is a leveraging of unique elements: Unique Markets—mountain gap strategiesUnique Markets—mountain gap strategies Unique People—great chef strategiesUnique People—great chef strategies Unique Products—better widget strategiesUnique Products—better widget strategies Unique Resources—water well strategiesUnique Resources—water well strategies

28 1–28 Our Entrepreneurial Economy— The Environment for Entrepreneurship Entrepreneurship is the symbol of business tenacity and achievement. Entrepreneurship is the symbol of business tenacity and achievement. Entrepreneurs are the pioneers of today’s business successes. Entrepreneurs are the pioneers of today’s business successes. Two perspectives on entrepreneurship: Two perspectives on entrepreneurship:  Statistical: numbers that emphasize the importance of entrepreneurs to the economy.  Academic: trends in entrepreneurial research and education.

29 1–29 Predominance of New Ventures in the Economy Entrepreneurial Activity: Growth in Small Businesses Entrepreneurial Activity: Growth in Small Businesses  New business incorporations average 600,000 per year over the past decade.  There are over 25 million small businesses; the number continues to grow 2% annually.  One of every 150 adults participates in the founding of a new firm each year.  Approximately 600,000 to 800,000 are added each year.

30 1–30 Effects of Entrepreneurship The Global Entrepreneurship Monitor (GEM) The Global Entrepreneurship Monitor (GEM)  Provides an annual assessment of the entrepreneurial environment of 42 countries.  Latest GEM study: the U.S. outranks the rest of the world in important entrepreneurial support. Entrepreneurs lead to growth by: Entrepreneurs lead to growth by:  Entering and expanding existing markets.  Creating entirely new markets by offering innovative products.  Increasing diversity and fostering minority participation in the economy.

31 Level of Entrepreneurship Development 1) Entrepreneurship Cultural Development Level (Tahap pembangunan budaya keusahawanan ) 1) Entrepreneurship Cultural Development Level (Tahap pembangunan budaya keusahawanan ) 2)Start-up Level ( Tahap memula perniagaan ) 3)Survival Level ( Tahap penakatan ) 4)Growth Level ( Tahap pertumbuhan dan pengembangan)

32 Figure : Level of Entrepreneurship Development Tahap Masa Dewasa Pekerjaan Kolej dan Universiti Sekolah Menengah Remaja Sekolah Rendah Pra Sekolah Kanak-Kanak Taman Asuhan Kanak-Kanak Pertumbuhan dan Pengembangan (growth) Penakatan (Survival) Memula Perniagaan ( Start-up) Budaya Keusahawanan (Cultural development)

33 Entrepreneurship development  Entrepreneurship can be developed:  Education  Training  Experience

34 Business Idea

35 Business Environment

36 Business Start-Up  Things to be considered before start-up your business.  Self-ability  Capital and financial needs  Strategic location  Legal and Government Rules  Raw material and equipment supply  Competitors

37 PERUSAHAAN KECIL DAN SEDERHANA PERUSAHAAN KECIL DAN SEDERHANA (PKS) PKS DI MALAYSIA BOLEH DITEMPATKAN DALAM TIGA KATEGORI, IAITU: MIKRO, KECIL, ATAU SEDERHANA. PKS DI MALAYSIA BOLEH DITEMPATKAN DALAM TIGA KATEGORI, IAITU: MIKRO, KECIL, ATAU SEDERHANA. KETIGA-TIGA KUMPULAN INI DITETAPKAN BERASASKAN KEPADA: JUMLAH PEKERJA SESEBUAH PERNIAGAAN; ATAUPUN JUMLAH HASIL JUALAN SESEBUAH PERNIAGAAN DALAM TEMPOH SETAHUN.

38 PERTANIAN ASAS PERKILANGAN (TERMASUK ASAS TANI) DAN PERKHIDMATAN BERKAITAN PERKILANGAN SEKTOR PERKHIDMATAN (TERMASUK ICT*) MIKRO KURANG DARIPADA 5 ORANG PEKERJA KURANG DARIPADA 5 ORANG PEKERJA KURANG DARIPADA 5 ORANG PEKERJA KECIL ANTARA 5 HINGGA 19 PEKERJA ANTARA 5 HINGGA 50 PEKERJA ANTARA 5 HINGGA 19 PEKERJA SEDERHANA ANTARA 20 HINGGA 50 PEKERJA ANTARA 51 HINGGA 150 PEKERJA ANTARA 20 HINGGA 50 PEKERJA I. Jumlah Pekerja Berasaskan jumlah pekerja sepenuh masa :

39 II. Jumlah Jualan Tahunan Berasaskan jumlah jualan tahunan : PERTANIAN ASAS PERKILANGAN (TERMASUK ASAS TANI) DAN PERKHIDMATAN BERKAITAN PERKILANGAN SEKTOR PERKHIDMATAN (TERMASUK ICT*) MIKRO KURANG DARIPADA RM200,000 KURANG DARIPADA RM250,000 KURANG DARIPADA RM200,000 KECIL ANTARA RM200,000 HINGGA KURANG DARIPADA RM1 JUTA ANTARA RM250,000 HINGGA KURANG DARIPADA RM10 JUTA ANTARA RM200,000 HINGGA KURANG DARIPADA RM1 JUTA SEDERHANA ANTARA RM1 JUTA HINGGA RM5 JUTA ANTARA RM10 JUTA HINGGA RM25 JUTA ANTARA RM1 JUTA HINGGA RM5 JUTA

40 WHY NEW VENTURE FAILS (research by Bruno, Leidecker and Harder Why firms fail?, Business Horizons)  3 major categories of causes for failure:  product/market problems  Financial difficulties  Managerial problems

41  Product / market problems  Product Market Orientation  Poor timing – premature entry into market place  Product design problems  Inappropriate distribution strategy  Over reliance on one customer

42  Financial difficulties  Initial undercapitalization –  Assuming debt too early – too soon and too large large  Venture capital relationship problem –  Differing goals, vision and motivations-

43  Managerial Problems  hiring and firing based on nepotism rather than qualifications  poor relationship with parent companies and venture capitalists  founders who focused on their weaknesses rather than their strength  incompetent support

44 Ingredients For A Successful New Business (The Nine Fs) Founders - Every startup company must have a first class entrepreneurs Focused - Entrepreneurial companies focus on niche markets. They specialize. Fast - They make decisions quickly and implement them swiftly. Flexible - They keep an open mind. They respond to change. Forever Innovating - They are tireless innovators. Flat - Entrepreneurial organizations have as few layers of management as possible. Frugal - By keeping overhead low and productivity high, entrepreneurial organizations keep cost down. Friendly - Entrepreneurial companies are friendly to their customers, suppliers and workers. Fun - It’s fun to be associated with an entrepreneurial company. Sumber: William D. Bygrave (1997)

45 Bagi Usahawan, Perniagaan mungkin gagal. Tetapi…. Usahawan tidak pernah gagal.

46 Entrepreneurial Characteristics

47

48 Entrepreneurial Characteristics (Timmons and Spinelli) Commitment and determination Commitment and determination  Tenacious, decisive, and persistent in problem solving Leadership Leadership  Self-starters and team builders who focus on honesty in their business relationships Opportunity obsession Opportunity obsession  Aware of market and customer needs Tolerance of risk, ambiguity, and uncertainty Tolerance of risk, ambiguity, and uncertainty  Risk takers, risk minimizers, and uncertainty tolerators Creativity, self- reliance, and adaptability Creativity, self- reliance, and adaptability  Open-minded, flexible, uncomfortable with the status quo, and quick learners Motivation to excel Motivation to excel  Goal oriented and aware of their weaknesses and strengths

49 CIRI USAHAWAN BERJAYA ABAD KE-21 Dapat melihat dan mengambil peluang Mempunyai maklumat Kreatif Inovatif Mempunyai visi Berfikiran bebas Berdaya maju optimistik

50 CIRI USAHAWAN BERJAYA ABAD KE-21 Mengambil risiko yang diperhitungkan Sifat kepimpinan Sumber: Soo Ji Min (1999)

51 Ciri-ciri Usahawan Berjaya Berdasarkan kajian Mc Clelland (1995), Koa (1991), Scar & Zimmerer (1999) dan lain2…. Kreatif dan Inovatif Kreatif dan Inovatif Kerajinan, keazaman dan ketabahan Kerajinan, keazaman dan ketabahan Berinisiatif Berinisiatif Mengambil Risiko yg diperhitungkan Mengambil Risiko yg diperhitungkan Bertanggungjawab Bertanggungjawab Kejujuran dan Menepati Janji Kejujuran dan Menepati Janji Motivasi Untuk Kejayaan & Berkembang Maju Motivasi Untuk Kejayaan & Berkembang Maju Berorientasikan peluang Berorientasikan peluang Berorientasikan Matlamat & Wawasan Berorientasikan Matlamat & Wawasan Berorientasikan Masa Depan Berorientasikan Masa Depan

52 Ciri-ciri Usahawan Berjaya Sambungan Kebolehan Menyelesaikan Masalah Kebolehan Menyelesaikan Masalah Menitikberatkan Mutu Kerja yang Tinggi Menitikberatkan Mutu Kerja yang Tinggi Lokus Kawalan Dalam Lokus Kawalan Dalam Keupayaan Mengurus Keupayaan Mengurus Mementingkan pencapaian daripada wang Mementingkan pencapaian daripada wang Berkeyakinan Diri dan Optimistik Berkeyakinan Diri dan Optimistik Sanggup Belajar drpd Kesilapan Sanggup Belajar drpd Kesilapan Tahap Tenaga yang Tinggi Tahap Tenaga yang Tinggi Menggunakan strategi2 Pengaruh Menggunakan strategi2 Pengaruh

53 THE MOST IMPORTANT CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS (10 DS) Dream Entrepreneurs have a vision of what the future could be like for them and their business. And, more important, they have the ability to implement their dreams. Decisiveness They don’t procrastinate. They make decisions swiftly. Their swiftness is a key factor in their success.

54 Doers Once they decide on a course of action, they implement it as quickly as possible. Determination They implement their ventures with total commitment. They seldom give up, even when confronted by obstacles that seem insurmountable.

55 Dedication They are totally dedicated to their business, sometimes at considerable cost to their relationships with their friends and families. They work tirelessly. Twelve hour days, and seven day work weeks are not uncommon when an entrepreneur is striving to get a business off the ground. Devotions Entrepreneurs love what they do. It is that love that sustains them when the going gets tough. And it is love of their product or `service that makes them so effective at selling it.

56 Details It is said that the devils resides in the details. That is never more true than in starting and growing a business. The entrepreneur must be on top of the critical details. Destiny They want to be in charge of their own destiny rather than dependent on an employer

57 1–57 Entrepreneurs in the United States Reasons for the exceptional entrepreneurial activity in the U.S. include: Reasons for the exceptional entrepreneurial activity in the U.S. include:  A national culture that supports risk taking and seeking opportunities.  Americans’ alertness to unexploited economic opportunity and a low fear of failure.  U.S. leadership in entrepreneurship education at both the undergraduate and graduate level.  A high percentage of individuals with professional, technological or business degrees who are likely to become entrepreneurs.

58 1–58 The Age of Gazelles A “Gazelle” A “Gazelle”  A business establishment with at least 20% sales growth in each year for five years, starting with a base of at least $100,000 in annual sales. Gazelles as leaders in innovation: Gazelles as leaders in innovation:  Produce twice as many product innovations per employee as do larger firms.  Have been responsible for 55% of the innovations in 362 different industries and 95% of all radical innovations.  Obtain more patents per sales dollar than do larger firms.

59 1–59 Table 1.3 Mythology Associated with Gazelles Gazelles are the goal of all entrepreneurs. Gazelles receive venture capital. Gazelles were never mice. Gazelles are high-tech. Gazelles are global. Source: NFIB Small Business Policy Guide (Washington, D.C., November 2000), 31.

60 1–60 Survival of Gazelles How many gazelles survive? How many gazelles survive?  The simple answer is “none.” Sooner or later, all companies wither and die. The Common Myth of Failure: The Common Myth of Failure:  85% of all firms fail in the first year—in actuality, about half of all start-ups last between 5 and 7 years.

61 1–61 Entrepreneurial Firms’ Impact Entrepreneurial components of the U.S. Economy: Entrepreneurial components of the U.S. Economy: 1. Large firms have increased profitability by returning to their “core competencies through restructuring and downsizing. 2. New entrepreneurial companies have been blossoming in new technologies and new markets. 3. Thousands of smaller firms established by women, minorities, and immigrants have strengthened the economy.

62 1–62 Entrepreneurial Firms’ Impact Cont’d) Entrepreneurial firms make two indispensable contributions to an economy: Entrepreneurial firms make two indispensable contributions to an economy: 1.They are an integral part of the renewal process that pervades and defines market economies. 2.They are the essential mechanism by which millions enter the economic and social mainstream of society.

63 1–63 21st Century Trends in Entrepreneurship Research Venture Financing Social Entrepreneurship Corporate Entrepreneurship Trends in Entrepreneurship Research Entrepreneurial Cognition Global Entrepreneurial Movement Family Businesses Women and Minority Entrepreneurs Entrepreneurial Education

64 1–64 21st Century Trends in Entrepreneurship Research Major Research Themes: Major Research Themes:  Venture Financing: venture capital and angel capital financing and other financing techniques strengthened in the 1990s.  Corporate Entrepreneurship and the need for entrepreneurial cultures has drawn increased attention.  Social Entrepreneurship has unprecedented strength within the new generation of entrepreneurs.  Entrepreneurial Cognition is providing new insights into the psychological aspects of the entrepreneurial process.  Women and Minority Entrepreneurs appear to face obstacles and difficulties different from those that other entrepreneurs face.  The Global Entrepreneurial Movement is increasing.

65 1–65 21st Century Trends… (cont’d) Major Research Themes (cont’d): Major Research Themes (cont’d):  Family Businesses have become a stronger focus of research.  Entrepreneurial Education has become one of the hottest topics in business and engineering schools throughout the world.

66 1–66 Key Concepts Entrepreneurship Entrepreneurship  A process of innovation and new-venture creation through four major dimensions—individual, organizational, environmental, process—that is aided by collaborative networks in government, education, and institutions. Entrepreneur Entrepreneur  A catalyst for economic change who uses purposeful searching, careful planning, and sound judgment when carrying out the entrepreneurial process.

67 1–67 Key Concepts Entrepreneurial Management Entrepreneurial Management  The discipline of entrepreneurial management: Entrepreneurship is based upon the same principles.Entrepreneurship is based upon the same principles. It matters not who or what that the entrepreneur is—an existing large institution or an individual, for-profit business or a public-service organization, a governmental or non- governmental institution.It matters not who or what that the entrepreneur is—an existing large institution or an individual, for-profit business or a public-service organization, a governmental or non- governmental institution. The rules are much the same: things that work and those that don’t are much the same, and so are innovations and where to look for them.The rules are much the same: things that work and those that don’t are much the same, and so are innovations and where to look for them.


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