2DefinitionsEntrepreneurship is the dynamic process of creating incremental wealth. The wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment or provide value fro some product or service.
3Definitions (Formal)Entrepreneurship is the process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence.
4Economic DevelopmentNew investment works on both the demand and the supply side of the growth equation;New capital created expands capacity for growth (supply side)New spending utilizes the new capacity & output (demand side)
5Economic Development Government as Innovator Intrapreneurship Technology TransferNISTIntrapreneurshipemphasis on short-term profits, highly structured organization, inhibit creativityculturally ingrained (JVC, Rubbermaid)
6Future of Entrepreneurship Education369 universities have at least one course32 have courses in engineering schoolsCultural Supportrevered by general populaceGlobal Competition and FRO’s shift from bureacracy to intrapreneurship
7Entrepreneurs Bill Gates Ted Turner Steven Jobs Ross Perot Dropped out of HarvardTed TurnerKicked out of BrownSteven JobsFounder of Apple ComputersRoss PerotLeft IBM to form EDSThomas A. EdisonAlbert EinsteinFailed 3rd grade
8Frank Phillips Started as Barber Married daughter of wealthy banker 1903 started Anchor Oil - 4th well successful1906 Sold Anchor Oil, founded Citizen’s Bank1917 started Phillips PetroleumKeys to Success???
9Frank Phillips Keys to success Married Well Lucky on 4th oil well Ability to attract investors (staged gushers)Knew banking industry
10Who should start a business SBA; 1,000 small business firms fail each dayEntrepreneurial CharacteristicsNo such thing as a typical entrepreneurEntrepreneurial Assessment
11Characteristics of Entrepreneur An entrepreneur is most commonly the child in the family.a. oldestb. middlec. youngestd. doesn’t matterAn entrepreneur is most commonlya. marriedb. singlec. widowedd. divorced
12Characteristics of Entrepreneur An entrepreneur is most typically aa. manb. womanc. eitherUsually an individual’s entrepreneurial tendency first appears evident in his or hersa. teensb. twentiesc. thirtiesd. forties
13Characteristics of Entrepreneur An individual usually begins his or her first significant entrepreneurial business enterprise at which age?a. teensb. twentiesc. thirtiesd. fortiese. fifties
14Characteristics of Entrepreneur An entrepreneur has acheived the following educational attainment by the time the first significant business venture begins:a. less than high schoolb. high schoolc. bachelor’s degreed. master’s degreee. doctor’s degree
15Characteristics of Entrepreneur An entrepreneur’s primary motivation for starting a business isa. to make moneyb. to be independentc. to be famousd. to create job securitye. to be powerful
16Characteristics of Entrepreneur The primary motivation for the entrepreneur’s high ego and need for achievement is based upon a relationship with:a. spouseb. motherc. fatherd. children
17Characteristics of Entrepreneur To be successful in an entrepreneurial venture you need:a. moneyb. luckc. hard workd. a good ideae. all of the above
18Characteristics of Entrepreneur Entrepreneurs and venture capitalistsa. get along wellb. are the best of friendsc. are cordial friendsd. are in conflictA successful entrepreneur relies on which for critical management advice?a. international management teamb. external management professionalsc. financial sourcesd. no one
19Characteristics of Entrepreneur Entrepreneur’s are best asa. managersb. venture capitalistsc. plannersd. doersEntrepreneurs area. high risk takersb. moderate risk takersc. small risk takersd. doesn’t matter
20Characteristics of Entrepreneur Entrepreneurs:a. are the life of the partyb. are bores at a cocktail partyc. never go to partiesd. just fit into the crowd at partiesEntrepreneur’s tend to “fall in love” witha. new ideasb. new employeesc. new manufacturing ideasd. new financial planse. all of the above
21Characteristics of Entrepreneur Entrepreneur’s typically forma. service businessesb. manufacturing companiesc. financial companiesd. construction companiese. a variety of ventures