Entrepreneurship Chapter Five McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Entrepreneurship Entrepreneurship The pursuit of lucrative opportunities by enterprising individuals.

Who is The Entrepreneur? Figure 5.1

What Does it Take, Personally? Commitment and determination Leadership Opportunity obsession Tolerance of risk, ambiguity, and uncertainty Creativity, self-reliance, and ability to adapt Motivation to excel

Entrepreneurial Strategy Matrix Figure 5.2

Success and Failure Anticipate risk Consider the role of the economic environment Utilize business incubators Realize there are common management challenges Going public with an initial public offering (IPO)

Common Management Challenges You might not enjoy it Survival is difficult Growth creates new challenges It’s hard to delegate Misuse of funds Poor controls Mortality

Outline of a Business Plan

Outline of a Business Plan

Five Key Factors The people The opportunity The competition The context Risk and reward

Building Support for your Idea Clear the investment with your immediate boss Make cheerleaders who will support your idea Horse trading for support, time, money, and other resources Get the blessing of relevant higher-level officials

Checklist for Choosing Ideas Table 5.2

Checklist for Choosing Ideas (cont.) Table 5.2

Management Challenges in Intrapreneurship Failing to foster innovation Overreliance on a single project Spread intrapreneurial efforts over too many projects

Characteristics of Entrepreneurial Orientation Allow independent action Innovativeness Risk taking Proactiveness Competitive aggressiveness