Entrepreneurship
Entrepreneurs:
Challenging the Unknown
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
Entrepreneurship: A Mindset
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.
The Evolution of Entrepreneurship
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.
A Summary Description of
Entrepreneurship
Entrepreneurship
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.
An Integrated Definition
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.
Essential ingredients include:
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 fundamental skills of building a
solid business plan.
The vision to recognize opportunity
where others see chaos,
contradiction, and confusion.
Entrepreneurs in the United States
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.
Entrepreneurial Firms’ Impact
Entrepreneurial components of the U.S. Economy:

Large firms have increased
profitability by returning to their “core
competencies through restructuring
and downsizing.
 New entrepreneurial companies have
been blossoming in new technologies
and new markets.

Thousands of smaller firms established
by women, minorities, and immigrants
have strengthened the economy.
Entrepreneurial Firms’ Impact
Entrepreneurial firms make two indispensable
contributions to an economy:
 They are an integral part of the
renewal process that pervades and
defines market economies.
 They are the essential mechanism by
which millions enter the economic
and social mainstream of society.
Common Characteristics of Entrepreneurs
Commitment, determination, and perseverance
Drive to achieve
Opportunity orientation
Initiative and responsibility
Persistent problem solving
Seeking feedback
Internal locus of control
Tolerance for ambiguity
Calculated risk taking
Tolerance for failure
High energy level
Creativity and Innovativeness
Vision
Self-confidence and optimism
Independence dedication to remain with the concept
Team building through implementation.
Outline of the Entrepreneurial Is a key function in the entrepreneurial
Organization process.
Entrepreneurship Theory Is the specific function of entrepreneurship.
Entrepreneurs cause entrepreneurship. The Innovation Process
Types of Innovation
Entrepreneurship is a function of the Invention
entrepreneur: Extension
Duplication
Entrepreneurship is the interaction of skills Synthesis
related to inner control, planning and goal Sources of Innovation
setting, risk taking, innovation, reality Unexpected occurrences
perception, use of feedback, decision Incongruities
making, human relations, and independence. Process needs
The Dark Side of Entrepreneurship Industry and market changes
The Entrepreneur’s Confrontation with Risk Demographic changes
Financial risk versus profit (return) motive Perceptual changes
varies in entrepreneurs’ desire for wealth. Knowledge-based concepts
Career risk—loss of employment security Major Innovation Myths
Family and social risk—competing Myth 1: Innovation is planned and predictable
commitments of work and family Myth 2: Technical specifications should be
Psychic risk—psychological impact of thoroughly
failure on the well-being of entrepreneurs prepared
Opportunity Identification: Myth 3: Creativity relies on dreams and blue-
The Search for New Ideas sky ideas
Opportunity identification is central to Myth 4: Big projects will develop better
entrepreneurship and involves: innovations than
The creative pursuit of ideas smaller ones
The innovation process Myth 5: Technology is the driving force of
The first step for any entrepreneur is the innovation
identification of a “good idea.” success
The search for good ideas is never easy. Aspects of Entrepreneurship
Opportunity recognition can lead to both
personal and societal wealth.
Entrepreneurial Imagination and
Creativity
How entrepreneurs do what they do:
Creative thinking + systematic analysis =
success
Seek out unique opportunities to fill needs
and wants
Turn problems into opportunities
Recognize that problems are to solutions
what demand is to supply
The Role of Creative Thinking
Creativity
The generation of ideas that result in the
improved efficiency or effectiveness of a
system.
Two important aspects of creativity exist:
Process
The process is goal oriented; it is
designed to attain a solution to a
problem.
People
The resources that determine the
solution.
The Creative Climate
Characteristics of a creative climate:

Innovation and the Entrepreneur

Innovation:
Is the process by which entrepreneurs
convert opportunities into marketable ideas.
Is a combination of the vision to create a
good idea and the perseverance and