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The Foundations of Entrepreneurship

The World of the Entrepreneur

Entrepreneurial spirit - the most significant economic development in recent history.

GEM (Global Entrepreneurship Monitor) study: 18.7% of adult population in the U.S. is actively involved in trying to start a new business.
Turkey? Cyprus? Nigeria? Zimbabwe? Turkmenistan?

Whos in a name?


Whos in a name?


Entrepreneurial characteristics?

Entrepreneurial characteristics?
Value creator Chief Connector Dreamer Risk taker

Builder CEO Confidence Founder Leadership

Puzzle solver


Small business owner



What is an Entrepreneur?
One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.

Ch. 1: The Foundations of Entrepreneurship

A state of minda way of thinking through things Entrepreneur develops the idea? The founder takes it into production?


One characteristic of entrepreneurs stands out:


Anyone regardless of age, race, gender, colour, religion, national origin, or any other characteristic can become an entrepreneur (although not everyone should).

The Cultural Diversity of Entrepreneurship

Young entrepreneurs
Mark Zuckerberg, (born May 14, 1984) American computer programmer and entrepreneur. Harvard dropout Credited with developing and launching the online social networking website Facebook In 2008, Forbes Magazine declared him

"[the] youngest billionaire on earth with an estimated net worth of $1.5 billion

The Cultural Diversity of Entrepreneurship


Young entrepreneurs Women entrepreneurs

FIGURE 1.4 Why Women Start Businesses Source: U.S. Small Business Administration, 2007.

The Cultural Diversity of Entrepreneurship


Young entrepreneurs Women entrepreneurs Minority-owned enterprises Immigrant entrepreneurs Part-time entrepreneurs

The Cultural Diversity of Entrepreneurship


Home-based businesses Family businesses Copreneurs Corporate castoffs Corporate dropouts Social entrepreneurs Retiring Baby Boomers

What are the Benefits and Drawbacks of Entrepreneurship?

Benefits of Entrepreneurship
The opportunity to:

Create ones own destiny

Make a difference Reach ones full potential Reap impressive profits Contribute to society and to be recognized for ones efforts Do what one enjoys and have fun at it

Drawbacks of Entrepreneurship

Uncertainty of income Risk of losing entire investment Long hours and hard work Lower quality of life until the business gets established High levels of stress Complete responsibility Discouragement

Feeding the Entrepreneurial Fire

Entrepreneurs as heroes
Entrepreneurial education Demographic and economic factors Shift to a service economy Technology advancements

Independent lifestyle
E-commerce and the Internet

Entrepreneurial resources

Human Capital

Social Capital

Entrepreneurial resources

Economic Capital

Symbolic Capital

Small Businesses...

Make up c99% of businesses in most countries. Employ c51% of the private sector workforce. Create more jobs than big businesses. Are leaders in offering training and advancement opportunities to workers.

Small Businesses ...


Produce a significant portion of GDP and business sales. US - Create 13 times more patents per employees than large companies.

Zipper, light bulb, FM radio, laser, air conditioning, escalator, personal computer, automatic transmission, and many more!

Ten Deadly Mistakes of Entrepreneurship

1. Management mistakes 2. Lack of experience 3. Poor financial control 4. Weak marketing efforts 5. Failure to develop a strategic plan

Ten Deadly Mistakes of Entrepreneurship

6. Uncontrolled growth 7. Poor location 8. Improper inventory control 9. Incorrect pricing 10. Inability to make the entrepreneurial transition

Putting Failure Into Perspective

Entrepreneurs are not paralyzed (felce uratmak) by the prospect of failure. Failure a natural part of the creative process.
Successful entrepreneurs learn to fail intelligently.

Avoiding the Pitfalls of Small Business Failure

Know your business in depth Develop a solid business plan Manage financial resources Understand financial statements Learn to manage people effectively Set your business apart from the competition Maintain a positive attitude


Are an important part of the free enterprise system Are a diverse and talented group of people Represent a cross-section of society as a whole Are able to enhance the profitability of their businesses through acquiring additional knowledge and experience