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Introduction to
Entrepreneurship
Bruce R. Barringer
R. Duane Ireland
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Chapter Objectives
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Chapter Objectives
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The first known instance of humans trading comes from New Guinea around 17,000
BCE when locals exchanged obsidian, a black volcanic glass used to make hunting
arrowheads for other needed goods.
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Social Evolution
Around 15,000 BCE, the first animal
domestication 10,000 BCE, the first
domestication of plants.
Agriculture allowed us to start to
form larger stationary communities
and cities (the basis for civilizations)
Human populations to grow from 15
million to over 7 billion in
themillenniaahead.
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Social Evolution
Trade routes between the new cities soon
sprang up.
Donkeys, horses, and camels enabled trade
caravans between civilizations, moving both
goods and ideas.
Ships were built to carry trade over the seas.
Networks and hubs soon formed and more
complex structures emerged.
Great Pyramids were built in Cairo. Temples
were built in Sumeria.
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Social Evolution
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Our Age
Just when it seemed we had reached our human
limits we found the energy and technology to carry us
into the future. On Earth, the seeds of the past have
bloomed into a present filled with energy creativity.
The stories of billions of lives have played out against
a backdrop of a universe almost too vast to
comprehend. In everything that we do, in all that we
are, we remain living monuments to the past, as we
continue to make history every day. The History
Channel6
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Introduction to Entrepreneurship
There is tremendous
interest in
entrepreneurship in
the U.S. and around
the world.
College Courses
In 1985, there were about 250 entrepreneurship courses
offered across all colleges in the United States.
Today, more than 5,000 entrepreneurship courses are
offered in two-year and four-year colleges and universities
in the United States.
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What is Entrepreneurship?
Academic Definition (Stevenson & Jarillo)
Entrepreneurship is the process by which individuals pursue
opportunities without regard to resources they currently
control.
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Corporate Entrepreneurship
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Corporate Entrepreneurship
Is the conceptualization of entrepreneurship at the firm
level.
All firms fall along a conceptual continuum that ranges
from highly conservative to highly entrepreneurial.
The position of a firm on this continuum is referred to as its
entrepreneurial intensity.
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Corporate Entrepreneurship
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Entrepreneurial Firms
Proactive
Innovative
Risk taking
Conservative Firms
Take a more wait and see
posture
Less innovative
Risk adverse
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Entomology Entrepreneur
The word entrepreneur originates from a
thirteenth-century French verb,
entreprendre, meaning to do something or
to undertake.
By the sixteenth century, the noun form,
entrepreneur, was being used to refer to
someone who undertakes a business
venture.
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Entomology Entrepreneur
The first academic use of the word by an
economist was likely in 1730 by Richard
Cantillon, who identified the willingness to
bear the personal financial risk of a business
venture as the defining characteristic of an
entrepreneur.
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Entomology Entrepreneur
In the early 1800s, economists Jean-Baptiste
Say and John Stuart Mill further popularized
the academic usage of the word
entrepreneur.
Say stressed the role of the entrepreneur in
creating value by moving resources out of
less productive areas and into more
productive ones.
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Entomology Entrepreneur
Mill used the term entrepreneur in his popular
1848 book, Principles of Political Economy, to
refer to a person who assumes both the risk and
the management of a business.
Mill provided a clearer distinction than Cantillon
between an entrepreneur and other business
owners (such as shareholders of a corporation)
who assume financial risk but do not actively
participate in the day-to-day operations or
management of the firm.
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Product/Customer Focus
A second defining characteristic of successful entrepreneurs
is a product/customer focus.
An entrepreneurs keen focus on products and customers
typically stems from the fact that most entrepreneurs are, at
heart, craftspeople.
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Execution Intelligence
The ability to fashion a solid business idea into a viable
business is a key characteristic of successful entrepreneurs.
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Optimistic disposition
Alert to opportunities
Persuasive
Creative
Promoter
Decisive
Resource assembler/leverager
Energetic
Self-confident
Self-starter
Tenacious
Is a networker
Tolerant of ambiguity
Visionary
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Women Entrepreneurs
There were 6.2 million womenowned businesses in 2002 (the
most recent statistics available)
This number was up 20% from
1997.
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Minority Entrepreneurs
Minorities owned roughly 18%
of U.S. businesses in 2002.
This number was up 10% from
1997.
Senior Entrepreneurs
Although statistics are not kept
on senior entrepreneurs, there is
strong evidence that the number
of older people choosing
entrepreneurial careers is rapidly
increasing.
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Young Entrepreneurs
Interest among young people in entrepreneurial careers is
growing.
According to a Gallop study, 7 out of 10 high school students
want to start their own business.
Over 2,000 two-year and four-year colleges and universities
offer entrepreneurship courses.
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Job Creation
In the past two decades, economic activity has moved in
the direction of smaller entrepreneurial firms, which may
be due to their unique ability to innovate and focus on
specialized tasks.
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Step 1
Step 2
Developing Successful Business Ideas
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Step 3
Step 4
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