entreprenurship

Chapter 1

Understanding Entrepreneurship

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Learning Objectives• Define entrepreneurship

• Explain the role of entrepreneurship

• Distinguish entrepreneurial ventures from small businesses.

• Describe the evolution of entrepreneurship

• Identify today’s broad trends in the field of entrepreneurship.


Definition of Entrepreneurship

An Entrepreneur

One who

Organizes, Manages and Assumes Risk of a

Business or Enterprise

Merriam-Webster


Entrepreneurship

Entrepreneurship is a mindset

– Opportunity-focused– Innovative– Growth-oriented

Can you add additional Characteristics and/or Attributes…


The Promise of Entrepreneurship

• An integrated input/output model • The career assessment approach • The new venture creation process


Figure 1.1: The Entrepreneurship Process


Figure 1.2: Entrepreneurship and Technological Change


Outcomes of Entrepreneurship

• Economic growth• New industry formation• Job creation

> Knowledge, Wealth, Philanthropy <


New Industry Formation

• New industries are born when technological change produces a new opportunity that an enterprising entrepreneur seizes.

• Disruptive or metamorphic technologies that destroy previous technologies and create new industries and display a different pattern of behavior.

• The pattern of growth, shakeout, stabilization, and decline of industry can be interrupted at any time by the entry of another disruptive technology.


Job Creation

• The most recent data from 2003 indicate that small businesses created 1,990,326 net new jobs as compared to 994,667 for large firms.*

------------------------------------------------UCF Incubation Program

• Almost 1,700 jobs • More than $70,012,000 in earnings • Nearly $200,000,000 in total economic output.

*U.S. Bureau of the Census; Administrative Office of the U.S. Courts; Endogenous Growth and Entrepreneurial Activities.


The Nature of Entrepreneurial Start-ups

• An entrepreneurial venture brings something to the marketplace.

• Three primary characteristics

1. Innovative2. Value-creating3. Growth-oriented


New Business Formation

• Entrepreneurs use identifiable milestones to measure their progress:– Deciding to start a business– Researching the concept– Preparing for launch– Securing the first customer– Obtaining the business licenseAnd other activities which signal the business is

in operation


New Business Failure

• Not all entrepreneurs succeed in growing their start-up into an established business.

• Survival has been attributed to sufficient capital, having employees, and the entrepreneur’s intention in starting the business.


Figure 1.5: The Entrepreneurial Evolution


Entrepreneurial Trends

• Women and minority-owned businesses • Social responsibility • The Internet• Globalization

Can you think of additional trends…


Looking Ahead…Launching New Ventures

• Part One: The Opportunity– Chapter 1: Introduction to Entrepreneurship– Chapter 2: The Entrepreneur’s Perspective– Chapter 3: Opportunity Recognition– Chapter 4: The Business Concept and

Model• Part Two: Feasibility Analysis (Ch 5-8)• Part Three: The Business Plan (Ch 9-16)• Part Four: Growth and Change (Ch 17-19)


Do The Venture Checklist

• Keep as a Journal/Work Papers

• Bring to Every Class

• Your Ideas…Write Them Down On Paper…!!!