The EntrepreneurThe Entrepreneur

DefinitionsEntrepreneurship is the dynamic process of

creating incremental wealth. The wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment or provide value fro some product or service.

Definitions (Formal)Entrepreneurship is the process of creating

something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence.

Economic DevelopmentNew investment works on both the demand

and the supply side of the growth equation;New capital created expands capacity for

growth (supply side)New spending utilizes the new capacity &

output (demand side)

Economic DevelopmentGovernment as Innovator

Technology Transfer NIST

Intrapreneurshipemphasis on short-term profits, highly

structured organization, inhibit creativityculturally ingrained (JVC, Rubbermaid)

Future of EntrepreneurshipEducation

369 universities have at least one course32 have courses in engineering schools

Cultural Supportrevered by general populaceGlobal Competition and FRO’s shift from

bureacracy to intrapreneurship

EntrepreneursBill Gates

Dropped out of HarvardTed Turner

Kicked out of BrownSteven Jobs

Founder of Apple ComputersRoss Perot

Left IBM to form EDSThomas A. EdisonAlbert Einstein

Failed 3rd grade

Frank PhillipsStarted as BarberMarried daughter of wealthy banker1903 started Anchor Oil - 4th well successful1906 Sold Anchor Oil, founded Citizen’s Bank1917 started Phillips PetroleumKeys to Success???

Frank PhillipsKeys to success

Married WellLucky on 4th oil wellAbility to attract investors (staged gushers)Knew banking industry

Who should start a businessSBA; 1,000 small business firms fail each dayEntrepreneurial Characteristics

No such thing as a typical entrepreneurEntrepreneurial Assessment

Characteristics of EntrepreneurAn entrepreneur is most commonly the

child in the family.a. oldestb. middlec. youngestd. doesn’t matter

An entrepreneur is most commonlya. marriedb. singlec. widowedd. divorced

Characteristics of EntrepreneurAn entrepreneur is most typically a

a. manb. womanc. either

Usually an individual’s entrepreneurial tendency first appears evident in his or hersa. teensb. twentiesc. thirtiesd. forties

Characteristics of EntrepreneurAn individual usually begins his or her first

significant entrepreneurial business enterprise at which age?a. teensb. twentiesc. thirtiesd. fortiese. fifties

Characteristics of EntrepreneurAn entrepreneur has acheived the following

educational attainment by the time the first significant business venture begins:a. less than high schoolb. high schoolc. bachelor’s degreed. master’s degreee. doctor’s degree

Characteristics of EntrepreneurAn entrepreneur’s primary motivation for

starting a business isa. to make moneyb. to be independentc. to be famousd. to create job securitye. to be powerful

Characteristics of EntrepreneurThe primary motivation for the entrepreneur’s

high ego and need for achievement is based upon a relationship with:a. spouseb. motherc. fatherd. children

Characteristics of EntrepreneurTo be successful in an entrepreneurial

venture you need:a. moneyb. luckc. hard workd. a good ideae. all of the above

Characteristics of EntrepreneurEntrepreneurs and venture capitalists

a. get along wellb. are the best of friendsc. are cordial friendsd. are in conflict

A successful entrepreneur relies on which for critical management advice?a. international management teamb. external management professionalsc. financial sourcesd. no one

Characteristics of EntrepreneurEntrepreneur’s are best as

a. managersb. venture capitalistsc. plannersd. doers

Entrepreneurs area. high risk takersb. moderate risk takersc. small risk takersd. doesn’t matter

Characteristics of EntrepreneurEntrepreneurs:

a. are the life of the partyb. are bores at a cocktail partyc. never go to partiesd. just fit into the crowd at parties

Entrepreneur’s tend to “fall in love” witha. new ideasb. new employeesc. new manufacturing ideasd. new financial planse. all of the above

Characteristics of EntrepreneurEntrepreneur’s typically form

a. service businessesb. manufacturing companiesc. financial companiesd. construction companiese. a variety of ventures