Introduction to Entrepreneurship Launching New Ventures Allen 5th Edition Chapter 1 Understanding Entrepreneurship Entrepreneurship is a mindset that is Opportunity focused Innovative Growth oriented And is a set of behaviors Recognizing opportunities Gathering resources to act on opportunities Driving opportunities for to completion The entrepreneurial process affected by 3 major categories 1 The individual entrepreneur what they bring to the process 2 The entrepreneurial environment markets industries suppliers 3 The organization Entrepreneurs contribute to Technological change Higher productivity Economic growth by discovering Emerging consumer segments New customer needs Unsatisfied existing needs New methods of distribution manufacturing Outcomes of Entrepreneurship 1 Economic growth technological innovation engine of growth 2 3 New industry formation new industries born when technological change produces new Job Creation 99 7 of U S employees make up small businesses opportunities Disruptive technologies destroy previous technologies and create new industries Ex vinyl 8 track cassette tape cd digital music Primary Characteristics of Entrepreneurial Venture 1 Innovative 2 Value Creating 3 Growth Oriented entrepreneurship process nonlinear nonsystematic Milestones to Measure Progress of Venture Deciding to start a business Researching the concept Obtaining business licenses formal administrative set up Preparing launch Securing the first customer Other activities that signal business Is in operation ENTEPRENEURSHIP the act of starting a new business or revitalizing business activities of an existing organization INTRAPRENEUR person already with in a firm company in charge of developing new products business ideas for the company 2 3 of new businesses survive at least 2 years Failure rates tend to decline with age of business long term firm display superior levels of reliability accountability in performance processes and structure New Business Survival Attributed 1 Sufficient capital 2 Having employees 3 Intentions goals in starting the business CRITICAL minimizing cost of possible failure INSTEAD OF avoiding failure itself Entrepreneurial Evolution 1960 s Bigger better Diversification Job security Macroeconomic turmoil International competition Technological revolution Deregulation 1970 s 1980 s Decade of entrepreneurship Solo entrepreneur Lean and mean Takeovers Small firm innovation Today s Entrepreneurial Trends Age of Information No job security Fewer benefits Service firm growth Creative financing Team entrepreneurship 1990 s 2000 s Knowledge of econ Rebirth of commercial internet Renewed biotech medical interests Low transfer costs Emergence of news media companies Women make up 1 3 of global entrepreneurial activity Minorities make up 15 of all U S business Business efforts towards social responsibility accountability to society Internet entrepreneurial activity access to info personalization Globalization increased competition and ability to compete globally
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