1 16 14 Chapter 1 We cannot direct the wind but we can adjust the sails Bertha Calloway Entrepreneurship is a mindset that is Opportunity focused Innovative Growth oriented ENTREPRENEURSHIP IS SOMETHING THAT CAN BE TAUGHT New Venture Creation Process Individual entrepreneur and what he brings to the process Environment includes all external variables like markets industries suppliers Organization is all the strategic aspects of the new venture available resources strategic partnerships What an individual entrepreneur can bring to the table Education Approach Experience Cultural Background Resources Relationships Passion Confidence Creativity Environment factors Employees Location Philosophy Investors Resources available Process Industry Organization factors Legal Regulatory Economy Supplies Customers ENTREPRENEURIAL PROCESS IS NOT LINEAR you will have road blocks to overcome Entrepreneur Emerging Customer Segments New Customer Needs Unsatisfied Existing Needs Productivity Economic Growth New Methods of Manufacture Distribution Technological Change Higher ECONOMIC GROWTH TECHNOLOGICAL INNOVATION IS THE ENGINE OF GROWTH FOR THE U S ECONOMY IN THE CURRENT GLOBAL ARENA 99 7 of all U S employers are small businesses New Industry Formation Born when technological change produces a new opportunity that an enterprising entrepreneur seizes Metamorphic technologies destroy previous technologies create new industries An Entrepreneurial Venture brings something NEW to the marketplace Characteristics include Innovative Value creating Growth oriented You don t always have to be the first one to the dance sometimes it pays off to be fashionably late Kipp New Business Failure Not all businesses succeed in growing their start up into an established business Survival has been attributed to having sufficient capital having employees shows commitment and the entrepreneur s intention in starting the business Vital issue for entrepreneurs minimizing the cost of a possible failure rather than avoiding failure at all costs 1960 Bigger is better Diversification 1970 International competition Technical Revolution 1980 Decade of Entrepreneurship 1990 Internet Information 2000 Emergence of new media companies Knowledge Economy Entrepreneurial Trends Internet Globalization global competition Social Responsibility 1 21 14 Chapter 2 Most Entrepreneurs work a few years like most individuals won t so that they can live the rest of their lives like most individuals can t Sustainability An idealized state of human fulfillment satisfaction health prosperity that exists from generation to generation It involves meeting the needs of the present generation w o compromising the ability to meet the needs of future generations Financial sustainability The ability of private firms to generate the profits and cash flow needed to sustain their business operations Triple bottom line Businesses consider a broader bottom line that takes into account profits people and the planet Enlightened self interest A business philosophy where the business does well financially by helping others and the environment Sustainable businesses main concerns Their own viability and profitability Managing operations to reduce negative environmental impact Recycling Conserving the use of nonrenewable material energy Internal Profit maximization External Legal and regulatory Potential to lower energy material costs Improve reputation sales Founder s values Barriers to Sustainable Business Practices Lack of understanding of what sustainability is and means to an enterprise Flaws in execution Too ambitious agenda Selfish business motives Lack of sincere interest Greenwashing When a product of service is sold as green or environmentally friendly using deceptive claims A Systems Approach Systems are made up of components that work together for the overall objective of the whole A system is more than a sum of its parts Closed System Organization that isolates itself from its external environment Does not take in new information is therefore likely to atrophy and vanish Open System Receives information uses it to interact dynamically with its environment In order to most effectively create a sustainable business a business entire system of operations must be mapped analyzed and understood Social Responsibility Business Stakeholder engagement formal process of relationship management Stakeholders include owners investors employees consumers all affected by the actions of the corporation Carrying capacity population of a species that the environment can sustain indefinitely Supply Demand when a product is in high demand low supply you increase its price Tragedy of the Commons describes a situation where individuals acting in own self interest overexploit a shared resource resulting in its depletion and ultimately negatively impacting the individual actors Overexploitation taking of a natural renewable resource at a greater rate than it can replenish and sustain itself Ecological Threshold tipping point where the stresses on an ecosystem exceed the capacity to absorb them Public Policy The decisions made and actions taken by government in regard to a particular issue or set of issues Market Failures instances in which the private market fails to allocate scarce resources in the most economically efficient manner U S is 2nd largest emitter of GHG emissions in the world China s 1st Two goals of sustainability reporting Documentation assessment of an organization s environmental economic social impact Communication of a company Radical Transparency A high degree of transparency that reveals the good bad and ugly of a business Intrapreneurship Entrepreneurship from within Sustainability Entrepreneurship builds on the basics of entrepreneurship and extends it to additionally addressing ecological and social concerns 1 23 14 Success isn t permanent and failure isn t fatal Mike Ditka SEVEN MYTHS OF ENTREPRENEURSHIP Entrepreneurs start businesses solely to make money Independence create something new It takes a lot of money to start a business Can start on 1000 or less it s not the amount of capital an entrepreneur possesses rather how many human resources they can harness It takes a great idea to start a business Not the great idea but the great team that with great execution in a growing market A business plan is required for success While formal business plans are good to have more important than business plan spending time and resources testing the market for