Chapter 1

Bootstrapping

A strategy that involves conserving money and cutting costs during start-up so that entrepreneurs can pour every available dollar into their businesses.

Mice

Small companies that never grow much and don't create many jobs.

Micromultinationals

Small companies that operate globally from their inception.

Entrepreneurial profile

(1) Desire for responsibility, (2) preference for moderate risk, (3) self-reliance, (4) confidence in their ability to succeed, (5) determination, (6) desire for immediate feedback, (7) high level of energy, (8) future orientation, (9) skill at organizing, and (10) value of achievement over money. Also, (11) high degree of commitment, (12) tolerance for ambiguity, (13) creativity, (14) flexibility, (15) resourceful, (16) willingness to work hard, and (17) tenacity

What's feeding the entrepreneurial fire

(1) Entrepreneurs as heroes, (2) entrepreneurial education, (3) demographic and economic factors, (4) shift to a service economy, (5) technology advancements, (6) independent lifestyle, (7) the internet, cloud computing, and mobile marketing, and (8) international opportunities.

How to avoid pitfalls

(1) Know your business in depth, (2) build a viable business model and test it, (3) develop a solid business plan, (4) understand financial statements, (5) manage financial resources, (6) learn to manage people effectively, (7) set your business apart from the competition, and (8) maintain a positive attitude.

Benefits of entrepreneurship

(1) Opportunity to create your own destiny, (2) opportunity to make a difference, (3) opportunity to reach your full potential, (4) opportunity to reap impressive profits, (5) opportunity to contribute to society and be recognized for your efforts, and (6) opportunity to do what you enjoy and have fun at it.

Disadvantages of entrepreneurship

(1) Uncertainty of income, (2) risk of losing your entire investment, (3) long hours and hard work, (4) lower quality of life until the business gets established, (5) high levels of stress, (6) complete responsibility, and (7) discouragement.

Cultural diversity of entrepreneurship

(1) young entrepreneurs, (2) women entrepreneurs, (3) minority enterprises, (4) immigrant entrepreneurs, (5) part-time entrepreneurs, (6) home-based businesses, (7) family businesses, (8) copreneurs, (9) corporate castoffs, (10) corporate dropouts, (11) retiring baby boomers

Copreneur

Entrepreneurial couples who work together as co-owners of their businesses.

Serial entrepreneurs

Entrepreneurs who repeatedly start businesses and grow them to a sustainable size before striking out again.

Necessity entrepreneurs

Entrepreneurs who start businesses because they cannot find work any other way.

Opportunity entrepreneurs

Entrepreneurs who start businesses because they spot an opportunity in the marketplace.

Social entrepreneurs

Entrepreneurs who use their skills not only to create profitable businesses but also to achieve economic, social, and environmental goals for the common good.

Cloud computing

Internet-based subscription or pay-per-use software services that allow business owners to use a variety of business applications, from database management and inventory control to customer relationship management and accounting.

Gazelles

Small companies that are growing at 20 percent or more per year with at least $100,000 in annual sales; they create 70% of net new jobs in the economy.

Small business

One that employs fewer than 100 people.

Family-owned business

One that includes two or more members of a family with financial control of the company.

Entrepreneur

One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them.

Leapfroggers

People who start a company, manage its growth until they get bored, and then sell it to start another.

Jugglers (or parallel entrepreneurs)

People who start and manage several companies at once.