ent3001
Serial entrepreneurship (habitual entrepreneurship)
Start more than one business at the same time or consecutively
Opportunity assessment-
the ability to evaluate the relative attractiveness of an opportunity
The Rising Popularity of Entrepreneurship
70% of people want to venture on their own one day They care more about Inc. 500 Every year, 1 million new ventures pop up in the US, account for 85% of new job creation
Method: systematic way of approaching a task
Action-based and requires practice More than 50% of startups fail within 5 years, you are more likely to succeed in the second venture
Family enterprising
Business owned and run by more than one family member 60% US employment 65% total wages 78% of new jobs 70% of family enterprises go out of business before the second generation takes over
Social entrepreneurship
Coming up with ideas to help social and environmental problems, non profit organizations
Corporate entrepreneurship (intrapeneurship)
Creating products/ventures in a large corporation Requires support from managers and fellow employees
8 components of the entrepreneurship method
Determine what impact you want to have on the world Start with what you have Describe the idea today Calculate your affordable loss Take small action Network and get others on board Build on your learning Reflect on your experience and be honest
Buying a small business
Entrepreneur buys business and takes over the company instead of starting from scratch
Entrepreneurs are calculated risk takers, they mitigate risk through the cycle of act-learn-build: take small actions, learn from those actions, and build that learning into the next action
FACT
Entrepreneurs can be anyone; a scientist, sociologist, someone a part of a corporation or franchise
FACT
Entrepreneurs collaborate with many others to network Ex. Bill Gates and Steve Jobs
FACT
Entrepreneurship can be taught and practiced
FACT
It is a life skill
FACT
Less than 50% of INC 500 companies had a plan
FACT
Researchers focus on how entrepreneurs think and act rather than personality traits: -Saras Sarasvathy proposed education theory - taking quick action using the resources you have rather than focusing on the resources you need -The future is unpredictable yet controllable -Successful entrepreneurs have an entrepreneurial mindset
FACT
Franchising
Franchise: agreement which an individual (the franchisee) purchases a license from an existing business (the franchisor) Franchisee benefits due to "turnkey operation" in which they do not have to spend time on marketing or building the brand but they do have to pay the franchisor a lump sum franchise fee and a share of income (royalties)
Deliberate practice- carefully focused efforts designed to improve current performance
Gives entrepreneurs better intitution Ex. performing the trumpet
Entrepreneurs are born. Entrepreneurs can not be taught as a linear process.
MYTH
Entrepreneurs are extreme risk takers
MYTH
Entrepreneurs are in individuals that exclusively start a business
MYTH
Entrepreneurs compete more than they collaborate
MYTH
Entrepreneurs have a set of personality traits that define them. Researchers have come up with 4 personality traits for entrepreneurs: need for achievement, tendency for risk-tasking, tolerance for ambiguity, and internal locus of control.
MYTH
Entrepreneurs only succeed with a business plan
MYTH
Entrepreneurship is only about launching a business
MYTH
Process: linear, step-by-step process to reach desired end
Process approach: focuses on planning and prediction Entrepreneurs maximize their chances of success by following a linear series of steps This is OUTDATED approach Most big corporations follow this approach
Creating the Future vs. Predicting the Future: Managerial thinking- common in large corporations, works with managers who face certain conditions and have tools to make decisions
What does a manager do? Emphasizes large scale plans Waits until resources are present to act Focuses on expected return Linear thinking, focus on optimizam Avoids failure at all costs Competitive Plan to act
Creating the Future vs. Predicting the Future: Entrepreneurial thinking- common in smaller corporations, necessary in uncertain conditions, entrepreneurs do not have enough data to make decisions
What does an entrepreneur do? Emphasizes small actions Takes small action and starts with what they have Focuses on acceptable loss Iterative thinking and focuses on experimentation Embraces failure Collaborative Act to learn Emphasize action over planning, CURRY IN A HURRY
Value innovation-
create value with the goods and services they offer
Risk mitigation-
involves actions that reduce either the risk or the potential impact of a negative outcome
Resource leveraging-
must be able to use resources they don't own or control
Focus, yet adapt-
no planning can prepare an entrepreneur for everything that could happen in an uncertain environment
Self efficacy-
one's capacity to maintain confidence in his or her ability to accomplish a task
Opportunity recognition
refers to the ability to perceive changes or untapped possibilities that might be sources of profit for the venture Ex. Google Chrome
Imaginativeness-
refers to the ability to produce novel, useful outcomes by relating previously unrelated objects
