entr quiz - chapter 1 &2
All Entrepreneurs Need Is Luck
"luck happens when preparation meets opportunity" . Prepared entrepreneurs who seize the opportunity when it arises often seem "lucky." They are, in fact, simply better prepared to deal with situations and turn them into successes. What appears to be luck is actually preparation, determination, desire, knowledge, and innovativeness.
Many people now regard entrepreneurship as
"pioneership" on the frontier of business.
examples of a Entrepreneur Perspective
- Fear fuels me. - Mistakes help me learn. - Calculated risks are my security. - .Continuous learning is my approach. - Seek a team of people smarter than me. - How I appear internally is more important. - The entrepreneurial journey is my goal.
examples of a Employee Perspective
- Out of fear for my job, I must conform. - Mistakes must be avoided - Avoiding risks is security. - I must know everything about my job. - Try and be smartest one on my team. - How I look externally is key. - Promotion is my goal.
The E-Myth
- The entrepreneur invents a business that works without him. - The manager produces results through employees by developing and implementing effective systems. The manager can actualize the entrepreneur's vision through planning, implementation, and analysis. - The technician performs specific tasks according to systems and standards management developed.
entrepreneurial ventures are those for which
- entrepreneur's principal objectives are innovation, immediate profitability, and rapid growth. - Thus, the business is characterized by innovative strategic practices and sustainable growth - can seek sale of business too
integrative approach inputs
- environmental opportunities - entrepreneurial indiciduals - an organizational context- which could range from a sole proprietorship run out of the entrepreneur's home or a franchise of some national chain to an autonomous business unit within a large corporation - unique business concepts - resources
GEM groups the participating economies into three levels
- factor-driven (is dominated by subsistence agriculture and extraction businesses, with a heavy reliance on labor and natural resources.) - efficiency-driven (further development is accompanied by industrialization and an increased reliance on economies of scale, with capital-intensive large organizations more dominant) - innovation-driven (businesses are more knowledge-intensive, and the service sector expands.)
integrative approach outputs
- first includes the level of entrepreneurship being achieved the process can result in any number of entrepreneurial events and can produce events that vary considerably in terms of how entrepreneurial they are outcomes can include one or more going ventures, value creation, new products and processes, new technologies, profit, jobs, and economic growth. - or failure
Small businesses are
- independently owned and operated, are not dominant in their fields, and usually do not engage in many new or innovative practices -They may never grow large, and the owners may prefer a more stable and less aggressive approach to running these businesses -by expecting stable sales, profits, and growth
the entrep mind set can be exhibited
- inside or outside the org. - for-profit or nonprofit enterprises - and in business or nonbusiness activities for the purpose of bringing forth creative ideas.
Three major types of displacement illustrate this school of thought:
- political: political regime that rejects free enterprise (international environment) to governmental regulations and policies that limit or redirect certain industries. - cultural: Deals with social groups precluded from professional fields. - economic displacement: Concerned with the economic variations of recession and depression. Job loss, capital shrinkage, or simply "bad times" can create the foundation for entrepreneurial pursuits
Entrepreneurs are individuals who
- recognize opportunities where others see chaos, contradiction, and confusion. They are aggressive catalysts for change within the marketplace. - They start companies and create jobs at a breathtaking pace
unique elements of the strategic formulation school of thought
- unique markets, people, products and resources
examples of entrpreneurial trait
1. The family development idea focuses on the nurturing and support that exist within the home atmosphere of an entrepreneurial family. This reasoning promotes the belief that certain traits established and supported early in life will lead eventually to entrepreneurial success 2. whether or not entrepreneurs need to go to school
6. Trajectory
1. Why Teach Entrepreneurship—A Clear Purpose 2. What Is Taught in Entrepreneurship—The Content 3. How Entrepreneurship Is Taught—The Delivery Mechanism 4. Organizing Entrepreneurship—The Structure 5. : Outcomes of Teaching Entrepreneurship—The Metrics 6. Leadership of Entrepreneurship Programs—Academic Entrepreneurs
10 myths of entrepreurship
1. entrepreneurs are doers, not thinkers 2. entrepreneurs are born, not made 3. entrepreneurs are always inventors 4. entrepreneurs are academic and social misfits 5. entrepreneurs must fit the profile 6. all entrepreneurs need is money 7. All Entrepreneurs Need Is Luck 8. Entrepreneurship Is Unstructured and Chaotic 9. Most Entrepreneurial Initiatives Fail 10. Entrepreneurs Are Extreme Risk Takers
Macro View Schools of Thought
1. environmental school of thought 2. financial/capital school of thought 3. displacement school of thought
entrepreneurial firms make two indispensable contributions to the U.S. economy.
1. they are an integral part of the renewal process that pervades and defines market economies --- they are about change and competition because they change market structure. The U.S. economy is a dynamic, organic entity, always in the process of "becoming," rather than having already arrived. It is about prospects for the future, not the inheritance of the past. 2. entrepreneurial firms are the essential mechanism by which millions enter the economic and social mainstream of American society. Small businesses enable millions of people—including women, minorities, and immigrants—to access the American dream. The greatest source of U.S. strength has always been the dream of economic growth, equal opportunity, and upward mobility.
Trends in Entrepreneurship research
1. venture financing 2. corporate entrepreneurship 3. social entrepreneurship 4. entrpreneurial cognition 5. women and minority entrepreneurs 6. The global entrepreneurial movement 7. family businesses 8. Entrepreneurial education
gazelle
A business establishment with at least 20 percent sales growth every year, starting with a base of at least $100,000. make up less than 1 percent of all businesses yet account for approximately 10 percent of net new jobs in any given year. they produce twice as much product innovations per employee as do larger firms.
entrpreneurship definition
A dynamic process of vision, change, and creation. It requires an application of energy and passion toward the creation and implementation of new ideas and creative solutions. Essential ingredients include the willingness to take calculated risks—in terms of time, equity, or career; the ability to formulate an effective venture team; the creative skill to marshal needed resources; the fundamental skill of building a solid business plan; and, finally, the vision to recognize opportunity where others see chaos, contradiction, and confusion. This process of innovation and new-venture creation is accomplished through four major dimensions—individual, organizational, environmental, and process—and is aided by collaborative networks in government, education, and institutions.
dynamic states model
A network of relationships and systems that convert opportunity tension into value for a venture's customers, generating new resources that maintain the dynamic state. depicts ventures being dependent on their environment for survival. This model is a more process-oriented view that incorporates an array of individual, organizational, and environmental elements. The strategy for value creation chosen by the firm is enacted by its business model, which itself is derived from the emerging dominant logic of the firm.
entrepreneurial trait school of thought
A school of entrepreneurial thought that focuses on identifying traits that appear common to successful entrepreneurs. --- if copied, would increase success opportunities for the emulators
environmental school of thought
A school of entrepreneurial thought that focuses on the external factors and forces—values, mores, and institutions—that surround a potential entrepreneur's lifestyle. For example, if a middle manager experiences the freedom and support to develop ideas, initiate contracts, or create and institute new methods, the work environment will serve to promote that person's desire to pursue an entrepreneurial career
The Strategic Formulation School of Thought
A school of entrepreneurial thought that focuses on the planning process used in successful venture formulation.
The Financial/Capital School of Thought
A school of entrepreneurial thought that focuses on the ways entrepreneurs seek seed capital and growth funds. table on desktop
A Framework of Frameworks Approach ** pg 1-6b
Allows for the entrepreneurship theory to move forward identifying the static and dynamic elements of new theories, typologies, or frameworks. contend that theories or frameworks based on combinations offer a more dynamic view of the phenomenon of entrepreneurship. Much like the "multiple lens" approach that characterizes general management, the theories based on combinations can delve into some of the particular aspects of entrepreneurship with greater granularity "there are numerous opportunities for multilevel research to make a substantial contribution to the field of entrepreneurship."
Entrepreneurs Are Extreme Risk Takers
Although it may appear that an entrepreneur is "gambling" on a wild chance, the entrepreneur is usually working on a moderate or "calculated" risk. Most successful entrepreneurs work hard—through planning and preparation—to minimize the risk involved and better control the destiny of their vision.
Why Teach Entrepreneurship—A Clear Purpose
Building on a shared conceptualization can establish a clear purpose for the effort, enhance communication and collaboration across disciplines, and reduce any confusion experienced by stakeholders.
social cognition theory
Cognition is used to refer to the mental functions, mental processes (thoughts), and mental states of intelligent humans. Social cognition theory introduces the idea of knowledge structures—mental models (cognitions) that are ordered in such a way as to optimize personal effectiveness within given situations—to the study of entrepreneurship.
some examples of researchers trying to explain entrepreneurship
Entrepreneurship . . . consists in doing things that are not generally done in the ordinary course of business routine; it is essentially a phenomenon that comes under the wider aspect of leadership. Entrepreneurship, at least in all nonauthoritarian societies, constitutes a bridge between society as a whole, especially the noneconomic aspects of that society, and the profit-oriented institutions established to take advantage of its economic endowments and to satisfy, as best they can, its economic desires. In . . . entrepreneurship, there is agreement that we are talking about a kind of behavior that includes: initiative taking, the organizing or reorganizing of social economic mechanisms to turn resources and situations to practical account, and the acceptance of risk of failure
21st centry def of entrepreneurship
Entrepreneurship is a dynamic process of vision, change, and creation. It requires an application of energy and passion toward the creation and implementation of innovative ideas and creative solutions. Essential ingredients include the willingness to take calculated risks—in terms of time, equity, or career; the ability to formulate an effective venture team; the creative skill to marshal needed resources; the fundamental skill of building a solid business plan; and, finally, the vision to recognize opportunity where others see chaos, contradiction, and confusion.
entrepreneurial discipline
Entrepreneurship is based upon the same principles, whether the entrepreneur is an existing large institution or an individual starting his or her new venture singlehanded.
In the study of contemporary entrepreneurship, one concept recurs:
Entrepreneurship is interdisciplinary
Robert C. Ronstadt put together a summary description:
Entrepreneurship is the dynamic process of creating incremental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment of providing value for some product or service. The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources
micro view of entrepreneurship
Examines the factors specific to entrepreneurship and part of the internal locus of control. The potential entrepreneur has the ability, or control, to direct or adjust the outcome of each major influence in this view. the micro approach concentrates on specifics from the inside looking out. Although some researchers have developed this approach into various definitions and segments, our approach presents the entrepreneurial trait theory (sometimes referred to as the "people school of thought"), the venture opportunity theory, and the strategic formulation theory.
three entrepreneurial components.
First, large existing firms in mature industries that adapted, downsized, restructured, and reinvented themselves in the early 2000s are now thriving, having learned to become more entrepreneurial. Second, while large existing companies have been transforming themselves, new entrepreneurial companies have been blossoming. Third, thousands of entrepreneurial firms have been founded, including many established by women, minorities, and immigrants. These new companies have footholds in every sector of the economy and can be found in every part of the country. Together they make a formidable contribution to the economy, as many, by hiring on one or two employees, have created most of the net new jobs in the last few years.
GEM
Global Entrepreneurship Monitor - In 2016 people were surveyed in 70 economies that account for over 75 percent of the world's population and 90 percent of the world's GDP. - 250 million people were involved in early-stage entrepreneurial activity. Of these individuals, an estimated 63 million people expected to hire at least 5 employees over the next 5 years, and 27 million of these individuals anticipated hiring 20 or more employees in that time.
entrepreneurs are academic and social misfits
Historically, in fact, educational and social organizations did not recognize the entrepreneur. They abandoned him as a misfit in a world of corporate giants. Today the entrepreneur is considered a hero—socially, economically, and academically. No longer a misfit, the entrepreneur is now viewed as a professional role model.
: Outcomes of Teaching Entrepreneurship—The Metrics
If programs attempt to prepare students for a life of entrepreneurship and seek to instill an entrepreneurial mind-set, the future will find more emphasis on competency mastery.
cognition
It refers to mental processes. These processes include attention, remembering, producing and understanding language, solving problems, and making decisions. "to know," "to conceptualize," or "to recognize," and refers to a faculty for the processing of information, applying knowledge, and changing preferences.
entrepreneurs must fit the profile
Many books and articles have presented checklists of characteristics of the successful entrepreneur. These lists were neither validated nor complete; they were based on case studies and on research findings among achievement-oriented people. Today we realize that a standard entrepreneurial profile is hard to compile. The environment, venture, and entrepreneur have interactive effects, which result in many different types of profiles. an "entrepreneurial mind-set" within individuals is more understandable and realistic than a particular profile
corridor principle
States that with every venture launched, new and unintended opportunities arise.
Cognitive Adaptability
The ability to be dynamic, flexible, and selfregulating in one's cognitions given dynamic and uncertain task environments.
water well strategies
The ability to gather or harness special resources (land, labor, capital, raw materials) over the long term.
characteristics of entrepreneurs
The characteristics of seeking opportunities, taking risks beyond security, and having the tenacity to push an idea through to reality combine into a special perspective
two perspectives the environment in which entrepreneurial firms operate
The first perspective is statistical and uses actual aggregate numbers to emphasize the importance of small firms in the U.S. economy. The second perspective examines some of the trends in entrepreneurial research and education to reflect the emerging importance of entrepreneurship in academic developments.
entrepreneurial cognition
The knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth. is about understanding how entrepreneurs use simplifying mental models to piece together previously unconnected information that helps them to identify and invent new products or services, and to assemble the necessary resources to start and grow businesses. Specifically, then, the entrepreneurial cognitions view offers an understanding as to how entrepreneurs think and "why" they do some of the things they do
Entrepreneurship Is Unstructured and Chaotic
The reality is that entrepreneurs are heavily involved in all facets of their ventures, and they usually have a number of balls in the air at the same time. As a result, they are typically well-organized individuals. They tend to have a system—perhaps elaborate, perhaps not—that is personally designed to keep things straight and maintain priorities. In fact, their system may seem strange to the casual observer, but it works.
Most Entrepreneurial Initiatives Fail
The statistics of entrepreneurial failure rates have been misleading over the years While many entrepreneurs do suffer a number of failures before they are successful, they follow the adage "If at first you don't succeed, try, try, again." In fact, failure can teach many lessons to those willing to learn, and often it leads to future successes.
Entrepreneurial Revolution
The tremendous increase in entrepreneurial business and entrepreneurial thinking that has developed during the last 20 years. This revolution will be as powerful to the twenty-first century as the Industrial Revolution was to the twentieth century (if not more!).
internal locus of control
The viewpoint in which the potential entrepreneur has the ability or control to direct or adjust the outcome of each major influence.
How Entrepreneurship Is Taught—The Delivery Mechanism
Upon completion of a minor, major, certificate, or other program in entrepreneurship, the student might submit a portfolio summary that includes their work on idea diaries, elevator pitches, business models, small business consulting reports, interviews with entrepreneurs, entrepreneurial audits, study abroad experiences, and so forth.``
A theory of entrepreneurship
a verifiable and logically coherent formulation of relationships, or underlying principles, that either explain entrepreneurship, predict entrepreneurial activity (e.g., by characterizing conditions that are likely to lead to new profit opportunities or to the formation of new enterprises), or provide normative guidance (i.e., prescribe the right action in particular circumstances)
Becoming an entrepreneur revolves around shifting from
an employee mind-set to an entrepreneur mind-set.
what Is Taught in Entrepreneurship—The Content
business basics in a new venture management context, core entrepreneurial content, and the entrepreneurial mind-set.
until the 1950s, the majority of definitions and references to entrepreneurship
came from economists
although, no single ...
definition of entrepreneurs exist
Organizing Entrepreneurship—The Structure
determining where the entrepreneurship program should be housed, how it will be led, to whom it will report, how it is staffed, and how it operates from a budgetary standpoint." So whether more centralized or decentralized, and whether based in a business school or elsewhere, the program needs a structural base with consistent leadership and authority.
Gerber contends that most small businesses...
dont work but the owners do - most small businesses fail because the owner working as a technician rather than entrepreneur Working only as a technician, the small-business owner realizes too little reward for so much effort, and eventually, according to Gerber, the business fails.
The entrepreneurial revolution has taken hold in an ________ sense, and the entrepreneurial mind-set is the ______ force.
economic dominant
The recognition of entrepreneurs dates back to
eighteenth-century France, when economist Richard Cantillon associated the "risk-bearing" activity in the economy with the entrepreneur. The Industrial Revolution was evolving in England during the same period, with the entrepreneur playing a visible role in risk taking and the transformation of resources
As the field has developed, research methodology has progressed from
empirical surveys of entrepreneurs to more contextual and process-oriented research.
micro view schools of thought
entrepreneurial trait, venture opportunity, strategic formulation
the world has embraced
entrepreneurship and innovation
entrepreneurs are born, not made
entrepreneurship has models, processes, and case studies that allow the topic to be studied and the knowledge to be acquired.
The Displacement School of Thought
focuses on the negative side of group phenomena, in which someone feels out of place—or is literally "displaced"—from the group It holds that the group hinders a person from advancing or eliminates certain critical factors needed for that person to advance As a result, the frustrated individual will be projected into an entrepreneurial pursuit out of her own motivations to succeed. , individuals fight adversity and tend to pursue a venture when they are prevented or displaced from doing other activities
The Venture Opportunity School of Thought
focuses on the opportunity aspect of venture development. The search for idea sources, the development of concepts, and the implementation of venture opportunities are the important interest areas for this school. Creativity and market awareness are viewed as essential. Additionally, according to this school of thought, developing the right idea at the right time for the right market niche is the key to entrepreneurial success - corridor principle: New pathways or opportunities will arise that lead entrepreneurs in different directions. Proponents of this school of thought believe that proper preparation in the interdisciplinary business segments will enhance an entrepreneur's ability to recognize venture opportunities.
entrepreneurship theory has been developing
for the last 40 years and it is apparent that the field is growing
In the twentieth century, the word entrepreneurship became synonymous—or at least closely linked—with
free enterprise and capitalism
The latest GEM analysis shows that
growth expectations and aspirations of early-stage entrepreneurs represent a key dimension of potential entrepreneurial impact and may be linked directly to many first-priority policy objectives around the world: to create more jobs. All of this illustrates the contribution of entrepreneurship and the entrepreneurial mind-set to job growth across the globe
mountain gap strategies
identifying major market segments as well as in between markets that arise from larger markets
better widget strategies
innovation that encompasses new or existing markets
Today, an entrepreneur is an
innovator or developer who recognizes and seizes opportunities; converts those opportunities into workable/marketable ideas; adds value through time, effort, money, or skills; assumes the risks of the competitive marketplace to implement these ideas; and realizes the rewards from these efforts
A schools-of-thought approach divides entrepreneurship
into specific activities, either macro or micro in viewpoint, but both address the conceptual nature of entrepreneurship.
entrepreneur definition
is an innovator or developer who recognizes and seizes opportunities; converts those opportunities into workable/marketable ideas; adds value through time, effort, money, or skills; and assumes the risks of the competitive marketplace to implement these ideas. The entrepreneur is a catalyst for economic change who uses purposeful searching, careful planning, and sound judgment when carrying out the entrepreneurial process. The entrepreneur—uniquely optimistic and committed—works creatively to establish new resources or endow old ones with a new capacity, all for the purpose of creating wealth.
entrepreneurial leadership.
leadership in discovering new possibilities, opening up new horizons, promulgating a new vision, combining resources in new ways, and inspiring others while implementing new venture concepts. And it is leadership in dealing with the externalities and ethical dilemmas that surround entrepreneurial action An entrepreneur's ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization.
small business owners can be viewed as the
managers of a small business
entrepreneurs are always inventors
many inventors are also entrepreneurs, numerous entrepreneurs encompass all sorts of innovative activity A contemporary understanding of entrepreneurship covers more than just invention; it requires a complete understanding of innovative behavior in all its forms.
the dynamic model states ...
model is more optimistic for entrepreneurs, suggesting that smaller and newer firms have more flexibility in making ongoing changes. Thus, it may be easier for new ventures to create a high degree of interdependence between themselves and their environment, enabling entrepreneurs to organize for the current and anticipated demands of their market.
all entrepreneurs need is money
money is not the only bulwark against failure. Failure due to a lack of proper financing often is an indicator of other problems: managerial incompetence, lack of financial understanding, poor investments, poor planning, and the like. Many successful entrepreneurs have overcome a lack of money while establishing their ventures. To those entrepreneurs, money is a resource but never an end in itself.
The passion and drive of entrepreneurs...
moves the world of business forward. They challenge the unknown and continuously create breakthroughs for the future
the e-myth is that today's business owners are not
not true entrepreneurs who create businesses but merely technicians who have created a job for themselves.
The solution to this myth lies in the
owner's willingness to begin thinking and acting like a true entrepreneur: to imagine how the business would work without him. In other words, the owner must begin working on the business, in addition to working in it. The business owner must leverage the company's capacity through systems development and implementation. The key is for a person to develop an "entrepreneurial perspective."
The macro view of entrepreneurship
presents a broad array of factors that relate to success or failure in contemporary entrepreneurial ventures. This array includes external processes that are sometimes beyond the control of the individual entrepreneur, for they exhibit a strong external locus of control point of view.
entrepreneurial mind-set
represents the cognition and commitment to view the world with an innovative perspective. This composes the entrepreneurial potential in every individual.
The global economy has been...
revitalized because of their efforts, and the world now embraces free enterprise as the most significant force for economic development
great chef strategies
skills or special talents of one or more individuals around whom a venture is built
The terms entrepreneur and ________ sometimes are used interchangeably.
small-business owner
Entrepreneurship is more than just creating a business; it is an actual
spiritual and emotional transformation that takes you from an established way of thinking to a new, ground-breaking mentality.
unicorn
tech start up with over 1 billion in market value deacorns- labeled once they pass 10 billion (facebook, uber and airbnb)
The word entrepreneur is derived from
the French entreprendre, meaning "to undertake."
who all wrote about entrepreneurship and its impact on economic development
the aforementioned Cantillon (1725), the French economist Jean Baptiste Say (1803), and twentieth-century economist Joseph Schumpeter (1934)
Anyone [can be an entrepreneur] who wants to experience
the deep, dark canyons of uncertainty and ambiguity; and who wants to walk the breathtaking highlands of success. But I caution, do not plan to walk the latter, until you have experienced the former
this mind-set that has revolutionized the way
the way business is conducted at every level and in every country.
some similar characteristics of entrpreneurs
these characteristics are personal initiative, the ability to consolidate resources, management skills, a desire for autonomy, and risk taking. Other characteristics include aggressiveness, competitiveness, goal-oriented behavior, confidence, opportunistic behavior, intuitiveness, reality-based actions, the ability to learn from mistakes, and the ability to employ human relations skills
entrepreneurs are doers, not thinkers
they are both doers and thinkers; they are often very methodical people who plan their moves carefully the creation of business plans is an indication that "thinking" entrepreneurs are as important as "doing" entrepreneurs.
an integrative approach
this model is built around the concepts of input to the entrepreneurial process and outcomes from the entrepreneurial process.
Leadership of Entrepreneurship Programs—Academic Entrepreneurs
those who lead them must self-identify as academic entrepreneurs so that the entrepreneurial mind-set conveyed to students becomes ingrained in how faculty and staff approach the academic environment. As an academic entrepreneur, the faculty member becomes an agent of social and economic change, leveraging the university context to empower students and facilitate disruptive approaches to problem solving