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