Chapter 1 Introduction to Entrepreneurship.ppt

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1. Chapter 1
Introduction to
Entrepreneurship
Bruce R. Barringer
R. Duane Ireland
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3. Chapter Objectives
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1.Describe entrepreneurs, corporate entrepreneurship,
and the characteristics of entrepreneurial firms.
2.Discuss three main reasons people decide to
become entrepreneurs.
3.Identify four main characteristics of successful
entrepreneurs.
4.Explain five common myths regarding
entrepreneurship.
5.Describe three types of start-up firms.
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4. Chapter Objectives
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6.Discuss the changing demographics of
entrepreneurs in the United States.
7.Discuss the positive effects of entrepreneurship and
entrepreneurial firms on economies and societies.
8.Explain the entrepreneurial process.
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5. Indications of Increased Interest
in Entrepreneurship
•Books
–Amazon.com lists over 36,900 books dealing with
entrepreneurship and 89,900 focused on small business.
•College Courses
–In 1985, there were about 250 entrepreneurship courses
offered across all colleges in the United States.
–Today, more than 2,000 colleges and universities in the
United States offer at least one course in entrepreneurship.
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6. What is Entrepreneurship? Who are the
Entrepreneurs?
•Academic Definition (Stevenson & Jarillo)
–Entrepreneurship is the process by which individuals pursue
opportunities without regard to resources they currently
control.
•Venture Capitalist (Fred Wilson)
–Entrepreneurship is the art of turning an idea into a
business.
•Entrepreneurs:
–People who take risk and put useful ideas into practice.
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7. The difference between a Businessman
and an Entrepreneur
•Businessman
1.a person who starts a
business on an old
concept or idea.
2.makes his place in the
market with his efforts
and dedication
•Entrepreneur
1.A person who brings his
unique idea to run a
startup company is
known as an
entrepreneur
2.creates the market for
his own business.
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8. The difference between a Businessman
and an Entrepreneur
•Businessman
3.businessman is a market
player.
4.A businessman is
oriented towards profit,
•Entrepreneur
3.Entrepreneur is a market
leader because he is the
first to start such a kind
of enterprise.
4.an entrepreneur is a
people focused in
essence, he gives more
importance to its
employees, customers
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9. The difference between a Businessman
and an Entrepreneur
•Businessman
5.The risk factor is low but
faces a huge competition
from the rivals due to
similarity of products or
services.
•Entrepreneur
5.Takes risks and they
may competitors later
but they will remain
untouched.
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10. Corporate Entrepreneurship
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Entrepreneurial FirmsConservative Firms
•Proactive, Initiative
•Innovative
•Risk taking
•Take a more “wait and see”
position
•Less innovative
•Risk averse
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11. Why Become an Entrepreneur?
The three primary reasons that people become
entrepreneurs and start their own firms
Desire to be their own boss
Financial rewards
Desire to pursue their
own ideas
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12. Characteristics of Successful Entrepreneurs
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Four Primary Characteristics
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13. Characteristics of Successful Entrepreneurs
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•Passion(strong emotion) for the Business
–This passion typically stems from the entrepreneur’s belief that
the business will positively influence people’s lives.
–1-Ex. John Wood, Leaving Microsoft to change the world.
•Room to Read had built over1,440 schools
and distributed over 9.4 million books
in developing parts of the world. Now
in 2019, they provide education for 16.8
million children worldwide.
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14. Characteristics of Successful Entrepreneurs
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•Product/Customer Focus
–An entrepreneur’s strong focus on products and customers
typically come from the fact that most entrepreneurs are, at heart
of people.
–“The computer is the most remarkable tool we’ve ever built . . .
but the most important thing is to get them in the hands of as
many people as possible.” Steve Jobs
–Steve jobs journey to Xeroxin 1980s. They decided to create a
more user-friendly computers called “Macintosh”.
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15. Characteristics of Successful Entrepreneurs
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•Tenacity Despite Failure
–Because entrepreneurs are typically trying something new, the
failure rate is naturally high. Entrepreneurship is a marathon
–A defining characteristic for successful entrepreneurs is their
ability to continue through problems and failures.
•Execution Intelligence
–The ability to shape a solid business idea into a viable (possible)
business is a key characteristic of successful entrepreneurs.
–“ Ideas are easy, its execution is that’s hard” Jeff Bezos amazon
founder.
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16. Common Myths About Entrepreneurs
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•Myth 1: Entrepreneurs Are Born, Not Made
–This myth is based on the mistaken belief that some people
are born to be entrepreneurs.
–No one is “born” to be an entrepreneur; but, everyone has
the potential to become one.
–Whether someone does or doesn’t become an entrepreneur
is a function of their environment, life experiences, and
personal choices.
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17. Common Myths About Entrepreneurs
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•Myth 2: Entrepreneurs Are Motivated Primarily by Money
–While it is unacceptable to think that
entrepreneurs don’t seek financial rewards,
but money is rarely the reason entrepreneurs
start new firms.
–In fact, some entrepreneurs advise that the search of money can be
distracting.
–“If you think money is a real big deal, you’ll be too scared of
losing it to get it” Ted Turner, Founder of CNN.
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18. Common Myths About Entrepreneurs
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•Myth 3: Entrepreneurs Should Be Young and
Energetic
–The most active age range for entrepreneurship is between
(35-46).
•What makes an entrepreneur “strong” in the eyes of an
investor is experience, maturity, reputation.
•These criteria favor older rather than younger entrepreneurs.
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19. Common Myths About Entrepreneurs
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20. Common Myths About Entrepreneurs
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•Myth 4: Entrepreneurs Love the Spotlight
1.While some entrepreneurs are showy (attractive), the vast
majority of them do not attract public attention.
–As evidence of this, consider the following question:
–“How many entrepreneurs could you name?”
•Most of us could come up with Jeff Bezos of Amazon.com, Mark
Zuckerberg of Facebook, Steve Jobs of Apple, and maybe Larry Page
and Sergey Brin of Google.
•But few could name the founders of Twitter, YouTube, Netflix, or
DIRECTV, even though we frequently use those firms’ services.
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21. Types of Start-Up Firms
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22. Economic Impact of Entrepreneurial Firms
•Innovation
–Is the process of creating something new, which is central to
the entrepreneurial process. There will be new products
produced or served by firms.
•Job Creation
–When new firms are created, they will also create new job
opportunities for the unemployed people. In return, this will
reduce the unemployment rate.
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23. Entrepreneurial Firms’ Impact on Society
and Larger Firms
•Impact on Society
–Think of all the new products and services that make our
lives easier, enhance our productivity at work, improve our
health, and entertain us in new ways, Healthcare, Mobile
phones, PCs, E-Shopping, and microwave oven.
•Impact on Larger Firms
–Many entrepreneurial firms have built their entire business
models around producing products and services that help
larger firms become more efficient and effective.
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24. The Entrepreneurial Process
The Entrepreneurial Process Consists of Four Steps
Step 1: Deciding to become an entrepreneur. Chapter 1
Step 2: Developing successful business ideas. Chapter 2-6
Step 3: Moving from an idea to an entrepreneurial firm. Chapter 7-10
Step 4: Managing and growing the entrepreneurial firm. Chapter 11-
15
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