Entrepreneurship Basics

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Rewards and Drawbacks of Entrepreneurial Careers
Profit Independence Satisfying way of life Drawbacks of entrepreneurship

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Entrepreneurial Incentives Rewards of Entrepreneurship Profit Freedom from the limits of standardized pay for standardized work Independence Freedom from supervision and rules of bureaucratic organizations Escape from an oppressive culture Personal Fulfillment Freedom to achieve a satisfying way of life Escape from routine and unchallenging work Make Money Be Your Own Boss 3 Enjoy a Satisfying Life Entrepreneurial Characteristics Need for achievement Willingness to take calculated risks Self-confidence Need to seek refuge 4 .

Process Identify Opportunities Structure Business Marshal Resources Initiate Business Capture Value Re-Initiate? 5 Process The Entrepreneurial Process Opportunity Forming The ` Entrepreneurial Vision Fashioning The Opportunity Initiating The Business Capturing The Opportunity Managing The Entrepreneurial Process Environment 6 .

Process The Entrepreneurial Process Opportunity Forming The ` Entrepreneurial Vision Fashioning The Opportunity Initiating The Business Capturing The Opportunity Managing The Entrepreneurial Process Regeneration Environment Revitalization Stagnation Bureaucratization 7 Behavior Basic Observations Entrepreneurs Come From All Walks Of Life No Genetic Links Have Been Found Limited Links With Family Background No Clear Aberrant Psychological Profile Exists Desire For Money Is Not Overpowering Virtually Anyone Can Be An Entrepreneur 8 .

Sustained Single-Staged Purchase/Own Hierarchical Efficiency-Based Dimension: Strategic Focus Commitment To Opportunity Commitment of Resources Control of Resources Management Structure Management Incentives 9 Entrepreneurs Opportunities Available Short-Term. Episodic Multi-Staged Rent/Borrow Networked Effectiveness-Based Behavior Some Entrepreneurial Traits Initiative And Persistence Commitment And Responsibility Integrity And Reliability Decisiveness And Action-Orientation Risk Management Failure Management Management Of Personal Needs And Biases 10 .Behavior A Comparative Framework Managers Resources Controlled Long-Term.

Behavior Some Observations Age Bias: Initiative Of The Young Balance Of The Middle-Aged Experience And Renewal Of Mature Context Dependence (But Not Much): Culture Business Firm Size 11 Summary Some Realities Not Everyone Wants To Be Entrepreneurial Not Everyone Will Be Continually Entrepreneurial Entrepreneurial Behavior Is Not Easy To Realize Entrepreneurial Behavior Is Very Easily Eliminated 12 .

.Summary The Individual Entrepreneur Remaining Committed Until The Opportunity Is Captured Leveraging Existing Organizational Assets And Capabilities Ensuring That Their Efforts Don't Disrupt Others Letting Go So The Organization May Fully Exploit Opportunity Training The Next Generation . 13 Summary The Organization Encouraging People To Identify Opportunity Providing Them With The Capabilities And Resources Required For Development Providing Them With The Coaching And Training Required For Success Permitting Them The Organizational Access Required To Seize The Opportunity Rewarding Them For Their Efforts: Recognition And Compensation 14 ..

What is a Small Business? Size criteria and standards: Sales Employees Assets Relative size Geographic scope Financing 15 Special Contributions of Small Business Provide jobs Introducing innovation Stimulating economic competition Aiding big business Producing goods and services efficiently 16 .

Survival Rates for New Businesses (Baldwin. 2000) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 2 3 4 5 6 7 Micro Businesses (<5 employees) Small Businesses (5-99 employees) Age 8 9 10 11 17 18 .

Take Aways Better sense of those individuals who start and operate small businesses The entrepreneurial process involves risk Better sense of criteria used to define small business Unique contributions that help preserve nation’s economic well being 19 .

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