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viii CONTENTS
CASE 4.1: AUSTRALIAN BUCCANEER ENTREPRENEUR EATEN BY

CANNIBALS ................................................................................................. 139

CASE 4.2: A LIVING CULTURE, TAMAKI MAORI VILLAGE ........................... 143
ENTREPRENEURIAL CASE ANALYSIS PART 1 ...............................152
PART 2 INITIATING ENTREPRENEURIAL VENTURES............ 157
CHAPTER 5 PATHWAYS TO ENTREPRENEURIAL VENTURES.........................158

CHAPTER OBJECTIVES................................................................................ 158
Walking entrepreneurship pathways .........................................159
Bootstrapping..............................................................................159
ENTREPRENEURSHIP IN PRACTICE: HOW TO BOOTSTRAP
A BUSINESS .................................................................................................... 159
ENTREPRENEURSHIP IN PRACTICE: THE RISE OF

THE MINIPRENEUR ........................................................................................ 162
The classical pathway: Disruptive new venture creation .........163
ENTREPRENEURSHIP IN PRACTICE: TECHNOLOGY MEETS SOCIAL
ENTERPRISE, BUT NOT FOREVER ................................................................ 165
Acquiring an established entrepreneurial venture ...................167
Franchising one’s way into entrepreneurship...........................175
ENTREPRENEURSHIP IN PRACTICE: GROWING ASIAN FRANCHISE
OPPORTUNITIES ............................................................................................. 175
ENTREPRENEURIAL EDGE: THE COFFEE CLUB – COFFEE GOES

CLUBBY ........................................................................................................... 177
Social venturing as a pathway to entrepreneurship .................179
CASE 5.1: AN IDEA FOR THE BIRDS! .......................................................... 187
CASE 5.2: CHECKING IT OUT ...................................................................... 187
CHAPTER 6 OPPORTUNITY AND THE CREATIVE PURSUIT OF INNOVATIVE

IDEAS .............................................................................................191
Ideas and the search for opportunity.........................................192
Four models of market-based opportunities ............................194
ENTREPRENEURIAL EDGE: EXPLOITING A DEMAND NICHE..................... 196
ENTREPRENEURIAL EDGE: STICKING TO A RADICAL PLAN ..................... 197
ENTREPRENEURIAL EDGE: COMBINING UNIQUE INSIGHT, EMERGING

TECHNOLOGY AND NETWORK KNOWLEDGE .............................................. 199
ENTREPRENEURIAL EDGE: CREATING A SOLUTION TO A SOCIAL

PROBLEM THROUGH COMMERCIAL OPPORTUNITY................................... 201
Entrepreneurial imagination and creativity ...............................203
ENTREPRENEURSHIP IN PRACTICE: DEVELOPING CREATIVITY............... 205
Arenas of creativity .....................................................................208
CONTENTS ix
Creating the right setting for creativity......................................209

Innovation and the entrepreneur ...............................................209
The innovation process ...............................................................210
Innovation in the era of climate change ....................................213
ENTREPRENEURSHIP IN PRACTICE: USING CROWDFUNDING
TO LAUNCH A SUSTAINABLE VENTURE IDEA............................................. 215
CASE 6.1: INTERFACE ASIA–PACIFIC.......................................................... 219

CASE 6.2: CREATIVITY IS NOT JUST FOR START-UP IDEAS....................... 220
CHAPTER 7 ENTREPRENEURIAL FAMILIES: SUCCESSION AND

CONTINUITY ..................................................................................224
Entrepreneurship across the generations in
the Asia–Pacific ...........................................................................225
ENTREPRENEURIAL EDGE: THIRTEEN-HUNDRED-YEAR-OLD
FAMILY BUSINESS: SUCCESSION SECRETS ............................................... 229
Challenges facing family businesses.........................................229
ENTREPRENEURIAL EDGE: WHAT IS A SUSTAINABLE–SUSTAINABLE
FAMILY BUSINESS?........................................................................................ 233
Succession as a pathway to entrepreneurship .........................233
Key factors in succession ...........................................................235
ENTREPRENEURSHIP IN PRACTICE: INDIAN BUSINESS FAMILIES
GROOM THEIR YOUNGER GENERATION....................................................... 237
Developing a succession strategy..............................................238
Harvesting the venture: recycling wealth within the family .....240
CASE 7.1: JUST AS GOOD AS EVER............................................................. 245
CASE 7.2: NEEDING SOME HELP ON THIS ONE ......................................... 246
CASE 7.3: FAMILY TO FAMILY: THE FALL AND REBIRTH OF
DARRELL LEA CHOCOLATES....................................................................... 246
CHAPTER 8 DEVELOPING ENTREPRENEURSHIP WITHIN

ORGANISATIONS ...........................................................................252
The entrepreneurial mind-set in organisations ........................253
ENTREPRENEURIAL EDGE: ENTREPRENEURIAL EMPLOYEE
ACTIVITY AT 3M............................................................................................... 255
ENTREPRENEURSHIP IN PRACTICE: DOES INTRAPRENEURSHIP

EXIST IN ASIA? ................................................................................................ 258
Re-engineering organisational thinking ....................................259
Not for businesses only: public sector entrepreneurship ........263
ENTREPRENEURSHIP IN PRACTICE: NEW ZEALAND’S SUCCESS IN
COMMERCIALISING GOVERNMENT COMPANIES........................................ 265
Intrapreneurial strategy..............................................................265
Social intrapreneurship by creating shared value ....................272
CASE 8.1: WHICH COMMANDMENTS APPLY? ............................................ 280
x CONTENTS
CASE 8.2: SOUTHWEST AIRLINES: CREATING AN ENTREPRENEURIAL

CULTURE..................................................................................................... 281
PART 3 DEVELOPING ENTREPRENEURIAL VENTURES ....... 289
CHAPTER 9 THE ASSESSMENT OF ENTREPRENEURIAL

OPPORTUNITIES............................................................................290
The elements of an opportunity assessment ............................291
How do we model the entrepreneurial process? ......................291
How to assess an opportunity ....................................................293
When is an idea not an opportunity?..........................................296
The evaluation process ...............................................................297
ENTREPRENEURIAL EDGE: FACING YOUR FEARS! .................................... 299
ENTREPRENEURIAL EDGE: AN ENTREPRENEURIAL

OPPORTUNITY OR AN OPPORTUNITY FOR LIFE?........................................ 306
The emergence of entrepreneurial ecosystems .......................311
ENTREPRENEURSHIP IN PRACTICE: ENTREPRENEURIAL
ECOSYSTEMS DO MATTER............................................................................. 313
CASE 9.1: EXAMINING THE INDUSTRY....................................................... 319

CASE 9.2: NOTHING UNIQUE TO OFFER .................................................... 319
APPENDIX 9A: FEASIBILITY PLAN OUTLINE ............................................... 324
CHAPTER 10 MARKETING FOR ENTREPRENEURIAL VENTURES ....................330

Entrepreneurial marketing is essential.....................................331
Entrepreneurial marketing defined ...........................................332
The components of effective marketing ....................................334
ENTREPRENEURSHIP IN PRACTICE: COMPETITIVE INFORMATION......... 335
Developing a marketing plan .....................................................336
ENTREPRENEURSHIP IN PRACTICE: THE GUERRILLA MARKETING
PLAN................................................................................................................ 337
ENTREPRENEURIAL EDGE: PERCEPTIONS OF A TARGET MARKET ......... 339
ENTREPRENEURIAL EDGE: DELL LEARNS YOUNG.................................... 340

Marketing research ....................................................................343
Marketing on the Internet...........................................................347
ENTREPRENEURSHIP IN PRACTICE: SMARTPHONE USERS:
SEGMENT YOURSELF..................................................................................... 348
Green entrepreneurial marketing..............................................352
ENTREPRENEURIAL EDGE: GREEN ENTREPRENEURSHIP:
THREE KEYS TO STARTING A GREEN INTERNET BUSINESS..................... 353
CONTENTS xi
ENTREPRENEURSHIP IN PRACTICE: WHY YOU MUST HAVE

A GREEN BUSINESS BLOG ............................................................................ 353
ENTREPRENEURSHIP IN PRACTICE: WHAT DOES IT TAKE TO
REVOLUTIONISE AN INDUSTRY? CHECK OUT ELON MUSK....................... 356
Pricing strategies ........................................................................357
CASE 10.1: DEALING WITH THE COMPETITION ......................................... 363
CASE 10.2: FOR COOKS ONLY .................................................................... 363
CASE 10.3: THE CASHEW CASE PART 2: SO WE HAVE PRODUCTS
BUT IS THERE A MARKET? ......................................................................... 364
CHAPTER 11 STRATEGIC ENTREPRENEURIAL GROWTH .................................370

Uncertainty and growth: key strategic drivers ..........................371
Entrepreneurial strategy design and planning..........................371
ENTREPRENEURSHIP IN PRACTICE: CREATIVE DESTRUCTION IN THE
SHARING ECONOMY....................................................................................... 373
Designing the business model ...................................................378
ENTREPRENEURIAL EDGE: FINE-TUNING A BUSINESS MODEL .............. 380
Does an entrepreneur really want to be a manager?...............380
Managing entrepreneurial growth .............................................384
Entrepreneurs directly influence growth ..................................386
Key management issues encountered during the growth
stage ............................................................................................386
ENTREPRENEURSHIP IN PRACTICE: SUCCESSFUL COMPANIES
DESIGN BLUEPRINTS FOR HIGH-TECH START-UPS .................................. 390
Unique managerial concerns of growing ventures...................391
Achieving entrepreneurial leadership........................................393
Strategic sustainable development............................................394
ENTREPRENEURSHIP IN PRACTICE: A CLIMATE-CHANGE SWOT............ 396
ENTREPRENEURSHIP IN PRACTICE: STAGES OF SUSTAINABILITY
STRATEGY........................................................................................................ 401
CASE 11.1: THE CASHEW CASE PART 3: IS THERE A VIABLE BUSINESS

MODEL? ....................................................................................................... 406
CASE 11.2: KEEPING THINGS GOING ......................................................... 407
CHAPTER 12 GLOBAL OPPORTUNITIES FOR ENTREPRENEURS.....................412

Asia–Pacific’s entrepreneurial century......................................413
ENTREPRENEURSHIP IN PRACTICE: AUSTRALIA’S YOUNG
‘BORN GLOBAL’ ENTREPRENEURS ............................................................. 416
ENTREPRENEURSHIP IN PRACTICE: HOW SUCCESSFUL CHINESE
ENTREPRENEURS REALLY THINK ............................................................... 422
How do I actually go global?.......................................................423
ENTREPRENEURSHIP IN PRACTICE: THE PROS AND CONS
OF FRANCHISING IN CHINA .......................................................................... 431
xii CONTENTS
ENTREPRENEURSHIP IN PRACTICE: IMMIGRANT AND REFUGEE

ENTREPRENEURS IN AUSTRALIA ................................................................ 433
How to become a born-global entrepreneur.............................433
ENTREPRENEURSHIP IN PRACTICE: WHERE TO FIND GOOD
FOREIGN MARKET RESEARCH...................................................................... 436
Born global social entrepreneurs ..............................................439
CASE 12.1: HOME AGAIN ............................................................................ 442
CASE 12.2: ‘I DID IT BECAUSE I DIDN’T KNOW THAT I COULDN’T’............ 443
CASE 12.3: A FOREIGN PROPOSAL............................................................. 443
CASE 12.4: BORN GLOBAL: THE WIGGLES................................................. 444
PART 4 GROWTH STRATEGIES FOR ENTREPRENEURIAL

VENTURES.................................................................451
CHAPTER 13 LEGAL AND REGULATORY CHALLENGES FOR

ENTREPRENEURIAL VENTURES ..................................................452
Legal and regulatory challenges................................................453
Understanding Asia–Pacific regulatory environments .............453
ENTREPRENEURIAL EDGE: ENTREPRENEURS FACE
REGULATORY NIGHTMARES.......................................................................... 455
International protections for intellectual property ...................455
ENTREPRENEURSHIP IN PRACTICE: NOTORIOUS ASIAN MARKETS........ 457
Patents.........................................................................................459
ENTREPRENEURSHIP IN PRACTICE: A GENERAL
PATENT PROCESS: NOTES............................................................................ 461
ENTREPRENEURSHIP IN PRACTICE: TOP PATENTS THAT

INFLUENCED BUSINESS ............................................................................... 464
Copyrights....................................................................................466
ENTREPRENEURSHIP IN PRACTICE: WATCH WHAT YOU SAY! ................. 468
ENTREPRENEURSHIP IN PRACTICE: GOOGLE WAS NOT AMUSED

BY THE TRADEMARK PARODY....................................................................... 469
Trademarks .................................................................................469
ENTREPRENEURSHIP IN PRACTICE: WHO OWNS THE COPYRIGHT
TO A MONKEY’S SELFIE? ............................................................................... 471
Domain names ............................................................................472
ENTREPRENEURSHIP IN PRACTICE: SOME INTERESTING WIPO
UDRP DECISIONS ........................................................................................... 472
Trade secrets ..............................................................................473
Opportunities from changing intellectual
property attitudes........................................................................473
Identifying legal structures for entrepreneurial ventures........474
CONTENTS xiii
Incorporated companies.............................................................475
Unincorporated businesses........................................................479
Other business forms .................................................................481
Insolvency and bankruptcy .........................................................483
The legal framework regulating climate change......................484
ENTREPRENEURSHIP IN PRACTICE: EFFECTS OF CLIMATE
CHANGE ARE RESTRUCTURING THE BUSINESS ENVIRONMENT
IN ASIA–PACIFIC............................................................................................. 486
CASE 13.1: GLORIA’S DECISION.................................................................. 491

CASE 13.2: A PATENT MATTER................................................................... 491
CASE 13.3: NEW ZEALAND AND KIWIFRUIT............................................... 492
CHAPTER 14 SOURCES OF CAPITAL FOR ENTREPRENEURIAL

VENTURES .....................................................................................497
The times, they are a-changin’...................................................498
What are the forms of entrepreneurial capital? .......................498
Sources of financial capital ........................................................500
ENTREPRENEURSHIP IN PRACTICE: WAYS TO FIND
BOOTSTRAP CAPITAL .................................................................................... 501
Debt versus equity.......................................................................502
Equity financing ...........................................................................505
The venture capital market ........................................................507
ENTREPRENEURSHIP IN PRACTICE: VENTURE CAPITALISTS’
DUE DILIGENCE ‘DEAL KILLERS’ ................................................................. 510
ENTREPRENEURSHIP IN PRACTICE: ASKING VENTURE CAPITALISTS

THE RIGHT QUESTIONS ................................................................................. 513
Angel financing............................................................................514
New forms of entrepreneurial capital .......................................517
ENTREPRENEURSHIP IN PRACTICE: HOW MICRO-CREDIT WORKS......... 522
Peer-to-peer lending ..................................................................522
ENTREPRENEURSHIP IN PRACTICE: NATURAL CAPITAL
IN A CAN OF COLA ......................................................................................... 527
CASE 14.1: LOOKING FOR CAPITAL IN MALAYSIA...................................... 530

CASE 14.2: THE 120 MILLION BAHT VENTURE.......................................... 531
CHAPTER 15 MEASURING PERFORMANCE FOR ENTREPRENEURIAL

VENTURES .....................................................................................536
The dimensions of performance measurement .......................537
Measuring financial performance..............................................537
Understanding the key financial statements ............................539
ENTREPRENEURIAL EDGE: HOW TO EVOLVE FROM CEO TO CFO ............ 546
ENTREPRENEURSHIP IN PRACTICE: WATCHING YOUR

ACCOUNTS RECEIVABLE ............................................................................... 551
xiv CONTENTS
Preparing financial budgets .......................................................552

ENTREPRENEURSHIP IN PRACTICE: CHARACTERISTICS OF
CREDIBLE FINANCIALS ................................................................................. 557
Capital budgeting ........................................................................560
ENTREPRENEURIAL EDGE: THE INDIAN ENTREPRENEUR
AND THE CUNNING NPV ............................................................................... 562
ENTREPRENEURSHIP IN PRACTICE: WHEN CURRENCY LOSES

ITS GLOBAL VALUE ........................................................................................ 566
Break-even analysis ...................................................................566
Financial ratio analysis ...............................................................570
Sustainability performance measures entrepreneurs .............571
Triple bottom line performance measures ...............................574
Sustainability performance measures.......................................576
CASE 15.1: IT’S ALL GREEK TO HER ........................................................... 582
CASE 15.2: THE CONTRACT PROPOSAL..................................................... 584
CHAPTER 16 DEVELOPING A SUSTAINABLE BUSINESS PLAN........................587

The need for a sustainable business plan .................................588
ENTREPRENEURSHIP IN PRACTICE: RAY ANDERSON FINDS
HIS NORTH STAR............................................................................................ 589
Contrarian views on business planning.....................................590
Benefits of the full-form business plan.....................................592
Writing a well-conceived business plan ....................................594
ENTREPRENEURSHIP IN PRACTICE: PUTTING THE
PACKAGE TOGETHER ..................................................................................... 595
How to structure a business plan ..............................................597
ENTREPRENEURSHIP IN PRACTICE: HOW TO GATHER COMPETITIVE
INTELLIGENCE IN THE ASIA–PACIFIC.......................................................... 601
ENTREPRENEURSHIP IN PRACTICE: COMMON BUSINESS PLANNING

MISTAKES........................................................................................................ 603
Updating the business plan ........................................................614
Presentation of the business plan: the ‘pitch’...........................614
ENTREPRENEURSHIP IN PRACTICE: BUSINESS PLANNING
RESOURCES .................................................................................................... 616
A practical example: Cocoa Samoa Ltd.....................................616
CASE 16.1: GETTING IT RIGHT BY DOING IT WRONG................................ 619
CASE 16.2: IT’S JUST A MATTER OF TIME .................................................. 619
CASE 16.3: THE INCOMPLETE PLAN........................................................... 619
APPENDIX: BUSINESS PLAN – REVIVING SAMOA’S COCOA INDUSTRY ........................ 625

GLOSSARY............................................................................................................... 664
INDEX ..................................................................................................................... 684
xv
FOREWORD
Reading through this manuscript I was impressed with the authors’ obvious passion for
entrepreneurship, along with their rigorous approach in considering the opportunities for
entrepreneurs to take a leading role in our world’s transition to a sustainable future. When talking
with the authors, one thing that really resonated with me was their belief that entrepreneurs could
thrive in uncertainty, and this got me very excited. Sustainable development is perhaps the biggest
and most uncertain challenge our species has ever faced.
Having first been inspired by the concept of sustainable development back in the early 2000s, I
have dedicated my professional career to making a contribution to accelerating our world’s transition
to a sustainable future. During this time I have had the pleasure of working with some amazing
world-changing people who have spent decades building the understanding we need to inform this
transition. These dedicated people have included eco-entrepreneur and educator Hunter Lovins,
scientist and politician Ernst von Weizsäcker, environmental physicist Amory Lovins, sustainable
transport expert Peter Newman, eco-entrepreneur Gunter Pauli, Green Party leader Johnathan Porritt,
cleaner production expert Don Huisingh, and pioneering sustainability consultant Alan AtKission.
The work of these eco-revolutionaries, along with countless others across all disciplines and
sectors, means that we now have much of the technology and know-how needed to achieve sustainable
development.
However, many lament that applying this know-how to secure a sustainable future is not
happening fast enough, and ask: why is that? After 15 years of asking myself the same question, I
think part of the answer is the overwhelming complexity of changing our massive industrial systems,
and part is the resistance from those who profit from pollution. The reason I am so excited about this
book is that it presents tools to overcome both challenges. In order to take on the complexity
involved in changing our systems we need to understand how to be entrepreneurial in the face of
uncertainty, and in doing so create new opportunities for profit and economic development. I
strongly believe that if teams around the world harness the tools of an entrepreneurial approach we
can truly accelerate efforts and avoid the looming crisis. It may in fact be the case that
entrepreneurship is the missing link that will unlock the available potential through a focus on
sustainable development.
There is often debate around what ‘sustainability’ or ‘sustainable development’ actually means,
and this debate over definitions has hindered progress. In simple terms, sustainability means the
‘ability to sustain’. This is not as emotive as other definitions you may find, but the value of thinking
of it this way is that it begs the question what do we want to sustain? And then comes the big second
question: How do we sustain it? Most people would agree that we want to sustain and share ongoing
prosperity, clean water and air, an educated and engaged workforce, and strong and vibrant
communities. That question is pretty easy to answer. The tricky part comes when we ask: how we will
actually sustain it?
Harking back to the early work of John Elkington on the ‘Triple Bottom Line’ may provide some
guidance here, despite it often being reduced to a cliché. The reality is that we don’t know what it
means to be sustainable, but if we want to increase the likelihood of sustainability, we need to
achieve strong performance in all three areas of economy, environment, and society – a challenge
truly worthy of lifetime dedication, as Alan AtKission once told me.
xvi FOREWORD
In order to increase the likelihood of sustaining the quality of life we have spent centuries
developing, and sharing this with the entire world, we need to focus on all three areas. Simply put,
given that most of the world operates in a market-based system the projects, products and
infrastructure of the future need to deliver acceptable economic returns. As we are generating
pollution at a level that is affecting our planet’s biosphere we need to ensure that such impacts are
minimised, and given that our population is growing more rapidly than at any other time in human
history we also need to ensure that people are involved and taken care of in the process.
On face value this may seem like a pretty simple task – a few green buildings here and a few solar
panels there – however, the complexity of transitioning our societies to operate in a way that has a
high likelihood of being sustained is enormous. Calling for new innovative approaches, it is truly the
time of the entrepreneur. However, the world will not be saved by individual entrepreneurs alone.
Yes, we need those people who can drive innovation and deliver revolutionary technology, like
engineer and futurist Nicola Tesla or eco-entrepreneur Elon Musk. Yet, if we are to achieve the
changes we need across our planet’s enormous and complex economies, we will need teams of
creative and innovative people in every part of the economy taking an entrepreneurial approach.
In order for entrepreneurs to navigate the uncertainty of the future, they will need to have a solid
understanding of how sustainable development-related issues – such as climate change, resource
shortages, poverty, population changes and biodiversity – will impact the economy. Entrepreneurs
need to identify viable areas for investment that can deliver medium-to-long-term returns.
In the face of significant global challenges, this book provides a critical resource for those looking
to harness the enormous power of the market to deliver ongoing prosperity. The realisation that the
pollution created in our race to industrialise over the last 250 years – with entrepreneurs playing a
key part – has had a real impact on the planet’s very functioning, was quite a shock to many in the
1980s and 1990s. But it is worse than that. The growing level of industrial pollution is not only
impacting the planet, it is now directly impacting the economy. The early decades of the twenty-first
century have become a turning point in human history.
This book provides a valuable overview and training manual for entrepreneurs in a range of
issues related to sustainable development that will enhance the understanding of the future
conditions in the economy; a valuable resource indeed. The book lays out a clear framework for
considering opportunities across many complex areas of sustainable development and I look forward
to seeing the efforts of the students of this work as our species undertakes a mid-course correction.
As Interface CEO Ray Anderson once put it: towards a way of life that can be sustained for all on this
amazing little planet.
Dr Karlson ‘Charlie’ Hargroves

Sustainability Transitions Researcher, strategist and author (co-author of five international
bestselling books on sustainable development, translated into six languages, including The Natural
Advantage of Nations, Factor 5 and Cents and Sustainability).
xviii
GUIDE TO THE TEXT xix
xx
GUIDE TO THE ONLINE RESOURCES xxi
xxii
PREFACE
Entrepreneurship is increasingly being recognised as a means to stimulate change and growth within
and across national economies. This in turn elevates the expectations of teachers and students of
entrepreneurship. Entrepreneurship teachers are expected to engage with more disciplines, developing
skills among all those who may potentially have good ideas to start new businesses. The ultimate aim
is to provide the human capital foundations of a new or renewed economy. Entrepreneurship students
are in turn expected to engage in elevated risk for the benefit of the broader community and create
businesses and social organisations that generate prosperity and wealth. In current times we also face
the looming crisis of human-induced climate change.
The question this scenario raises for readers and users of this book is; are you ready to take on a
career that calls for leadership, demands that you grow as an individual and be independent? Are you
ready at the same time to rely on the support of others in order to create social and economic good
for our world? If you are reading this, then you probably are, so let’s get started.
Your authors, and entrepreneurship academics generally, are often asked two questions. First off,
does education matter for an entrepreneur? Well, yes and no. There is a goodly portion of entrepreneurs
(maybe as high as 15 per cent) who never had patience with education. Nor did their teachers have
much patience with them! Research even indicates that some entrepreneurs have Attention Deficit
Hyperactivity Disorder (ADHD) and they find it difficult to focus in school and complete their
schoolwork. There also seems to be a higher incidence of dyslexia in young entrepreneurs than in the
general population.1 Another portion are simply so curious and adventuresome that they cannot
tolerate the one-way flow of teaching from ‘learned ones’ and are, therefore, just turned off by
education. Many famous entrepreneurs never finished school. But the fact is that education and
entrepreneurship are highly correlated – the more education you have, the more likely you are to
engage successfully in entrepreneurship. Even if you have just one class in entrepreneurship, you are
more likely to become an entrepreneur, more likely be self-employed, have potentially higher annual
incomes, and set up your own business after graduation, compared to your peers.
The next confronting question for any entrepreneurship academic is, can we actually teach
entrepreneurship? Again, yes and no. Yes, students can learn it and it takes two forms. The first is
education that helps learners to discover whether there is a spark within themselves. The second is
that teaching facilitates learning the skills, both in mind and in practice that characterises your own
personal form of entrepreneurship. What teachers can and should do is create a world where students
can learn to be an entrepreneur by becoming more confident in their abilities and learning skills
needed to achieve success in a social or business venture. But the answer is also no, when you think
of most classrooms. It’s not about PowerPoint presentations and lectures; instead, it’s about having
experiences and creating opportunities for entrepreneurship. In those precious minutes together with
learners, an entrepreneurship educator needs to provide content that is both enabling and
experiential, where you can sit at the elbow of real entrepreneurs, be challenged by the real problems
of an entrepreneur, be given access to tools and techniques to work through those problems and
ultimately, where you can learn the craft of entrepreneurship.
THE DISTINCTIVE CHARACTER OF THIS BOOK

This textbook illustrates the broadest variety of sustainable entrepreneurship in the Asia–Pacific in
the twenty-first century in a manner as unique and creative as our region itself. We believe that this
is the first entrepreneurship textbook with people, planet and profits – the 3P’s – at its base.
PREFACE xxiii
The leitmotif of this book is personal enterprise; wherever it exists, whenever it exists, and
whatever it is – social, environmental, business; the list is endless. It is about being the sole proprietor
of the rest of your life. It is about the ‘enterprising spirit’ that everyone has at birth, and that some
choose to nurture and others do not. It is that spirit of true creativity and inventiveness, of curiosity
and daring, of calculated risk against great gain. Sadly, this burning spirit can be extinguished by
parents, by the church or an oppressive society, by the conformism of the school system, by crime or
civil war, or by cultural proscriptions. But it is always there in every person, even later in life, if only
the right conditions should emerge and should they elect to take the journey.
Some people think that the spirit of enterprise is the world’s most powerful economic and social
force. It is what marks us as human beings. For hundreds of years now, The Entrepreneurial
Revolution has captured the imagination and now permeates society, culture, business and education.
Here we are, well into the twenty-first century with hundreds of millions of entrepreneurs engaged in
starting and running new businesses. Entrepreneurs’ roles are changing as the Earth and the economy
change. Today’s entrepreneurs are faced with ever more complex challenges. The process of
transforming creative ideas into commercially viable, socially just and environmentally sustainable
enterprises continues to be a major force in the world economy.
From artists to zoologists, the enterprising spirit can emerge from any person. We believe that a
basic course in entrepreneurship should be a required field of study for every student. After all, think
of some of the professions that are highly self-employed – artists, real-estate brokers, photographers,
musicians, designers, writers, financial advisors, management analysts and interior designers. Beyond
this, think of the creative and innovative people in civil society groups, non-government
organisations, not-for-profits, community trusts and social enterprises.
Our motto for this Asia–Pacific text edition continues to be Entrepreneurship as if the planet
mattered. This is not just a matter that is talked about, but something we all can do something about.
Think of it this way: virtually every phase of the production of this book contributed to global
warming, from harvesting trees to production of pulp and paper, transportation, waste management
and eventual disposal. The pulp, paper and publishing industries, not to mention readers themselves,
have significant impacts on people and communities all around the world. As authors, we are
committed to preventing negative impacts of book publishing on natural forests, the global climate or
the rights of forest-dependent communities. We are happy that our publisher, Cengage Learning in
Melbourne, has switched to 100 per cent post-consumer waste recycled paper for all office printing
and that the content of this book is now available for download online.
Solving the problems of human-induced climate change requires our readers to share
responsibility. The most effective way to reduce the negative impacts of this book is to use the
knowledge in it very efficiently. In our teaching we are committed to a ‘3e’ learning environment that
supports (e)learning, (e)nvironmentally friendly strategies, and (e)xperiential assignments. Our
teachers and students are encouraged to submit assignments online, use online filing systems, reuse
paper, adopt electronic note taking, adjust printing to greyscale, recycle classroom waste material,
use electronic databases, and use of the library to avoid needless paper consumption. Moreover and
importantly, we encourage our students to create ventures that improve, or at least do no further
harm to, our natural world.
ORGANISATION
Text, cases and exercises that appear in this Asia-Pacific edition of Entrepreneurship: Theory,
Process, Practice bring together, in one place, the most significant resources for exploring the
xxiv PREFACE
development of new and emerging business and social ventures. Our aim has been to present these
resources in an exciting, organised and challenging manner that relates to our world’s triple
challenge: overcoming and reversing the effects of social, economic and environmental decline.
Every chapter – from performance measures to marketing, from strategy to start-up, from ethics
to family business – includes an in-depth section relating this topic to the book’s main theme of
‘People, Planet and Profit’.
We put together this book in order to compact and synthesise a large body of knowledge for the
budding entrepreneur and enterprising spirit of all types. Our aims are to simplify, condense, organise
and translate a vast area of knowledge into a form useful for building commercially viable, socially
and environmentally responsible projects of all sorts.
We have taken ideas from multiple sources – especially the North American edition of this book –
and repackaged them to make a new whole. As the American Historical Association says, textbooks
are different from other scholarly writing in the ‘form of attribution, and the permissible extent of
dependence on prior scholarship’.2 Within our organisation and accumulation of knowledge on Asia–
Pacific entrepreneurship, we have cited more than 2000 authors in the field and aim to provide ready
access to their works, including hundreds of hyperlinks.
The chapter sequence in this fourth edition is systematically organised around ‘Pathways to
Entrepreneurship’. We all have our individual pathways and people follow different paths to become
successful entrepreneurs (see below).
We believe the book can be used over two semesters at the undergraduate. The first eight chapters
serve one academic course in ‘Foundations of Innovation & Entrepreneurship’. The second eight
chapters compose another course called ‘New Venture Creation’. Or, the entire book can be covered in
an accelerated fashion in master’s level classes.
The 16 chapters compose four Parts to the book. Each contains four chapters that specifically
address these pertinent concepts of entrepreneurship:
• Part 1 (Chapters 1–4) is named ‘Entrepreneurship in the twenty-first century’. It introduces the
entrepreneurial mind-set and examines entrepreneurship as evolution and revolution. This
part reveals the evolving nature of entrepreneurship and its importance to the entire global
economy, to civil society and to the planet itself. Part 1 reviews the fundamentals of the
environment of the economy and the economy of entrepreneurship. This includes the basics of
climate change and climate-change economics, as well as the emerging field of
entrepreneurial ecology. Finally, we focus on social entrepreneurship and the ethical
perspective that entrepreneurs need to take in developing a morally conscious approach to
business, one that safeguards society and the planet.
• Part 2 (Chapters 5–8) is named ‘Initiating entrepreneurial ventures’. Here, we spell out a major
theme throughout the book by outlining the pathways to entrepreneurship and dealing with
the question of how people become entrepreneurs. Starting with bootstrapping (starting a
venture with minimal capital), micro-enterprise and mini-preneurs, we gradually build toward
delving into more complex ventures with the pursuit of ideas and opportunity recognition by
examining the creativity of individuals and the concept of innovation. We discuss the unique
and culturally determined pathways that an entrepreneur might take to launch a new venture,
whether starting a brand new venture, acquiring an existing firm, franchising or expanding a
social enterprise. One common pathway is family business, so we look at their importance and
unique problems. We look at intrapreneurship, also called ‘corporate entrepreneurship’, which
exists and can be cultivated in every large organisation.
PREFACE xxv
• Part 3 (Chapters 9–12) is entitled ‘Developing entrepreneurial ventures’. This part includes the
methods of assessing new ventures and business opportunities, as well as a discussion of the
issues in marketing that affect the preparing, planning and operating of entrepreneurial start-
ups. The need for strategic planning, the challenge of managing entrepreneurial growth, and
the global opportunities available to entrepreneurs are all discussed.
• Part 4 (Chapters 13–16) is called ‘Growth strategies for entrepreneurial ventures’ and reviews
business and environmental regulations, looks at intellectual property, and compares legal
forms of business organisation across the Asia–Pacific. This part has a thorough examination
of the sources of capital, including social capital and natural capital, available to
entrepreneurs. The performance measures that all entrepreneurs need also are discussed.
Finally, the development of a clear and comprehensive sustainable business plan is examined.
Chapter 17, ‘Reviving Samoa’s Cocoa Industry: Cocoa Samoa Ltd’, contains a complete illustrative
sustainable business plan that aims to attract capital to revitalise the Samoan Cocoa industry.
In an effort to make the fourth Asia–Pacific edition of Entrepreneurship: Theory, Process, Practice
the most comprehensive text available in our region, at the end of each chapter you will find a
wealth of endnotes with the Asia–Pacific region especially in mind. These references have been
carefully selected and updated to 2016 in order to provide professors and students with a thorough
background of the latest research that relates to the entrepreneurship material being presented. All
hyperlinks were current as at July 2015.
NEW AND UPDATED CONTENT

A beautiful new set of teaching PowerPoints has been developed for teachers. These include copious
notes relevant to lecture material. The slides include hundreds of images that make the PowerPoint
slides a delight to look at. In addition to the experiential exercises, we know that teachers must
convey serious content, and that reading and watching are two good ways to accomplish that.
A major innovation to this fourth edition has been the extensive development of the Pathways
Approach to Entrepreneurship. While learning entrepreneurship from others is of course useful and
beneficial, at some point to be an entrepreneur, you have to take the first steps into setting up and
taking responsibility for your own venture or business initiative. To be ready to be the captain of
your own venture there are a number of pathways that will contribute to your preparedness and
development. The following outlines how the specific content for the pathways concept is distributed
throughout the book:
• Chapter 1, page 18, discusses the pathways principle and on page 22, is detailed how
entrepreneurship acts as a pathway to freedom.
• Chapter 3, page 65, deals with finding a pathway to your climate-resilient future.
• Chapter 4, page 130, includes pathways considerations for entrepreneurship and
disadvantaged groups.
• Chapter 5 was promoted to fifth position as the dedicated Pathways Chapter to entrepreneurial
ventures and includes several pathways discussion:
– Page 159, keeping the cost down and finding ways to bootstrapping a pathway to
entrepreneurship is outlined.
– Page 160, discusses business assistance funding while page 161, focuses on
Minipreneurship as a pathway before the classical pathway, disruptive new venture
creation is specifically described on page 163.
– Page 167, switches to discuss acquiring an established entrepreneurial venture as a
pathway
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railroads with all large shippers, and that competitors of the
Standard had received similar favors. …
"Much greater differences of opinion exist with reference to

the condition of affairs since the passage of the
interstate-commerce act. It has been charged as a matter of
general belief on the part of almost all of the opponents of
the Standard Oil Company that these discriminations in various
forms have been continually received even up to date. On the
other hand, these charges have been denied in toto and most
emphatically by every representative of the Standard Oil
Company with reference to all cases excepting one, which they
claim was a mistake, the amount of freight due being promptly
paid on discovery of the error. … Certain opponents of the
company claimed that the Standard Oil Company received
commissions for shipping freight over railroads, which
commissions amounted to rebates. This charge is emphatically
denied by the Standard Oil Company and no positive proof on
the subject has been offered."
United States Industrial Commission,

Preliminary Report (56th Congress, 1st Session,
House Document Number 476, part 1). pages 25.
Of testimony on the subject of pipe-line consolidations in the

oil business, the report says:
"Mr. Boyle [publisher of the 'Oil City Derrick'] gives a

somewhat detailed history of the development of pipe-line
transportation in the oil business. The first successful pipe
lines were established in 1864 from Pithole to the Miller
farm. Others were soon constructed in the same district. These
were usually short, scarcely over 5 miles in length, and at
first did not even connect directly with the wells themselves,
although this practice was soon established. Numerous lines
soon grew up in different parts of the oil region, but the
first more extended systems date from 1869, when the Mutual
Pipe Line was laid more or less throughout Clarion County.
Vandergrift and Forman later established a system through
Butler County which became the nucleus of what is now known as
the United Pipe Line System. The original pipe lines were only
transporters of oil, but the nature of their work soon led them
to purchase oil, although at first it was not in the name of
the company itself. …
"Mr. Emery [of Bradford] also makes a brief statement of the

early history of pipe lines. He states that the first attempt
to combine separate pipe lines into a more complex system was
made by William H. Abbott and Henry Harley, beginning about
1866. By 1869 they had a capital of nearly $2,000,000, and 500
miles of pipe centering in the Miller farm. The concern was
then known as the Pennsylvania Transportation Company.
"Several witnesses describe the process by which the Standard

Oil Company gradually secured control of the various pipe
lines throughout the oil regions. The opponents of the trust
attribute the success of the Standard Oil Company in this
movement to the railway discriminations upon oil received from
pipe lines controlled by that company. It appears that for a
considerable period a rebate of 22 cents per barrel was
allowed on oil from pipe lines maintaining the agreed rates of
pipage. … Other opponents of the combination ascribe its
success in driving out competing pipe lines largely to the
practice of paying premiums upon oil in the territory of such
competing lines.
"Mr. Boyle gives the fullest statement of the growth of the

pipe-line consolidation during the seventies and attributes it
to the natural advantages arising from large capital and from
skill in organizing. He testifies that during the early part
of that decade very numerous pipe lines had been established.
These were at first constructed on a small scale by separate
oil producers, but, having entered the business, many
producers were inclined to extend their lines and form a
system. There thus arose an excessive number of competing
lines, and the solvency and integrity of some of them became a
matter of doubt. This excessive competition was the cause of
driving the pipe lines into a more complete organization. As
early as 1873 or 1874 a pooling arrangement was made by some
of the pipe lines, and rebates were paid by railways on oil
received from such lines. The United Pipe Line Company was
established in 1877, with a capital at first of $3,000,000,
and acquired by purchase a large number of lines. The new
company included many producers and stockholders of the
smaller companies, but it is estimated that the persons
controlling the Standard Oil Company had somewhat more than a
one-half interest in the United Pipe Lines. The National
Transit Company is the present owner of the United Pipe Lines
System, and the Standard Oil Company controls the National
Transit Company. …
{533}
"It was pointed out by several witnesses that the almost

complete control of the pipe-line system by the Standard Oil
Company gives it great power in fixing the prices of crude
oil, since producers can dispose of their product only through
the pipe lines, especially in view of the further fact, which
is alleged, that railway rates on crude oil are by agreement
kept at least as high as, if not higher than, the pipe-line
charges. The pipe-line system also gives the combination great
advantage over other refiners, who must pay the rates of
pipage fixed by the Standard, which are claimed to be
excessively high, or the high rates of freight."

House Document Number 476, part 1), pages 100.
TRUSTS:
Sugar Trust.
The following is from the testimony of Mr. Henry O. Havemeyer:
"Q. The history and organization of the Sugar Refining Company

has been gone over so many times in testimony before that it
is not worth while to dwell on it at length, but in order that
we may have the record somewhat complete, will you give a
brief sketch of its development, going back to the conditions
of the old sugar trust? [1887]
A. There were about twenty-five different firms or

corporations in the sugar business. I think the evidence
before some one of the Congressional committees was that for a
period of 5 or 6 years before the formation of the trust, 18
of those failed or went out of business.
"Q. Eighteen out of 25?
A. Not out of 25; 18 out of about 40. It occurred to some one

to consolidate the others, and 18 out of 21, I believe, went
into the trust, leaving 3 or 4 outside, who represented, I
think, 30 per cent. Then Spreckles built a refinery in
Philadelphia, and, 2 or 3 years after the formation of the
trust, the trust or its successor bought the Philadelphia
refineries.
"Q. Will you explain in a word or two the difference between

the trust and its successor and the reason for its going into
this other form?
A. The trust was attacked, and the courts decided it was

illegal, and a company was organized in New Jersey which
bought outright and paid for the different companies, which
were the constituent companies of the trust. They then
represented, I think, over 90 per cent of the output; then
other refineries began to be constructed, until now I think
they would represent 50 per cent of the consumption. …
"Q. The condition before the formation of the trust was about
this: When these 18 different companies failed, business was
in such a condition, as a whole, that it was considered
unprofitable?
A. Very unprofitable—ruinous.
"Q. Now, can you tell what special advantages—if you can give
this in some detail I shall be glad—come from this
organization, and in what way you make your savings?
A. The greatest advantage is in working the refinery full and

uninterruptedly. Of course, if you have a capacity of
140,000,000 and can only melt 100,000,000 somebody has got to
cut down materially. The moment you cut down you increase the
cost; by buying up all the refineries … and concentrating the
meltings in four refineries and working them full, you work at
a minimum cost. That enables us to pay a dividend on the
common stock.
"Q. SO the chief advantage in the combination was in

concentrating the production and destroying the poor
refineries?
A. Precisely."

House Document Number 476, part 2). pages 109.
See, also (in this volume),

UNITED STATES OF AMERICA: A. D. 1897 (MARCH-JULY).
TRUSTS:
The earlier combinations in steel production.
Mr. Reis, president of the National Steel Company, states that
that company was organized in February, 1899, under the laws
of New Jersey, with a capital of $59,000,000, $27,000,000 of 7
per cent cumulative preferred stock and $32,000,000 of common
stock. The company includes six steel plants, located at New
Castle, Youngstown, Sharon, Mingo Junction, Bellaire, and
Columbus. These plants are engaged in producing steel billets
and slabs, which are the raw materials for making tin plates
and various other products. The plants include 15 blast
furnaces. The company also owns iron mines in northern
Michigan at Iron Mountain and Ishpeming. These are expected to
produce from 1,250,000 to 1,400,000 tons of ore annually, the
total amount required for the use of the steel plants in the
combination being about 3,000,000 tons. The National Steel
Company also owns nine lake boats for transporting ore,
capable of carrying about 1,000,000 tons annually. … Mr. Reis
testifies that the National Steel Company is not a 'trust' in
the ordinary sense, since it makes no attempt to secure
control of a large proportion of the output of steel. Its
economies are sought in the combination of steel plants with
sources of raw materials. The National Steel Company produces
only about 18 per cent of the Bessemer steel made in this
country. The other chief concerns engaged in steel production
are the Carnegie Steel Company; Federal Steel Company; the
Maryland; Jones & Laughlin Steel Company; Wheeling Steel and
Iron Company, and the Lorain Steel Company. …
"Mr. Reis states that the tariff, so far as it is placed upon

steel billets, bars, and sheets, is no longer necessary for
the protection of the industry. No steel is imported, and
during the past 8 or 10 years the tariff has cut no figure.
But if the tariff should be removed from tin plate or from
certain other branches of the iron and steel industry there
would be an indirect effect upon the making of steel. …
"Mr. Gary states that the Federal Steel Company owns all the
capital of the Minnesota Iron Company, the Illinois Steel
Company, the Lorain Steel Company, and the Elgin, Joliet and
Eastern Railroad Company. The Minnesota Iron Company is the
owner of 150,000 acres of iron ore property on the Vermilion
and Mesaba ranges. It owns the Duluth and Iron Range Railroad
Company, connecting its mines with Lake Superior at Two
Harbors and Duluth. It owns large ore docks and also 22 steel
lake vessels capable of carrying 2,000,000 tons per annum. The
product of the Minnesota Iron Company will probably be
3,500,000 tons in 1900. The Lorain Steel Company manufactures
chiefly steel rails for street railways, and to some extent
steel billets. It produces about 500,000 tons of pig iron per
year. The Illinois Steel Company has plants at North Chicago,
West Chicago, South Chicago, Milwaukee, and Joliet. It
produces about 1,500,000 tons of pig iron per year, and also
manufactures steel rails, billets, plates, etc. It owns the
Chicago, Lake Shore and Eastern Railway, which connects its
plants in the neighborhood of Chicago. It also owns large
tracts of coal property in Pennsylvania and West Virginia, and
makes there about 1,500,000 tons of coke per year. This
company also owns iron mines in Wisconsin and Michigan. …
{534}
"Mr. Stetson, a lawyer, who drafted the charter and conducted

the legal arrangements in the organization of the Federal
Steel Company, testified that it was organized in September,
1898, with an authorized capital of $100,000,000 6 per cent
noncumulative preferred stock and $100,000,000 common stock.
Of this, $98,000,000 in all was originally issued. … Mr. Gary
states that the Federal Steel Company is not a trust in any
sense. It has not sought to restrict competition and has not
brought together companies which were competing with one
another, as is the case with most so-called trusts. The
company has bought the stocks of companies doing different
lines of business, just as an individual might do. …
"The American Steel and Wire Company operates iron mines in

the Lake Superior region. It controls, perhaps, one-sixth or
one-seventh of the output of that region. It owns and operates
coal mines and burns coke. It operates 8 or 9 blast furnaces, 17
open-hearth furnaces, from 22 to 25 rod rolling mills, and
from 20 to 30 wire mills. Its finished product is plain wire,
barbed wire, wire fencing, rope, etc., wire nails, and all
kindred articles. … Mr. Gates, chairman of the American Steel
and Wire Company of New Jersey, testified concerning the
formation of that company. It was organized on January 12,
1899. A gradual process of consolidating wire plants had been
going on previously. As early as 1890 companies in which Mr.
Gates was interested practically controlled the manufacture of
barbed wire in this country. In December, 1897, and January,
1898, J. P. Morgan & Co. investigated the value of the various
wire plants throughout the country with a view to further
consolidation. The American Steel and Wire Company of
Illinois, formed in March, 1898, seems to have resulted from
this effort. … The combination into the American Steel and
Wire Company was not rendered necessary by excessive
competition and consequent losses among the wire companies.
The Consolidated Steel and Wire Company, for example, made
between 27 and 28 per cent during the last three years of its
existence. It was believed, however, that more profit would be
made through better management under consolidation.

House Document Number 476, part 1), pages 190.
TRUSTS:
Tin Plate Industry.
"The American Tin Plate Company was incorporated under the

laws of New Jersey on January 6, 1899. Its authorized capital
is $20,000,000 of 7 per cent cumulative preferred stock and
$30,000,000 of common stock. Of this, $18,000,000 of preferred
and $28,000,000 of common stock has been issued. … It is made
clear by the evidence of all the witnesses that the tin-plate
industry in the United States has been built up practically
since the McKinley tariff of 1890, which raised the duty on
tin plates from 1 to 2.2 cents per pound. Without the
protection, all the witnesses agree, the industry could not
have been profitably established. Having once been
established, it was able to submit to the reduction of the
duty to 1.2 cents by the Wilson tariff of 1894, and is now
sufficiently protected by the duty of 1.5 cents under the
Dingley tariff of 1897."

House Document Number 476, part 1), pages 174 and 187.
TRUSTS:
The climax of consolidation in steel industries.
Formation of the United States Steel Corporation.
In February, 1901, the climax was reached in movements of

industrial combination, so far as concerns the production and
greater uses of iron and steel, by the formation of one
gigantic corporation, to embrace not only the companies named
above, but to purchase the enormous interests of the Carnegie
Company outright, and to take in several organizations of more
than considerable magnitude besides. The combination was
effected by the firm of J. P. Morgan & Co., New York, as
"syndicate managers," and an official statement of its
essential terms was published in a circular from that firm, on
the 2d of March, addressed to the stockholders of the Federal
Steel Company, National Steel Company, National Tube Company,
American Steel and Wire Company of New Jersey, American Tin
Plate Company, American Steel Hoop Company, American Sheet
Steel Company, to whom the following announcement was made:
"The United States Steel Corporation has been organized under

the laws of the State of New Jersey, with power, among other
things, to acquire the outstanding preferred stocks and common
stocks of the companies above named, and the outstanding bonds
and stock of the Carnegie Company. A syndicate, comprising
leading financial interests throughout the United States and
Europe, of which the undersigned are managers, has been formed
by subscribers to the amount of $200,000,000, (including among
such subscribers the undersigned and many large stockholders
of the several companies,) to carry out the arrangement
hereinafter stated, and to provide the sum in cash and the
financial support required for that purpose. Such syndicate,
through the undersigned, has made a contract with the United
States Steel Corporation, under which the latter is to issue
and deliver its preferred stock and its common stock and its
five per cent. gold bonds, in consideration for stocks of the
above named companies and bonds and stock of the Carnegie
Company and the sum of $25,000,000 in cash.
"The syndicate has already arranged for the acquisition of

substantially all the bonds and stock of the Carnegie Company,
including Mr. Carnegie's holdings. The bonds of the United
States Steel Corporation are to be used only to acquire bonds
and 60 per cent. of the stock of the Carnegie Company. The
undersigned, in behalf of the syndicate, and on the terms and
conditions hereinafter stated, offer, in exchange for the
preferred stocks and common stocks of the companies above
named, respectively, certificates for preferred stock and
common stock of the United States Steel Corporation, upon the
basis stated."
Details relating to the terms and the procedure of exchange

are then given, and several statements of public interest are
made, among them these: "The authorized issue of capital stock
of the United States Steel Corporation presently provided for
in said contract is $850,000,000, of which one-half is to be
seven per cent. cumulative preferred stock and one-half is to
be common stock. The company will also issue its five per
cent. gold bonds to an aggregate amount not exceeding
$304,000,000. In case less than all of the bonds and stock of
the Carnegie Company or less than all of the stocks of the
other companies above referred to shall be acquired, the
amounts of bonds and stocks to be issued will be reduced as
provided in said contract. The forms of the new bonds and of
the indenture securing the same, and of the certificates for
the new preferred and common shares, and the entire plan of
organization and management of the United States Steel
Corporation, shall be determined by J. P. Morgan & Co.
{535}
Every depositor shall accept in full payment and exchange for
his deposited stock the shares of the capital stock of the
United States Steel Corporation, to be delivered at the rates
above specified, in respect of the stock by him so deposited;
and no depositor or holder of any receipt issued hereunder
shall have any interest in the disposition of any other of the
shares of stock, or of the bonds of the United States Steel
Corporation, by it to be issued and delivered to or for
account of the syndicate or of any proceeds thereof. All
shares of the United States Steel Corporation deliverable to
or for account of the syndicate, which shall not be required
for the acquisition of the stock of the Carnegie Company or
for delivery to depositors under the terms of this circular,
are to be retained by and belong to the syndicate. … It is
proper to state that J. P. Morgan & Co. are to receive no
compensation for their services as syndicate managers beyond a
share in any sum which ultimately may be realized by the
syndicate."
Subsequently the American Bridge Company and the Lake Superior

Consolidated Iron Mines were taken into the consolidation,
and, on the 1st of April, 1901, the United States Steel
Corporation filed with the Secretary of State at Trenton, New
Jersey, amended articles of incorporation increasing its
authorized capital stock to $1,100,000,000. The stock is
equally divided into 7 per cent. cumulative preferred stock
and common stock. The total is greater by $250,000,000 than
the amount stated in the circular issued by J. P. Morgan &
Co., on March 2, as "presently provided for," and with the 5
per cent. gold bonds, not exceeding $304,000,000, brings the
security issues of the great steel combination up to
$1,404,000,000.
TRUSTS:
Industrial combinations in European countries.
"Trusts of the magnitude and influence of those now so

numerous in the United States are as yet rare in the Old
World. … It is in Germany, … of all European countries, that
trusts have spread most extensively and have been most
successful. … The German technical journals for 1897 enumerate
about 180 trusts, of which, it is true, only a few would
correspond to American ideas, but all of which demonstrate a
capacity for wider combination and fuller development. … As
regards great industrial combinations, the most striking
advance has been made in the German coal industry; the most
prominent organization in this department being the
Rheinisch-Westfälische Kohlensyndikat, which is distinguished
by the characteristics of a genuine trust, exercising within
its sphere of activity almost unlimited power. Like the
American Standard Oil Company, it directly controls the sales,
leaving the matter of production entirely to the separate
companies. Under the innocent title of 'eines Vereins zum
Ankauf und Verkauf von Kohlen' (a society for the buying and
selling of coal), this trust has, for the past five years,
completely controlled the West German coal industry, and
dictated prices. …
"In Austria and Hungary trusts have not yet extended so

rapidly. Nevertheless, on various occasions several of them
have given rise to such unfavorable comment that the sentiment
in favor of a legislative restriction of the movement is
to-day much more pronounced in the Austrian than in the German
Parliament. …
"As far as England is concerned, it must be admitted that,
notwithstanding her great industrial activity and a
competitive warfare not less pronounced than that of other
states, the Trust system has as yet found but tardy acceptance
in that country. This is doubtless due in some degree to the
thorough application of the principle of Free Trade; for it is
well known that the largest trusts are powerless unless their
interests are secured by a protective tariff excluding from
the home market the products of foreign countries.
Furthermore, we should remember that in England the principle
of individual freedom is regarded as inviolable. There, it
still obtains more widely than in most other countries; and
the majority of British merchants consider the principle
involved in the formation of trusts as a serious menace to the
freedom of the individual. …
"France is a country in which the Trust system has long

flourished and assumed extensive proportions. In the iron
trade, great trust companies—local in their character, it is
true—have existed for the last twenty years; and the most
powerful of these, like those of Germany, limit their activity
to the establishment of sales-depots. The chemical industry of
France, like that of Germany, is now controlled almost
exclusively by combinations. … Several international trusts,
such as the Zinc Trust, also have their headquarters at Paris.
Belgium, like France, is interested in most of the
international trusts; and there, as in France, the Trust
system has been successful largely in those enterprises which,
in other industrial countries, have hitherto maintained a
stubborn resistance to the inroads of the Trust. …
"In respect to the economic value of trusts in Europe, it may

be said that the influence exerted by them, both for good and
for evil, is, in its essential features, similar to that
exerted by the trusts of America."
W. Berdrow,
Trusts in Europe
(Forum, May. 1899).
TRUSTS:
Industrial combinations in England.
"England no longer enjoys that immunity from monopoly which

was the boast of its own economists and the object-lesson of
American free-traders. While the position of trusts has not
greatly changed in the United States during the past ten
years, except to develop on the same lines, a commercial
revolution is taking place in England. The country is becoming
honey-combed with combinations and trusts; and, what is more
and perhaps worse, there is no agitation against the system.
No effort is made to check trusts or control them. … There are
a large number of informal combines in England which give some
advantages of monopoly without unity of control or financial
association. Thus, the railroad corporations have long ceased
to compete as regards rates. It is perfectly well understood,
and has been admitted over and over again by railroad men
before Parliamentary committees, that the railroad companies
combine. They agree in their rates, but compete in facilities,
speed, etc. If it were not that the railroad companies are
strictly regulated by the Board of Trade, this system of
concerted action would be a very serious factor. As it is, the
railroads represent the most powerful interest in Parliament. …
Similarly, the leading shipping companies have fixed rates for
freight, to stop under-cutting, competing only in speed and
facilities. … There are various understandings and agreements
in the coal-trade. …
{536}
"Until a few years ago, England was not ripe for trusts. The
early efforts failed either through the overcapitalization of
the concerns, opposition from outsiders, or defective
management. … The monopoly that has been most prejudicial to
public interests—the National Telephone Company—is now being
undermined. … The agitation against this monopoly on the part
of municipalities became so strong that in 1898 the House of
Commons appointed a committee to investigate the question. The
result was that last year an act was passed giving
municipalities the right to establish telephones, and
authorizing the post-office to spend $10,000,000 in creating a
competitive system in London. …
"During the last three years, there has been a prolific crop
of amalgamations—half-way houses to trusts. … There is one
kind of amalgamation taking place that deserves special note.
Great mining, iron, engineering, and shipbuilding firms have
come together. Instead of having between the raw material and
the completed ship or engineering work the intermediary
profits of the iron-ore miner, the coal-miner, the
iron-master, the steel-maker, the iron-founder, the forger,
the marine-engine builder, and so forth,—all these middlemen
are got rid of, and the whole business placed, as it were,
under one roof. …
"Consumers in England have not so much to fear from combines

regulated by the Companies' Act, and held in check by free
trade, as consumers in the United States."
R. Donald,
Trusts in England
(Review of Reviews, November, 1900).
TRUSTS:
The question in American politics.
See (in this volume)

UNITED STATES OF AMERICA: A. D. 1896 (JUNE-NOVEMBER);
and 1900 (MAY-NOVEMBER).
----------TRUSTS: End--------
TSUNG-LI-AMEN, The Chinese.

CHINA: A. D. 1899 (MARCH).
TUBUAI ISLANDS.

AUSTRAL ISLANDS.
TUGELA RIVER, Military operations on the.

SOUTH AFRICA (THE FIELD OF WAR):
A. D. 1899 (OCTOBER-DECEMBER); and 1900 (JANUARY-
FEBRUARY).
TUNIS: A. D. 1881-1898.
During the French Protectorate.
In 1881, under pretexts which were much condemned at the time,

the government of France compelled the Bey of Tunis to sign a
treaty by which he submitted himself and country to the
Protectorate of France.
See, in volume 2,
FRANCE: A. D. 1875-1889.
This action gave bitter offense to the Italians, who had been
intending to lay their own hands on Tunis, and it is to be
counted among the causes of the entrance of Italy into the
Dreibund or Triple Alliance with Germany and Austria-Hungary
in 1882. But time had so far worn away the grievance that the
Tunisian protectorate was practically recognized by the
Italian government in a treaty with France, signed in
September, 1896. In 1898, the general results produced in
Tunis by seventeen years of French control were described in
an elaborate report to the British government by its
representative in the Protectorate, or Regency, Sir H.
Johnston. The following is quoted from that report:
"The protectorate of Tunis is nominally an Arab Kingdom, ruled

by a prince of Turkish descent under the guidance and control
of a French Minister Resident-General and a staff of French
officials. The present Bey of Tunis, Sidi Ali Pasha-Bey, is, I
believe, the most aged ruler living, having been born in the
year 1817. He was Heir Apparent at the time of the French
treaty of protection, concluded with his elder brother, Sidi
Sadok Bey. Sidi Ali at his accession to the throne in 1882
accepted the inevitable with a good grace, and has from the
very first lent himself unreservedly to the French efforts for
the regeneration of his country. Two of his ministers are
Arabs (the Prime Minister and the Minister of the Pen), the
remainder of the Council are French officials. M. René Millet,
the Resident-General of France, is at the same time Minister
for the Foreign Affairs of the Tunisian Government and
President of the Council. … The personal staff of the
Resident-General consists of about nine members. In addition,
the French Government is more or less directly represented
throughout the Regency by officials corresponding almost
exactly to our vice-consuls, collectors and
assistant-collectors in our African Protectorates, with this
difference, that the collectors are called 'contrôleurs.' …
"The whole of Tunisia is now under civil administration,

except the Saham district to the south of Gabes, which still
remains under military control. … In the districts which I
visited, the natives, talking to me freely, said that they
would sooner be under the rule of any Frenchman than under
that of their own kaids. The French are face to face here with
the same problem that we find so difficult in other oriental
countries—that of creating amongst the natives a body of
public officials who will keep their hands from picking and
stealing, and their tongues from evil speaking, lying and
slandering. No tyrant is so cruel to an Arab as an Arab; no
one is harder on Muhammadans than their co-religionists.
Justice is administered to Europeans, and to the protected
subjects of European powers, by French tribunals, which
equally deal with cases arising between Europeans and
Tunisians. … Justice is administered to natives, in cases
where natives alone are concerned, by Arab courts depending
directly on the Tunisian Government, but with a Frenchman at
the head of each principal department. At all the centres of
population there are Arab courts of justice. The Court of
Appeal for the French courts in Tunis is the Supreme Court of
Algiers; the appeal from the Arab courts is to the Bey. …
Public works are entirely under French control, though
Tunisians are employed in minor posts. …
"Public education is under French and Arab direction. The

schools and colleges more or less directly supported by the
Government in the city of Tunis are the following:—
The Lycée Carnot,
the College Sadiki,
the secondary school for girls,
the Alawi College,
two lay schools for boys,
a school for Jewish children of the Israelite Alliance,
a Jewish agricultural school,
two schools for Jewish girls,
three schools for boys under the direction of friars, and a
primary school for little girls.
{537}
There is a Muhammadan university at the Great Mosque in Tunis,
and there are 113 primary Muhammadan schools in the same town.
In the interior there are about 98 primary schools for boys
and girls, supported by the Government, and mainly under
French direction. There are also about 500 Muhammadan schools
in the interior, either private or assisted by Government
funds. In addition to Government-supported schools, a large
number of private establishments have sprung up at Tunis and
at Sfax, wherein surprisingly good teaching is given, even in
such subjects as music. … The progress of education is having
very marked results on the indigenous population of the coming
generation—good results in the dissipation of Muhammadan
fanaticism and prejudice, results less pleasing, however, when
the recipient of this education is turned out a creature with
no particular religion, with no principles, and a contempt for
manly labour. …
"In 1880 life and property were thoroughly insecure. The

property of Europeans, perhaps, was safe, provided they were
the subjects of a Power able to coerce the Government of
Tunis, and their lives were not in any great danger in the
principal towns; but it would have been impossible for any
European to have travelled about many parts of the Regency
without a considerable escort; impossible, indeed, to
penetrate some parts of the Regency at all unless at the head
of an army. … It was as difficult, and dangerous, and
expensive to travel about the Regency 18 years ago as it is
now to visit the far interior of Morocco. I spent eight months
in Tunisia at that time, but never succeeded in visiting
Kairwan, the Holy City. … Now, I can go from Tunis to Kairwan
in a few hours by railway, see all the sights unhindered,
enter the mosques without offence, dine and sleep at an
excellent hotel, and be back again at my work in Tunis the
next day. I may further add that I have just traversed much of
the Tunisian Sahara and a good deal of the Jerid country with
no other escort than my servant, and a native cavalryman to
act as guide. I should have been equally safe had I been
alone. The whole Regency of Tunis is now as safe for tourists
as France."
Great Britain, Parliamentary Publications

(Papers by Command, 1898, C. 8649-18, pages 10-15, and 2-3).
TUNNELS, New York Rapid Transit and East River.

NEW YORK CITY: A. D. 1900 (JANUARY-SEPTEMBER).
TURBINES, Steam, The invention of.

SCIENCE, RECENT: MECHANICS.
----------TURKEY: Start--------
TURKEY: A. D. 1895.
Revolt and massacres in Armenia.
Atrocities on both sides.
A horrible condition of things in Armenia was beginning to

cause excitement throughout the world. On one hand, the
Armenians were in revolt against the foul Turkish government,
and avenging themselves savagely upon their oppressors
whenever they found the opportunity; on the other hand the
Turks were making the revolt an excuse for the atrocities that
are habitual to them in every such case. A special
correspondent sent in January by Reuter's news agency to
investigate the situation reported his conviction "that both

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Process Practice 4th Australia

CASE 4.1: AUSTRALIAN BUCCANEER ENTREPRENEUR EATEN BY

ENTREPRENEURIAL CASE ANALYSIS PART 1 ...............................152

PART 2 INITIATING ENTREPRENEURIAL VENTURES............ 157

CHAPTER 5 PATHWAYS TO ENTREPRENEURIAL VENTURES.........................158

ENTREPRENEURSHIP IN PRACTICE: THE RISE OF

ENTREPRENEURIAL EDGE: THE COFFEE CLUB – COFFEE GOES

CHAPTER 6 OPPORTUNITY AND THE CREATIVE PURSUIT OF INNOVATIVE

ENTREPRENEURIAL EDGE: STICKING TO A RADICAL PLAN ..................... 197

ENTREPRENEURIAL EDGE: COMBINING UNIQUE INSIGHT, EMERGING

ENTREPRENEURIAL EDGE: CREATING A SOLUTION TO A SOCIAL

Creating the right setting for creativity......................................209

CASE 6.1: INTERFACE ASIA–PACIFIC.......................................................... 219

CHAPTER 7 ENTREPRENEURIAL FAMILIES: SUCCESSION AND

CHAPTER 8 DEVELOPING ENTREPRENEURSHIP WITHIN

ENTREPRENEURSHIP IN PRACTICE: DOES INTRAPRENEURSHIP

CASE 8.2: SOUTHWEST AIRLINES: CREATING AN ENTREPRENEURIAL

ENTREPRENEURIAL CASE ANALYSIS PART 2 ...............................286

PART 3 DEVELOPING ENTREPRENEURIAL VENTURES ....... 289

CHAPTER 9 THE ASSESSMENT OF ENTREPRENEURIAL

ENTREPRENEURIAL EDGE: AN ENTREPRENEURIAL

CASE 9.1: EXAMINING THE INDUSTRY....................................................... 319

CHAPTER 10 MARKETING FOR ENTREPRENEURIAL VENTURES ....................330

ENTREPRENEURIAL EDGE: PERCEPTIONS OF A TARGET MARKET ......... 339

ENTREPRENEURIAL EDGE: DELL LEARNS YOUNG.................................... 340

ENTREPRENEURSHIP IN PRACTICE: WHY YOU MUST HAVE

CHAPTER 11 STRATEGIC ENTREPRENEURIAL GROWTH .................................370

CASE 11.1: THE CASHEW CASE PART 3: IS THERE A VIABLE BUSINESS

CHAPTER 12 GLOBAL OPPORTUNITIES FOR ENTREPRENEURS.....................412

ENTREPRENEURSHIP IN PRACTICE: IMMIGRANT AND REFUGEE

ENTREPRENEURIAL CASE ANALYSIS PART 3 ...............................448

PART 4 GROWTH STRATEGIES FOR ENTREPRENEURIAL

CHAPTER 13 LEGAL AND REGULATORY CHALLENGES FOR

ENTREPRENEURSHIP IN PRACTICE: TOP PATENTS THAT

ENTREPRENEURSHIP IN PRACTICE: GOOGLE WAS NOT AMUSED

CASE 13.1: GLORIA’S DECISION.................................................................. 491

CHAPTER 14 SOURCES OF CAPITAL FOR ENTREPRENEURIAL

ENTREPRENEURSHIP IN PRACTICE: ASKING VENTURE CAPITALISTS

CASE 14.1: LOOKING FOR CAPITAL IN MALAYSIA...................................... 530

CHAPTER 15 MEASURING PERFORMANCE FOR ENTREPRENEURIAL

ENTREPRENEURSHIP IN PRACTICE: WATCHING YOUR

Preparing ﬁnancial budgets .......................................................552

ENTREPRENEURSHIP IN PRACTICE: WHEN CURRENCY LOSES

CHAPTER 16 DEVELOPING A SUSTAINABLE BUSINESS PLAN........................587

ENTREPRENEURSHIP IN PRACTICE: COMMON BUSINESS PLANNING

ENTREPRENEURIAL CASE ANALYSIS PART 4 ...............................622

APPENDIX: BUSINESS PLAN – REVIVING SAMOA’S COCOA INDUSTRY ........................ 625

Dr Karlson ‘Charlie’ Hargroves

THE DISTINCTIVE CHARACTER OF THIS BOOK

NEW AND UPDATED CONTENT

"Much greater differences of opinion exist with reference to

United States Industrial Commission,

Of testimony on the subject of pipe-line consolidations in the

"Mr. Boyle [publisher of the 'Oil City Derrick'] gives a

"Mr. Emery [of Bradford] also makes a brief statement of the

"Several witnesses describe the process by which the Standard

"Mr. Boyle gives the fullest statement of the growth of the

"It was pointed out by several witnesses that the almost

United States Industrial Commission,

"Q. The history and organization of the Sugar Refining Company

A. There were about twenty-five different firms or

"Q. Eighteen out of 25?