VIEWPOINT
Chapters in the Life of an Entrepreneur:
A Case Study
MINNETTE A. BUMPUS
UNIVERSITY OF THE DISTRICT OF COLUMBIA
WASHINGTON, DC
ABSTRACT. In this article, the authors
describe how educators used an autobiog-
raphy, How to Succeed in Business Without
Being White: Straight Talk on Making It in
America (E. G. Graves, 1998), in a general
undergraduate entrepreneurship course
to augment the learning opportunities of
entrepreneurship students. This learning
modality provided students with a real-life,
3-dimensional entrepreneurial case study
that illustrated the concepts and theories
discussed in traditional entrepreneurship
textbooks.
Keywords: autobiographies, education,
entrepreneur, entrepreneurship, prose
Copyright © 2008 Heldref Publications
302 Journal of Education for Business
GERALD BURTON
HOWARD UNIVERSITY
WASHINGTON, DC
“E ntrepreneurship education
has experienced remarkable
growth in the last half century” (Solo-
mon, Duffy, & Tarabishy, 2002, p. 66).
“More than 2,000 colleges and univer-
sities in the United States, about two-
thirds of the total, now offer a course in
entrepreneurship” (Cone, 2005, p. 2). In
light of this growth, “today’s entrepre-
neurship educators are challenged with
designing effective learning opportu-
nities for entrepreneurship students”
(Kuratko, 2005, p. 585). “Clearly, for
entrepreneurship to embrace the 21st
century, educators must become more
competent in the use of academic tech-
nology and also expand their peda-
gogies to include new and innovative
approaches to the teaching of entrepre-
neurship” (Solomon et al., p. 80). Inte-
grating prose into the entrepreneurship
curriculum is one way to expand entre-
preneurship teaching pedagogies.
Researchers have widely discussed the
integration of prose in various business
courses. For example, Younkins (2004)
used Atlas Shrugged in his course on
conceptual foundations of business to
help master of business administration
(MBA) students better understand ethi-
cal and economic concepts. Harris and
Brown (1989) incorporated Babbit into
their management course for an analysis
of ethics. Shepard, Goldsby, and Gerde
(1997) and McAdams (1993) have also
examined ethics through their analysis
of The Great Gatsby in undergraduate
courses on ethics and the legal and social
environment of business, respectively.
Satov (2001) discussed how various
professors have used murder mysteries
and crime thrillers “to teach students
about ethics and other issues they will
likely encounter as practicing accoun-
tants” (p. 11). Bumpus (2000) explored
human resource management issues in
the novel Brothers and Sisters. Steven-
son (1996) analyzed different leadership
styles with Shakespeare’s Henry V and
Richard III. Husted (1999) used clas-
sical selections from a university-wide
reading list to illustrate effective leader-
ship techniques. Benson (1992) provided
“examples of the ways in which the clas-
sics [e.g., Shakespeare’s Hamlet, Ralph
Waldo Emerson’s essay “Self-Reliance”;
Shakespeare’s Othello; Socrates; and
Herman Melville’s Moby Dick] can be
used to help students capture the essence
of entrepreneurship and the entrepre-
neurial experience” (p. 135).
Short and Ketchen (2005) used Aes-
op’s Fables and several short stories
to illustrate various strategic manage-
ment principles. Vielba (1995) dem-
onstrated a manager’s ability to ana-
lyze organizational culture with John
Grisham’s The Firm. In an organiza-
tional behavior honors seminar and a
leadership seminar, Zajdel and Vinton
(1988) used examples from the novel
One Flew Over the Cuckoo’s Nest to
illustrate leadership, membership, struc-
ture, values, organizational culture, and
socialization. Mystery novels were used
by Cowden (1989) to illustrate con-
cepts and theories in an organizational
behavior and human resources course.
Comer and Holbrook (2005) relied on
Dr. Seuss stories to reinforce course
concepts in a management and organi-
zational behavior course. Other authors
have also used novels to teach various
organizational behavior concepts (Con-
way, 1990; Shaw & Locke, 1993).
Although the aforementioned uses of
novels and short stories in the manage-
ment classroom are extensive, the cov-
erage of entrepreneurship concepts and
theories has not received much attention.
The minimal coverage might possibly be
attributed to the fact that entrepreneur-
ship is an emerging field (Katz, 2003);
hence, “research and knowledge about
how to teach entrepreneurship remains
relatively underdeveloped” (Kirby, 2004,
p. 518). In this article, we describe how
an autobiography, How to Succeed in
Business Without Being White: Straight
Talk on Making It in America (Graves,
1998) was used in a general undergradu-
ate entrepreneurship course to augment
the learning opportunities for entrepre-
neurship students. This learning modal-
ity provided students with a real-life,
three-dimensional entrepreneurial case
study that illustrates the concepts and
theories discussed in traditional entrepre-
neurship textbooks.
“The life stories of entrepreneurs offer
students of entrepreneurship insight into
both the explicit and the tacit knowl-
edge of working entrepreneurs” (McK-
enzie, 2005, p. 37). A testament to this
viewpoint is provided by Mark Cuban,
owner of the Dallas Mavericks, who
stated,
There is much more to starting a business
than just understanding finance, account-
ing, and marketing. Teaching kids what
has worked with startup companies and
learning about experiences that others
have had could really make a difference. I
know it did for me. (Gray, 2006, p. 42)
“[T]he ‘practical theories’ of entre-
preneurship are constantly reconstructed
in the accounts of entrepreneurs who
are making sense and creating meaning
within their social context, and . . . this
knowledge can be used to develop an
enhanced understanding of entrepreneur-
ial practice” (Rae, 2004, p. 196). “Some
popular literary novels as well as auto-
biographical accounts, many times of a
motivational sort, have served as vehicles
for informal business education, from
Horatio Alger’s ‘rags to riches’ stories,
to autobiographies such as Iacocca’s,
and personal accounts of life in organi-
zations, such as Lewis’s Liar’s Poker”
(Alvarez & Merchan, 1992, p. 29). In
How to Succeed in Business Without
Being White: Straight Talk on Making
It in America, Graves (1998) used “his
own story (which included careers in the
military, real estate, and public service
as an assistant to Senator Robert F. Ken-
nedy), and those of dozens of other black
men and women who have made it in the
business world, [to offer] inspirational
and down-to-earth advice to help read-
ers take advantage of opportunities to
achieve personal and professional suc-
cess” (HarperCollins, n.d.).
Procedure
The undergraduate general entre-
preneurship class (Management 351)
that used this autobiographical teaching
pedagogy presents a thorough review
of the entrepreneurship culture and the
evolution of entrepreneurship as a dis-
cipline. The objective of the course is
to take students on an entrepreneurial
journey—from the decision to become
an entrepreneur to the development of
successful business ideas through the
movement from an idea to an entre-
preneurial firm to the management and
growth of an entrepreneurial firm (Pear-
son Prentice Hall, n.d.).
Students in the undergraduate general
entrepreneurship course were required
to read Entrepreneurship: Theory, Pro-
cess, and Practice (Kuratko & Hodgetts,
2004) and Entrepreneurship: Success-
fully Launching New Ventures (Barrin-
ger & Ireland, 2006) for the spring 2005
and fall 2005 semesters, respectively.
These traditional entrepreneurship text-
books were supplemented by the auto-
biography How to Succeed in Business
Without Being White: Straight Talk on
Making It in America (Graves, 1998).
At the beginning of each semester,
students (N = 128) who were enrolled
in three sections of Management 351
were told that textbook concepts and
theories would be illustrated throughout
the semester via various media, which
included practicing entrepreneurs (i.e.,
guest speakers), periodicals (e.g., Wall
Street Journal, Fortune, Black Enter-
prise), and Graves’ (1998) autobiogra-
phy. Examples from these sources were
incorporated into class lectures and
student discussions. The evaluation of
students’ mastery of content (i.e., ability
to apply textbook theories and concepts
to real-world events) discussed by the
guest speakers, in the periodicals, and
by Graves was conducted via multiple-
choice exam questions and short-answer
essay questions. (Sample multiple-
choice exam questions can be obtained
from the authors upon request.)
The following section provides an
analysis of a sample of relevant course
content areas for several of the chap-
ters in Kuratko and Hodgetts’ (2004)
textbook. Chapter headings have been
provided for easy reference to the appli-
cable subject matter. Cross-references
have also been provided, where appli-
cable, to Barringer and Ireland’s (2006)
textbook.
Analysis
Entrepreneurship: An Evolving
Concept
During his 3 years on Robert Kenne-
dy’s staff, Earl Graves “received an edu-
cation in the use of power and money
in this country. . . . [He] saw firsthand
what sort of freedom could be had with
wealth and power. [He] became even
more determined to claim at least some
of it” (Graves, 1998, p. 12). “The years
[Graves] spent on [Kennedy’s] staff had
a lasting impact on [him] and how [he]
approached [his] business and social
responsibilities” (Graves, 1998, p. 13).
The aforementioned facts illustrate the
environmental school of thought in the
macro view of entrepreneurship (Kurat-
ko & Hodgetts, 2004).
Graves (1998) believed that he
“absorbed a great deal of his business
sense—as well as [his] penchant for
doing business deals” (p. 9) by watching
and listening as his father sold clothes on
consignment out of their home. His father
also taught him salesmanship, hard work,
and discipline (Graves). In a description
May/June 2008 303
of his mother, Graves stated that “she
loved to have fun and was supportive of
everything her children were involved in,
from ice skating to Cub Scouts” (Graves,
p. 8). The aforementioned facts from
Graves’ childhood support the entrepre-
neurial trait school of thought in the
micro view of entrepreneurship (Kuratko
& Hodgetts, 2004).
Intrapreneurship: Developing
Corporate Entrepreneurship
Graves provided “11 Tips for Job-
Hunting in Workplace 2000” (Graves,
1998, pp. 65–69). One of those tips was
to “think of yourself as an entrepreneur,
even if you are an employee . . . [because]
the entrepreneurial mind set is increas-
ingly valued by organizations that are
reshaping themselves and the way they
view their employees” (p. 69).
The growth of intrapreneurship or
corporate entrepreneurship can be
attributed to such factors as “a rapidly
growing number of new and sophisti-
cated competitors, a sense of distrust
in the traditional methods of corpo-
rate management, an exodus of some
of the best and brightest people out of
corporations to become small-business
entrepreneurs, and an overall desire to
improve efficiency and productivity”
(Kuratko & Hodgetts, 2004, p. 52).
Many [corporations] have found that their
past pursuit of profits has been at the
expense of building relationships with
customers. Now they are looking for
employees with entrepreneurial leader-
ship skills who can get close to customers
and make decisions on how best to serve
them and secure their business. (Graves,
1998, p. 69)
Intrapreneurial characteristics include
(a) a generalist point of view, (b) an
action orientation, (c) an optimistic
approach, and (d) a dedication to new
ideas (Kuratko & Hodgetts, 2004).
Understanding the
Entrepreneurial Perspective
as Individuals
Publications are one of the three
major sources of information related to
the entrepreneurial perspective. Black
Enterprise is an example of a venture
periodical type of publication (Graves,
1998; Kuratko & Hodgetts, 2004).
304 Journal of Education for Business
The following statement by Graves
(1998) illustrates the seeking and using
feedback characteristic of entrepreneurs
(Kuratko & Hodgetts, 2004).
When I worked with Kennedy, I was
always asking others how they thought I
was doing within his organization. Some-
times I would have to make corrections
and adjustments to my style in order to be
more efficient within the demanding and
hard-charging culture of his office. You
must continuously monitor your status
and your vulnerability in the constantly
shifting work environment.
“In general, stress can be viewed as
a function of discrepancies between
a person’s expectation and ability to
meet demands, as well as discrepancies
between the individual’s expectations
and personality” (Kuratko & Hodgetts,
2004, p. 124). Graves (1998) provided
“a few general guidelines to help cope
with stress in the workplace” (p. 113).
One of these guidelines was to strike
a balance in your life, entailing the
removal of yourself from stressful situ-
ations. Graves relieved the stress in his
life by skiing in the winter and remodel-
ing his house.
The most important characteristic
shared by successful entrepreneurs is a
passion for the business. This typical-
ly stems from the entrepreneur’s belief
that the business will positively influ-
ence people’s lives (Barringer & Ireland,
2006). For example, “the publication
[Black Enterprise] was committed to the
task of educating, inspiring, and uplifting
its readers. [Earl Graves’] goal was to
show them how to thrive professionally,
economically and as proactive, empow-
ered citizens” (Graves, 1998, p. 16).
Developing Creativity and
Understanding Innovation
According to Graves (1998), one way
to deal with the nuisance factor of race
is to “storm the castle” (p. 30). For
example,
[i]f [you] want to get to the CEO of a
company and [you] can’t do it by going
in the front door, [then] sit down and
examine the individual. What corporate
or charitable boards does the CEO sit on?
Whom do [you] know on those boards?
What private clubs does he or she belong
to? What church? Where do his or her
children go to school? Whom do [you]
know that might get [you] inside? (p. 31)
The aforementioned advice illustrates
the functional perspective toward things
and people, “which views things and
people in terms of how they can be used
to satisfy one’s needs and to help com-
plete a project” (Kuratko & Hodgetts,
2004, p. 144).
If you believe that the magazine
Black Enterprise is a new use or dif-
ferent application of an already existing
product, service, or process, then Black
Enterprise would be classified as an
extension type of innovation (Graves,
1998; Kuratko & Hodgetts, 2004). There
are several internal and external areas
that serve as innovation sources. One
such source is a process need, which
exists whenever a demand arises for the
entrepreneur to innovate and answer a
particular need (Kuratko & Hodgetts).
Entrepreneurial alertness is the ability
to notice such things without engaging
in deliberate search (Barringer & Ire-
land, 2006). For example,
[Earl Graves] hadn’t been on [Morgan
State’s] campus long when [he] realized
that Homecoming week was approaching
and there was a big market for flowers for
all the ladies who would be attending. . . .
[He] went to two competing local florists
and cut deals with both to sell flowers on
campus, where these White merchants rare-
ly ventured. For a percentage of the profits,
they provided flowers and [he] covered the
campus. (Graves, 1998, pp. 9–10)
“Some common mental habits that
inhibit creativity and innovation are
‘either-or’ thinking, security hunting,
stereotyping, and probability thinking”
(Kuratko & Hodgetts, 2004, p. 148). In
the following passage, it appears that
stereotyping hindered the White adver-
tising community’s creativity and inno-
vation. In the spring of 1971, Graves
called a strategy meeting in the Bahamas
to bring together the Black Enterprise
advertising sales staff with several impor-
tant clients, including Justin Gerstle, the
senior vice president for media sales of
Ted Bates Advertising Agency, which
represented one of [Black Enterprise’s]
major advertisers. From the moment
[Gerstle] sat down, he told [Graves’] staff
in the bluntest terms possible that while
he believed in Black Enterprise and its
mission of self-determination, he felt it
was going to be a tremendous challenge
to sell advertising for a magazine aimed
at the black community to corporations
and advertising agencies dominated by
white males. “The white advertising com-
 munity sees black people as drinking half
pints of liquor and driving used cars” he
told [Graves’] staff. (1998, pp. 24–25)
“The real barriers to creative thinking
are sometimes the inadvertent ‘killer
phrases’ we use in our communication”
(Kuratko, & Hodgetts, 2004, p. 140).
Idea stoppers or racist refrains, such
as the following, did not stop Graves
(1998) from turning his magazine into
a reality: “Well, what you say makes
sense, but we’re not interested. We don’t
want our product associated with Afri-
can Americans. There aren’t enough
black people out there interested in our
product” (p. 23).
Graves (1998) was in Barbados, his
grandparents’ native land, when he
“realized that true power lies not in
government, but in business” (p. 14).
This insight, which led to his starting a
consulting business for Black economic
development, is the third step or stage
in the creative process (Barringer &
Ireland, 2006).
“The term window of opportunity is
a metaphor describing the time period
in which a firm can realistically enter
a new market” (Barringer & Ireland,
2006, p. 29). For example,
In 1969, President Nixon signed Execu-
tive Order 11458, which directed the U.S.
Secretary of Commerce to coordinate
the federal government’s efforts to pro-
mote minority enterprise. . . . The Office
of Minority Business Enterprise, now
known as the Minority Business Devel-
opment Agency, came into being, along
with minority enterprise small-business
investment companies, minority set-aside
programs and other initiatives aimed at
advancing black economic development.
(Graves, 1998, p. 15)
“These events further convinced
[Graves] that the time was ripe for a
magazine devoted to economic devel-
opment in the African American com-
munity” (Graves, p. 16).
Ethical and Social Responsibility
Challenges for Entrepreneurs
Social responsibility consists of
obligations a business has to society.
Graves accepted this responsibility. He
stated that “Black-owned companies
do more than provide jobs. They pro-
vide training . . . . Although it always
hurts to lose good people, I acknowl-
edge that part of my role as a Black
businessman is to develop talented and
ambitious people and give them the
tools they need to fly on their own”
(Graves, 1998, p. 121). The aforemen-
tioned example illustrates the human
resources area of social responsibility
(Kuratko & Hodgetts, 2004).
Social responsibility has three dis-
tinct categories. The most proactive
position for a corporation to take in
regards to social responsibility would
be termed social responsiveness (Kurat-
ko & Hodgetts, 2004). This category of
social responsibility was illustrated by
Black Enterprise when it moved its
1996 Golf & Tennis Challenge from
its planned site at La Quinta Resort
and Club in La Quinta, California, to
protest the state’s attacks on affirma-
tive action. It was not the first time the
Challenge made its substantial clout
felt on behalf of African Americans
(Graves, 1998).
Environmental Assessment:
Preparation for a New Venture
According to Graves (1998), entre-
preneurs “should learn as much as pos-
sible about their opponents in the mar-
ketplace. Simply learn who they are,
what they do and how they sell. Inves-
tigate their strengths and weaknesses”
(p. 153). Strengths and weaknesses
are part of the capabilities component
of a competitive analysis (Kuratko &
Hodgetts, 2004). This competitor infor-
mation should be assessed in an industry
or market feasibility analysis (Barringer
& Ireland, 2006). Graves recommend-
ed that the market analysis section of
an individual’s business plan include
a description of “industry trends and
what the future may hold” (p. 142). A
number of useful steps can assist an
entrepreneur in examining the industry.
One of the steps includes establishing
the value-added measure of the new
venture. This step involves the concept
of contribution analysis, which calcu-
lates sales minus raw materials costs
(Kuratko & Hodgetts, 2004).
Marketing Research for New
Ventures
Graves (1998) stated that “before you
can begin to improve your marketing
techniques, you must first have an inti-
mate knowledge of the people buying
your services or products” (p. 152).
Primary research about consumers can
be obtained through surveys, which
include mail, telephone interviews,
personal interviews, and the Internet
(Barringer & Ireland, 2006; Kuratko &
Hodgetts, 2004).
To identify specific market segments,
entrepreneurs need to analyze a number
of variables. One such variable is demo-
graphics, which include age, gender, per
capita income, and geographic location
(Graves, 1998). Consumer types include
innovators, early adopters, early major-
ity, late majority, and laggards (Kuratko
& Hodgetts, 2004).
Entrepreneurs often think about price
when mapping out a marketing plan
(Graves, 1998). “Much psychology
goes into properly pricing a product
or service. A premium product that is
discount priced may not sell, because
people won’t perceive its true value”
(Graves, p. 151). The fact that most buy-
ers expect to pay even-numbered prices
for prestigious items and odd-numbered
prices for commonly available goods is
another psychological factor affecting
pricing (Kuratko & Hodgetts, 2004).
Financial Preparation for
Entrepreneurial Ventures
Young, rapidly growing companies short
on cash flow but high in product demand
should consider a financing mechanism
called “factoring.” A factor is a third-
party investor that buys the company’s
receivables, thus allowing for quicker
payments. Factoring offers a number of
benefits to cash-starved companies that
can use the money to meet payroll, fund
marketing campaigns or provide working
capital. (Graves, 1998, p. 178)
The day-to-day challenge of firm
growth that Graves referred to is cash-
flow management (Barringer & Ireland,
2006).
Developing an Effective
Business Plan
A business plan is the entrepreneur’s
roadmap for success, and it details the
proposed venture. It is the minimum
document required by financial sources
and allows the entrepreneur entrance
into the investment process (Graves,
May/June 2008 305
1998). The executive summary, which
is the first section of a business plan,
should be written only after the entire
business plan has been completed and
should be no longer than two to three
pages (Graves). It is important that an
entrepreneur serve as the primary author
of his or her business plan.
The following information shared by
Graves (1998) regarding the presentation
of a business plan illustrates the planning
pitfall of no commitment or dedication
(Kuratko & Hodgetts, 2004).
Over the years I have had dozens of
people pitch me on their business plans
and I can spot the ones who won’t make
it. How? They are the ones who almost
collapse on the floor and weep if I ques-
tion any aspect of their presentation. They
are the people who don’t really believe in
what they are doing. They lack real com-
mitment. (Graves, pp. 146–147)
According to Graves (1998), “not only
should a business plan display some pas-
sion, but it should be pragmatic. Sugar-
coated scenarios are quickly rejected. A
best-case, worst-case and most-likely-
case should be presented to investors,
lenders, or potential business partners”
(p. 147). The aforementioned advice
would fall under the avoid-exaggeration
guideline for successful business plan
development. In the first meeting,
investors typically focus on whether the
management team has the skills and
experience to pull off the venture and
whether a real opportunity exists (Bar-
ringer & Ireland, 2006). Graves (1998)
started Black Enterprise magazine and
his Pepsi franchise without and with a
business plan, respectively.
Legal Structure for New
Business Ventures
Franchise owners are often required to
follow strict guidelines laid down by the
franchisor, which owns the trademark and
concept. Those guidelines often prede-
termine how the business will be run,
which can be good, but they can also
restrict your own approach to marketing
and delivering your service or goods.
(Graves, 1998, p. 136)
The preceding text describes the disad-
vantage of franchising known as fran-
chisor control.
Graves’ (1998) initial franchise busi-
ness began with a first-class ticket on
a flight from Washington, DC, to New
306 Journal of Education for Business
York City. His encounter with a fel-
low passenger led to his ownership of
“Pepsi-Cola of Washington, DC, L.P.,
the nation’s largest minority-controlled
Pepsi bottling franchise” (Graves, 1998,
p. 5). In a limited partnership, the lim-
ited partners are liable only for the
amount of their capital contributions
(Kuratko & Hodgetts, 2004).
“Under federal law, each franchise is
required to give [potential franchisees]
access to its Uniform Franchise Offer-
ing Circular, which offers information
about the company’s finances as well
as details of the franchise agreement”
(Graves, 1998, p. 136).
But is [franchising] for everyone? No, it
is not. First, you need to consider whether
your personality is suited to franchising
because even if you have the traits that
make for a good entrepreneur, this type
of entrepreneurship has its own unique
requirements and challenges, particularly
for African Americans. (Graves, p. 132)
Qualities to look for in prospective
franchisees include (a) the ability to fol-
low instructions, (b) experience in the
industry in which the franchisee oper-
ates, (c) the ability to operate with mini-
mal supervision, (d) adequate financial
resources, and (e) a good credit history
(Barringer & Ireland, 2006).
Sources of Capital for
Entrepreneurs
“The use of debt to finance a new
venture involves a payback of the funds
plus a fee (interest) for the use of the
money. Equity financing involves the
sale of some of the ownership in the
venture” (Kuratko & Hodgetts, 2004,
p. 479). Graves used both sources of
financing. For example, “to launch
Black Enterprise, Chase [Manhattan
Bank] lent [Earl Graves] $175,000;
$150,000 was debt, and $25,000 bought
Chase a 25 percent stake in [his] busi-
ness” (Graves, 1998, p. 155).
“After Kennedy’s death [Earl Graves]
secured a $25,000 loan from Citibank
to launch [his] consulting business. In
all these years, with the exception of
that first loan, [he has] never had to
personally guarantee a penny” (Graves,
1998, p. 155). About 8,000 commercial
banks operate in the United States today.
Although some banks will make unse-
cured short-term loans, most bank loans
are secured by receivables, inventories,
and other assets (Kuratko & Hodgetts,
2004). The two major advantages of
getting a loan relative to investment
capital are that no ownership in the firm
is surrendered and that interest pay-
ments are tax deductible (Barringer &
Ireland, 2006).
One of the advantages of going pub-
lic is that “the marketplace puts a value
on the company’s stock, which in turn
allows value to be placed on the cor-
poration” (Kuratko & Hodgetts, 2004,
p. 484).
[Jacob R. Miles, III], successfully
launch[ed] one of the nation’s first black-
owned full-line toy companies, Cultural
Exchange Corporation. Although the
Minneapolis-based company sold more
than $650,000 worth of toys in its first
year, Miles had a serious problem. He
could not raise enough capital to finance
the company’s rapid growth. . . . Turned
away by the banks, Miles toyed with the
notion of an initial public offering (IPO)
needed to raise $20 million before invest-
ment banks would underwrite the IPO.
(Graves, 1998, pp. 172–173)
Firms decide to go public for several
reasons. First, it is a way to raise capital
to fund current and future operations
. . . . Second, an IPO raises a firm’s
public profile, making it easier to attract
high-quality customers, alliance part-
ners, and employees. Third, an IPO is
a liquidity event that provides a mecha-
nism for the company’s stockholders,
including its investors, to cash out their
investments. Last, by going public a
firm creates another form of currency
that can be used to grow the company
(Barringer & Ireland, 2006, p. 241).
Venture capital is another potential
source of funding for a company look-
ing to expand. . . .Venture capital can be
tough to get, however. UNC Ventures,
Inc., a Boston-based venture capital firm
that has helped more than 50 businesses
owned by minorities since 1971, receives
about 200 proposals a year. Only 3 or 4 a
year are actually funded. (Graves, 1998,
p. 174)
An important part of obtaining
venture-capital funding is going through
“the due diligence process, which refers
to the process of investigating the merits
of a potential venture and verifying the
key claims made in the business plan”
(Barringer & Ireland, 2006, p. 240).
The due diligence process dispels the
myth that venture capitalists are quick
to invest (Kuratko & Hodgetts, 2004).
Managing Entrepreneurial
Growth
“The set of opportunities a firm feels
it is capable of pursuing is referred to as
the product opportunity set” (Barringer
& Ireland, 2006, p. 315). For example,
about ten years ago, [Earl Graves] decid-
ed to grow [his] publishing business by
creating a black “shelter” magazine along
the line of Better Homes & Gardens
but with more zip. Letters sent to Black
Enterprise subscribers to test the waters
got a very good response. [Earl Graves]
was convinced that [they] had a runaway
train with the concept, which was called
Verve magazine. (Graves, 1998, p. 171)
[Jacob R. Miles, III] used $400,000 in
retirement and severance pay from his
corporate employer to successfully launch
one of the nation’s first black-owned full-
line toy companies, Cultural Exchange
Corporation. Although the Minneapolis-
based company sold more than $650,000
worth of toys in its first year, Miles had
a serious problem. He could not raise
enough capital to finance the company’s
rapid growth. (Graves, pp. 172–173)
This type of growth has a growth rate of
at least 20% per year for 5 consecutive
years (Barringer & Ireland, 2006).
Women and Minority
Entrepreneurship
[T]he reality is that people embarking on
business careers, or merely trying to stay
in the game, are going to have to be high-
ly competitive. That means you will need
a strong background, good education and
a dedication to lifelong learning. You will
also need continuous computer training,
flexibility, networking skills and the abil-
ity to market yourself as a commodity in
a tight market. . . .Your level of education
will be a major determinant of your abil-
ity to compete. (Graves, 1998, p. 63)
Education in business skills is one of
the two most frequently cited areas that
need improvement for minority entre-
preneurs. The second area is access to
start-up capital (Kuratko & Hodgetts,
2004).
“In 1968, the Small Business Admin-
istration launched its redistricted-
competition 8(a) set–asides program to
aid minority businesspeople in pursuit of
government contracts” (Graves, 1998, p.
15). The creation of the Small Business
8(a) program was one of the events that
“further convinced [Earl Graves] that
the time was ripe for a magazine devot-
ed to economic development in the Afri-
can American community” (Graves, p.
16). To be eligible for the 8(a) program,
a small business must be owned and
controlled by a socially and economi-
cally disadvantaged person. Successful
applicants have to meet applicable size
standards for small business concerns,
display reasonable potential for success,
and display good character (Kuratko &
Hodgetts, 2004).
Conclusion
“Today entrepreneurship education
is the fastest-growing course of study
on campuses nationwide” (Gray, 2006,
p. 36). “Virtually, all schools with Amer-
ican Assembly of Collegiate Schools of
Business (AACSB) accredited MBA or
4-year degrees, as well as nearly all
nationally ranked schools, are already
teaching entrepreneurship” (Katz, 2003,
pp. 290–291). “In the midst of this huge
expansion . . . remains the challenge of
teaching entrepreneurship more effec-
tively” (Kuratko, 2006, p. 486). One
method for meeting this challenge is to
expose students “to those entrepreneurs
who have paid the price, faced the chal-
lenges, and endured the failures. We
must take the lessons learned from our
experienced entrepreneurs’ ‘make a dif-
ference’ idea” (Kuratko, 2005, p. 589).
“The life stories that entrepreneurs tell
represent their attempt to make sense
of the events of their past” (McKenzie,
2005, p. 37). Exposure to these life sto-
ries can be achieved through the integra-
tion of biographies or autobiographies
of entrepreneurs into the entrepreneur-
ship course curriculum. This exposure
can be further enhanced by inviting liv-
ing entrepreneurial legends to class to
participate in book club discussions of
their autobiographies.
How to Succeed in Business Without
Being White: Straight Talk For Making
It in America offers one example of
how an autobiography can be used to
provide students with a real-life, three-
dimensional entrepreneurship case
study that illustrates the concepts and
theories discussed in traditional entre-
preneurship textbooks. Instructors can
use this pedagogy with other autobi-
ographies or biographies. Examples
include Why Should White Guys Have
All The Fun? (Lewis & Walker, 1995);
Business at the Speed of Thought: Suc-
ceeding in the Digital Economy (Gates,
1999); Business as Unusual: My Entre-
preneurial Journey, Profits With Prin-
ciples (Roddick, 2005); Prescription for
Success: The Life and Values of Ewing
Marion Kauffman (Morgan, 1995); and
Mary Kay: The Story of America’s Most
Dynamic Businesswoman (Ash, 1994).
NOTES
Dr. Minnette A. Bumpus’ research interests
are entrepreneurship, leadership, and diversity in
the workplace.
Mr. Gerald Burton’s research interests are
entrepreneurship and organizational behavior.
Correspondence concerning this article should
be addressed to Dr. Minnette A. Bumpus, Univer-
sity of the District of Columbia, School of Busi-
ness and Public Administration, 4200 Connecticut
Ave., NW, Washington, DC 20008, USA.
E-mail: minnettebumpus@hotmail.com
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