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L'entrepreneur aujourd'hui:

évolution, défis et opportunités


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Session 1
The Mind of the
Entrepreneur
October 24, 2009

R a n d y M . A ta id e
Pro fe sso r o f E n tre p re n e u rsh ip
R a n d yA ta id e @ p o in tlo m a . e d u
Cohérence partenaires pour le développement
The Mind of the Entrepreneur
Overview
1. Historical Development and Definitions
2. Contemporary Definitions
3. Entrepreneurial Insight
4. Practical Applications
5. Conclusion
6.
7.
The Mind of the Entrepreneur

Historical Development
The word "entrepreneur" (f. entrepreneuse)
is a loanword from French. In French the
verb "entreprendre" means "to undertake,"
with "entre" coming from the Latin word
meaning "between," and "prendre" meaning
"to take.“
It is believed that the economist
Richard Cantillon (1680-1734) was the
first to use the term entrepreneur to
apply to economic theory.
The Mind of the Entrepreneur

Historical Development
Cantillon's entire reputation rests on
his one remarkable treatise, Essai Sur la
Nature du Commerce en Général, which was
written in French around 1730 and
published anonymously in England in 1755.
Although Cantillon fell into
obscurity, Adam Smith later quoted from
Cantillon in his Wealth of Nations.
The Mind of the Entrepreneur
Historical Definitions
Say: One who shifts resources out of an
area of low yield & productivity to a
higher one.

Cantillon: One who bears risks by buying


at certain prices and selling at
uncertain prices.

Schumpeter: Converting a new idea or


invention into a successful innovation.
The Mind of the Entrepreneur
Contemporary Definitions
Drucker: Creation of a new
organization regardless of its
ability to sustain itself.

University of Texas: “Think first,


interact, and do later.”

Kuratko & Hodges: A dynamic and


passionate process of vision,
change and creation
The Mind of the Entrepreneur
Contemporary Definitions

2008 Kauffman Report :


“Entrepreneurship is a process of
fundamental transformation: from
innovative idea to enterprise and from
enterprise to value. Thus,
entrepreneurship is more than a business
practice. As a distinct mode of thought
and action, it derives from business
but can operate in any realm of
human endeavor .”
The Mind of the Entrepreneur
Contemporary Definitions
The definitions demonstrate that
the fundamental understandings of
entrepreneurship continue to evolve
just as the applications and practices
are evolving. It involves not only
economics but relationships; thought
and action; individual and enterprise
activities. It is beyond boundaries .
The Mind of the Entrepreneur
Entrepreneurial Insight

Authors Rita Gunther-McGrath and


Ian McMillin recently released a book
on the Mindset of the Entrepreneur
where they define “habitual
entrepreneurs” as those who have spent
their careers starting new businesses
and bringing new products to market.”
The Mind of the Entrepreneur
Entrepreneurial Insight

They continue: “The guiding


philosophy is to take charge. If no-one
knows what the future may hold, your
vision of how to navigate is as good as
anyone’s. The future may as well
belong to you .”
The Mind of the Entrepreneur
Entrepreneurial Insight

McGrath and McMillin state that


there is an essential element behind
entrepreneurial performance, and they
call it “entrepreneurial insight.” What
is this?
The Mind of the Entrepreneur
Contemporary Definitions

Entrepreneurial insight is “seeing


something about a market or industry
that others miss or fail to understand.”
It is this “seeing something that
others don’t” that really affirms my own
entrepreneurial instincts, drive and
experience.
The Mind of the Entrepreneur
Practical Application # 1

Curiosity + observation leads to


innovation.
The Mind of the Entrepreneur
Practical Application # 2

Good ideas come from any


source.
The Mind of the Entrepreneur
Practical Application # 3

Sleep on
it!
The Mind of the Entrepreneur
Practical Application # 4

Setbacks are to be
expected.
The Mind of the Entrepreneur
Practical Application # 5

Hang around smart


people.
The Mind of the Entrepreneur
Practical Application # 6

Sweat the small


stuff.
The Mind of the Entrepreneur
Conclusion

Aspiring entrepreneurs are well


served by not only observing the
past but also understanding the
present. This sets the stage for
our next section, the challenges of
being an entrepreneur and how the
entrepreneur can overcome these
challenges.