3-1

Chapter 3

The Individual
Entrepreneur

3-2
 Entrepreneurial Feelings
Locus Of Control

Needs
 Independence
 Achievement

Risk Taking
3-3

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

 Background/Characteristics

Childhood/Family
Education
Personal Values
Age
Work History
3-4
 Motivation/Support Systems

Motivation
Role Models
Support Networks
Moral
Professional

3-5
Entrepreneur & Diversity
Male vs. Female
Characteristics Comparison
Minority
Low Participation- African
American
High Participation- Asians
Growing Participation- Hispanics
3-6
 Male
Entrepreneur Characteristics
Make Things Happen, Role In Corp. Not
Motivation Important, Desire To Be In Control
Dissatisfied With Present Job, Sidelines,
Departure Point Discharged/Laid-Off, Acquisition Opportunity
Personal Assets/Savings, Bank, Investors,
Fund Sources Family/Friends Loans
Occupational Experience, Recognized Specialist,
Background Competent In Business Functions
Opinionated/Persuasive, Goal-Oriented,
Personality Innovative/Idealistic, Self-Confident, Energetic
Age = 25-35, Father Self-Employed, College-
Background Educated, Firstborn Child
Friends, Professional Acquaintances
Support Groups (Lawyers, Accountants), Associates, Spouse

Business Started Manufacturing/Construction 3-7

 Female
Entrepreneur Characteristics
Motivation Accomplishment Of Goal, Do It Alone
Job Frustration, Recognition Of Opportunity,
Departure Point Change In Personal Circumstance

Fund Sources Personal Assets/Savings, Personal Loans

Occupational Experience, Mid-Management/Administrative

Background Experience, Service Occupation
Flexible/Tolerant, Goal-Oriented, Creative &
Personality Realistic, Self-Confident, Energetic, Social
Age = 35-45, Father Self-Employed, College
Background Educated (Liberal Arts), Firstborn Child
Friends, Spouse, Family, Women’s Prof.
Support Groups Groups, Trade Associations

Business Started Service-Related 3-8

 U.S. Minority
Business Ownership
6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%
Hispanic Asian African American
American American American Indian

3-9
 Growth of
Minority Ownership
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
1982 1987 1992 1997 2002

3-10
Entrepreneur Vs. Inventor

Inventor Creates Something

For The First Time.

Entrepreneur Falls In Love

With New Venture.

3-11
Difficult Personality Types
Quickly Identifies New/Promising Opps. But
Shotgun Sam Rarely Follows Through
Thinks Everything Is A Lot Simpler Than Is,
Simplicity Sue Feels Can Create Business Easily
So In Love With Own Idea Feels Everyone Out to
Prima Donna Paul Steal It And Take Advantage Of Him
Well-Grounded In Theory But Lack Real-World
Ralph The Rookie Business Experience
Used To Having Things Under Control, Can’t
Meticulous Mary Handle Catastrophe, Ambiguity
Not Comfortable Actually Transforming Invention
Underdog Ed Into Tangible Business Success
Hidden Agenda Does Not Have Right Motives/Objectives For
Harry Developing Expediting New Enterprise
More Inventor Than Entrepreneur. More
Inventor Irving Concerned With Invention Itself. 3-12