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The Foundations of Entrepreneurship

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Section 1: The Challenge of Entrepreneurship

The Foundations
of Entrepreneurship

Copyright © 2016 Pearson Education, Inc. 1-1


 Define the role of the entrepreneur in
business in the United States and around the
world.
 Describe the entrepreneurial profile.
 Describe the benefits of entrepreneurship.
 Describe the drawbacks of entrepreneurship.
 Explain the forces that are driving the growth
of entrepreneurship.

Copyright © 2016 Pearson Education, Inc. 1-2


(continued)

 Explain the cultural diversity of


entrepreneurship.
 Describe the important role that small
businesses play in our nation’s economy.
 Put failure into the proper perspective.
 Explain how an entrepreneur can avoid
becoming another failure statistic.

Copyright © 2016 Pearson Education, Inc. 1-3


Entrepreneurship
The process of designing, launching and running a
new business, which typically begins as a small
business, such as a startup company, offering a product,
process or service for sale or hire

Creativity:
Something new and somehow valuable is formed.
The created item may be intangible such as an
idea, a scientific theory, ….

Copyright © 2016 Pearson Education, Inc. 1-4


Every month U.S. entrepreneurs launch
514,000 new businesses (One reason the U.S.
economy has been so successful over time ).
Entrepreneurial spirit - the most significant
economic development in recent history.
GEM study: 12.7% (one in eight people) of adult
population in the United States is actively
involved in trying to start a new business.

Copyright © 2016 Pearson Education, Inc. 1-5


Copyright © 2016 Pearson Education, Inc. 1-6
The Total Entrepreneurial Activity Index (TEA index) is the
sum of the number of persons starting a business (starting
entrepreneurs) and the number of owners of businesses that
were established less than 3.5 years before the reference date
(young entrepreneurs), as a percentage of the labor force.

The TEA is an index for the degree of new entrepreneurship


by country and is calculated as the percentage of people who
undertake such activities in comparison to the labor force
(population aged 18-64 years)

Copyright © 2016 Pearson Education, Inc. 1-7

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