Intended Learning Outcomes By the end of this module, you should be able to:
1. Examine the historical development of entrepreneurship.
2. Explore and debunk the myths of entrepreneurship, and process approaches to entrepreneurship. 3. Define and explore the major schools of entrepreneurial thought. INTRODUCTION ENTREPRENEURSHIP
from the French word
“entreprendre,” meaning “to undertake.” ENTREPRENEUR - an innovator or developer who 2 1 CONVERTS those RECOGNIZES and opportunities into SEIZES opportunities workable or marketable ideas 3 ADDS value through 4 time, effort, money, ASSUMES the risks or skills of the competitive 5 marketplace to REALIZES the rewards implement these ideas from these efforts CHARACTERISTICS OF ENTREPRENEURS Personal initiative The ability to consolidate resources Management skills A desire for autonomy Risk-taking Aggressiveness Competitiveness Goal-oriented behavior Confidence Opportunistic behavior Intuitiveness Reality-based action The ability to learn from mistakes The ability to employ human relations skills HISTORICAL DEVELOPMENTS IN ENTREPRENEURSHIP
No single definition of Recognition of Until 1950, the Over the decade,
an entrepreneur exists entrepreneurs dates majority of definitions writers have continued back to eighteenth- and references came to modify the century France from economists definition
Robert C. Ronstadt said, In the twentieth century, Entrepreneurs serve as In the twenty-first century, “Entrepreneurship is the the word entrepreneur agents for change, entrepreneurs are considered dynamic process of became closely linked provide creative, heroes of free enterprise. creating incremental with free enterprise and innovative ideas for Many people now regard wealth.” capitalism business enterprises and entrepreneurship as help businesses grow “pioneership” on the frontier of and become profitable business. RISKS OF BEING AN ENTREPRENEUR
Potential Unexpected Financial Long Hours and
Business Failure Obstacles Insecurity Hard Work REWARDS OF BEING AN ENTREPRENEUR
Making Your Doing Work You Creating Greater Helping Your
Own Rules Enjoy Wealth Community THE ENTREPRENEURIAL MINDSET An entrepreneurial mindset is a set of skills that enable people to:
identify and make the most of opportunities
overcome and learn from setbacks and; succeed in a variety of settings
An entrepreneurial mindset can be developed and
enhanced through entrepreneurial experiences. THE ENTREPRENEURIAL MINDSET
Reducing the costs of a business Improving the quality of products and ENTREPRENEURS services CREATE VALUE TO SOCIETY
Increasing the number of customers served by a product/service Inventing a new product or service ENTREPRENEURS AS RISK-TAKERS Successful entrepreneurs are not afraid of failure.
They acknowledge failure but prepare for it.
However, if they fail they can quickly learn from their
mistakes and try again.
Jeff Bezos quit his well-paying job in order to found
Amazon.com without any guarantees of success. ENTREPRENEURS AS VISIONARIES A visionary entrepreneur has the ability to influence others that their vision is possible and desirable.
Visionary entrepreneurs have the unique ability to make
others believe in the vision as much as they do themselves, convincing others that the better future described is one they want to live in. ENTREPRENEURS AS LEADERS Entrepreneurship is the ONLY source of new wealth and new productive jobs in society. It only takes a small part of the population, 1-2%, to become successful entrepreneurs in order to pull the whole society along. Throughout history, countries that have nurtured entrepreneurial culture have been the most successful and dynamic. Entrepreneurs are at the heart of success of modern economies. ENTREPRENEURS AS LEADERS The ability to influence has three elements.
1. AWARENESS - understanding that every action has an
impact 2. ABILITY - in terms of communication, conflict resolution, and decision-making 3. COMMITMENT TO YOUR IDEAS - making decisions that may not always please everyone and dealing with the consequences Module 1: Entrepreneurship: Evolutionary Development -Revolutionary Impact
MYTHS OF ENTREPRENEURSHIP & APPROACHES TO ENTREPRENEURSHIP
GEE 003 - General Education Elective 3
AVOIDING FOLKLORE: THE MYTHS OF ENTREPRENEURSHIP MYTH #1 Entrepreneurs are DOERS, not THINKERS MYTH #2 Entrepreneurs are BORN, not MADE MYTH #3 Entrepreneurs are ALWAYS INVENTORS MYTH #4 Entrepreneurs are ANTI-ACADEMIC & SOCIAL MISFITS MYTH #5 Entrepreneurs must FIT THE PROFILE MYTH #6 All Entrepreneurs need is MONEY MYTH #7 All Entrepreneurs need is LUCK. MYTH #8 Entrepreneurship is UNSTRUCTURED AND CHAOTIC MYTH #9 Most entrepreneurial initiatives FAIL. MYTH #10 Entrepreneurs are EXTREME RISK TAKERS. APPROACHES TO ENTREPRENEURSHIP PROCESS APPROACHES TO ENTREPRENEURSHIP
1. AN INTEGRATIVE APPROACH
Includes: Built around the concepts of inputs
to the entrepreneurial process and Inputs outcomes from the entrepreneurial Outputs process. PROCESS APPROACHES TO ENTREPRENEURSHIP INPUTS OUTPUTS Environmental Opportunities Ventures The Individual Entrepreneur Value Creation The Business Concept New products The Organizational Context New Processes Financial and Nonfinancial Resources New Technologies Profit Jobs Economic Growth. PROCESS APPROACHES TO ENTREPRENEURSHIP
2. DYNAMIC STATE APPROACH
The network of relationships (the dynamic state) converts opportunity tension into value, generating new resources that maintain the dynamic state. PROCESS APPROACHES TO ENTREPRENEURSHIP
3. A FRAMEWORK APPROACH Theories or frameworks based on combinations offer a more dynamic view of the phenomenon of entrepreneurship. Similar to the “multiple lens” approach that characterizes general management, the theories based on combinations can delve into some of the particular aspects of entrepreneurship with greater granularity. SCHOOLS-OF-THOUGHT TO ENTREPRENEURSHIP
The MACRO View The MICRO View
+ - Three (3) schools of entrepreneurial thought take the MACRO VIEW
1. The Environmental School of Thought
2. The Financial/Capital School of Thought 3. The Displacement School of Thought
+ Three (3) schools of entrepreneurial thought take the MICRO VIEW
1. The Entrepreneurial Trait School of Thought
2. The Venture Opportunity School of Thought 3. The Strategic Formulation School of Thought
