Entrepreneurship
Entrepreneurship
Entrepreneurship
What is an entrepreneur?
Characteristics of an entrepreneur
Planning to be an entrepreneur
Growth pressures, managing a family business, and
corporate intrapreneurship
What is Entrepreneurship?
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What is Entrepreneurship?
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Entrepreneurship Defined
Entrepreneurship is the process by which individuals pursue
opportunities without regard to the resources they currently
control.
The essence of entrepreneurial behavior is identifying
opportunities and putting useful ideas into practice.
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Why Become an Entrepreneur?
There are three primary reasons that people
become entrepreneurs and start their own firms
Financial rewards
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Economic Impact of Entrepreneurial Firms
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Innovation
Is the process of creating something new, which is central to
the entrepreneurial process.
Small entrepreneurial firms are responsible for 55% of all
innovations in the U.S.
Job Creation
In the past two decades, economic activity has moved in the
direction of smaller entrepreneurial firms, which may be due
to their unique ability to innovate and focus on specialized
tasks.
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Economic Impact of Entrepreneurial Firms
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Entrepreneurial Firms’ Impact on Society
and Larger Firms
Impact on Society
The innovations of entrepreneurial firms have a dramatic
impact on society.
Think of all the new products and services that make our
lives easier, enhance our productivity at work, improve our
health, and entertain us in new ways.
Impact on Larger Firms
Many entrepreneurial firms have built their entire business
models around producing products and services that help
larger firms become more efficient and effective.
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Entrepreneurs V. Intrapreneurs
Entrepreneurs are people that notice opportunities
and take the initiative to mobilize resources to
make new goods and services.
Intrapreneurs also notice opportunities and take
initiative to mobilize resources, however they work
in large companies and contribute to the
innovation of the firm.
Employee Satisfaction
50 44
Satisfaction Percentage
40 less than
31 50
28
30
50-999
20
1000+
10
0
less than 50 50-999 1000+
Number of Employees
Advantages of a Small Business
Greater Opportunity
to get rich through
stock options
Feel more important
Feel more secure
Comfort Level
Disadvantages of a Small Business
Lower guaranteed pay
Fewer benefits
Expected to have many skills
Too much cohesion
Hard to move to a big company
Large fluctuations in income possible
Who are entrepreneurs?
Strategic orientation
Commitment to opportunity
Commitment to resources
Control of resources
Management structure
Compensation policy
Entrepreneurship: Growth Pressures
Business Entrepreneurial Formal
Dimension Organization Organization
Strategic orientation Seeks opportunity Controls resources
12% of CEOs on the Inc. 500 list describe their company as a family
business.
Families fight
Friends fight.
Often, it involves money. So a business environment could potentially
breed arguments, disagreements, and feuds.
Fighting can occur during early developmental stages when hours are
long and pay is low. Or, after success has been achieved.
Entrepreneurship: Managing a Family Business
Six steps to help lead you to a successful Family Business: