Entrepreneur is someone who creates new business in the face of risk/ uncertainty to achieve profit/ growth by identifying opportunity/ assemble resources to capitalize on them
Characteristics: desire for responsibility, high level of energy, risk eliminators, future orientation self reliance, organized, value achievement over money, determination, confidence to succeed, desire for feedback
Operational Entrepreneurship- people start a business when they see a market opportunity
Necessity Entrepreneurship- people start a business when they can’t find work
Serial Entrepreneurship- repeatedly start a business/ grow into a sustainable size before striking out again
leap froggers- manage until bored then sell the business
Jugglers (parallel entrepreneurs) manage several companies at once
Bootstrapping- strategy that involves conserving money/ cutting costs during start up so entrepreneurs can put into their business (no limitation in ECN expression)
Exhibits: high degree of commitment, tolerance for ambiguity, creativity, flexibility, resourcefulness, tenacity, willingness to work hard, vision, passion, drive, integrity, innovation, risk taking, resilience, proactive approach, customer focus, teamwork
Diversity: everyone can become an entrepreneur but not everyone should
Entrepreneur Business Facts
⅛ adults engaged in launching a business (Us launches 476K monthly)
Businesses have introduced innovative products/ pushed back tech frontiers/ created new jobs/ open foreign markets-
Small businesses is the core of our economy’s growth
Flurry of “pink slips” has spawned new entrepreneurs/ “cast offs” by larger corporations
While giants are studying consequences, entrepreneurs are changing the world
Thrilling and dangerous but also rewarding financially and emotionally
They are more than business creators/ They are “Change Agents in Society”
Creative Destruction- building new business to make older ones obsolete
Fleet footed/ agile/ small companies have competitive advantage/ create security & success
Dart in/ out of niche markets as they emerge and recede
Move faster to exploit opportunity/ use modern tech
Makes economy more flexible/ adaptable to structural changes
Benefits of Entrepreneurship
Opportunity to create your own destiny- independence/ personal achievement
Opportunity to make a difference- Social Entrepreneurs use skills to create profitable business to achieve economic/ social/ environmental goals
Opportunity to reach full potential- entrepreneure's business become instruments of self expression/ actualization
Entrepreneurs create environments/ maximize value of education/ skills become instruments of self expression/ actualization. Entrepreneurs seek higher wages and build own business
Opportunity to contribute to society- significant impact on nation’s economy/ gives a higher price quality
Opportunity to do what you enjoy- have interest in the field/ journey rather than destination is the reward/ passion gets through hard times
Drawbacks of Entrepreneurship
Soft economy/ difficult keeping pace with tech/ more competition
Uncertainty of income- owner is always paid last
Risk of losing investment- can you cope with the consequences?
Long hours and hard work- demanding average 51 Hours weekly rather than 40
Lower quality of life until established- take toll on personal life/ requires sacrifice
High levels of stress- left behind safety and security of steady pay/ benefits
Complete responsibility- make uncertain decisions may make or break company
Discouragement- requires dedication, discipline, tenacity, knowing obstacles
Behind what’s feeding Entrepreneurs Fire
Entrepreneurs as heroes- held accomplishments as models to follow
Entrepreneur education- influence students to start up businesses right out of college/ More promising than the downsizing industry
Demographics/ Econimic Factors- 75% start at 20-44/ 103 million Americans/ created more opportunities
Demographics/ Economic Factors- start up costs/ popular service business for entrepreneurs
Technical advancements- powerful computer/ smartphones/ communication equipment are low reduced cost of business/ made testing idea much easier in market
Independent Lifestyle- self sustaining freedom to choose residence/ hours/ tasks
Cloud computing- subscription allows business. To use apps of database management/ inventory control/ customer relationship management/ accounting
Reduced business start-up/ fast growing companies can use this over office spaces
International opportunities- shift to global economy (80% purchase power lie outside US)
Micro Multinationals- small companies that operate globally from inception
Cultural Diversity of Entrepreneurs
Young- embrace as career choice (use skills/ abilities)
Women- discriminated but determined (30% owns) smaller/ less likely for capital
Minority- Most likely to be entrepreneurs (Hispanics 8.5% -Blacks 7% - Asian 5.9%)
Immigrant- arrive with more education/ experience to develop business (make 29% less)
Founded 24.3% of high technical companies/ started 41% of fortune 500 companies
Part time- ease into own business without sacrificing security/ testing market ideas
Home based bus (52%) low start up costs. Flexible lifestyles/ electronic cottages
Family Bus. (2 members with financial control) 90% transfer to next generation and 30% of businesses survive- Bitter feuds cripple bus/ need to build positive relationships
Copreneurs- entrepreneur couples work together/ create division of labor on experience
Corporate cast offs- downsizing leads to purchase franchises with management system
Corp. dropouts- created trust gap for others to leave
Retiring baby boomer- (55-64) exceed (20-34) range with more experience/ wisdom
Power of small business- employs fewer than 100 people
Majority business in service/ construction/ retail- create more jobs than big business
Gazelles- small company growing at 20+percent a year with $100k in sales (70% jobs)
Mice- small companies that never grow much/ Elephants- shed jobs for years
Small business is 3rd largest economy after US/ china. Create 16x more patents
US as entrepreneurs economy system built on nimble/ low overhead with fluid workforce
Putting failure into perspective
Limited resources/ inexperienced management/ lack of financial stability/ suffer high mortality rates/ new companies replace old with new ideas/ approaches/ products
Failure is inevitable and part of the creative process
Ability to fail intellectually (learn). Failure is temporary/ quitting is permanent
Avoid Pitfalls
Know your business in depth- best education/ experience. Contact with suppliers/ associates/ consumers
Build/ test business model with customers to verify success
Develop solid business plan- provide pathway to success/ measures performance
Replace assumptions with facts before marketing decisions
Understand financial statements- know condition of business tax purposes
Manage Financial resources- develop practical informational system/ make decisions
Manage people effectively- motivated people are dominant sustainable resource
Set business apart from competition - customer service/ convenience/ speed/ quality
Maintain positive attitude- passion enables you to try again/ doubt in obstacles
댓글