Chapter 1 Understanding Entrepreneurship Copyright Houghton Mifflin Company

Chapter 1 Understanding Entrepreneurship Copyright © Houghton Mifflin Company

Overview • The new environment for entrepreneurship • The nature of entrepreneurs • The nature of start-ups • History of entrepreneurship • The research Copyright © Houghton Mifflin Company 2

The New Environment • First mover with scalable concept is not essential to success with most ventures • Knowledge is not a scarce resource in economic terms • Temporary monopolies are essential to innovation • Demand is for quality, speed, and lowest price Copyright © Houghton Mifflin Company 3

The Nature of Entrepreneurs • Risk-taking • Need for achievement • Sense of independence • Internal locus of control • Tolerance for ambiguity Copyright © Houghton Mifflin Company 4

Entrepreneurial Behavior • Committing resources to an opportunity • Establishing procedures for the use of resources • Identifying, assembling, and configuring resources • Interacting with people • Coordinating and establishing routines Copyright © Houghton Mifflin Company 5

Types of Entrepreneurs • The home-based entrepreneur • The cyber entrepreneur • The serial entrepreneur • The traditional entrepreneur • The corporate venturer Copyright © Houghton Mifflin Company 6

The Nature of Start-ups Copyright © Houghton Mifflin Company 7

Environmental Variables Copyright © Houghton Mifflin Company 8

Entrepreneurial Ventures versus Small Businesses • Entrepreneurial ventures – Innovative – Value-creating – Growth-oriented • Small businesses – Generate an income for the owner – Relatively small – Geographically bound Copyright © Houghton Mifflin Company 9

History of Entrepreneurship Copyright © Houghton Mifflin Company 10

Entrepreneurial Research • How entrepreneurs exploit opportunity and create wealth • How entrepreneurs disrupt the economic equilibrium • How entrepreneurs use experience to recognize opportunity • How entrepreneurs use social networks Copyright © Houghton Mifflin Company 11

Take-Aways • List what your students took away from the discussion here in real time Copyright © Houghton Mifflin Company 12