Entrepreneurship Changing world All sorts of new opportunities

Entrepreneurship • Changing world – All sorts of new opportunities – All businesses are facing uncertainty • Entrepreneurs better able to handle uncertainty • Technology evens the playing field – Access to people and markets is not limited by size of enterprise – Electronically, all companies can look alike – Changing the business of business • Globalization

Big Business • Prior to the 1970’s most people worked for big business – Very loyal – One employer for a lifetime – Diversification • Fall of big business – Foreign competition – Inflation • High interest rates – OPEC – Technical changes – Environmental concerns and other regulation – Deregulation • Downsizing

The Act of Entrepreneurship • Perceiving an opportunity – New product or service – New marketing strategy – New way to deliver the goods or services • Assessing and risking resources to exploit the opportunity • Managing the process of taking an idea from concept to profitable business – Growth oriented • Different from a small business • Creating value – New jobs – Profit for owner and investors

Entrepreneurial Environment • Global competition • Rapidly changing technology • Requirement to bring products to market sooner – Windows of opportunity smaller • Very high standards of quality and customer service – Intense competition • Requirement of alliances – Some very strange bed fellows • Financing sources always in short supply and can be nontraditional

Entrepreneurs • Free enterprise system – Supply and demand – Customer and provider • Risk taker – Take calculated risks • Focus on the opportunity • Desire to make things happen – Are not afraid of failure – Keep going to overcome failure • Failure is one of the steps to success • Independent – Be their own boss – Take responsibility – Do not often delegate • Like to control their own destiny • Deal well with ambiguity and uncharted waters

Myths • Entrepreneurs are born not made – Family experience is helpful but many get the “entrepreneurial bug in middle age after full careers • Entrepreneurs are gamblers – Willingness to risk failure • Money is the motivation – Means to an end – Desire to build something – Desire to make a difference – Control own destiny • The key to success is having enough money – People are more important than money

Business Motivation • Technology driven – New technology – Need to find a use and/or need – Difficult selling job • Brand new concept • People have gotten along without it for a long time • Need to educate • Carefully define the customer appropriate for the product – Usually no competition • Market driven – Define a real need – Speak to the customers • Determine what they really want – Use technology to make what they want – Highly competitive

• Societal Trends Social responsibility – Give back to the community • Environmental issues – Basis of new business – Concerns in all businesses • Globalization • Health – Population is getting older – Soon more than half of the population will be over 50 • Life-long learning – Flexibility in career and business choices • Availability of information – Huge amounts – Need to make if meaningful – Take advantage of it • More woman and minority-owned business – Some special programs available