What is Entrepreneurship?

1
What is Entrepreneurship?

• Mark T. Schenkel, Ph.D.

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Agenda

• What is Entrepreneurship?
• Historical development
• Definition
• Myths
• Process
• Career Paths

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The Entrepreneurial Revolution

• We are in the midst of a silent revolution
  a triumph of the creative and entrepreneurial
  spirit of humankind throughout the world.
• I believe its impact on the 21st century will
  equal or exceed that of the Industrial Revolution
  on the 19th and 20th.
• The death knell for brontosaurus capitalism
  of yesteryear.
• -- Jeffry A. Timmons (The Entrepreneurial Mind,
  1989)

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Development of Entrepreneurship

• Earliest Period- Marco Polo
• Middle Ages- Theater, Architectural Works
• 17th Century- Mississippi Company
• 18th Century- Edison Whitney
• 19th 20th Centuries
• Organize/Operate
• Innovation

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The Opportunity

• Statistics
• A random national sample (Gallup poll survey,
  1994) of high school students reveals that 70 of
  these students say they want to own their own
  business some day (Timmons, 2004 7)
• Annual Chronicle survey 40 of incoming
  students have entrepreneurship as major goal for
  why they are going to college
• Fortune 500 employment decline 1970 (20) 1996
  (8.5)
• Small firms constitute more than 90 percent of
  the entire business population
• Virtually of USAs economic growth is coming from
  entrepreneurial ventures of all sizes and types
• Not yet tainted by corporate way of life
• Good time to take risk!!!

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Entrepreneurship

• A process, not a type of person
• Creating and/or building something of value
• Identifying an opportunity
• Pulling together the needed resources to pursue
  the opportunity
• Developing and implementing a Business Plan
• Involves uncertainty and the acceptance of risk

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The Nature of Entrepreneurial Risk

• Failure
• Sinking the Boat Risk
• Opportunity Cost
• Missing the Boat Risk

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Myths aboutEntrepreneurship

• The Lone Cowboy Myth.
• The Experience Myth.
• The Im Only in it for the Money Myth.
• The Entrepreneurs are Gamblers Myth.

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Myths aboutEntrepreneurship

• The Entrepreneurs Dont Have to Worry about
  Numbers Myth.
• The All You Need is Money Myth.
• The Ive Got a Secret Myth.
• The IPO Myth.

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Other Opportunities for Learning

• Curb event center retail space
• Hatchery
• Practicing entrepreneurs activities
• Entrepreneurship club
• Internships
• Mentors
• Networking!!!

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The Entrepreneurial Process
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Working Definition of Entrepreneurship

• Entrepreneurship is a way of thinking, reasoning
  and acting that is opportunity obsessed, holistic
  in approach emphasis added, and leadership
  balanced (Timmons, 1999 27).

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The Entrepreneurial Process (Timmons, 2000)
Communication
Opportunity
Resources
Business Plan Fits and Gaps
Ambiguity
Exogenous Forces
Creativity
Leadership
Team
Uncertainty
Capital Market Forces
Founder
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The Entrepreneurial Process
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The Entrepreneurial Process
Three Part Process
Planning

• Strategy

Luck
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Courage Risk and the Dimensions of Work  
 
Life Cycle of a Business Venture
       
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Pre-Launch Process Idea Generation

• Understanding the Genesis of New Businesses in
  the Economy
• Sources of Ideas Where to Look

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The Entrepreneurial Process

• Challenge Traditional Definitions of Value
• Entrepreneurship thrives on market inefficiencies
• Customers seek improvement in the following
• Speed
• Convenience
• Personalization
• Price

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Pre-Launch Process Evaluating Ideas Generation

• Does the Idea an Opportunity?
• Market
• Margin
• Mission
• The Right Team?
• The Necessary Resources?

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The Start-up Process

• Filling the Gaps
• The Business Plan
• Executive Summary
• Market Analysis and Marketing Plan
• Operating Plan and Team
• Financial Plan

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Growing the Business

• CASH FLOW MANAGEMENT
• Building a Culture
• Marketing
• Staffing
• Building Management Administrative Systems

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• Exit or Succession

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Entrepreneurial Careers

• Do it now!
• Not necessarily a one shot deal
• Sentry Position (in consulting firm or in
  industry)
• Family or existing Small Business
• Corporate Track

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Key Takeaway Points . . .

• No fully satisfactory definition of
  entrepreneurship has been developed to date
  (i.e., one that garners collective agreement
  among scholars practitioners alike).
• Entrepreneurship reflects creative, innovative,
  and arbitrage oriented behaviors.
• Is a process involves planning, strategizing,
  and a little bit of luck.
• Interconnectedness of resources and opportunities

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Key Takeaway Points . . .

• Entrepreneurship can occur and fail to occur
  in firms that are old and new small and large,
  fast and slow growing in the private,
  not-for-profit, and public sectors in all
  geographic points and in all stages of a
  nations development.