5. Entrepreneur
Joseph Schumpeter - an innovator playing
the role of a dynamic businessman adding
material growth to economic development
Timmons - Entrepreneurship is the process
of creating or seizing an opportunity and
pursuing it regardless of the resources
currently controlled
6. Reasons for Growth of
Entrepreneurship
• Industry Structure
• New technologies
• Deregulation and privatization
• Formation of new business communities
• Increasing demand for variety
• Government incentives and subsidies
• Increasing flow of information
7. • Easier access to resources
• Entrepreneurial education
• Return on innovation
• Entrepreneur as a Hero
• Self-employment is highly valued
• Rising dissatisfaction at job
• Acceptance of ex-entrepreneurs in the job
market
8. Impact of Entrepreneurial Firms
• Job Creation
• Economic growth
• New Technology
• Serving small markets
9. Why Start a Business?
• Control
• The idea
• Flexibility
• Money
10. Pros & Cons
• You are the boss • You are alone
• All profits are yours • All decisions are yours
• There will be great variety • All losses are yours
in roles and tasks • Work may not be
• Increases self confidence satisfying
• Work can be very • You will need to put in
satisfying long hours
• Success will give you • Lack of success will effect
immense satisfaction self esteem
• Exiting the business is
difficult
• Pressures will affect
social and family life
11. Entrepreneurial Characteristics
Timmons:
1. commitment and determination;
2. leadership;
3. opportunity obsession;
4. tolerance of risk, ambiguity and uncertainty;
5. creativity, self-reliance and ability to adapt; and
6. motivation to excel
12. Bianchi
1. being an offspring of self-employed parents;
2. being fired from more than one job;
3. being an immigrant or a child of immigrants;
4. previous employment in a firm with more than
100 people;
5. being the oldest child in the family
6. being a college graduate
13. Entrepreneurial Skills
• Creativity and Opportunity Evaluation
• Real-time Strategy and Decision Making
• Comfort with Change and Chaos
• Teamwork
• Evangelism, Selling, Negotiation, and Motivation
through Influence and Persuasion
• Oral and Written Communication
• Basics of Start-Up Finance, Accounting and Law
14. Entrepreneurial Attitudes
• Comfortable with lifestyle changes
• Willingness to break / bend / stretch laws
• Patience to start small
• Prepared to make enemies
• Comfort with confrontations
• Dealing with failure
• Willingness to learn
15. Types of Entrepreneurs
1. Early starters
2. Experienced
3. Mature
1. 1st generation entrepreneurs
2. From Business families
3. Minority entrepreneurs
4. Women Entrepreneurs
17. Reasons for Entrepreneurial
Failure
• Lack of experienced management
• Few trained or experienced manpower
• Poor financial management
• Rapid growth
• Lack of business linkages
• Weak marketing efforts
• Lack of information
• Incorrect pricing
• Improper inventory control
• Short term outlook
18. Startup Genome Report
1. Founders that learn are more successful
2. Startups that pivot (once or twice) raise
more money
3. Investors who provide hands on help
have little effect
4. Solo founders take longer to scale
5. Balanced teams are good (business/tech)
6. Successful founders are driven by impact
19. Startup Genome Report
7. Founders overestimate value of IP
8. Startups need 2-3 times longer than
expected to validate market
9. Startups overestimate market size
10.Premature scaling is the most common
reason for failure
21. Idea checklist
• Why innovative ideas?
• Technical feasibility
1. What is the product/service?
2. Who is your market?
3. How will you communicate with the
market?
4. How will you make money?
5. How will you defend? Why you?
