Lecture 29 education lecture purpose.pdf
- 1. Lecture Video Link: https://www.youtube.com/watch?v=CdfHgoo2614&list=PLVEVLI2v6thWm7Ln 3x_vpDAQy5HoHmERO&index=26 Entrepreneurship and Entrepreneur
- 2. Agenda • What is “entrepreneurship”? • Why be an entrepreneur? Why not? • Why should you be interested in this concept?
- 3. What is Entrepreneurship? • Entrepreneurship is the willingness to take risks and develop, organize and manage a business venture in a competitive global marketplace that is constantly evolving. Entrepreneurs are pioneers, innovators, leaders and inventors.
- 4. Some Modern Definitions • Scott Shane (Case Western) – “Entrepreneurship is an activity that involves the discovery, evaluation and development of opportunities to introduce new goods and services, ways of organizing, markets, processes, and new materials through organizing efforts that previously had not existed.” • Howard Stevenson (Harvard) – “.. The search of opportunity without regard to resources currently controlled.” • W. Gibb Dyer, Jr. (BYU) – “The founding of new businesses is the essence of entrepreneurial activity.”
- 5. Synthesis of “Entrepreneurship” • In general, even entrepreneurship researchers can’t agree on what the “best” definition of entrepreneurship is • Two main points – Discovery, evaluation, and development of opportunities – Starting new businesses
- 6. Synthesis of “Entrepreneurship” • Previous economists do a nice job defining entrepreneurship – Concerned with decisions surrounding new profit opportunities – Concerned with assembling resources – All in the center of uncertainty • But they don’t address who is likely to be an entrepreneur, or even more important, a successful entrepreneur
- 7. The Economic View of the Entrepreneurial Decision Expected Performance Performance Threshold ≥ access to resources ability to organize resources knowledge other job opportunities specialized skills entrepreneurship orientation
- 8. Entrepreneurship is a Multi-step Process Recognize Opportunities Evaluate Exploit
- 9. Why should you be interested? • Many young people have succeeded: – Michael Dell - Dell Computers – Frank Carney - Pizza Hut – Paul Orfalea - Kinko’s – Fred DeLuca - Subway. – Kristy Taylor - SkinCareRx.com • Opportunity to collect large profits
- 10. Why should you be interested ?(cont.) • Invulnerability of Youth – Confident, flexible, and ignorant – Minimum exposure to failure • Limited Responsibility – Marriage, children, car, home, etc. suggest higher opportunity costs if failure • Physical and Emotional Strength – Better ability to burn the candle at both ends
- 11. Why should you be interested? (cont.) • Available Resources – Many are waiting for you to ask for help. – Take advantage of your “harmless” appearance • Opportunity to control own destiny • Opportunity to reach your full potential • Opportunity to make a difference
- 12. Why should you be interested? (cont.) • Number of young entrepreneurs is increasing – Jobless managers and execs <40 starting their own businesses surged to 36%. – <25s are 7% of all business start-ups in England. • 44% of young entrepreneurs are women, compared to 33% of all entrepreneurs • Young entrepreneurs are better prepared – 43% prepare a business plan, compared to 39% of all entrepreneurs
- 13. Sources: National Federation of Independent Business and Wells Fargo Bank 11% 33% 32% 16% 6% 2% 0% 5% 10% 15% 20% 25% 30% 35% Percent of Owners Under 25 25-34 35-44 45-54 55-64 65 or over Age Owner Ages at Business Formation
- 14. Why NOT to be an Entrepreneur • Uncertainty of income • Risk of losing entire invested capital • Lower quality of life until business gets established • High levels of stress • Complete responsibility
- 15. • Understanding the roots of entrepreneurship. • Understanding the entrepreneurial process. • Understanding that entrepreneurial opportunities exist for a number of reasons. • Understanding many of the benefits to being an entrepreneur, and that the benefits come with risks. • Understanding that this class is designed to help protect against those risks. Today’s Learning Objectives