What is Entrepreneurship?

1. What is Entrepreneurship? Mark T. Schenkel, Ph.D.

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

3. 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)

4. 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

5. 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 USA’s 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!!!

6. 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

7. The Nature of Entrepreneurial Risk • Failure – “Sinking the Boat Risk” • Opportunity Cost – “Missing the Boat Risk”

8. Myths aboutEntrepreneurship • The Lone Cowboy Myth. • The Experience Myth. • The I’m Only in it for the Money Myth. • The Entrepreneurs are Gamblers Myth.

9. Myths aboutEntrepreneurship • The Entrepreneurs Don’t Have to Worry about Numbers Myth. • The All You Need is Money Myth. • The I’ve Got a Secret Myth. • The IPO Myth.

10. Other Opportunities for Learning • Curb event center retail space • Hatchery • Practicing entrepreneurs activities • Entrepreneurship club • Internships • Mentors • Networking!!!

11. The Entrepreneurial Process

12. 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).

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

14. The Entrepreneurial Process

15. The Entrepreneurial Process Strategy Three Part Process Planning Luck

16. Courage: Risk and the Dimensions of Work Life Cycle of a Business Venture

17. Pre-Launch Process: Idea Generation • Understanding the Genesis of New Businesses in the Economy • Sources of Ideas: Where to Look

18. The Entrepreneurial Process • Challenge Traditional Definitions of Value • Entrepreneurship thrives on market inefficiencies • Customers seek improvement in the following: • Speed • Convenience • Personalization • Price

19. Pre-Launch Process: Evaluating Ideas Generation • Does the Idea = an Opportunity? • Market • Margin • Mission • The Right Team? • The Necessary Resources?

20. The Start-up Process • Filling the Gaps • The Business Plan • Executive Summary • Market Analysis and Marketing Plan • Operating Plan and Team • Financial Plan

21. Growing the Business • CASH FLOW MANAGEMENT • Building a Culture • Marketing • Staffing • Building Management & Administrative Systems

22. Exit or Succession

23. 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

24. 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

25. 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 nation’s development.