Marvin Ryder Assistant Professor, Marketing & Entrepreneurship

1. MBA P715 Entrepreneurship Week 2 Marvin Ryder Assistant Professor, Marketing & Entrepreneurship

2. Psychological Triggers for Entrepreneurship 1) Need for control – my hours, my location Seems to be disproportionately important: Middle child; moved frequently; rebellious, impulsive; perceived rejection by others; difficulty with authority 2) Need for creativity – realize a dream, use my talents, do something interesting 3) Need for employment – no job opportunities to match perceived skill set

3. Psychological Triggers for Entrepreneurship - Continued 4) Need for money – earn more money, keep more of what one earns for others 5) Need to exploit an opportunity – take advantage of something that others are missing 6) Need for status/achievement – be an example to others, continue a family tradition Note: many entrepreneurs face life-long battles with low self-esteem – Entrepreneur’s paradox Source: Doss, Mazzarol, Volery – Triggers and Barriers Affecting Entrepreneurial Intentionality, 1997

4. The Genesis of Entrepreneurship Industry Structure Perception of Opportunity Consumer Demand Venture Creation Entrepreneur Environmental Trends Window of Opportunity Barriers: 1) Lack of personal or financial capital 2) Compliance costs – taxes, fees, training 3) “Hard” reality – start-up too difficult, too much risk, window too small

5. Types of Business Start-ups • Product innovators – Hewlett-Packard, Ron Popeil, • Bill Gates • Solo, self-employed entrepreneurs – plumber, consultant • Resource exploiters – real estate developer, mining company • Economy-of-scale exploiter – discount or big box store • Workplace/workforce support – temp agency, machine shop • Takover artists – buy a company and grow it – John Y. Brown • and KFC • Capital aggregators – T. Boone Pickens, Ross Perot, • Warren Buffett • Market speculators • Franchise entrepreneurs

6. Entrepreneurial Work Environment