LEARNING OUTCOMES•Explain entrepreneurship and discuss itsimportance.•Discussthethreemainreasonsthatpeople decide to become entrepreneurs•Identifyfourmaincharacteristicsofsuccessful entrepreneurs•Explain the five common myths regardingentrepreneurship.
LEARNING OUTCOMES•Explain how entrepreneurial firms differfrom salary-substitute and lifestyle firms•Identify ways in which large firms benefitfromthepresenceofsmallerentrepreneurial firms•Explain the entrepreneurial process
INTRODUCTION TOENTREPRENEURSHIP•There is tremendous interest in businessventure and entrepreneurship around theworld•According to the GEM 2005 study, about330 million people, or 14% of the adults inthe 35 countries surveyed, are involved informing new businesses
WHAT IS ENTREPRENEURSHIP?•Origin of the Word “Entrepreneur”▫The word was originally used to describe people who“take on the risk” between buyers and sellers or“undertake” a task such as starting a new venture▫The “undertake” interpretation of the word has beencentral to its usage in English•Difference Between an Inventor and anEntrepreneur▫An inventor creates something new▫An entrepreneur puts together all the resourcesneeded—the money, the people, the strategy, andthe risk-bearing ability to transform the invention intoa viable business
WHAT IS ENTREPRENEURSHIP?•Entrepreneurship Defined▫Entrepreneurshipistheprocessbywhichindividuals pursue opportunities without regardto the resources they currently control.▫The essence of entrepreneurial behavior isidentifying opportunities and putting usefulideas into practice.▫The set of tasks called for by this behavior canbe accomplished by either an individual or agroup and typically requires creativity, drive,and a willingness to take risks.
WHY BECOME AN ENTREPRENEUR?•There are three primary reasons thatpeople become entrepreneurs and starttheir own firms:Desire to be their own bossFinancial rewardsDesire to pursue theirown ideas
CHARACTERISTICS OFSUCCESSFUL ENTREPRENEURS
CHARACTERISTICS OFSUCCESSFUL ENTREPRENEURS•Passion for the Business▫