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Enterpreneurship
Enterpreneurship
Definition of Entrepreneurship
Schumpeter
An entrepreneur is the person who destroys the existing economic
order by introducing new products and services, by introducing new
methods of production, by creating new forms of organization, or
by exploiting new raw materials.
Simpler
An entrepreneur is the person who perceives an opportunity and
creates an organization to pursue it.
Entrepreneurship Activities
Entrepreneur: someone who perceives an opportunity and builds an
organization to pursue that opportunity.
Entrepreneurship involves all the functions, activities, and actions
associated with perceiving opportunities and creating
organizations to pursue them. These include:
Team building
Leadership
Environmental
Factors
PERSONAL
SOCIOLOGICAL
PERSONAL
ORGANIZATIONAL
Achievement
Locus of Control
Ambiguity Tolerance
Risk Taking
Networks
Entrepreneur
Job Dissatisfaction
Teams
Parents
Leader
Risk Taking
Personal Values
Education
Education
Age
Gender
Family
Commitment
Team
Strategy
Structure
Culture
Products
Role Models
Vision
Experience
Opportunity recognition
INNOVATION
Job Loss
Manager
Advisors
Commitment
Resources
TRIGGERING EVENT
IMPLEMENTATION
GROWTH
ENVIRONMENT
ENVIRONMENT
ENVIRONMENT
Opportunities
Role Models
Creativity
Economy
Competition
Competitors
Customers
Suppliers
Investors
Bankers
Lawyers
Resources
Government policy
Resources
Incubator
Government policy
Economy
Based on Carol Moore's Model (Moore 1986)
Idea-to-Opportunity Transition
Seed of an idea
Passion
Professional experience
Idea
Idea multiplication
Viable opportunity
Turning to
friends &
family
Approaching
business
angels
Raising VC
funding
Being
acquired
Going public
eBay IPO
1998
4500
$80
4000
3500
3000
2500
2000
1500
$70
Amazon.com IPO
1997
$60
$50
Yahoo IPO
1996
$40
Netscape IPO
1995
$30
1000
$20
500
$10
Number of Companies
5000
$0
'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04
Number of Companies
Total Invested
Source: Venture Economics
eBay
Benchmark Capitals investment of $5 million in eBay multiplied
1500-fold in just two years
Post-Startup Options
Stay With Company
Sell
Startup
Maintain
Grow
40 % survive
1 year
5 years
2 years
65 % survive
10 years
25 % survive
Conclusion