Lecture 3

Entrepreneurship

Text: Ch. 6 The Role of Entrepreneurs in a Competitive Economy

Todays Goals
1

Identify the different types of entrepreneurs. Explain why people choose to become entrepreneurs. Identify personality traits that typically characterize successful entrepreneurs.

4
5

Summarize the process of starting a new venture. Explain how organizations promote intrapreneurship.

What is Entrepreneurship?
An entrepreneur is a person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business.

Categories of Entrepreneurs

Classic Entrepreneurs

Serial Entrepreneurs
Social Entrepreneurs

Factors Supporting and Expanding Opportunities for Entrepreneurs Globalization

Growth in Entrepreneurship Education

Information Technology
Advancement in Information Technology helps entrepreneurs to compete with large companies.

Aging Population
Entrepreneurship as second career

Why People Become Entrepreneurs?

Being your Own Boss Personal convictions Autonomy Financial Success Job Security Quality of Life Starting a business to improve quality of life. Lifestyle entrepreneura person who starts a business to reduce work hours and create a more relaxed life

Entrepreneurial Characteristics

Intrapreneurship
IntrapreneurshipThe process of promoting innovation within the structure of an existing organization. Companies promote in a variety of ways:
Skunkworks Pacing Programs

Intrapreneurship helps retain employees who might leave to start their own firms

Starting a New Venture

1. Selecting a Business Idea 2. Developing a Business Plan

3. Finding Financing

Selecting a Business Idea

Market Need

Interests & Capabilities

Creating a Business Plan

Business plans help entrepreneurs prepare enough resources and stay focused on key objectives.

On Moodle: A guideline for writing business plan.

Finding Financing
Debt Financing
Credit Cards Family and Friends Bank Loans

Equity Financing
Venture Capitalists Angel Investors