Evolution of Entrepreneurship

The Evolution of Entrepreneurship

• "Entreprendre," a French term, translates to "to undertake".
• In 18th-century France, Richard Cantillon, an economist, linked the risk-bearing activity in the economy with entrepreneurs
• During the Industrial Revolution in England, entrepreneurs took risks and transformed resources.
• Until the 1950s, most entrepreneurship definitions and references came from economists.
• In the 20th century, entrepreneurship became synonymous with free enterprise and capitalism.
• Entrepreneurs are now seen as heroes of free enterprise in the 21st century.

Entrepreneurship

• A dynamic process involving vision, change, and creation.
• Requires energy and passion to create and implement innovative ideas and solutions.
• Involves the willingness to take calculated risks.
• Includes the ability to formulate an effective venture team.
• Calls for the skill to build a solid business plan.
• Relies on creative skill to marshal needed resources.
• Requires vision to recognize opportunities where others see chaos, contradiction, and confusion.

Small Businesses

• Independently owned and operated.
• Typically not dominant in their respective fields.
• Usually do not engage in many innovative practices.
• Owners may prefer a more stable and less aggressive approach to running their businesses.
• Managed by expecting stable sales, profit, and growth.
• Can be purchased as already established businesses (franchises).

Entrepreneurial Ventures

• The entrepreneur's main goals include innovation, profitability, and growth.
• Characterized by innovative strategic sustainable growth practices
• Entrepreneurs and their financial backers often seek rapid growth and immediate profits.
• May seek to sell their businesses if there is potential for large capital gains.

Terminologies Applied to Different Entrepreneurs

• Nascent entrepreneurs are those who are simply thinking about starting a business.
• Artisan entrepreneurs emphasize independence over conglomeration, local community over scale, and value creation over profit maximization.
• Home-based entrepreneurs locate their ventures where they live.
• Niche entrepreneurs have family-owned and manage owned firms.

Typology of Entrepreneurial Ventures

• Survival ventures provide basic subsistence for the entrepreneur and their family.
• Lifestyle ventures offer a relatively stable income stream for owners using a workable business model and a maintenance management approach.
• Managed growth ventures utilize a workable business model seeking stable growth over time with occasional new product launches.
• Aggressive growth ventures, also known as gazelles(fast-growing), unicorns (market value at $1B), or decacorns (market value at $10B)

Myths of Entrepreneurship

• The document lists 12 myths of entrepreneurship as follows:
  • Entrepreneurs are doers, not thinkers
  • Entrepreneurs are born, not made
  • Entrepreneurs are always in tech ventures
  • Entrepreneurs are academic and social misfits
  • Entrepreneurs must fit the profile
  • All entrepreneurs need is money
  • All entrepreneurs need is an idea
  • Entrepreneurship is unstructured and chaotic
  • Most entrepreneurial initiatives fail
  • Entrepreneurs are extreme risk-takers
  • The Unicorn Fallacy
  • Entrepreneurship education is not needed

School-of-Thought Approach to Entrepreneurship

• The Macro View looks at external processes beyond the individual entrepreneur's control due to a strong external locus of control.
• The Environmental School of Thought considers external factors impacting the entrepreneur's lifestyle. The Financial/Capital School of Thought focuses on finding seed and growth capital.
• The Displacement School of Thought centers on the negative aspects of group dynamics, where someone feels out of place or displaced. The Micro View examines factors specific to entrepreneurship and part of the internal locus of control.
• The Entrepreneurial Trait School of Thought is based on studying successful people who display similar characteristics that increase success when copied.
• The Venture Opportunity School of Thought is focused on the opportunity aspect of venture development.
• The Strategic Formulation School of Thought emphasizes planning in successful venture development.

Global Phenomenon

• The Global Entrepreneurship Monitor (GEM) started in 1999 with 10 developed countries and has grown to include more than 120 economies.
• GEM data shows 582 million people are involved in early staged entrepreneurial activity and 63 million people expect to hire at least 5 employees in the next 5 years, with 27 million expecting to hire 20 or more.
• Growth of gazelles, unicorns, and decacorns

New Generation of Entrepreneurial Types

• Millenipreneurs are under 35 and define professional success by the positive social or environmental impact of their business.
• Ultrapreneurs focus on environmental and social concerns.
• Serialpreneurs have established four or more operating companies.
• Boomerpreneurs, age 55 or older, strongly believe their business has generated a positive social impact since its beginning.

The Entrepreneurial Mindset in Individuals: Cognition & The Dark Side

• Cognition comes from Latin "cognoscere," meaning "to know," "to conceptualize," or "to recognize."
• It refers to mental functions, mental processes, and mental state of humans.
• Entrepreneurial Cognition are the knowledge structures people use for assessments, judgments, and decisions about opportunity evaluation, venture creation, and growth.
• The Metacognitive Perspective involves cognitive adaptability, which is the ability to be dynamic, flexible, and self-regulating cognitive processes within dynamic and uncertain task environments
• Metacognitive means “thinking about thinking.”
• The Metacognitive model integrates entrepreneurial motivation and context to develop metacognitive strategies applied to information processing in an entrepreneurial environment.

Characteristics and Skills Associated with the Entrepreneurial Mindset

• Determination and perseverance

• Drive to Achieve

• Opportunity Orientation

• Persistent Problem Solving

• Seeking Feedback

• Internal Locus of Control

• Tolerance for Ambiguity

• Calculated risk-taking

• High Energy Level

• Creativity and Innovativeness

• Vision

• Passion

• Team Building

Entrepreneurial Hustle

• Refers to an entrepreneur's urgent, unorthodox actions to address immediate challenges and opportunities under uncertain conditions.

Entrepreneurial Coachability

• Mentorship/coaching from experienced individuals has been essential to entrepreneurs, especially in accelerators, as it increases the likelihood of success.
• Founder coachability is the extent to which an entrepreneur seeks, considers, and incorporates feedback.

Dealing With Failure

• Entrepreneurs utilize failure as a learning opportunity thereby tolerating failure.
• Entrepreneurial ventures created to pursue new opportunities often fail because of the uncertain environment.

The Grief Recovery Process

• The traditional process of recovering from grief involves focusing on the particular loss to construct an account that explains why the loss occurred.
• Empirical research showed "loss orientation” toward grief recovery can exacerbate the negative emotional reaction.
• Restoration orientation, an alternative approach, is based on distracting oneself from thinking about the failure event to being proactive toward secondayr stress causes.
• Researcher Dean A. Shepherd proposed a dual process model recovering from the grief over entrepreneurial failure, stating an entrepreneur recovers more quickly if they oscillate between a loss and a restoration orientation

The Entrepreneurial Experience

• Venture creation is a lived experience that shapes the entrepreneur as it unfolds.
• The creation of a sustainable enterprise involves the emergence of the opportunity, the venture, and the entrepreneur.

The Dark Side of Entrepreneurship

• Types of entrepreneurial risk:
  • Financial risk
  • Career risk
  • Family and social risk
  • Psychic risk

Entrepreneurial stress

• A function of discrepancies between a person's expectations and ability to meet demands as well as any discrepancies between the individual's expectations and personality.
• Sources of entrepreneurial stress:
  • Loneliness
  • Immersion in Business
  • People Problems
  • Need to Achieve

Dealing with Stress

• Networking
• Getting Away from It All
• Communicating with Employees
• Finding Satisfaction Outside the Company
• Delegating (redirecting tasks to others)
• Exercising Rigorously
• Therapy with a Professional

The Entrepreneurial Ego (4 characteristics)

• Overbearing need for control and power
• Sense of Distrust
• Overriding Desire for Success
• Unrealistic Optimism

Ethics/the Entrepreneurial Mindset in Organizations: Corporate Entrepreneurship

• Ethics provides basic rules or parameters for any activity in an “acceptable” manner.

Identifying the (4) Rationalizations

• The activity is not "really” illegal or immoral
• It is in the individual's or the corporation's best interest.
• It will never be found out.
• Because it helps the company, the company will condone it.

Ethical Codes of Conduct

• Role failure is failing to perform a specific work duty that you are supposed to do
• Code of conduct is a set of rules outlining what is expected of people.
  • It is a statement of ethical practices which an enterprise follows.
• Ethical responsibility is how entrepreneurs need to analyze their activities in relation to their understanding of their goals and objectives.
  • Ethical consciousness is needing to understand right from wrong.
• Strategies/Elements of ethical strategy:
  • Clear values and communication
  • Leadership commitment
  • Integration into operations
  • Supportive systems and structures
  • Employee readiness
• Ethical leadership is important for the entrepreneur.
  • Creates a code of ethics for making decisions
  • Establishes guidelines and regulations for the team/employee.
• Motivation refers to the drive and determination to start a business. Lanny Herron and Harry J. Sapienza are researchers on the subject
  • Success of business.
• Start-up traits have influential decisions and resilience.
• Psychological factors affect the early stages of developing the business and fulfilment will boost commitment

Entrepreneurship Chapter 3

• Adopting attitudes with creativity to encourage innovative ideas.
• Key elements of an Entrepreneurial Mindset with organizations include adaption, proactiveness with innovation, and risk taking.
  • It is an aspect of what could possibly be done with entrepreneurial thinking within the organization
• Key benefits of fostering Entrepreneural: Innovation, Engagement, and Competitive Edge.
• Fostering an environment is key and the 5 Practices are listed below.
  • Set an innovative Environment.
  • Create a system for positive Reinforcement.
  • Emphasize individual Responsibility.
  • Provide Rewards for innovative ideas.
  • "Do not punish failures"
• 10 rules to have an innovative friendly environment:
  • Encourage action
  • Tolerate failure rather as a learning opportunity Methods to foster and implement several strategies.
  • Early identification
  • Top management sponsorship of Innovative Projects
  • Creation of innovation goals w/in strategic activities
  • Promotion of entre thinking through experimentalization
  • Fostering collab b/w innovators and the organization
• CE and innovation are important to have an entrepreneurial mindset within the company. Corporate Entre has been creating new business in existing companies,
  • ZAHR, 2024
• Advantages of adopting:
  • Development of new products/services
  • Sustaining competitive advantages
  • Retention of higher achievers
• The 2 categories of CE and innovation;
  • (Morris + Kuratko + Covin)
• Corporate venturing includes partnerships, or investing within them which turns part of the company into equity.
• Strategic entrepreneurship focuses on adding something to the company.
• Corporations need an Atmosphere and/or vision w/the company's support. Orientation is important
• Factors should tie to realize the current market.
• Interactive learning happens in the atmosphere to realize functional lines in the organization.
• Bootlegging is the secret of innovative ideas.
• Strategies relies on behaving purposefully.
• The three Elements of Corporate Entrepreneurship strategies include Compelling vision. the second one includes Culture that supports CE initiatives
• 5 Strategies should have to develop and support the team.
• Vision allows for great success. Shared visions and the key components are listed below.
• Components include understanding innovative things and its purpose within the organization.
• Belonging to relationships-building/trust relationships.
• The action can depend employees active dedication.
  • INNOVARE-means ''for new''. Refers the creation/upgrades with several processes and ideas.

Types of Innovation

• Radical innovation refers when launching something innovative.
• It also takes experimentation and determined vision to keep innovation nurtured.
• Incremental Innovation systematically evolves to new/larger markets.
• Champion is someone w/a vision and has the ability to share it.
• The key innovative rules consist of these:
• Don't kill a project
• Tolerate Failure
• Keep division small
• Motivate the champion.
• Stay close to the customers.
• Share the wealth.

Factors to Access the Readiness

• The management depends if the employees are keen to engage that innovation is a role.
• Work is where employee discretion can make decisions for the best outcome.
• Enhance the motivation with reinforcement/rewards as well. If there are new aspects requiring innovation: individuals will have time to incubate time for new ideas
• Organizations must give time to avoid constraints and let people work together to achieve success.
• Boundaries/Real and imagined: Prevents from looking outside.

Corporate Innovator's Commandments

• Come to work each day willing to give up your job for the innovation.
• Circumvent any bureaucratic orders aimed at stopping your innovation.
• Ignore your job description-do any job needed to make your innovation work.
• Build a spirited innovation team that has the "fire" to make it happen.
• Keep your innovation "underground" until it is prepared for demonstration to the corporate management.
• Find a key upper-level manager who believes in you and your ideas and who will serve as a sponsor to your innovation.
• Permission is rarely granted in organizations; thus, always seek forgiveness for the "ignorance" of the rules that you will display.
• Always be realistic about the ways to achieve the innovation goals.
• Share the glory of the accomplishments with everyone on the team.

Autonomy vs Control

• Employee freedom when making decisions vs how carefully the companies regulate that.
• To avoid this, give accountability, and don't stifle it.
• Failures in business can be improved w/. Contingency plan with a strong plan B.
• To pivot from companies and get more resilient to create that long-term success.

Developing Management

• It gives an enthusiastic overview in how someone can become a great Entrepreneur.
• Thinking innovative can solve many processes.
• The Acceleration Process can assist generating new ideas and set out where the process wants to go. The manager completes several exercises that are able to help get over barriers
• It gives a management that can for teams where ideas begin circulating.
• The overall process should include goals, assessing conditions/developing and completing an action

Project Completion and Evaluation

• Team consists of 2 plus ppl who share ownership of a new organization.
• Semi-autonomous is what allows for a budget within
• Should be managed by a strong leader
• To avoid operations for an increase in productivity during this Century=results.

Collective thinking=not limited to company or founder. This type of thought can diffuse throughout

• Experiment with a accumulated mind (Reich)
• Individual skill within a group should be greater than normal
• Group capacity is greater than a part of sums in the work
• Members begin learning and growing=enter forward. A management should rectify,recognize,direct. Middle level endorsement helps the organization by endorsing opportunities as well.
• First level should take the initial role/innovative ideas for the innovation - External Trans can trigger and help a team!

Env for Entrepreneurship

• SE is a form of Entre which characteristics exhibit gov/ Non-profit/businesses.
• SE solve scaling and private problems as well.
• SE help social problems and is someone or a group to leading/engaging a initative. These leaders will adapt to helping a Mission and a Social value.
• Recognition can persue an Opportunity.
• The action can have limited resources
• Heightened the accountability
• SE assists in environmental and social issues (UNESCAP.nd)
• Value gives back to the community.
• These traits are social, values for society as well: Economic to sustain and is shared.

Increasing Business W/Depth and Breadth

• Scope depends on specializing the customer.
• Ecopreneurship focus on preserving planet
• SE works and encompasses to value wealth.
• CSR is good in the social field beyond what law tells us to do so. Business should have stakeholder and the wider community in mind.

Scale stategies

• Social markers to finance ideas and bring good will to other communities
• Flex structure encompasses employees organization etc...
• This comes from multiple parts but follows multiple key important steps like diversity/accountability. W/B certification
• Helps with any company to be rigged w/the standards and both don't needs too be certified.

Engagment

• Where ppl share thoughts around globe
• Improve with the right ability/economic and stable

Going Aborad

• Means going international
• Helps sell products and build a brand more which can make steps like offices to be open or manufacturing that can improve profits. The right places can generate the big things.
• With right resources you can build products. 7 rules can help with the correct inception when conducting world trade.
• Start by having a global vision
• Experienced management
• Great networking
• Great tech to succeed
• Assets
• Worldwide products
• Smooth coordination. Methods include: Importing/Eporting with the right alliances.
• Helps invest outside to build other locations.
• Regulations and climates should be respected. As well as culture to benefit growth!!

Avoiding Risks

• It's important to respect economical, political and social sides to trading internationally!
• There are ways to identify new processes to create good success-
• Innovation to support!
• There's key processes include a great think tank which supports a creative process!
• With the best ways to follow something that can be a creative process/ the process comes back!
• Arenas: creativity
• Should start by improving ways to come up with innovation=observation!
• It gives specifications that test if technical problems can be real and there's key things to fix when problems can arrive.

Muddled mindsets

• Creativity and innovation are strong
• Great spec and a mindset to succeed. Some may need big or small ideas to succeed so be careful!
• Key principles should have be action oriented in these phases.
• It comes from thinking and doing (5 G powerpoint)
• Innovation gives opportunity to explore!! Scan it the right ways to benefit success and innovation by sourcing new things to grow!

Knowledge And Learning

• Acquiring/sharing new data to achieve new things! Great learning leads by testing it (the process) should have a positive
• 7 good components to assess how it can lead a venture to work
• Need for approvals
• Great Independence as well as success
• Should have welfare as well
• Having wealth/Taxation as well.
• It comes a great models help the individual improve. there are bad models the individual needs to avoid.
  • These can be avoided by thinking clear and thinking w/innovation.

New Phase

• With that venture there should have 3 phases pre,start and continue. Key components include investment and unique areas to test the start of the brand.
• 5 factors give that project potential success.
• With product availability on hand=you need people/customers to make the project work
• You need that strong process.

Great Entrepreneurial Team Has

• Decision marking/Resources
• Help building that team up! Failures and products cause timing issues!

Financial

• Under capitalization of problems=with that solution you can prevent errors w great risk approach
• Great tool that has the chance for the strength/weak for those variables - A singular fact doesn't mean certain or a failure-
• Great approach uses a way to test new people. There areas in helping it for a new approach. Technique-analysis should work. You also need to prevent problems.

Customer

• New concepts and new models can assist that success by starting simple!
• Is where learning helps and helps convert new actions into a greater thing/

Design and Learn

• Feedback can solve things and that’s helps solve that problems which should all be used to success.
• A great stage follows! By identifying key parts +engaging/ and developing you can make the start-up more ready with innovation! With micro (small iterations) and macros you can avoid the previous steps.
• It means not getting stuck on one plan only. So having a “ Pivot “
• Feedback works as a great build + measures and all which helps give clear causation for that growth

Innovation/Validated

• Helps validate that effect and support.
• With that said-you can start doing those practices. These are 4 strategies to show this.
  • Consonance is a great starting step
• Then the most important to get it going is the right culture

Steps to Take/Harness Steps

• Step 1: Build trust!

NOTE/ Reminder double check the info from the Ppt and follow everything word for word! Godspeed!