Chapter 1 Lecture 1 PDF

Section 1: The Challenge of Entrepreneurship 1 The Foundations of Entrepreneurship Copyright © 2016 Pearson Education, Inc. 1-1  Define the role of the entrepreneur in...

Section 1: The Challenge of Entrepreneurship 1 The Foundations of Entrepreneurship Copyright © 2016 Pearson Education, Inc. 1-1  Define the role of the entrepreneur in business in the United States and around the world.  Describe the entrepreneurial profile.  Describe the benefits of entrepreneurship.  Describe the drawbacks of entrepreneurship.  Explain the forces that are driving the growth of entrepreneurship. Copyright © 2016 Pearson Education, Inc. 1-2  (continued)  Explain the cultural diversity of entrepreneurship.  Describe the important role that small businesses play in our nation’s economy.  Put failure into the proper perspective.  Explain how an entrepreneur can avoid becoming another failure statistic. Copyright © 2016 Pearson Education, Inc. 1-3 Entrepreneurship The process of designing, launching and running a new business, which typically begins as a small business, such as a startup company, offering a product, process or service for sale or hire Creativity: Something new and somehow valuable is formed. The created item may be intangible such as an idea, a scientific theory, …. Copyright © 2016 Pearson Education, Inc. 1-4 Every month U.S. entrepreneurs launch 514,000 new businesses (One reason the U.S. economy has been so successful over time ). Entrepreneurial spirit - the most significant economic development in recent history. GEM study: 12.7% (one in eight people) of adult population in the United States is actively involved in trying to start a new business. Copyright © 2016 Pearson Education, Inc. 1-5 Copyright © 2016 Pearson Education, Inc. 1-6 The Total Entrepreneurial Activity Index (TEA index) is the sum of the number of persons starting a business (starting entrepreneurs) and the number of owners of businesses that were established less than 3.5 years before the reference date (young entrepreneurs), as a percentage of the labor force. The TEA is an index for the degree of new entrepreneurship by country and is calculated as the percentage of people who undertake such activities in comparison to the labor force (population aged 18-64 years) Copyright © 2016 Pearson Education, Inc. 1-7