Chapter 1 Introduction to Entrepreneurship PDF

Chapter 1 Introduction to Entrepreneurship Bruce R. Barringer R. Duane Ireland  Chapter Objectives 1. Describe entrepreneurs, corporate entrepreneurship, and the characteristics of entrepreneurial firms. 2. Discuss three main reasons people decide to...

Chapter 1 Introduction to Entrepreneurship Bruce R. Barringer R. Duane Ireland  Chapter Objectives 1. Describe entrepreneurs, corporate entrepreneurship, and the characteristics of entrepreneurial firms. 2. Discuss three main reasons people decide to become entrepreneurs. 3. Identify four main characteristics of successful entrepreneurs. 4. Describe three types of start-up firms. 2  What is Entrepreneurship? Academic Definition (Stevenson & Jarillo) – Entrepreneurship is the process by which individuals pursue opportunities without regard to resources they currently control. Venture Capitalist (Fred Wilson) – Entrepreneurship is the art of turning an idea into a business. Explanation of What Entrepreneurs Do – Entrepreneurs assemble and then integrate all the resources needed – the money, the people, the business model, the strategy – to transform an invention or an idea into a viable business. 3  Corporate Entrepreneurship 1 of 2 Corporate Entrepreneurship – Is the conceptualization of entrepreneurship at the firm level. – All firms fall along a conceptual continuum that ranges from highly conservative to highly entrepreneurial. – The position of a firm on this continuum is referred to as its entrepreneurial intensity. 4  Corporate Entrepreneurship 2 of 2 Entrepreneurial Firms Conservative Firms Proactive Take a more “wait and Innovative see” posture Risk taking Less innovative Risk averse 5  Why Become an Entrepreneur? The three primary reasons that people become entrepreneurs and start their own firms Desire to be their own boss Desire to pursue their own ideas Financial rewards 6 Characteristics of Successful Entrepreneurs 1 of 3 7 Characteristics of Successful Entrepreneurs 2 of 3 Passion for the Business – The number one characteristic shared by successful entrepreneurs is a passion for the business. – This passion typically stems from the entrepreneur’s belief that the business will positively influence people’s lives. Product/Customer Focus – A second defining characteristic of successful entrepreneurs is a product/customer focus. – An entrepreneur’s keen focus on products and customers typically stems from the fact that most entrepreneurs are, at heart, craftspeople. 8 Characteristics of Successful Entrepreneurs 3 of 3 Tenacity Despite Failure – Because entrepreneurs are typically trying something new, the failure rate is naturally high. – A defining characteristic for successful entrepreneurs is their ability to persevere through setbacks and failures. Execution Intelligence – The ability to fashion a solid business idea into a viable business is a key characteristic of successful entrepreneurs. 9 Types of Start-Up Firms 10