Entrepreneurship and Entrepreneurial Firms.pdf

Entrepreneurship and Entrepreneurial Firms Institutions, Resources, and Entrepreneurship Takeaways: 1. Entrepreneurship is not exclusively associated with smaller and younger firms; it is defined as "the identification and exploitation of previously unexplored opportunities." 2. SMEs are typicall...

Entrepreneurship and Entrepreneurial Firms Institutions, Resources, and Entrepreneurship Takeaways: 1. Entrepreneurship is not exclusively associated with smaller and younger firms; it is defined as "the identification and exploitation of previously unexplored opportunities." 2. SMEs are typically more entrepreneurial than large firms, but large firms can also be entrepreneurial. 3. SMEs account for 95% of the number of firms, create 50% of the total value added, and generate 60% - 90% of employment, depending on the country. 4. Only a small number of entrepreneurs and SMEs will succeed, as many will try and fail. Who Even Is An Entrepreneur?: Crash Course Business Entrepreneurship #1 https://youtu.be/aozlwC3XwfY? si=Nx27NG3maS-hASO7 Growing the Entrepreneurial Firm Entrepreneurs often use their vision, drive, and leadership to grow their businesses even when lacking in tangible resources. They use a dynamic, flexible guerrilla strategy to compete with larger competitors, focusing on the possible and the cheap. ATK is an example of this strategy, consistently beating larger competitors by leveraging proven, off-the-shelf solutions for US defense contracts. Innovation is an essential part of an entrepreneurial mindset, and can range from lowtech innovations such as Huy Fong's Sriracha hot sauce to high-tech innovations such as Alibaba's Taobao. Innovation offers several advantages, including the opportunity to gain a competitive edge, creating new products and services, and allowing innovators to personally benefit from their ideas. Entrepreneurial firms are particularly well-suited for innovation as they often have more risk-taking and innovative employees and allow employees to reap the financial rewards of their ideas. Internationalizing the Entrepreneurial Firm Main Objective Secondary Objectives This article discusses how formal and An example of this is the total cost of connecting informal institutional constraints, acting electricity to a new commercial building, which can as rules of the game, affect be a much greater burden in poorer countries. It is entrepreneurship. The World Bank's report, noted that more entrepreneur-friendly formal institutions means more flourishing Doing Business, shows how government entrepreneurship and more developed economies. regulations concerning the ease of setting Different cultural values and norms can also have up new entrepreneurial firms differ an effect on entrepreneurship; for example, in between developed and developing Japan, the rate of start-ups is much lower than the countries. rate in America. The article concludes that both formal and informal institutions matter in fostering entrepreneurship. Debates and Extensions The debate on what motivates entrepreneurs to establish their own businesses as opposed to working for others has been around for a long time. The "traits" school of thought argues that it is personal traits that matter; entrepreneurs tend to have a greater drive for achievement and are more willing to take risks and tolerate ambiguities. Critics suggest that this is not necessarily exclusive to entrepreneurs and that the environment also plays a role. In Europe, a lack of risktaking culture and institutional barriers such as unfriendly bankruptcy laws and labor laws are seen as reasons for the low rate of entrepreneurship. It is now widely accepted that both nature and nurture contribute to entrepreneurship. Management Savvy 01 02 Entrepreneurs and their firms are The success or failure of essential to the development of global entrepreneurial firms around the globe capitalism. Joseph Schumpeter first proposed the concept of "creative destruction," which is the process of replacing old technologies and business models with newer and more efficient ones. It is this process that drives the global economy forward. 04 Overall, the performance of entrepreneurial firms is determined by how they leverage their capabilities at home and abroad by taking advantage of both formal and informal institutional resources. can largely be attributed to two components. The institution-based view 03 This includes the laws, regulations, and incentives available to entrepreneurs. The resource-based asserts that the institutional framework view argues that it is the intangibles of a country has a significant impact on such as ambition, risk-taking, and the development of entrepreneurial vision that truly allow activity. entrepreneurs to succeed. 05 06 This includes understanding the This includes understanding the risks and rewards associated with risks and rewards associated with each investment and being able each investment and being able to navigate the legal and to navigate the legal and regulatory landscape. regulatory landscape. Management Savvy Continued.......... Formal institutions, such as rules governing how to set up new firms, are important for entrepreneurs to navigate the process of launching a business. On the other hand, cultivating strong informal norms granting legitimacy to the entrepreneurial activity is also necessary. Successful entrepreneurs can reach out to high school and college students, take on interns, and provide seed money to help launch new ventures to foster an environment of support for entrepreneurs. The second implication is that entrepreneurs must remain aware of the economic and cultural context in which they are operating. While entrepreneurs are often seen as risk-takers, they must also recognize the opportunities presented by their environment and the potential risks posed by uncertain regulations and social norms. Thus, entrepreneurs must work to develop an understanding of the economic, political, and cultural landscape in which their business is embedded to best exploit the opportunities and mitigate the risks. Financial Independence: Entrepreneurship offers the opportunity to build wealth Innovation and Creativity: Entrepreneurs often bring new and and achieve financial independence. Successful entrepreneurs have the innovative ideas to the market. They are willing to take risks and implement novel solutions to address existing potential to earn higher incomes and create businesses that generate substantial profits. Flexibility and Autonomy: Entrepreneurs have the freedom to create their own schedules and make decisions independently. They have control over their work-life balance and can create a flexible schedule that suits their personal and professional needs. Job Creation: Entrepreneurship is a key driver of job creation in economies. Startups and small businesses are known to create new job opportunities and contribute to overall employment generation. problems. This leads to technological advancements and overall progress. Expected Outcomes: Benefits Personal Development: Entrepreneurship offers personal growth and development. It requires individuals to continuously learn, adapt, and acquire new skills. By facing challenges and overcoming obstacles, entrepreneurs develop resilience, problem-solving abilities, and leadership skills. Contribution to Society: Entrepreneurship can have a positive impact on society by addressing societal problems, providing valuable products or services, and supporting social causes. Entrepreneurs often give back to their communities through philanthropy and social initiatives. Bill Roche | TED×LangleyED: The Power of an Entrepreneurial Mindset https://youtu.be/Ihs4VFZWwn4? si=ZU8wgBBkSK0Nsf9R Product/Service Innovation: Entrepreneurship firms have the Market Disruption: Entrepreneurship firms often disrupt traditional industries or markets by introducing opportunity to develop and introduce innovative products or services to the market, which can help them gain a disruptive technologies, business models, or services. They challenge existing players and can bring about competitive advantage and attract customer Growth and Expansion: Entrepreneurship firms have the potential to grow rapidly and expand their operations over time. They can scale their business and enter new markets, both domestically and globally. Job Creation: Entrepreneurship firms play a crucial role in job creation. They create employment opportunities for individuals within their organizations and contribute to overall economic growth by generating more jobs. Expected Outcomes: Scopes significant changes in the industry landscape. Economic Impact: Entrepreneurship firms contribute to the economy through tax revenues, increased consumer spending, and investment in infrastructure and resources. They stimulate economic growth and development. Social Impact: Entrepreneurship firms can have a positive social impact by addressing societal challenges, promoting sustainability, and supporting social causes. Many entrepreneurs aim to make a difference and create social value through their ventures. Creative Brainstorming: Entrepreneurship & Entrepreneurship firms Entrepreneurship is the process of identifying opportunities, taking risks, and creating innovative solutions to meet market demands. It is about being passionate, determined, and proactive in pursuing business ideas and turning them into successful ventures. A key aspect of entrepreneurship is the ability to think creatively and come up with new and unique approaches to solve problems or meet customer needs. This requires thinking outside the box, challenging traditional thinking, and being open to taking unconventional paths. Entrepreneurship firms, also known as startups, are organizations that are built upon innovative ideas and run by entrepreneurs. These firms typically operate in fast-paced, dynamic environments, where creativity and agility are crucial for survival and growth. These firms can range from small, single-owner businesses to large, multinational corporations. They are often characterized by their ability to adapt quickly to changing market conditions, embrace new technologies, and attract and retain top talent. Entrepreneurship firms play a vital role in driving economic growth, job creation, and innovation in various industries. Let’s Kahoot It