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Copyright©2014PearsonEducation,Inc.PublishingasPrenticeHall1-1Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallTheWorldoftheEntrepreneurEveryyearU.S.entrepreneurslaunch565,000newbusinesses.Entrepreneurialspirit-themostsignificanteconomicdevelopmentinrecenthistory.GEMstudy:12.3%ofadultpopulationintheU.S.isactivelyinvolvedintryingtostartanewbusiness.1-2Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallEntrepreneurialActivityAcrosstheGlobe1-3Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallEntrepreneurship-FriendlyNations1-4Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallTheWorldoftheEntrepreneurGlobalEntrepreneurshipMonitor(GEM)studyreports:►Menaretwiceaslikelytostartabusinessaswomen.►Mostentrepreneursturntofamilymembersandfriendsforcapital.►Entrepreneursaremostlikelytolaunchbusinesseswhentheyarebetweentheagesof35and44.1-5Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallWhatisanEntrepreneur?Onewhocreatesanewbusinessinthefaceofriskanduncertaintyforthepurposeofachievingprofitandgrowthbyidentifyingopportunitiesandassemblingthenecessaryresourcestocapitalizeonthem.1-6Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallWhatisanEntrepreneur?1803:Jean-BaptisteSay:Anentrepreneurisaneconomicagentwhounitesallmeansofproduction-landofone,thelabourofanotherandthecapitalofyetanotherandthusproducesaproduct.Bysellingtheproductinthemarkethepaysrentofland,wagestolabour,interestoncapitalandwhatremainsishisprofit.Heshiftseconomicresourcesoutofanareaoflowerandintoanareaofhigherproductivityandgreateryield.1934:Schumpeter:Entrepreneursareinnovatorswhouseaprocessofshatteringthestatusquooftheexistingproductsandservices,tosetupnewproducts,newservices.1-7Wikipedia.orgCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallWhatisanEntrepreneur?1961:DavidMcClleland:Anentrepreneurisapersonwithahighneedforachievement[N-Ach].Heisenergeticandamoderaterisktaker.1964:PeterDrucker:Anentrepreneursearchesforchange,respondstoitandexploitsopportunities.Innovationisaspecifictoolofanentrepreneurhenceaneffectiveentrepreneurconvertsasourceintoaresource.1971:Kilby:Emphasizestheroleofanimitatorentrepreneurwhodoesnotinnovatebutimitatestechnologiesinnovatedbyothers.Areveryimportantindevelopingeconomies.1-8Wikipedia.orgCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallWhatisanEntrepreneur?1975:AlbertShapero:Entrepreneurstakeinitiative,acceptriskoffailureandhaveaninternallocusofcontrol.1975:HowardStevenson:Entrepreneurshipisthepursuitofopportunitywithoutregardtoresourcescurrentlycontrolled.1983:G.Pinchot:Intrapreneurisanentrepreneurwithinanalreadyestablishedorganization.1985:W.B.Gartner:Entrepreneurisapersonwhostartedanewbusinesswheretherewasnonebefore.1-9Wikipedia.orgCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallCharacteristicsofEntrepreneursDesireforresponsibilityPreferenceformoderatelevelsofrisk–riskeliminatorsConfidenceintheirabilitytosucceedDeterminationDesireforimmediatefeedbackHighlevelofenergyFutureorientation–opportunity,necessity,andserialentrepreneursSkilledatorganizingValueachievementovermoney1-10Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallCharacteristicsofEntrepreneursEntrepreneurstendtoexhibit:►Ahighdegreeofcommitment►Toleranceforambiguity►Flexibility►Awillingnesstoworkhard►Tenacity1-11Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallSourcesofEntrepreneurialSuccess1-12Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallBenefitsofEntrepreneurshipTheopportunityto:►Createyourowndestiny►Makeadifference►Reachyourfullpotential►Reapimpressiveprofits►Contributetosocietyandtoberecognizedforyourefforts►Dowhatyouenjoyandtohavefunatit1-13Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallDrawbacksofEntrepreneurshipUncertaintyofincomeRiskoflosingyourentireinvestmentLonghoursandhardworkLowerqualityoflifeuntilthebusinessgetsestablishedHighlevelsofstressCompleteresponsibilityDiscouragement1-14Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallFeedingtheEntrepreneurialFireEntrepreneursasheroesEntrepreneurialeducationDemographicandeconomicfactorsShifttoaserviceeconomyTechnologyadvancementsIndependentlifestyleTheInternetandcloudcomputing1-15Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallU.S.RetailE-CommerceRevenues1-16Ch.1:TheFoundationsofEntrepreneurshipCopyright©2014PearsonEducation,Inc.PublishingasPrenticeHallFeedingtheEntrepreneurialFireEntrepreneursasheroesEntrepreneurialeducationDemographicandeconomicfactorsShifttoaserviceeconomyTechnologyadvancements