Entrepreneur- one who undertakes to organize, manages, and assumes the risks of a business.
ENTREPRENEURSHIP- a dynamic process of vision, change, and creation that requires an application of energy and passion towards the creation and implementation of new ideas and creative solutions.
ENTREPRENEURIAL MANAGEMENT- the techniques and principles of this emerging discipline will drive the entrepreneurial economy in the twenty-first century.
MYTHS OF ENTREPRENEURSHIP:
1. Entrepreneurs Are Doers, Not thinkers
2. Entrepreneurs are born not made
3. Entrepreneurs are always inventors
4. Entrepreneurs are academic and social misfits
5. Entrepreneurs must fit the profile (must have all the characteristics listed about entrepreneurs)
6. All entrepreneurs need money
7. All entrepreneurs need luck
8. Entrepreneurship is unstructured and chaotic
9. Most entrepreneurial initiatives fail
10. Entrepreneurs are extreme risk takers
THE MACRO VIEW- presents a broad array of factors that relate to success or failure in contemporary entrepreneurial ventures. This array includes external factors that are sometimes beyond that control of the individual entrepreneur.
1. THE ENVIROMENTAL SCHOOL OF THOUGHT- external factors that affect potential entrepreneur’s lifestyle
2. THE FINANCIAL/CAPITOL SCHOOL OF THOUGHT-based on the capitol-seeking process- the search for seed and growth capitol is the entire focus of the entrepreneurial emphasis.
3. THE DISPLACEMENT SCHOOL OF THOUGHT- focuses on the negative side of group phenomenon, in which someone feels out of place- or is literally “displaced”- from the group.
MICRO VIEW- examines the factors that are specific to entrepreneurship and are apart of the internal locus of control.
1. THE ENTREPRENEURIAL TRAIT SCHOOL OF THOUGHT- grounded to in the study of successful people who tend to exhibit similar characteristics that, if copied, would increase the opportunities’ for the emulators.
2. THE VETURE OPPORTUNITIY SCHOOL OF THOUGHT- Focuses on the opportunity aspect of venture development. The search for idea sources, the development of concepts, and the implementation of venture opportunities are the important interest areas for this school.
3. THE STRATEGIC FORMULATION SCHOOL OF THOUGHT- approach to the entrepreneurial theory emphasizes the planning process in successful venture development.
PROCESS APPROCHES TO ENTREPRENEURSHIP
1. AN INTEGRATIVE APPROACH- incorporates theoretical and practical concepts as they affect entrepreneurship activity.
2. DYNAMIC STATES APPROACH- depicts ventures being dependent on their environment for survival. A dynamic state is a network of relationships and systems that convert opportunity tension into values for venture’s customers, generating new resources to maintain the dynamic state.
GAZELLE- a business established with at least 20 percent sales growth every year (for 5 years), starting with a base of at least $100,000.
Support innovation (gazelles), and create jobs
Theory – Process – Practice, The basic breakdown:
1. Entrepreneurial Mind-Set
2. Initiating Entrepreneurial Ventures
3. Developing the Entrepreneurial Plan
4. The Growth, Value, and Harvest of Entrepreneurial Ventures
ENTREPRENEURIAL COGNITION- the knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth.
METACOGNITIVE PERSPECTIVE- a new stream of thinking that links the foundation of entrepreneurial mind-set to cognitive adaptability.
CHARACTERISTICS ASSOCIATED WITH ENTREPRENERIAL 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, creative and innovativeness, vision, passion, team building)
THE DARK SIDE OF ENTREPRENEURSHIP
1. The entrepreneur Confrontation with Risk- Starting a new