Description
Entrepreneurship – the result of a disciplined, systematic process of applying innovation to the needs and opportunities in the marketplace.
Entrepreneurship
2
What Is an Entrepreneur?
One who creates a new business in the face of
risk and uncertainty for the purpose of
achieving profit and growth by identifying
opportunities and assembling the necessary
resources to capitalize on them.
3 Chapter 1: Entrepreneurship
Characteristics of Entrepreneurs
• Desire for responsibility
• Preference for moderate risk – risk
eliminators
• Confidence in their ability to succeed
• Desire for immediate feedback
• High level of energy
• Future orientation – serial entrepreneurs
• Skilled at organizing
• Value achievement over money
4 Chapter 1: Entrepreneurship
Entrepreneurship
• One characteristic of entrepreneurs stands
out:
Diversity!
• Anyone – regardless of age, race, gender,
color, national origin, or any other
characteristic – can become an entrepreneur
(although not everyone should).
Global View of Entrepreneurism
6 Chapter 1: Entrepreneurship
Characteristics of Entrepreneurs
• Desire for responsibility
• Preference for moderate risk – risk
eliminators
• Confidence in their ability to succeed
• Desire for immediate feedback
• High level of energy
• Future orientation – serial entrepreneurs
• Skilled at organizing
• Value achievement over money
Putting Failure into Perspective
• Entrepreneurs are not paralyzed by the
prospect of failure.
• Failure – a natural part of the creative
process.
• Successful entrepreneurs learn to fail
intelligently.
7
Ch. 1: The Foundations of Entrepreneurship
Ten Deadly Mistakes of
Entrepreneurship
1. Management mistakes
2. Lack of experience
3. Poor financial control
4. Weak marketing efforts
5. Failure to develop a strategic plan
1 - 8
Ch. 1: The Foundations of Entrepreneurship
Ten Deadly Mistakes of
Entrepreneurship
6. Uncontrolled growth
7. Poor location
8. Improper inventory control
9. Incorrect pricing
10. Inability to make the “entrepreneurial
transition”
1 - 9
Henry Ford
Company: Ford Motor Co.
Setback: Ford suffered a few failed automotive
endeavors early in his career, including Detroit
Automobile Co., which he started in 1899. Its
cars were low quality and too pricey for
average consumers.
Turnaround: Ford continued to develop better
auto designs and gained national acclaim in
1904 by demoing a car -- the "Ford 999" -- that
broke the land-speed record by going a mile in
about 40 seconds. In 1908, he released the
Model T, a well-made, low-priced car that
quickly gained traction with U.S. consumers.
Annual sales topped $250,000 by 1914.
Quote: "Whether you think you can, or you
think you can't -- you're right."
Lesson: Building a brand requires more than
just building a good product.
Source: Entrepreneur Media, Inc.
Anita Roddick
Company: The Body Shop
Setback: When Roddick opened the first
Body Shop, a beauty products company,
in Brighton, U.K., in 1976, two
neighboring funeral parlors initially
objected to the name.
Turnaround: Roddick fought back by
suggesting to a local newspaper that she
was a woman entrepreneur under siege.
The publicity generated traffic to the
store, and by the early 1990s, there were
more than 700 Body Shop stores.
Quote: "If you think you're too small to
have an impact, try going to bed with a
mosquito."
Lesson: Don't let minor setbacks throw
you off course.
Source: Entrepreneur Media, Inc.
Frederick W. Smith
Company: Federal Express (now FedEx Corp.)
Setback: After revolutionizing overnight mail
delivery in the 1970s, Smith introduced an
electronic delivery service, Zapmail, in 1984 to
compete with fax machines. But Zapmail
didn't draw the anticipated interest and cost
the company nearly $350 million over two
years.
Turnaround: FedEx abandoned Zapmail in
1986 and the company refocused its energy
on its core delivery business. The company
generated $35 billion in revenue in 2010.
Quote: "Leaders get out in front and stay
there by raising the standards by which they
judge themselves and by which they are
willing to be judged."
Lesson: Be willing to acknowledge failure,
abandon bad ideas and move on.
Source: Entrepreneur Media, Inc.
Walt Disney
Company: The Walt Disney Co. (now Disney
Corp.) Setback: The cartoon animation
pioneer weathered several major financial
setbacks in the late 1920s and 1930s,
including losing rights to the popular Oswald
the Lucky Rabbit character. His company was
$4 million in debt by the early 1930s.
Turnaround: With barely enough cash to
finance the project, Disney released "Snow
White and the Seven Dwarfs" in 1938. The
blockbuster movie sprung the company out of
bankruptcy and bankrolled the building of a
new Walt Disney Studios in Burbank, Calif.
Quote: "You may not realize it when it
happens, but a kick in the teeth may be the
best thing in the world for you."
Lesson: One killer idea can quickly make up for
a series of flops.
Source: Entrepreneur Media, Inc.
Steve Jobs
Company: Apple Computer
Setback: After his forced resignation from Apple
in 1985, Jobs spent the following several years
developing NeXT, a computer workstation for
educators. But with a high price tag and reports
of numerous bugs, sales never materialized. The
company burned through hundreds of millions
of investor dollars.
Turnaround: Apple announced it would buy
NeXT in 1996, bringing Jobs back to the
company as interim CEO. He's since developed
the iPod and iPad, making Apple one of the
most successful Fortune 500 companies of the
past decade.
Quote: "You can't just ask customers what they
want and then try to give that to them. By the
time you get it built, they'll want something
new."
Lesson: Having the right resources and people
around you makes a big difference.
Source: Entrepreneur Media, Inc.
Bill Gates
Company: Microsoft Corp.
Setback: While high-schoolers in the 1970s,
Gates and pal Paul Allen started Traf-O-Data, a
computer business that automatically read
paper tapes from traffic counters for local
governments. The idea later became obsolete
when the state of Washington offered to
tabulate the tapes for cities for free.
Turnaround: The two learned from their failed
business how to write software for a computer
they didn't yet have access to and created a new
start-up called "Micro-Soft."
Quote: "Success is a lousy teacher. It seduces
smart people into thinking they can't lose."
Lesson: You can learn a lot from failed
endeavors.
Source: Entrepreneur Media, Inc.
Harland David Sanders, a.k.a.
"Colonel Sanders"
Company: Kentucky Fried Chicken (now KFC
Corp.)
Setback: In 1955, a newly built interstate
bypassed Corbin, Ky., where Sanders had
cooked up chicken in his restaurant and motel
for two decades. After selling the location and
settling debts, Sanders was broke.
Turnaround: He'd already started franchising
his chicken restaurant concept. He took to the
road full-time to sell franchises and within five
years had 190 franchisees and 400 Kentucky
Fried Chicken locations.
Quote: "Feed the poor and get rich or feed the
rich and get poor."
Lesson: It may not be the idea that's
unsuccessful; it may be the execution strategy.
Source: Entrepreneur Media, Inc.
Mary Kay Ash
Company: Mary Kay Cosmetics Inc.
Setback: After 25 years in sales at Stanley
Home Products, Ash resigned in 1963
frustrated that the firm overlooked her
for promotions even as men she trained
rose through the ranks.
Turnaround: Ash began writing an advice
book for businesswomen and soon
realized she was writing a business plan
for herself. Mary Kay Cosmetics was
born. The company reached $2.5 billion
in wholesale sales worldwide in 2009.
Quote: "For every failure, there's an
alternative course of action. You just
have to find it. When you come to a
roadblock, take a detour."
Lesson: Some of the best business ideas
come out of personal experience.
Source: Entrepreneur Media, Inc.
Dave Thomas
Company: Wendy's
Setback: Thomas retired as Wendy's CEO in
1982, 13 years after founding what had
become one of the largest fast-food chains in
the U.S. Within years, the company revenues
sagged as some customers were unimpressed
with a new breakfast menu, and cleanliness
and service standards slipped at franchises.
Turnaround: One of the company's leading
franchisees, James Near, became its top
executive and managed a turnaround. Thomas
came out of semi-retirement and filled a
crucial role as the company's spokesman in its
advertisements, leading one of the company's
most-successful advertising campaigns.
Quote: "Take care of your business and your
business will take care of you."
Lesson: Having a strong leader at the helm can
make a world of difference in the success or
failure of a company.
Source: Entrepreneur Media, Inc.
Creativity and Innovation
Creativity – the ability to develop new ideas
and to discover new ways of looking at
problems and opportunities; thinking new
things.
Innovation – the ability to apply creative
solutions to problems or opportunities to
enhance or to enrich people’s lives; doing
new things.
19
Entrepreneurship
• Entrepreneurship – the result of a disciplined,
systematic process of applying innovation to
the needs and opportunities in the
marketplace.
• Entrepreneurs drive innovation!
20
Type of Entrepreneurs
• Diverse!
• Home Based (PT)
• Family Business
• Copreneurs
• Corporate Castoffs
• Corporate Dropouts
doc_185011258.pdf
Entrepreneurship – the result of a disciplined, systematic process of applying innovation to the needs and opportunities in the marketplace.
Entrepreneurship
2
What Is an Entrepreneur?
One who creates a new business in the face of
risk and uncertainty for the purpose of
achieving profit and growth by identifying
opportunities and assembling the necessary
resources to capitalize on them.
3 Chapter 1: Entrepreneurship
Characteristics of Entrepreneurs
• Desire for responsibility
• Preference for moderate risk – risk
eliminators
• Confidence in their ability to succeed
• Desire for immediate feedback
• High level of energy
• Future orientation – serial entrepreneurs
• Skilled at organizing
• Value achievement over money
4 Chapter 1: Entrepreneurship
Entrepreneurship
• One characteristic of entrepreneurs stands
out:
Diversity!
• Anyone – regardless of age, race, gender,
color, national origin, or any other
characteristic – can become an entrepreneur
(although not everyone should).
Global View of Entrepreneurism
6 Chapter 1: Entrepreneurship
Characteristics of Entrepreneurs
• Desire for responsibility
• Preference for moderate risk – risk
eliminators
• Confidence in their ability to succeed
• Desire for immediate feedback
• High level of energy
• Future orientation – serial entrepreneurs
• Skilled at organizing
• Value achievement over money
Putting Failure into Perspective
• Entrepreneurs are not paralyzed by the
prospect of failure.
• Failure – a natural part of the creative
process.
• Successful entrepreneurs learn to fail
intelligently.
7
Ch. 1: The Foundations of Entrepreneurship
Ten Deadly Mistakes of
Entrepreneurship
1. Management mistakes
2. Lack of experience
3. Poor financial control
4. Weak marketing efforts
5. Failure to develop a strategic plan
1 - 8
Ch. 1: The Foundations of Entrepreneurship
Ten Deadly Mistakes of
Entrepreneurship
6. Uncontrolled growth
7. Poor location
8. Improper inventory control
9. Incorrect pricing
10. Inability to make the “entrepreneurial
transition”
1 - 9
Henry Ford
Company: Ford Motor Co.
Setback: Ford suffered a few failed automotive
endeavors early in his career, including Detroit
Automobile Co., which he started in 1899. Its
cars were low quality and too pricey for
average consumers.
Turnaround: Ford continued to develop better
auto designs and gained national acclaim in
1904 by demoing a car -- the "Ford 999" -- that
broke the land-speed record by going a mile in
about 40 seconds. In 1908, he released the
Model T, a well-made, low-priced car that
quickly gained traction with U.S. consumers.
Annual sales topped $250,000 by 1914.
Quote: "Whether you think you can, or you
think you can't -- you're right."
Lesson: Building a brand requires more than
just building a good product.
Source: Entrepreneur Media, Inc.
Anita Roddick
Company: The Body Shop
Setback: When Roddick opened the first
Body Shop, a beauty products company,
in Brighton, U.K., in 1976, two
neighboring funeral parlors initially
objected to the name.
Turnaround: Roddick fought back by
suggesting to a local newspaper that she
was a woman entrepreneur under siege.
The publicity generated traffic to the
store, and by the early 1990s, there were
more than 700 Body Shop stores.
Quote: "If you think you're too small to
have an impact, try going to bed with a
mosquito."
Lesson: Don't let minor setbacks throw
you off course.
Source: Entrepreneur Media, Inc.
Frederick W. Smith
Company: Federal Express (now FedEx Corp.)
Setback: After revolutionizing overnight mail
delivery in the 1970s, Smith introduced an
electronic delivery service, Zapmail, in 1984 to
compete with fax machines. But Zapmail
didn't draw the anticipated interest and cost
the company nearly $350 million over two
years.
Turnaround: FedEx abandoned Zapmail in
1986 and the company refocused its energy
on its core delivery business. The company
generated $35 billion in revenue in 2010.
Quote: "Leaders get out in front and stay
there by raising the standards by which they
judge themselves and by which they are
willing to be judged."
Lesson: Be willing to acknowledge failure,
abandon bad ideas and move on.
Source: Entrepreneur Media, Inc.
Walt Disney
Company: The Walt Disney Co. (now Disney
Corp.) Setback: The cartoon animation
pioneer weathered several major financial
setbacks in the late 1920s and 1930s,
including losing rights to the popular Oswald
the Lucky Rabbit character. His company was
$4 million in debt by the early 1930s.
Turnaround: With barely enough cash to
finance the project, Disney released "Snow
White and the Seven Dwarfs" in 1938. The
blockbuster movie sprung the company out of
bankruptcy and bankrolled the building of a
new Walt Disney Studios in Burbank, Calif.
Quote: "You may not realize it when it
happens, but a kick in the teeth may be the
best thing in the world for you."
Lesson: One killer idea can quickly make up for
a series of flops.
Source: Entrepreneur Media, Inc.
Steve Jobs
Company: Apple Computer
Setback: After his forced resignation from Apple
in 1985, Jobs spent the following several years
developing NeXT, a computer workstation for
educators. But with a high price tag and reports
of numerous bugs, sales never materialized. The
company burned through hundreds of millions
of investor dollars.
Turnaround: Apple announced it would buy
NeXT in 1996, bringing Jobs back to the
company as interim CEO. He's since developed
the iPod and iPad, making Apple one of the
most successful Fortune 500 companies of the
past decade.
Quote: "You can't just ask customers what they
want and then try to give that to them. By the
time you get it built, they'll want something
new."
Lesson: Having the right resources and people
around you makes a big difference.
Source: Entrepreneur Media, Inc.
Bill Gates
Company: Microsoft Corp.
Setback: While high-schoolers in the 1970s,
Gates and pal Paul Allen started Traf-O-Data, a
computer business that automatically read
paper tapes from traffic counters for local
governments. The idea later became obsolete
when the state of Washington offered to
tabulate the tapes for cities for free.
Turnaround: The two learned from their failed
business how to write software for a computer
they didn't yet have access to and created a new
start-up called "Micro-Soft."
Quote: "Success is a lousy teacher. It seduces
smart people into thinking they can't lose."
Lesson: You can learn a lot from failed
endeavors.
Source: Entrepreneur Media, Inc.
Harland David Sanders, a.k.a.
"Colonel Sanders"
Company: Kentucky Fried Chicken (now KFC
Corp.)
Setback: In 1955, a newly built interstate
bypassed Corbin, Ky., where Sanders had
cooked up chicken in his restaurant and motel
for two decades. After selling the location and
settling debts, Sanders was broke.
Turnaround: He'd already started franchising
his chicken restaurant concept. He took to the
road full-time to sell franchises and within five
years had 190 franchisees and 400 Kentucky
Fried Chicken locations.
Quote: "Feed the poor and get rich or feed the
rich and get poor."
Lesson: It may not be the idea that's
unsuccessful; it may be the execution strategy.
Source: Entrepreneur Media, Inc.
Mary Kay Ash
Company: Mary Kay Cosmetics Inc.
Setback: After 25 years in sales at Stanley
Home Products, Ash resigned in 1963
frustrated that the firm overlooked her
for promotions even as men she trained
rose through the ranks.
Turnaround: Ash began writing an advice
book for businesswomen and soon
realized she was writing a business plan
for herself. Mary Kay Cosmetics was
born. The company reached $2.5 billion
in wholesale sales worldwide in 2009.
Quote: "For every failure, there's an
alternative course of action. You just
have to find it. When you come to a
roadblock, take a detour."
Lesson: Some of the best business ideas
come out of personal experience.
Source: Entrepreneur Media, Inc.
Dave Thomas
Company: Wendy's
Setback: Thomas retired as Wendy's CEO in
1982, 13 years after founding what had
become one of the largest fast-food chains in
the U.S. Within years, the company revenues
sagged as some customers were unimpressed
with a new breakfast menu, and cleanliness
and service standards slipped at franchises.
Turnaround: One of the company's leading
franchisees, James Near, became its top
executive and managed a turnaround. Thomas
came out of semi-retirement and filled a
crucial role as the company's spokesman in its
advertisements, leading one of the company's
most-successful advertising campaigns.
Quote: "Take care of your business and your
business will take care of you."
Lesson: Having a strong leader at the helm can
make a world of difference in the success or
failure of a company.
Source: Entrepreneur Media, Inc.
Creativity and Innovation
Creativity – the ability to develop new ideas
and to discover new ways of looking at
problems and opportunities; thinking new
things.
Innovation – the ability to apply creative
solutions to problems or opportunities to
enhance or to enrich people’s lives; doing
new things.
19
Entrepreneurship
• Entrepreneurship – the result of a disciplined,
systematic process of applying innovation to
the needs and opportunities in the
marketplace.
• Entrepreneurs drive innovation!
20
Type of Entrepreneurs
• Diverse!
• Home Based (PT)
• Family Business
• Copreneurs
• Corporate Castoffs
• Corporate Dropouts
doc_185011258.pdf