What is Entrepreneurship?

Mark T. Schenkel, Ph.D.

Agenda
What is Entrepreneurship?

Historical development
Definition
Myths
Process
Career Paths

The Entrepreneurial
Revolution
We are in the midst of a silent revolution a triumph of the
creative and entrepreneurial spirit of humankind throughout
the world.
I believe its impact on the 21st century will equal or exceed
that of the Industrial Revolution on the 19 th and 20th.
The death knell for brontosaurus capitalism of yesteryear.
-- Jeffry A. Timmons (The Entrepreneurial Mind, 1989)

Development of Entrepreneurship
Earliest Period- Marco Polo
Middle Ages- Theater,
Architectural Works
17th Century- Mississippi
Company
18th Century- Edison &
Whitney
19th & 20th Centuries
Organize/Operate
Innovation

The Opportunity
Statistics

A random national sample (Gallup poll survey, 1994) of high

school students reveals that 70% of these students say they
want to own their own business some day (Timmons, 2004: 7)
Annual Chronicle survey: 40% of incoming students have
entrepreneurship as major goal for why they are going to
college
Fortune 500 employment decline: 1970 (20%) 1996 (8.5%)
Small firms constitute more than 90 percent of the entire
business population

Virtually of USAs economic growth is coming

from entrepreneurial ventures of all sizes and
types
Not yet tainted by corporate way of life
Good time to take risk!!!

Entrepreneurship
A process, not a type of person
Creating and/or building something of value
Identifying an opportunity
Pulling together the needed resources to
pursue the opportunity
Developing and implementing a Business
Plan
Involves uncertainty and the acceptance of
risk

The Nature of
Entrepreneurial Risk
Failure
Sinking the Boat Risk
Opportunity Cost
Missing the Boat Risk

Myths about
Entrepreneurship
The Lone Cowboy Myth.
The Experience Myth.
The Im Only in it for the Money Myth.
The Entrepreneurs are Gamblers
Myth.

Myths about
Entrepreneurship
The Entrepreneurs Dont Have to
Worry about Numbers Myth.
The All You Need is Money Myth.
The Ive Got a Secret Myth.
The IPO Myth.

Other Opportunities for Learning

Curb event center retail space
Hatchery
Practicing entrepreneurs activities
Entrepreneurship club
Internships
Mentors
Networking!!!

The Entrepreneurial Process

Working Definition of
Entrepreneurship
Entrepreneurship is a way of
thinking, reasoning and acting that
is opportunity obsessed, holistic in
approach [emphasis added], and
leadership balanced (Timmons,
1999: 27).

The Entrepreneurial Process

(Timmons, 2000)

Communication
Opportunity
Ambiguity
Creativity

Resources
Business Plan
Fits and Gaps
Exogenous Forces
Team

Uncertainty

Leadership
Capital Market Forces

Founder

The Entrepreneurial Process

Eval., Review,
& Feedback

Implementation

Analysis

Strategy
Formulation

The Entrepreneurial Process

Three Part Process
Planning
Luck

Strategy

Exit/Succession

Tr ansition

Growth

Start -up

Pre -launch

Life Cycle of a Business Venture

Pre-Launch Process:
Idea Generation
Understanding the Genesis of New
Businesses in the Economy
Sources of Ideas: Where to Look

The Entrepreneurial Process

Challenge Traditional Definitions of Value
Entrepreneurship thrives on market
inefficiencies
Customers seek improvement in the
following:

Speed
Convenience
Personalization
Price

Pre-Launch Process:
Evaluating Ideas Generation
Does the Idea = an Opportunity?
Market
Margin
Mission

The Right Team?

The Necessary Resources?

The Start-up Process

Filling the Gaps
The Business Plan
Executive Summary
Market Analysis and Marketing Plan
Operating Plan and Team
Financial Plan

Growing the Business

CASH FLOW MANAGEMENT
Building a Culture
Marketing
Staffing
Building Management & Administrative
Systems

Exit or Succession

Entrepreneurial Careers
Do it now!
Not necessarily a one shot deal
Sentry Position (in consulting firm or in
industry)
Family or existing Small Business
Corporate Track

Key Takeaway Points . . .

No fully satisfactory definition of
entrepreneurship has been developed to date
(i.e., one that garners collective agreement
among scholars & practitioners alike).
Entrepreneurship reflects creative,
innovative, and arbitrage oriented behaviors.
Is a process; involves planning, strategizing,
and a little bit of luck.
Interconnectedness of resources and
opportunities

Key Takeaway Points . . .

Entrepreneurship can occur and fail to occur

in firms that are old and new; small and

large, fast and slow growing; in the private,
not-for-profit, and public sectors; in all
geographic points; and in all stages of a
nations development.