Module:
Entrepreneurship
Dr Tamer Karam
The Currilcum
The Assessment
Mid-Term Assignment – Take Home 35%
Final Assignment – Live Presentation 50%
Participation 5%
Attenedence 10%
Essentials of Entrepreneurship and Small
Business Management
Eighth Edition
Section 1: The Challenge of Entrepreneurship
Chapter 1
The Foundations
of
Entrepreneurship
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Learning Objectives
§ Define the role of the entrepreneur in
business in the United States and around
the world.
§ Describe the entrepreneurial profile.
§ Describe the benefits of entrepreneurship.
§ Describe the drawbacks of
entrepreneurship.
§ Explain the forces that are driving the
growth of entrepreneurship.
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Learning Objectives (continued)
§ Explain the cultural diversity of
entrepreneurship.
§ Describe the important role that small
businesses play in our nation’s economy.
§ Put failure into the proper perspective.
§ Explain how an entrepreneur can avoid
becoming another failure statistic.
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Why do entrepreneurs care
about climate change and global
warming?
• For centuries entrepreneurs
exploited the environment
without any thought for
sustainability.
• Henry Ford and Thomas
Edison accelerated global
warming.
• Will modern entrepreneurs
reverse the toxic trend?
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The World of the Entrepreneur
• Every month U.S. entrepreneurs launch
514,000 new businesses.
• Entrepreneurial spirit - the most significant
economic development in recent history.
• GEM study: 12.7% of adult population in
the United States is actively involved in
trying to start a new business.
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Entrepreneurial Activity
Across the Globe
Entrepreneurship-Friendly Nations
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Ch. 1: The Foundations of Entrepreneurship
Ch. 1: The Foundations of Entrepreneurship
The World of the Entrepreneur
Global Entrepreneurship Monitor (GEM) study:
• Men are twice as likely to start a business
as women.
• Entrepreneurs are most likely to launch
businesses when they are between the
ages of 35 and 44.
• Most people see entrepreneurial activity as
a good career choice.
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Self Reflection…
? • What does the word
‘entrepreneur’ mean to you?
• In your language or culture,
what is the word for
entrepreneur?
What Is an Entrepreneur?
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.
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The word ‘entrepreneur’
is a French verb
entreprendre, meaning
‘to take in between’, or ‘to
undertake’ (someone
who undertakes)
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Characteristics of Entrepreneurs
§ Desire for responsibility § High level of energy
§ Preference for § Future orientation
moderate levels of risk: § Opportunity
risk eliminators entrepreneurs
§ Self-reliance § Necessity
§ Confidence in their entrepreneurs
ability to succeed § Serial entrepreneurs
§ Determination § Skilled at organizing
§ Desire for immediate § Value achievement over
feedback money
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Most Important Qualities
of an Entrepreneur
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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).
Copyright © 2016, 2014, 2011 Pearson Education, Inc. All Rights Reserved.
Benefits of Entrepreneurship
The opportunity to:
§ Create your own destiny.
§ Make a difference.
§ Reach your full potential.
§ Reap impressive profits.
§ Contribute to society and to be
recognized for your efforts.
§ Do what you enjoy and to have fun at it.
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Drawbacks of Entrepreneurship
§ Uncertainty of income
§ Risk of losing your entire investment
§ Long hours and hard work
§ Lower quality of life until the business
gets established
§ High levels of stress
§ Complete responsibility
§ Discouragement
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Sources of Stress for
Entrepreneurs
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The Cultural Diversity of
Entrepreneurship
§ Young entrepreneurs § Family businesses
§ Women entrepreneurs § Copreneurs
§ Minority-owned § Corporate castoffs
enterprises § Corporate dropouts
§ Immigrant § Social entrepreneurs
entrepreneurs
§ Retiring Baby Boomers
§ Part-time
entrepreneurs
§ Home-based
businesses
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Entrepreneurial Activity
by Age Group
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The Power of Small Businesses
Small businesses:
§ Make up 99.7% of the 27.8 million businesses in the
United States
§ Employ 49.2% of the nation’s private sector workforce
§ Create more jobs than big businesses
§ Created 64% of net new jobs over
the last decade
§ 5% of small companies create 67% of net new jobs in
the economy
§ Gazelles
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Are all entrepreneurs
gazelles?
Myths about gazelles
• All entrepreneurs should be
gazelles.
• Only gazelles get venture capital.
• Gazelles were never mice.
• Gazelles are high tech.
• Gazelles are global.
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Small Businesses by Industry
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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.
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Small Business Failure Rate
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Avoiding the Pitfalls of
Small Business Failure
• Know your business in depth
• Build a viable business model – and test it
• Develop a solid business plan
• Understand financial statements
• Manage financial resources
• Learn to manage people effectively
• Set your business apart from the
competition
• Maintain a positive attitude
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Conclusion
Entrepreneurs:
• Are an important part of the free
enterprise system
• Are a diverse and talented group of
people
• Represent a cross-section of society as a
whole
• Are able to enhance the profitability of
their businesses through acquiring
additional knowledge and experience
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