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1/2 Entrpreneurship Class Summary Notes
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Entrpreneurship a Tool to create value:- Create new jobs
- Create new industries
- Provide new ideas and tools to society
- Boost economic performance
Who is an entrepreneur?
• Being an entrepreneur is more than just creating a new business, it also implies:
– Taking risks beyond security
– Constantly seek new opportunities
– Having the tenacity to push an idea through to reality
Classical Econ. Vs. Entrepreneurship
• Entrepreneurship deals with “disrupting” the existing equilibrium, by creating a new
firm/product/service...
• Differs from the classical economics viewpoint :
In an ideal economy…
-Firms cannot influence prices
-Products are homogeneous
-No entry barriers
-No transaction costs
-Profits tend to zero “0”…
,Becoming an entrepreneur
Essential ingredients to become an entrepreneur:
• The vision to recognize opportunity where others see chaos,
contradiction, and confusion.
• The fundamental skills of building a solid business plan.
• The ability to formulate an effective venture team; the creative skill to
marshal needed resources.
• The willingness to take calculated risks—in terms of time, equity, or
career.
Entrepreneurs and Age
What is the relationship?
• Studies show that successful entrepreneurs are likely to be older than unsuccessful
entrepreneurs, and have at least 8 to 10 years of experience in the field in which they
venture.
Why becoming an entrepreneur?
There are economic incentives to start a new venture:
-Monopoly power?
-Above-average returns?
But how strong are these incentives?
-Only very few exceptional of new ventures achieve monopoly power in the
short/medium term…
-If we take into account the number of hours invested, creating new ventures are “not
so profitable” after all…
There are strong motivational drivers of entrepreneurial orientation:
-Create and design your own job (rather than having a boss)
-It is a non-routine, varied activity
, -Live your own dream
-Create something where there is nothing
Current economic situation may not seem appropriate
BUT…
-There has never been a cheaper time to start a new business.
-There’s a lot of talent out there waiting to be employed.
-Many investors looking to invest in new ideas, but they don’t dominate the
technological/digital arena.
-Urgent need to develop new industries (and jobs).
-Social entrepreneurship. Worldwide there are plenty of social needs that are waiting
to be fulfilled.
21st Century Trends in Entrepreneurship Research
Entrepreneurship 2
How important is entrepreneurship
for our society?
“Entrepreneurship is important for economic growth, productivity, innovation and
employment, and many OECD countries have made entrepreneurship an explicit policy priority.
As globalization reshapes the international economic landscape and technological change
creates greater uncertainty in the world economy, entrepreneurship is believed to offer ways to
help to meet new economic, social and environmental challenges” OECD Report, 2011
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