Class notes from Entrepreneurship. Everything from starting a business, creating a business plan, common mistakes when starting a business, and the entrepreneurial process
Entrepreneurship
Chapter 1: Introduction to Entrepreneurship
The Entrepreneurial mindset is the ability to quickly sense, take action, and get
organized under uncertain conditions.
Entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms
Entrepreneurship is the process of individuals pursuing opportunities without
regard to resources they currently control for the purpose of exploiting future goods and
services. Finding an opportunity within a market, putting useful tools to practice.
Corporate Entrepreneurship are firms such as Google who actively work to
inspire and encourage their employees to act as entrepreneurs and develop innovative
products. Typically proactive innovators who are willing to take calculated risks.
Entrepreneurial Intensity describes how risk averse firms are in terms of
entrepreneurship. Proactive innovators are firms, such as Google, who encourage and
inspire their intrapreneurs. Other more conservative firms rather take a wait and see
approach, less innovative, and are risk averse.
Three main reasons people decide to become entrepreneurs.
To be their own boss
- The most common reason people start their own business.
- They can have had a long-time ambition to start a business
- They are frustrated working a tradition 9-5.
- Some entrepreneurs transition from their traditional job when they see that their
small business has started to grow and can financially support them full time.
Pursue their own ideas
- When working for a conservative firm a lot of employees are unable to pursue
their own ideas and some leave the firm employing them to start their own to
develop their ideas.
- Some people who have hobbies, leisure activities, or just day to day life,
recognize the need for a product or service that is not available in the
marketplace.
, Pursue financial rewards
- This motivation is typically secondary to the first two and often fails to live up to
its hype. The average entrepreneur doesn’t make more than someone with a
similar amount of responsibility in a traditional job.
Four main characteristics of successful entrepreneurs.
Passion of the business
- Frequently, it's the passion for an idea that gets a business going and keeps it going
when times get tough.
- Making a difference in people’s lives is the primary motivation behind many social
enterprises, which are often started by people who set aside promising careers to pursue
a social goal.
- It is important to be enthusiastic about a business idea, but it is also important to
understand its potential flaws and risks.
- Understand that the most effective business ideas hold when their passion is consistent
with their skills and is in an area that represents a legitimate business opportunity.
Reason Passion is Important Explanation
Ability to learn and iterate Founders don’t have all the answers. It takes passion and drive to
solicit feedback, make necessary changes, and move forward.
Willingness to work hard for Commonly entrepreneurs work longer hours. You can only do that
an extended period of time on a sustained basis if you’re passionate about what you’re doing.
Ability to overcome setbacks The energy to continue comes from the passions for an idea
Ability to listen to feedback You have to be willing to listen to the people with good intentions
on the limitations of your and make changes if it helps. You also have to be able to brush
organization and yourself aside feedback from people with bad intentions without letting them
get you down.
Perseverance and persistence Passion is what provides an entrepreneur the motivation to get
when the going gets tough through tough times.
Tenacity despite failure
- The process of developing a new business is somewhat similar to what scientist
experience in the laboratory. A chemist, for example, typically has to try multiple
combinations of chemicals before finding an optimal combination that can accomplish a
certain objective.
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