Ch. 1: The Foundations of Entrepreneurship,The World of the Entrepreneur,Every year U.S. entrepreneurs launch 565,000 new businesses. Entrepreneurial spirit - the most significant economic development in recent history. GEM study: 12.3% of adult population in the U.S. is actively involved in trying to start a new business.,1 - 2,Ch. 1: The Foundations of Entrepreneurship,Entrepreneurial Activity Across the Globe,1 - 3,Ch. 1: The Foundations of Entrepreneurship,Entrepreneurship-Friendly Nations,1 - 4,Ch. 1: The Foundations of Entrepreneurship,The World of the Entrepreneur,Global Entrepreneurship Monitor (GEM) study reports: Men are twice as likely to start a business as women. Most entrepreneurs turn to family members and friends for capital. Entrepreneurs are most likely to launch businesses when they are between the ages of 35 and 44.,1 - 5,Ch. 1: The Foundations of Entrepreneurship,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.,1 - 6,Ch. 1: The Foundations of Entrepreneurship,What is an Entrepreneur?,1803: Jean-Baptiste Say: An entrepreneur is an economic agent who unites all means of production- land of one, the labour of another and the capital of yet another and thus produces a product. By selling the product in the market he pays rent of land, wages to labour, interest on capital and what remains is his profit. He shifts economic resources out of an area of lower and into an area of higher productivity and greater yield. 1934: Schumpeter: Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services.,1 - 7,Wikipedia.org,What is an Entrepreneur?,1961: David McClleland: An entrepreneur is a person with a high need for achievement N-Ach. He is energetic and a moderate risk taker. 1964: Peter Drucker: An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource. 1971: Kilby: Emphasizes the role of an imitator entrepreneur who does not innovate but imitates technologies innovated by others. Are very important in developing economies.,1 - 8,Wikipedia.org,What is an Entrepreneur?,1975: Albert Shapero: Entrepreneurs take initiative, accept risk of failure and have an internal locus of control. 1975: Howard Stevenson: Entrepreneurship is the pursuit of opportunity without regard to resources currently controlled. 1983: G. Pinchot: Intrapreneur is an entrepreneur within an already established organization. 1985: W.B. Gartner: Entrepreneur is a person who started a new business where there was none before.,1 - 9,Wikipedia.org,Characteristics of Entrepreneurs,Desire for responsibility Preference for moderate levels of risk risk eliminators Confidence in their ability to succeed Determination Desire for immediate feedback High level of energy Future orientation opportunity, necessity, and serial entrepreneurs Skilled at organizing Value achievement over money,1 - 10,Ch. 1: The Foundations of Entrepreneurship,Characteristics of Entrepreneurs,Entrepreneurs tend to exhibit: A high degree of commitment Tolerance for ambiguity Flexibility A willingness to work hard Tenacity,1 - 11,Ch. 1: The Foundations of Entrepreneurship,Sources of Entrepreneurial Success,1 - 12,Ch. 1: The Foundations of Entrepreneurship,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,1 - 13,Ch. 1: The Foundations of Entrepreneurship,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,1 - 14,Ch. 1: The Foundations of Entrepreneurship,Feeding the Entrepreneurial Fire,Entrepreneurs as heroes Entrepreneurial education Demographic and economic factors Shift to a service economy Technology advancements Independent lifestyle The Internet and cloud computing,1 - 15,Ch. 1: The Foundations of Entrepreneurship,U.S. Retail E-Commerce Revenues,1 - 16,Ch. 1: The Foundations of Entrepreneurship,Feeding the Entrepreneurial Fire,Entrepreneurs as heroes Entrepreneurial education Demographic and economic factors Shift to a service economy Technology advancements Independent lifestyles The Internet and cloud computing International opportunities,1 - 17,Ch. 1: The Foundations of Entrepreneurship,(continued),The Cultural Diversity of Entrepreneurship,Young entrepreneurs,1 - 18,Ch. 1: The Foundations of Entrepreneurship,Entrepreneurial Activity by Age Group,1 - 19,Ch. 1: The Foundations of Entrepreneurshi