Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityPart I:Part I: 创业家精神创业家精神第一章第一章创业家精神和创业家创业家精神和创业家The Nature and Importance of Entrepreneurship1Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityContentGrowing interest in EntrepreneurshipDefinitions of entrepreneurshipThe economical viewpoint of the EntrepreneurThe entrepreneurial decision processThe Benefits of EntrepreneurshipThe Potential Drawbacks of EntrepreneurshipMoving from passive to activeThe Cultural Diversity of EntrepreneurshipSmall Business2Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen University学习要点：学习要点：M To introduce the concept of entrepreneurship and its historical development.M To explain the role of entrepreneurship in economic development. M To explain the entrepreneurial decision process.M To identify the basic types of start-up ventures.Why? What? Who?3Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityContentGrowing interest in EntrepreneurshipDefinitions of entrepreneurshipThe economical viewpoint of the EntrepreneurThe entrepreneurial decision processThe Benefits of EntrepreneurshipThe Potential Drawbacks of EntrepreneurshipMoving from passive to active:The Cultural Diversity of Entrepreneurship:Small Business4Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityM新闻（新浪王志东，新希望等）新闻（新浪王志东，新希望等）M大公司的企业家精神（大公司的企业家精神（GE，FedEx）M经济学家（小企业在国家经济中的作经济学家（小企业在国家经济中的作用）用）M大学大学Entrepreneurship教育课程的开设教育课程的开设5Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen University问题：问题：为什么创业（企业）家和小企业如此吸引人？在为什么创业（企业）家和小企业如此吸引人？在现代工业社会，规模经济即意味着有效率，但为什么又有现代工业社会，规模经济即意味着有效率，但为什么又有大量的小企业存在？大量的小企业存在？ Stevenson 和和Sahlman（1989）认为：认为：MEconomic importance of entrepreneurship:v 70年代年代Apple Computer 的成功的成功v GDP和就业：和就业：SMEs consisting of over 95 of all enterprises, employing up to 80 of the work force and contributing 30 to 60 of the GNP of APEC economies and accounting for 35 of exports in the region. v 创新：创新：424倍每倍每1美元和美元和2.5倍每雇员创新数。倍每雇员创新数。6Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityMPsychological and personal rewards of entrepreneurs （Push or Pull)v我们讨厌了大组织的官僚气氛？我们讨厌了大组织的官僚气氛？v追求财富？追求财富？v人的特性即欣赏在那些小企业成功或失败人的特性即欣赏在那些小企业成功或失败后面企业家的故事？后面企业家的故事？v或者我们都有一种愿望设立自己的企业，或者我们都有一种愿望设立自己的企业，成为成长企业的老板，欣赏企业的成长？成为成长企业的老板，欣赏企业的成长？7Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityTable 1 Job satisfying personal values Self-employed (%)Work for others (%)To a great extent53.634.6To a significant extent33.342.2To some extent9.415.4Not significantly3.67.8Source: Stenenson and Sahlman (1989), Survey of 6000HBS graduates8Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityTable 2 The four most important job valuesSelf-employed (%)Not self-employed (%)Economic39.231.6Other job features29.940.2External rewards10.811.6Life-style values19.916.5Table 3 Financial net worth fifteen or more years following graduation (%)($1000)2500SE1111.217.714.629.224.8Non SE1.920.124.322.819.111.89Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityPeters （1998）认为）认为一个主要的原因一个主要的原因是在企业背后的：是在企业背后的：创业家和创业家精神创业家和创业家精神10Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityContentGrowing interest in EntrepreneurshipDefinitions of entrepreneurshipThe economical viewpoint of the EntrepreneurThe entrepreneurial decision processThe Benefits of EntrepreneurshipThe Potential Drawbacks of EntrepreneurshipMoving from passive to active:The Cultural Diversity of Entrepreneurship:Small Business11Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityEntrepreneur: An individual who establishes and manages a business for the principal purpose of profit and growth. The entrepreneur is characterized principally by innovative behavior and will employ strategic management practices in the business.Small business owner: An individual who establishes and manages a business for the principal purpose of furthering personal goals. The business must be the primary source of income and will consume the majority of ones time and resources. The owner perceives the business as an extension of his or her personality, intricately bound with family needs and desires.12Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen University“An entrepreneur is someone who exercises business judgement in the face of uncertainty” (Cantillon, 1755)“The function of the entrepreneur is to reform or revolutionize the pattern of production by exploiting an invention or, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, opening a new source of supply of materials or a new outlet for products, by reorganizing a new industry” (Schumpeter, 1936)“Entrepreneurial judgement: the ability to discover new ways of dealing with known problems or new combinations of given knowledge” (Penrose, 1959)“Entrepreneurship is defined as the relentless pursuit of opportunity without regard to resources currently controlled. ” (Stevenson, 1983)13Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityCreation of valueTime and effortReadiness for riskRewards of monetary or independence“Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence.” (Peters, 1998)14Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityEntrepreneurial model FocusAssumptionSituationClassical or economicalInnovationEntrepreneurship is doing rather than owningStart-up and early growthPsychologicalUnique characteristicsPeople behave in accordance with their valuesStart-upSociologicalFamily and environmental dynamicsEarly childhood influences affect career decisionStart-upManagementPlanning, organizing, leading and controlEntrepreneurs can be developed and trainedEarly growth and maturityIntrapreneurshipVenture teams within organisationsEntrepreneurs effect change within organisationsMaturity and change15Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityContentGrowing interest in Entrepreneurship Definitions of entrepreneurshipThe economical viewpoint of the EntrepreneurThe entrepreneurial decision processThe Benefits of EntrepreneurshipThe Potential Drawbacks of EntrepreneurshipMoving from passive to active:The Cultural Diversity of Entrepreneurship:Small Business16Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityEntrepreneurUncertainty(Cantillon, 1755)(Knight, 1921)Risk-taker(Cantillon, 1755)(Knight, 1921)(Mill, 1948)MarketOpportunities(Kirzner, 1973)(Kirchhoff, 1994)(Leibenstein, 1978)New Product combinations (Schumpter, 1934)Manager (Marshall, 1920 )(Say, 1845)Capitalist(Smith, 1776)Decision-maker(Keynes, 1936)(Menger, 1871)(Mises, 1949)Organises Production(Coles, 1959)(Say, 1845)17Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityOpportunity: A desired future state which is different from the present, and it is a belief that an achievement of that state is possible. Seeing and believing that, and how great things are possible, is really the heart of opportunity.Capital resources have been over-emphasized. Building teams of people, exploiting technology, and developing trust and mobility of resources. “Entrepreneurship is defined as the relentless pursuit of opportunity without regard to resources currently controlled. ” (Stevenson, 1983)18Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityStevenson (1989) : Entrepreneurship is a process，a range of behavioral phenomenon.Pressures toward this sidePromoterKey business dimensionTrustee Pressures toward this sideDiminishing opportunity streamsRapidly changing:TechnologyConsumer economicsSocial valuesPolitical rulesDriven by perception of opportunityStrategic orientationDriven by resources currently controlledSocial contractsPerformance measurement criteriaPlanning systems and cycle19Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityAction orientationShort decision windowsRisk managementLimited decision constituenciesRevolution-ary with short durationCommitment to Opportunity Evolutionary of long durationAcknowledge-ment of multiple constituenciesNegotiation of strategyRisk reductionManagement of fitLack of predictable resource needsLack of long-term controlSocial need for more opportunity per resource unitInternational pressure for more efficient resource useMultistaged with minimal exposure at each stageCommitment of ResourcesSingle-staged with complete commitment upon decisionPersonal risk reductionIncentive compensationManagerial turnoverCapital allocation systemFormal planning system20Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityIncreased resource specializationLong resource life compared to needRisk of obsolesceRisk inherent in any new ventureInflexibility of permanent commitment to resourcesEpisodic use or rent of required resourcesControl of ResourceOwnership or employment of required resourcesPower, status and financial rewardsCo-ordinationEfficiency measuresInertia and cost of changeIndustry structures21Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityCo-ordination of key non-controlled resourcesChallenge to legitimacy of owners controlEmployees desire for independenceFlat with multiple informal networksManage-ment StructureFormalized hierarchyNeed for clearly defined authority and responsibilityOrganizational cultureReward systemsManagement theoryIndividual expectationsCompetitionIncreased perception of personal wealth creation possibilitiesValue-basedTeam-basedUnlimitedCompensation/Reward policyResource-basedDriven by short-term dataPromotionLimited amountSocietal normsImpacted informationSearch for simple solutions for complex problemsDemands of public shareholders22Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityContentGrowing interest in EntrepreneurshipDefinitions of entrepreneurshipThe economical viewpoint of the EntrepreneurThe entrepreneurial decision processThe Benefits of EntrepreneurshipThe Potential Drawbacks of EntrepreneurshipMoving from passive to active:The Cultural Diversity of Entrepreneurship:Small Business23Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityChange from present life-style:Work environmentDisruptionForm new enterprise:DesirableMCulturalMSubculturalMFamilyMTeachersMPeersPossibleMGovernmentMBackgroundMMarketingMFinancingMRole models24Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityContentGrowing interest in EntrepreneurshipDefinitions of entrepreneurshipThe economical viewpoint of the EntrepreneurThe entrepreneurial decision processThe Benefits and Potential Drawbacks of EntrepreneurshipMoving from passive to active:The Cultural Diversity of Entrepreneurship:Small Business25Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityThe Benefits of EntrepreneurshipMOpportunity to cerate your own destiny;MOpportunity to make a difference;MOpportunity to reach your full potentialMOpportunity to reap unlimited profits;MOpportunity to contribute to society and be recognized for your efforts;MOpportunity to do what your enjoy and have fun at it;MChallenge 26Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityThe Potential Drawbacks of EntrepreneurshipMUncertainty of incomeMRisk of losing your entire investmentMLong hours and hard workMLower quality of life until the business gets establishedMHigh levels of stressMComplete responsibilityMDiscouragement27Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityContentGrowing interest in EntrepreneurshipDefinitions of entrepreneurshipThe economical viewpoint of the EntrepreneurThe entrepreneurial decision processThe Benefits of EntrepreneurshipThe Potential Drawbacks of EntrepreneurshipMoving from passive to activeThe Cultural Diversity of Entrepreneurship:Small Business28Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityMThe it works: A product which has been worked on for many years, either as a hobby or at work, finally gels.MThe eureka:An idea completely out of the blue, but which is often simply a new way of packaging old products or ideas.MThe if only: “If only I could buy products in smaller packages”.MThe high comfort level: Constant encouragement from family and friends.MThe friendly push:Suddenly the path is made clear.MThe misfit:The person does not fit as an employee finally dawns upon him.MThe unfriendly push: Unemployment or enforced redundancy.MThe no alternative:Physical disability or illness.MThe gray to white: Part time to full time.29Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityContentGrowing interest in EntrepreneurshipDefinitions of entrepreneurshipThe economical viewpoint of the EntrepreneurThe entrepreneurial decision processThe Benefits of EntrepreneurshipThe Potential Drawbacks of EntrepreneurshipMoving from passive to active:The Cultural Diversity of EntrepreneurshipSmall Business30Entrepreneurship and New Business VentureEntrepreneurship and New Business Venture Dr. Lin Guo, MBA Centre, Xiamen UniversityMYoung entrepreneurs (17: 你有愿望、能力、适应性等创立一家企业；你有愿望、能力、适应性等创立一家企业；M1317：创业家精神不显著。当你明确有能力：创业家精神不显著。当你明确有能力成为一个创业家时，应该确定你能够应付企业家成为一个创业家时，应该确定你能够应付企业家面对的各种问题；面对的各种问题；M13：你的创业家精神不显著，也许职业经理：你的创业家精神不显著，也许职业经理人更适合你。人更适合你。但记住：但记住：M这个测试并不十分科学；这个测试并不十分科学；M无论你的分数如何，在你真正想进入创业过程无论你的分数如何，在你真正想进入创业过程时，请花一些时间了解你感兴趣行业的相关经验。时，请花一些时间了解你感兴趣行业的相关经验。36