(1) Entrepreneurs are doers, not thinkers.
They are often very methodical people who plan their
moves carefully. Today the emphasis is
on the creation of clear, complete business plans.
(2) Entrepreneurs are born, not made.
The
recognition of entrepreneurship as a discipline has helped to dispel this
myth. Like
all disciplines, entrepreneurship has models,
processes, and case studies that allow the topic to be studied and the traits
acquired.
(3) Entrepreneurs are either inventors or
innovators.
There are numerous entrepreneurs who encompass all
sorts of profit-seeking activity. For
example, Ray Kroc did not invent the fast-food franchise, but his innovative
ideas made McDonald’s the largest fast-food enterprise in the world.
(4) Entrepreneurs are academic and social misfits.
Today
the entrepreneur is considered a hero¾socially, economically, and academically. No longer a misfit, the entrepreneur is now
viewed as a professional.
(5) Entrepreneurs must fit the “profile.”
Many
books and articles have presented checklists of characteristics of the
successful entrepreneur. These lists
were neither validated nor complete.
Today we realize that a standard entrepreneurial profile is hard to
compile. The environment, the venture
itself, and the entrepreneur have interactive effects, which result in many
different types of profiles.
(6) All you need is money to be an
entrepreneur.
Having
money is not the only bulwark against failure.
Failure due to a lack of proper financing often is an indicator of other
problems.
(7) All you need is luck to be an entrepreneur.
“Luck
happens when preparation meets opportunity” is an equally appropriate
adage. Prepared entrepreneurs who seize
the opportunity when it arises often appear to be “lucky.”
(8) Ignorance is bliss for an entrepreneur.
Identifying
the strengths and weaknesses of a venture, setting up clear timetables with
contingencies for handling problems and minimizing these problems through
careful strategy formulation are all key factors in successful
entrepreneurship.
(9) Entrepreneurs seek success but experience
high failure rates.
Many
entrepreneurs suffer a number of failures before they are successful. They
follow the adage “If at first you don’t succeed, try, try, again.” In fact, failure can teach many lessons to
those willing to learn and often leads to future successes.
(10) Entrepreneurs are extreme risk takers
(gamblers).
The
concept of risk is a major element in the entrepreneurship process. However, the public’s perception of the risk
assumed by most entrepreneurs is distorted.
While it may appear that an entrepreneur is “gambling” on a wild chance,
the fact is that the entrepreneur is usually working on a moderate or
“calculated” risk.
3. What is the macro view of entrepreneurship?
The macro view of entrepreneurship presents a broad array of
factors that relate to success or failure in contemporary entrepreneurial
ventures. This array includes external
processes that are sometimes beyond the individual’s control.
4. What are the schools of thought that use
the macro view of entrepreneurship?
The environmental school of thought, the financial capital
school of thought, and the displacement school of thought.
5. What is the micro view of entrepreneurship?
The micro view of entrepreneurship examines the factors that
are specific to entrepreneurship and part of the “internal” focus of control.
6. What are the schools of thought that use
the micro view of entrepreneurship?
The entrepreneurial trait school of thought, the venture
opportunity school of thought, and the strategic formulation school of thought
7. What are the three specific types of
displacement?
Political displacement, cultural displacement, and economic
displacement
8. In the strategy formulation school of
thought, what are the four types of strategies involved with unique elements?
Give an illustration of each.
(1) Unique markets-example¾College campus business would tend to market products
college people want and need.
(2) Unique people¾If you were going to open up a car repair shop, you
need to know how to repair cars.
(3) Unique products¾Coke differs from Pepsi.
(4) Unique resources¾Middle-easterners have the ability to produce more oil
products.
9. What is the
process approach to entrepreneurship? In
your answer, describe the entrepreneurial assessment approach.
The process approach to entrepreneurship
is a way to examine the activities involved in entrepreneurship by using either
an “entrepreneurial assessment” approach or a “multidimensional approach.” Both of these methods attempt to describe the
entrepreneurial process as a consolidation of diverse factors.
The
entrepreneurial assessment focuses on the process of entrepreneurial activity
and includes the following factors: (1)
the entrepreneur; (2) the venture; and (3) the environment. All of these factors are assessed
quantitatively, qualitively, strategically, and ethically.
10. What are the major elements in the framework
for entrepreneurship presented in Figure 2.4?
Give an example of each.
The major elements in Gartner’s
framework with examples for each are as follows:
(1) The Individual: Need for achievement, locus of
control, risk-taking propensity, and previous work experience
(2) The Environment: Venture capital availability,
presence of experienced entrepreneurs, accessibility of customers or new
markets, and proximity of universities
(3) The Organization: Type of firm,
entrepreneurial environment, partners, and strategic variables: cost,
differentiation, and focus
(4) The Process: The entrepreneur locates a
business opportunity; the entrepreneur markets products and services.
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