ntrepreneurship
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Entrepreneurship-Friendly Nations
Ch. 1: The Foundations of Entrepreneurship
Ch. 1: The Foundations of Entrepreneurship
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
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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.
Ch. 1: The Foundations of Entrepreneurship
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
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Entrepreneurial Activity Across the Globe
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.
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
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The World of the Entrepreneur
Global Entrepreneurship Monitor (GEM) study reports:
Ch. 1: The Foundations of Entrepreneurship
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
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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.
Ch. 1: The Foundations of Entrepreneurship
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
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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.
Ch. 1: The Foundations of Entrepreneurship
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall
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The World of the Entrepreneur
Every year U.S. entrepreneurs launch 565,000 new businesses.
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.
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.
► 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.