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Entrepreneurship is a term, which has evolved over the years. Previously entrepreneurs were doing so many things that it broadened the true definition of a entrepreneur. The definition of an entrepreneur “is one who undertakes to organize, manage, and assume the risks of a business” (Kuratko). In the 21st century entrepreneur are looked upon as innovator or developer who recognize and seize opportunity. These types of people are also responsible for converting the opportunities into workable/marketable ideas (Kuratko). The term entrepreneur went from meaning “risk- bearing” to now the 21st century meaning inventor, innovator, marketer, manager, and organizer and risk taker. Those are the quality normally possessed by an entrepreneur.
The Ten Myths Associated With Entrepreneurship
1. Entrepreneurs are doers, not thinkers: Doing is great but if your not using your head, then your actions won’t get you far. 2. Entrepreneurs are born, not made: A person can be born with tenacity or good communication skills but that doesn’t mean these traits must be possessed to be a good entrepreneur.
Today colleges are teaching entrepreneurship classes, these classes help future businessmen unlock the key ingredients to being successful. 3. Entrepreneurs are always inventors: Some people re-invent the wheel to be more efficient. Most entrepreneurs are taking something that is already established, slightly twisting the established product or idea and selling it. 4. Entrepreneurs are academic and social misfits: This comes the media pushing the fact that many large and successful companies have owners or creators that were high school or college dropouts. There are so many entrepreneurs today, and you only hear of the ones who are dropouts and doing well for themselves. How often do you hear about the Harvard or Yale graduate who runs a multi-million dollar business? Those kinds of owners are a dime a dozen. 5. Entrepreneurs must fit the “profile”: It’s impossible to say that you must look a certain way to get ahead in life. If that’s the case Bill Gates should work at McDonalds. Today many Americans link success to good-looking people. 6.
All entrepreneurs’ need is money: Money helps with just about everything. It normally takes a little money to earn a little money. This isn’t always the case though, look at the small dot com businesses that started with college guys working out of a basement or garage. Through good financial planning and a well managed business anyone can be an entrepreneur. 7. All entrepreneurs’ need is luck. Luck can certainly play a role in running a successful business. Although, proper planning and preparation are normally the reason behind such success. 8. Ignorance is bliss for entrepreneurs. This relates a lot to luck, if you are oblivious to something within the business, it was luck that let you get by. Again, planning and preparation are the core values a entrepreneur must possess to not just get by, but to succeed in the long run. 9. Entrepreneurs seek success but experience high failure rates: Not all entrepreneurs fail, for example Bill Gates. There isn’t a business out there that has never been through rough times, it’s inevitable. 10. Entrepreneurs are extreme risk takers: Most entrepreneurs know what kind of risk there taking, its normally a well-thought out plan that there trying to achieve.
What are the major elements in the framework for entrepreneurship presented in Figure 2.4? Give examples of each element There are four major elements in the framework for entrepreneurship. The first is “The Individual” the factors of this dimension are: need for achievement, locus of control, risk- taking propensity, job satisfaction, previous work experience, entrepreneurial parents, age and education. The second is “The Environment” which includes factors such as: venture capital availability, presence of experienced entrepreneurs, technically skilled labor force, to name a few. The third dimension is “The Organization” which has fewer factors including: type of firm, entrepreneurial environment, partners, strategic variable and competitive entry wedges. The last dimension is “The Process” which holds factors such as: locating a business opportunity, accumulating resources, marketing products and services. List and explain, in detail, the three (3) advantages of developing an intrapreneurial philosophy. Intrapreneurship is the process of profitably creating innovation within an organizational setting.
The first advantage is it takes multiple approaches; innovative managers encourage several projects to proceed in parallel development. The second advantage is it displays interactive learning within an innovative environment, learning and investigating ideas that are cut across traditional functional lined in the organization. The last advantage is the skunkwork, which means every highly innovative enterprise uses groups that function outside traditional lines of authority. Intrapreneurial Strategy Managers need to 1.) develop the vision, 2.) encourage innovation, 3.) structure for an intrapreneurial climate and 4.) develop venture teams. Shared vision is critical to a company that is set on high standards, including high achievement and goals. Next, encouraging innovation is key to long-term success of a company.
If the company isn’t moving forward then they will eventually fall off. Keeping up with the competition will only get you as far as them, using radical innovation is the real key winner. Structuring for an intrapreneurial climate means maintaining a peaceful environment for the employees. The environment not only deals with noise related problems but attitudes amongst employees and individualism. The last strategy is venture team, which is composed of two or more people who formally create and share the ownership of a new organization. In a sense a venture team is a small business operating within a large business and its strength is its focus on design issues for innovative activities (Kuratko).
Kuratko, Donald F. and Hodgetts, Richard M. Entrepreneurship: Theory, Process, and Practices, Sixth Edition