Chapter 2:

Entrepreneurship Today

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Learning Objectives
To realize there is no consensus
concerning the definition of
entrepreneur.
Understand the decision to become an
entrepreneur is influenced by an
individuals personality, the ethnocultural environment, circumstances in
society, and the interaction of these
forces.
To comprehend the many advantages and
disadvantages of being an entrepreneur
and, therefore, the decision to
start
a
PRENTICE
HALL
2007 by Pearson Education, Inc.
ENTREPRENEURSHIP, 4/e
business
must
be
weighted
very
carefully.
Upper
Saddle River, NJ 07458
By Lambing and Kuehl
2

The Entrepreneurial
Process

The entrepreneurial process

is common in the United
States
Each year, 1 of every 25
people is actively involved
in trying to start a new
business
Many of these ventures start
out as part-time businesses

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Entrepreneurial
Activities

New concept/new business

Existing concept/new business
Existing concept/existing
business

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Factors of
Entrepreneurship

The individual
Cultural factors
Circumstances in society
Combination of factors

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

The Individual

Passion for the business

Tenacity despite failure
Confidence

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

The Individual

(cont.)

Self-determination
Management of risk
Seeing changes as
opportunities

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

The Individual

(cont.)

Tolerance for ambiguity

Initiative and need for
achievement
Detail orientated and
perfectionism

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

The Individual

(cont.)

Perception of passing
time
Creativity
Ability to see the big
picture

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

The Individual

(cont.)

Motivating Factors

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

To use personal skills and

abilities
To gain control over his/her life
To build something for the family
Because he/she liked the challenge
To live how and where he/she
chooses

10

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

The Individual

(cont.)

Self-Efficacy

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

A persons belief in his or her

ability to perform a task
Belief that success as an
entrepreneur is possible

11

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Cultural Factors

Some ethno-cultural groups

have higher rates of
entrepreneurship than do
others
Effect or culture and traits
may be intertwined
Cultural differences also
affect the status of
entrepreneurs

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

12

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Circumstances in
Society

Downsizing
Immigrants
Called adaptive-response
behavior

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

13

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

The Entrepreneur and the

Business Plan

When writing a business plan,

key information will include
the entrepreneurs:

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

Education
Work experience
Entrepreneurial personality
characteristics

14

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Advantages of
Entrepreneurship
Autonomy
Challenge of a
start-up
Financial control

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

15

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Disadvantages of
Entrepreneurship

Personal sacrifices
Burden of responsibility
Little margin for error

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

16

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458