Entrepreneurship. Rhonda Abrams

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       The Four Cs

       The size of your vision

       Your business vision

       “The gig economy” entrepreneur

       From dream to reality

      

Entrepreneurs Make a Difference

      

Critical Thinking Exercise

       What Would Sheryl Do?

       learning objectives

       In this chapter, you’ll learn how to:

      ■ Understand the importance of entrepreneurship

      ■ Recognize the positive contributions of entrepreneurship to society

      ■ Describe the characteristics of successful entrepreneurs

      ■ Recognize the various aspects of change and learn to embrace and leverage them

      ■ Understand the positive aspects of failure

      ■ Define the advantages and disadvantages of entrepreneurship

      ■ Determine personal goals and a company vision

Understanding Entrepreneurship

      Do you dream of one day owning your own business? Do you have an idea for a new or improved product or service that you hope to turn into a reality—something that people will want, buy, value, and even love?

      Do you feel a need to be in control of your own life? To have the opportunity to act on your ideas? Do you want to be your own boss?

      Are you able to motivate yourself to work hard, to do well, even without a boss, or teacher, or parent looking over your shoulder? Do you have the persistence to stick with something until you can make it a reality?

      Are you willing to risk security—of a job, a paycheck, a manager guiding you, the structure of a workplace—for the excitement and possibility of creating your own company? For the chance to perhaps make a fortune or at least earn a good living?

      Are you willing to learn how to handle failure in return for the possibility of independent business success?

      Then what you are dreaming about is “entrepreneurship.”

      The origin of the word is “entreprendre”—French for “to undertake.” Take a look at that word—“undertake.” Notice that it emphasizes an attempt to act, and not the outcome of that action. You undertake something.

      This implies that what matters is that you have begun something; you’ve started on a journey. And although traveling on that journey may not always be a smooth ride, at least you’re in the driver’s seat.

       Entrepreneurship paves a road to personal wealth

       On a personal level, entrepreneurship can make an incredible economic impact. Being successful in starting your own business can be a road to financial freedom. In fact, according to the U.S. Federal Reserve, equity in unincorporated businesses—typically the smallest of independent businesses—makes up the second largest share of total household wealth in America, second only to home equity.

Entrepreneurs change the world

      Entrepreneurs make enormous contributions to societies around the globe. Fast-growing entrepreneurial ventures transform entire economies. Even smaller enterprises make tremendous contributions to the health and stability of their communities.

      Entrepreneurial companies produce far more than just money. They also provide:

      ■ New ideas and innovation. Although some large corporations have research and development departments, overwhelmingly, new products and services are created and introduced by new small companies. This is certainly true in technology, but it’s also true in the entire spectrum of products and services. Many Fortune 500 companies—from computers to cars, cola to cartoons—were started by entrepreneurs with little more than a new and better idea.

       Out with the old, in with the new

       The average lifespan of the 500 largest companies—commonly referred to as the “Fortune 500”—is merely 30 years. Only 61 of the 1955 Fortune 500 companies still existed in 2014. By 1983, one-third of companies listed in 1970, only 13 years earlier, had disappeared. So new companies are continually replacing the old.

       en·tre·pre·neur·ship key terms

       Business

      An entity organized for the purpose of buying and selling a product, service, knowledge, or other thing of value; a company set up with the intention of making a profit; an activity established to provide income and financial well-being for the business owner.

       Disruption

      This occurs when entrepreneurs create new companies that challenge and transform older, established industries. These cutting-edge start-ups apply fresh thinking, develop new business models, and typically use technology to change the way business is done.

       Entrepreneur

      An individual who, through their own initiative and hard work, launches a new undertaking—typically a business—that involves risk and uncertainty. Ordinarily, entrepreneurs seize on opportunities, innovate, experiment, and pioneer to bring to market a new, better, less expensive, or somehow improved product or service, or to open up new markets. Many entrepreneurs also aim to advance social goals in their ventures.

       Entrepreneurial thinking

      Applying the characteristics of entrepreneurs—such as innovation, creativity, risk-taking, the willingness to accept failure, and fast response time—to other endeavors, such as corporate enterprises, education, and social programs.

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