CH1: Practicing Entrepreneurship

What is entrepreneurship?

Do you need to start from scratch to be an entrepreneur?

The process of recognizing opportunities, taking risks, innovating, creating value, and mobilizing resources

No—entrepreneurship can involve starting new businesses, buying businesses, franchising, or innovating within organizations.

Who are examples of entrepreneurs?

What is effectuation?

Ken Kutaragi (Sony), Muhammad Yunus (Grameen Bank), Giovanni Ferrero (Ferrero Group), Steve Jobs (Apple), Elon Musk (Tesla/SpaceX), Ray Kroc (McDonald’s).

Starting small with what you have, not what you think you need.

What are the main types of entrepreneurship and briefly explain?

1. Corporate entrepreneurship - When employees create new products, ventures, or processes within a corporation (includes corporate venturing and intrapreneurship).

2. Entrepreneurship Inside/Intrapreneurship - employees think and act entrepreneurially within
   organizations of any type or size

3. Franchising

4. Buying a small business

5. Social entrepreneurship - sourcing innovative solutions to social and
   environmental problems.

6. Family enterprising

7. Serial entrepreneurship

Feature 1 of modern entrepreneurship?

Feature 2 of modern entrepreneurship?

Entrepreneurship is a method that requires practice.

The process view: Entrepreneurship is a linear, predictable process. It implies a
known sequence and outcome.
• “Analysis before action”
The method view: Entrepreneurship is nonlinear and unpredictable. It is iterative.
• “Action before analysis”

Entrepreneurs think differently (effectuation, evidence-based entrepreneurship).

Feature 3 of modern entrepreneurship?

Feature 4 of modern entrepreneurship?

Entrepreneurs act more than they plan (risks are personal/relative, emphasis on action).

• Evidence-based entrepreneurship - Planning that aligns with the scientific method of collecting data
and testing ideas to validate (or not) that an opportunity is worth pursuing.

Entrepreneurs Aren’t Driven Purely by Profit

• Social entrepreneurship - Sourcing innovative solutions to social and environmental problems.
• Do good (impact) while making money (wealth).

Feature 5 of modern entrepreneurship?

Feature 6 of modern entrepreneurship?

Entrepreneurs collaborate more than they compete.

Entrepreneurship is a life skill (adaptability, problem-solving, useful in any career).

What is the difference between managerial vs entrepreneurial thinking?

Managers rely on data and structure;

entrepreneurs face uncertainty, act with less information, and focus on ventures.

What are the two views of entrepreneurship?

Process view: Linear, predictable, “analysis before action.”

Method view: Iterative, unpredictable, “action before analysis.”

What are the seven components of the entrepreneurship method?

1. Come up with a “why” statement
2. Start with means at hand
3. Describe idea today
4. Identify first actions
5. Enroll stakeholders
6. Calculate affordable loss
7. Act, learn, build