Transcript Lecture 1 and 2.ppt

Entrepreneurship
Entrepreneurship:
A Field and An Activity
Ch. 1
Introductions/Expectations




Course Outline/Objectives
Lecture/Tutorial Sessions
Informal Curriculum
Assessment


Participation
Entrepreneur Interview


Feasibility Plan



Paper and Presentation
Paper and Presentation
Exam
Communication (e-mail; phone; office hours)


Lecture Slides
Course Notice Board
Jim Kozlowski
Texas Growth Fund Management Corporation
“Much of our American progress has been the
product of the individual who had an idea;
pursued it; fashioned it; tenaciously clung to it
against all odds; and then produced it, sold it
and profited from it.”
--Hubert Humphrey, 1966
A Definition
Entrepreneurship seeks to understand how
opportunities to create something new arise
and are discovered or created by specific
persons who then use various means to
exploit or develop them, thus producing a
wide range of effects.
Key Activities



Identifying an opportunity
Exploiting or developing this
opportunity
Running a new business
successfully
Intrepreneurs
Persons who create something new,
but inside an existing company
rather than through a new venture.
Toyota FINE-S concept car( "Fuel Cell Innovative Emotion” – Sport)
A product of an intrepreneur
Trend toward Entrepreneurship



Media accounts of success
Change in “employment contract”
Change in basic values
Foundations in Other Disciplines








Economics
Technology
Psychology, cognitive science
Behavioral science
Business and finance
Law
Sociology
Political science
Macro and Micro



Micro perspective—focuses on the behavior
and thoughts of individuals
Macro perspective—focuses primarily on
environmental factors
Both are key in understanding the
entrepreneurial process
The Process





Recognition of an opportunity
Deciding to proceed and assembling
resources
Launching a new venture
Building success
Harvesting the rewards
A Confluence of Factors
Social
Change
New
Markets
Opportunity
Technology
Economic
Change
Variables
The Essence of Entrepreneurship
The intersection of
valuable opportunities
and enterprising
individuals is the
essence of
entrepreneurship.
“There are three principal means of acquiring
knowledge: observation, reflection and
experimentation. Observation collects facts;
reflection combines them; experimentation
verifies the result of that combination…”
--Diderot (italics added)
Systematic Observation




Observe aspects of the world systematically
Generate and test hypothesis
Use this information as a basis for conclusions
Doesn’t resolve question of causation
Experimentation




Systematically changes one variable in order to see if
changes affect one or more other variables
Involves active interventions
Determines causation
Not often used in the study of entrepreneurship
Reflection


Combining facts in a careful and systematic
way to reach conclusions
Central to case method and other qualitative
methods of research
Theory



Moves beyond efforts to merely describe
phenomena
Moves to the point at which we can explain
why and how things happen as they do
Prospect theory of decision making
Developing a Theory





A theory is proposed
Hypothesis is made
Hypotheses is tested by research
Positive results increase confidence in
accuracy; negative results lead to
modification of theory and further testing
Theory is accepted or rejected
Two Final Points


Theories are never
proven in any final,
ultimate sense
Research should never
be undertaken to prove
or verify a theory
“’Tis a sort of duty to be rich, that it
may be in one’s power to do
good…”
--Lady Mary Montagu
Lady Mary Montagu
To Do Good


Entrepreneur’s products and services improve
the lives of countless millions of persons
Entrepreneurs are often extremely generous in
their donations to worthy causes
Bill and Melinda Gates sharing
literature in Mozambique