Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Lecture Notes
Chapter 1: Entrepreneurship: A Global Social Movement
Learning Objectives
• Explain the importance of action and practice in entrepreneurship.
• 2. List the seven lesser-known truths about entrepreneurship.
• 3. Explain the history of entrepreneurship in the US.
Entrepreneurship Requires Action and Practice
• “All human beings are entrepreneurs. When we were in the caves we were all self-employed . . .
finding our food, feeding ourselves. That’s where human history began . . . As civilization came
we suppressed it. We became labor because they stamped us, ‘You are labor.’ We forgot that
we are entrepreneurs.”
• -Muhammad Yunus, author and social entrepreneur
Notes:
Muhammad Yunus
• 2006 Nobel Peace Prize winner
• Founded Grameen Bank in the 1970s
• Provided short term loans to impoverished in Bangladesh
• This is similar to micro-loans today
• See photo 1.1 Muhammad Yunus
Notes:
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Niari Keverian
• See photo 1.2: action shot or head shot of Niari Keverian
• CEO of ZOOS Greek iced tea
• Background in corporate brands
• MBA student
• Conducted customer research through Facebook
• Success=dedication and sacrifice
Notes:
Niari Keverian is the CEO of ZOOS, a Boston-based company founded in 2014 that sells Greek iced tea.
Critical Thinking Question
• In what ways do you see Niari Kevarian as being totally dedicated to the success of ZOOS? What
does dedication mean for the entrepreneur?
Notes:
Keverian, who describes herself as a “strong-minded personality” who “works best under pressure,”
reported putting in 15-hour days (weekends too), sacrificing most of her social life in the process. Her
Entrepreneurship May Be Different Than What You Think
• Entrepreneurship—actions taken by an individual or a group to create something new i.e. a new
idea, a new item or product, a new institution, a new market, a new set of possibilities.
Notes:
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Well-Known Entrepreneurs
• Bill Gates (Microsoft)
• Steve Jobs (Apple)
• Mark Zuckerberg (Facebook)
• Elon Musk (Tesla)
• Mark Kalanick (Uber)
Notes:
The Truths About Entrepreneurship
• Truth #1: Entrepreneurship is not reserved for startups.
• Truth #2: Entrepreneurs do not have a special set of personality traits.
• Truth #3: Entrepreneurship can be taught (it’s a method that requires practice).
• Truth #4: Entrepreneurs are not extreme risk-takers.
Truth #1: Entrepreneurship is not reserved for startups.
• The entrepreneur creates a business based on research
• If the business is successful it can:
• develop into an organization in its own right
• be merged with another organization
• be bought or acquired by another company
Notes:
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Truth #2: Entrepreneurs do not have a special set of personality traits.
• Four main traits of entrepreneurs seem to Include, but is not limited to:
• Desire for achievement
• Ability to influence events
• Tendency to take risks
• Tolerance for uncertainty
Notes:
Researchers have moved away from the traits perspective in favor of how entrepreneurs think and act,
Truth #3: Entrepreneurship can be taught (it’s a method that requires
practice).
• Entrepreneurship courses are taught as a process
• A process implies a known outcome
• However, a process is somewhat predictable where entrepreneurship is very unpredictable.
Notes:
Entrepreneurship is not predictable and, therefore, cannot adequately be taught as a process. Instead,
a method or practice approach represents a body of skills or practices that together constitute a toolkit
Truth #4: Entrepreneurs are not extreme risk-takers.
• Calculated risk takers
• Assess what they are willing to lose
Truth #5: Entrepreneurs collaborate more than they compete.
• Community plays an important role
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Truth #6: Entrepreneurs act more than they plan.
• Connect with investors
• Connect with potential customers
Truth #7: Entrepreneurship is a life skill.
• Think
• Act
• Identify opportunities
Evolution of Entrepreneurship in the United States
• Emergence of the Self-Made Man (Colonial America before 1776)
• An Entrepreneurial Nation (1st Industrial Revolution 1776–1865)
• The Pinnacle of Entrepreneurship (2nd Industrial Revolution 1865–1920)
• Rise of Institutional America (Interwar and Post-war America 1920–1975)
• Confined Re-Emergence (Knowledge Economy 1.0, 1975–Present)
Notes:
Entrepreneurial ambition has always been deeply rooted in American history. Touted as the “land of
opportunity,” the newly discovered continent attracted immigrants, primarily from the British Isles and
Types of Entrepreneurship
• Corporate Entrepreneurship
• Entrepreneurs Inside
• Buying a Franchise
• Buying a Small Business
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Corporate Entrepreneurship
• Creates new products or ventures within an existing large organization
• Carried out by employees
• Created to enhance the organization
Entrepreneurs Inside
• Formed in various organization types
Buying a Franchise
• Turnkey operation
• Outsider gains access to the market
• See photo 1.9: a Jimmy John’s Gourmet Sandwiches franchise location
Pros and Cons of Owning a Franchise
• See Table 1.2
Buying a Small Business
• Entrepreneur purchases existing business
• Takes over operations
• Less risky than starting from scratch
Notes:
Chris Cranston is the owner of FlowDog, a canine aquatic and rehabilitation center outside of Boston. In
2009 she bought the business, which was called Aquadog at the time, from the previous owner.
Social Entrepreneurship (for-profit and non-profit)
• Solve a social problem while making a profit
• Receiving grants to produce products to solve social problems
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
• “Buy one, Give one” programs
Family Enterprising
• Family members own and manage
• Each generation can make changes
Serial Entrepreneurs
• Entrepreneur start several businesses simultaneously or in quick succession
• Always new ideas
• Seeks greater opportunities
Global Entrepreneurship
• Global Entrepreneurship Monitor (GEM) report
• 400 million entrepreneurs worldwide
• Potential entrepreneurs
• Nascent entrepreneurs
• New business owners
• Established business owners
Global Entrepreneurship Monitor Measuring Entrepreneurial Activity
• See Figure 1.4
Global Entrepreneurship
• See Table 1.3 Entrepreneurial activities by geographic region 2015—TO COME
Gender and Entrepreneurship
• See Table 1.4
The 2014 Diana Project
• 6793 companies
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
• Studied female executives and company performance
• Companies with female entrepreneurs performed equal to or better than male-only companies.
Notes:
The 2014 Diana Project involved looking at 6,793 companies, seeing how many had women on the
executive team, and then analyzing those companies to find out how many businesses had received
Critical Thinking Questions
• What do you see as the value of studying women’s involvement in entrepreneurship?
• If you were designing a study of some other underrepresented group in entrepreneurship, how
would you go about it? What would you need to know to formulate your research questions?
What Makes a Country Entrepreneurial?
• Financial resources
• Support from government
• Entrepreneurship education
• Research and Development (R&D) transfer
Notes:
With India’s middle class predicted to grow eightfold in the coming two decades, foreign businesses are
racing to invest in the country. However, the chairman of Tata Group in India, Ratan Tata, warned
Entrepreneurship Meets Ethics