Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
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Learning Module 1
Entrepreneurship
CHAPTER CONTENTS
Learning Objectives 1
Teaching Resources 2
Overview of the Chapter 6
Classroom Outline 4
Textbook Examples 14
Self-Assessments 16
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
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LEARNING OBJECTIVES
LM 1.2 Identify how entrepreneurs get started.
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
TEACHING RESOURCES
LM 1.2: Starting a Business
Section
Title
Resource Type
LM 1.1: Entrepreneurship:
Its Foundation and
Importance
Clark’s Clarity
with Supplemental Activity
(7 minutes)
New Incentive for Google
Employees: Awards Worth
Millions!
“Google Found Out That Giving
Its Employees Trips to Hawaii Is
Better than $1M Awards.”
with Supplemental Activity
To What Extent Do You Possess
an Entrepreneurial Spirit?
Self-Assessment
ONLINE
VIDEO
ONLINE
ARTICLES
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
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Please note Harvard Business Review articles are subscription-based or accessible via hbsp.harvard.edu as
examination copy. Also note that resources like The Wall Street Journal will require a paid subscription.
OVERVIEW OF THE CHAPTER
LM 1.1 Entrepreneurship: Its Foundation and Importance
LM 1.2 Starting a Business
Businesses start with an idea for a new product or service. Entrepreneurs then
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
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CLASSROOM OUTLINE
Manage U: So You Want to Start a Business?
People currently working for corporations want to start a business of their own. The number of
start-ups has been growing since 2000 and small businesses are a continuing source of net new
jobs added to the U.S. economy. One of the many issues that you should consider before you
start your own business is to first identify your motives and to realize that your goals for starting
and running your business may change over time. You need to work to find clients, and if you
Possible Topics for Discussion:
• Have you ever thought about starting your own business? What excites you about the
opportunity of starting a business, and what fears get in the way of your doing so?
LM 1.1 Entrepreneurship: Its Foundation and Importance
POWERPOINT SLIDES:
#3 Five Issues to Consider for Starting a Business
#4 Three Components of Entrepreneurship
#5 Two Types of Entrepreneurs
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
#6 and #7 Entrepreneurship Compared to Self-Employment
#8 Characteristics of Entrepreneurs and How They Differ from Managers
#9 Why Entrepreneurship Matters across the Globe
#10 Small Businesses
#11 Entrepreneurship Improves the World’s Standard of Living
Section LM 1.1 defines entrepreneurship and explains how it is different from self-employment.
It also describes the characteristics of entrepreneurs and discusses why entrepreneurship is
important around the world.
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
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Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Start-ups, or newly created companies designed to grow fast, are important for
generating wealth and economic development. Economic development is fueled by
innovation, which is the foundation of entrepreneurial activities. Entrepreneurship fuels
job creation, with many jobs created by small businesses. Entrepreneurial job creation
improves standards of living around the world, and many people are motivated to start
their own businesses to improve their own standard of living.
LM 1.1 Key Concepts:
Entrepreneurship
● Entrepreneurs drive innovation and growth around the world.
● Entrepreneurship is a process of (a) recognizing opportunities for new venture creation
or new value creation, (b) deciding to exploit these opportunities, and (c) exploiting the
opportunities by the way of new venture creation or new value creation . . . for realization
of some desired value.
Interactive Classroom Material:
EXAMPLE: An Intrapreneur: Intel’s Anthropologist Genevieve Bell
Entrepreneurship vs. Self-Employment
• Self-employment is a way of working for yourself as a freelancer or the owner of a
business rather than for an employer.
o Self-employed people work for themselves and sometimes hire others to assist in
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
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o Self-employed can incorporate or file as sole proprietors. Entrepreneurs, in
contrast, have a broader set of legal requirements, as well as insurance and tax
considerations.
Characteristics of Entrepreneurs
• Being an entrepreneur is what it takes to start a business; being a manager is what it takes
to grow or maintain a business.
• Being an entrepreneur and being a manager require different skills (Figure LM 1.2)
o Risk propensity
o Generalized self-efficacy
o Need to achieve
o Need for autonomy
o Big Five personality dimensions
o Tolerance for ambiguity
o Proactivity
o Internal locus of control
o Innovative/creative ability
SELF-ASSESSMENT LM 1.1 CAREER READINESS
To What Extent Do You Possess an Entrepreneurial Spirit?
This Self-Assessment allows students to compare their motivations, aptitudes, and attitudes with
those found in a sample of entrepreneurs from a variety of industries.
Click for follow-up activity.
Entrepreneurship Matters across the Globe
• A start-up is a newly created company designed to grow fast. Start-ups generate wealth
and economic development.
CAREER
READINESS
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
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o Small businesses, defined by the U.S. Small Business Administration (SBA) as
those having fewer than 500 employees, are the form of business with which most
entrepreneurs enter a market.
• Entrepreneurship drives job creation.
• Entrepreneurship improves the world’s standard of living
o The standard of living is the level of necessaries, comforts, and luxuries that a
person is accustomed to enjoy.
o Entrepreneurial job creation improves standards of living around the world by
LM 1.2 Starting a Business
POWERPOINT SLIDES:
#12 Four Sources of Ideas for a Start-Up Business
#13 Business Plans Answer Critical Questions
Section LM 1.2 describes the actions entrepreneurs need to take to get their business started.
These steps include writing a business plan, choosing the company’s legal structure, and
arranging for financing. The importance of building an effective organizational culture and
design are also discussed.
One way that you could begin your coverage of these topics is to have the students watch the Inc.
video from the Women Who Lead series that focuses on Kristen Pumphrey, founder of P.F.
Candle Co. In this approximately 4-minute video, Pumphrey discusses how she started her
company and how it has evolved over time. For a supplemental activity, you could have the
students discuss the elements that should be included in a business plan for P.F. Candle Co. You
could also have the students critique the extent to which Pumphrey implemented the best
practices described in the Manage U profile that opens the learning module.
Topics and Tips for Discussion:
1. How could you come up with an idea for a new business?
ONLINE
VIDEO
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
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You could start with reflecting on what are your passions, skills, and talents. Knowing
2. What elements should be included in a comprehensive business plan?
3. Why is it important for entrepreneurs to select the correct legal structure?
8–10
Copyright © 2020 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
recordkeeping and reporting requirements than a corporation and it would limit the
entrepreneur’s personal liability.
4. Assume you have come up with a great idea for a new business venture. How could you
get funding to support your venture?
LM 1.2 Key Concepts:
Businesses Start with an Idea
● The following actions can assist any aspiring entrepreneur to uncover a business idea:
o Identify your passions, skills, and talents.
o Identify a problem or frustration.
o Identify an opportunity or need.
o Study customer complaints.
Writing the Business Plan
• A business plan is much more than a funding plan. It also answers critical questions such
as:
o What business are we in?
o What is our vision and where are we going?
o What will we do to achieve our goals?
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Choosing a Legal Structure
• Sole proprietorship
o Someone who owns an unincorporated business by himself or herself
▪ Limited partnership – one partner has control of operations, and that
person has limited liability.
o Income and losses are “passed through” to the partners’ individual taxable
incomes.
• Corporation
their personal tax returns and are assessed at their individual income tax
rates (no double taxation). Legal structure most frequently used by
entrepreneurs in 2017.
• Limited Liability Company (LLC)
o A hybrid structure that combines elements of sole proprietor, partnership, and
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Financing
• The availability of financing to start or grow a business can make the difference between
pursuing an entrepreneurial dream and giving up.
o Crowd investing
▪ Crowd investing allows a group of people—the crowd—to invest in an
entrepreneur or business online.
Creating the “Right” Organizational Culture and Design
• All entrepreneurs learn that they can’t complete all tasks alone.
• Organizational culture, discussed in detail in Chapter 8, helps the business articulate its
own values and beliefs, which generally flow from the founder’s.
• Organizational design, discussed in Chapter 8, is the process of designing the optimal
structure of accountability and responsibility an organization will use to execute its
strategies.
Interactive Classroom Material:
EXAMPLE: Amanda Johnson Starts and Grows a Business
Connect® Exercise
VIDEO CASE: John’s Crazy Socks
Summary of Activity:
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
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In this Video Case, John’s Crazy Socks, a father-son venture inspired by co-founder John Lee
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
TEXTBOOK EXAMPLES
EXAMPLE: An Intrapreneur: Intel’s Anthropologist Genevieve Bell
This Example first demonstrates the apparently different attitudes of Microsoft and Virgin to
intrapreneurship. It then looks deeper into the role of Genevieve Bell at Intel. Dr. Bell, an
anthropologist, leads a large group in discovering new ways to integrate humans and electronic
devices.
YOUR CALL
Do you think most companies truly support intrapreneurship? Why would they not?
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
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EXAMPLE: Amanda Johnson Starts and Grows a Business
Whereas the first Example discusses intrapreneurial activity, this Example is a first-person
description of the life of an entrepreneur. Amanda Johnson started a floral design business when
her husband lost his job and they needed income to support them and their new child. She
discusses the decisions she made as the business grew.
ADDITIONAL ACTIVITIES
The Example tells the story of a young female entrepreneur, discussing how it’s important to
recognize that more women are becoming entrepreneurs. Nevertheless, we do not really think of
old(er) people as entrepreneurs. One way to develop this Example is to have your students watch
Return.
ONLINE
VIDEO
Kinicki/Williams, Management, 9e: Learning Module 1: Entrepreneurship
SELF-ASSESSMENTS
SELF-ASSESSMENT LM 1.1 CAREER READINESS
To What Extent Do You Possess an Entrepreneurial Spirit?
STUDENT QUESTIONS
1. To what extent are your motives, aptitudes, and attitudes similar to entrepreneurs? Explain.
2. Based on your results, where do you have the biggest gaps with entrepreneurs in terms of the
individual motives, aptitudes, and attitudes?
3. What do these gaps suggest about your entrepreneurial spirit? Discuss.
4. What things might you say during a job interview to demonstrate that you possess
entrepreneurial characteristics? Explain.
Candidates should discuss the characteristics of entrepreneurs and how they exemplify them.
Examples include a high tolerance for ambiguity, need for autonomy, and high-risk propensity.
Examples should be utilized from previous work and school activities.
SUPPLEMENTAL ACTIVITY
CAREER
READINESS