McGraw-Hill/Irwin

Copyright 2009 The McGraw-Hill Companies, Inc., All Rights

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Reserved.

Part
One

The Entrepreneurial
Mind for an
Entrepreneurial World

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At the Heart of the Entrepreneurial

Process is the:
Founder
The
The
The
The
The
The
The

Opportunity Seeker
Creator and Initiator
Leader
Problem Solver
Motivator
Strategizer, and
Guardian of the Venture and its

Mission,
Values, and
Culture
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Chapter

1
The Global
Entrepreneurial
Revolution for a Flatter
World
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Entrepreneurship Flattens the

World
Significant impact on the U.S. cultural and
economic landscape
Model for business, education, and
policymakers around the globe
Exploding in India, China, and the former
Soviet bloc
Adoption of the entrepreneurial mind-set is
growing exponentially larger and faster

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Entrepreneurship Around the

Globe
A 2000 EU Economic Action Plan calls for:
Fueling entrepreneurial mind-sets
Encouraging more people to become
entrepreneurs
Gearing entrepreneurs for growth and
competitiveness
Improving the flow of finance
Creating a more entrepreneurial-friendly
regulatory and administrative framework

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Four Entrepreneurial
Transformations
That are Changing the World
1. Entrepreneurship is the new management
prototype for thinking and reasoning.
2. Entrepreneurship has spawned a new
education paradigm (model) for learning
and teaching.
3. Entrepreneurship is becoming a dominant
management model for running nonprofit
businesses and social ventures.
4. Entrepreneurship is transcending business
schools.
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Innovation + Entrepreneurship
= Prosperity and Philanthropy
Entrepreneurship is an important political
phenomenon.
The linkage between entrepreneurship and
public policy is increasingly important.

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Job Creation
LandmarkResearchfindingsbyDavidBirchofMIT
Newfirmscreated81.5percentofthenetnewjobsfrom
1969to1976.
AccordingtotheU.S.SmallBusinessAdministrations
OfficeofAdvocacy,in2004smallfirmwithfewerthan
500employeesrepresented99.9percentofthe26.8
millionbusinessesintheUnitedStates.

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New Venture Formation

Creates economic and social mobility
Is opportunity-centered and rewards talent and
performance
Entrepreneurship is not about religion, gender,
skin color, social class, or national origin
Women and a number of ethnic and racial
groups are excelling at entrepreneurship

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American Dream: For the Young at

Start!
Entrepreneurship is more appealing than ever to:
High school seniors
Their parents
47% of women and 38 % of men in a 2004
national sample by USA Today
Laid-off corporate managers

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The Self-Employed Report:

The highest level of personal satisfaction
Challenge
Pride
Remuneration ($)
Love of work - it is:
stimulating
Energizing
Meaningful

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Examples of Mega-Entrepreneurs
Who Started in Their 20s

MicrosoftBillGatesandPaulAllen
DellComputersMichaelDell
AppleComputersSteveJobsandSteveWozniak
FederalExpressFredSmith
PolaroidEdwardLand
NikePhilKnight

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New Industries Launched by the EGeneration (1 of 3)

Personalcomputers
Biotechnology
WirelesscableTV
Fastoilchanges
PCsoftware
Desktopinformation
Wirelesscommunications/handhelddevices/PDAs

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New Industries Launched by the EGeneration (2 of 3)

Healthfullivingproducts
Electronicpaging
CAD/CAM
Voicemailinformationtechnologyservices
Cellularphoneservices
CDROM
Internetpublishingandshopping
Desktopcomputing
Virtualimaging
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New Industries Launched by the EGeneration (3 of 3)

Conveniencefoodsuperstores
Digitalmediaandentertainment
Petcareservices
VoiceoverInternetapplications
Greenbuildings
Large,scalablewindandsolarpowersystems
Biofuelsandbiomaterials

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Innovation
Smallentrepreneurialfirmsare:
Responsibleforhalfofallinnovation
Creditedwith95percentofallradicalinnovation
Ledtothecreationofmajornewinventionsand
technologies

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Venture and Growth Capital

Classic venture capitalists:
Work as coaches and partners with
entrepreneurs and innovators
At very early stages of development
To shape and accelerate the development of
the company

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Angel Investors
Moderately wealthy to very wealthy
individuals

Successful entrepreneurs:
Bring experience, learning curves, networks,
wisdom and maturity
Serve as coach, confidant, mentor and
cheerleader

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Philanthropy and Leadership

Successful entrepreneurs give back to the
community
Colleges and universities
New buildings, classrooms, athletic facilities, and
endowed professorships
The largest gifts and the greatest proportion of
donors to college capital campaigns

Local churches, hospitals, museums,

orchestras, and schools

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Ewing Marion Kauffman of Marion

Laboratories, Inc.:
Live what you talk, make your actions
match your words. You must live what
you preach (moralize) and do it right and
do it often. Day after day.
As an entrepreneur, you really need to
develop a code of ethics, a code of
relationships with your people, because its
the people who come and join you. They
have dreams of their own. You have your
dream of the company. They must mesh
somewhat.
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The Entrepreneurial Revolution

Entrepreneurship is:
Taught at over 2,000 colleges, universities,
and community colleges.
Creates most of the net new jobs nationwide.
Self-employment eliminates glass ceilings
and glass walls for women and minorities.
Gaining and growing in elementary through
high schools.

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Americas Self-Made Millionaires

TheMillionaireNextDoorbyThomasJ.Stanleyand
WilliamD.Danko
Millionaireapersonwithanetworthof$1millionor
more
Traitsofthesemillionaires
Twothirdsareselfemployed

Over80percentaccumulatedtheirwealthinone
generation

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The New Age of Equity Creation

Long-term perspective
Venture capital industry has followed overall
economics
Over 95 percent of the nations wealth has
been created since 1980 a direct result of the
entrepreneurial revolution

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Building an Entrepreneurial
Society
The poor get richer
Equal opportunities (not equal incomes) are
created
Economic mobility increases
Social mobility increases

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