Entrepreneurship: Successfully Launching New Ventures, 6th Edition Solution Manual
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First Screen
From “Preparing Effective Business Plans” by Bruce R. Barringer
Part 1: Strength of Business Idea
For each item, circle the most appropriate answer and make note of the (-1), (0), or (+1)
score.
Low Potential (-1) Moderate Potential (0) High Potential (+1)
1. Extent to which the
idea:
Takes advantage of
an environmental
trend
Solves a problem
Addresses an
unfilled gap in the
marketplace
Weak Moderate Strong
2. Timeliness of entry to
market
Not timely Moderately timely Very timely
3. Extent to which the
idea “adds value” for
its buyer or end user
Low Medium High
4. Extent to which the
customer is satisfied
by competing
products that are
already available
Very satisfied Moderately satisfied Not very satisfied
or ambivalent
5. Degree to which the
idea requires
customers to change
their basic practices
or behaviors
Substantial changes
required
Moderate changes
required
Small to no changes
required
From “Preparing Effective Business Plans” by Bruce R. Barringer
Part 1: Strength of Business Idea
For each item, circle the most appropriate answer and make note of the (-1), (0), or (+1)
score.
Low Potential (-1) Moderate Potential (0) High Potential (+1)
1. Extent to which the
idea:
Takes advantage of
an environmental
trend
Solves a problem
Addresses an
unfilled gap in the
marketplace
Weak Moderate Strong
2. Timeliness of entry to
market
Not timely Moderately timely Very timely
3. Extent to which the
idea “adds value” for
its buyer or end user
Low Medium High
4. Extent to which the
customer is satisfied
by competing
products that are
already available
Very satisfied Moderately satisfied Not very satisfied
or ambivalent
5. Degree to which the
idea requires
customers to change
their basic practices
or behaviors
Substantial changes
required
Moderate changes
required
Small to no changes
required
First Screen
From “Preparing Effective Business Plans” by Bruce R. Barringer
Part 1: Strength of Business Idea
For each item, circle the most appropriate answer and make note of the (-1), (0), or (+1)
score.
Low Potential (-1) Moderate Potential (0) High Potential (+1)
1. Extent to which the
idea:
Takes advantage of
an environmental
trend
Solves a problem
Addresses an
unfilled gap in the
marketplace
Weak Moderate Strong
2. Timeliness of entry to
market
Not timely Moderately timely Very timely
3. Extent to which the
idea “adds value” for
its buyer or end user
Low Medium High
4. Extent to which the
customer is satisfied
by competing
products that are
already available
Very satisfied Moderately satisfied Not very satisfied
or ambivalent
5. Degree to which the
idea requires
customers to change
their basic practices
or behaviors
Substantial changes
required
Moderate changes
required
Small to no changes
required
From “Preparing Effective Business Plans” by Bruce R. Barringer
Part 1: Strength of Business Idea
For each item, circle the most appropriate answer and make note of the (-1), (0), or (+1)
score.
Low Potential (-1) Moderate Potential (0) High Potential (+1)
1. Extent to which the
idea:
Takes advantage of
an environmental
trend
Solves a problem
Addresses an
unfilled gap in the
marketplace
Weak Moderate Strong
2. Timeliness of entry to
market
Not timely Moderately timely Very timely
3. Extent to which the
idea “adds value” for
its buyer or end user
Low Medium High
4. Extent to which the
customer is satisfied
by competing
products that are
already available
Very satisfied Moderately satisfied Not very satisfied
or ambivalent
5. Degree to which the
idea requires
customers to change
their basic practices
or behaviors
Substantial changes
required
Moderate changes
required
Small to no changes
required
Part 2: Industry-Related Issues
Low Potential (-1) Moderate Potential (0) High Potential (+1)
1. Number of
competitors
Many Few None
2. Stage of industry life
cycle
Maturity phase or
decline phase
Growth phase Emergence phase
3. Growth rate of
industry
Little or no growth Moderate growth Strong growth
4. Importance of
industry’s products
and/or services to
customers
“Ambivalent” “Would like to have” “Must have”
5. Industry operating
margins
Low Moderate High
Part 3: Target Market and Customer-Related Issues
Low Potential (-1) Moderate Potential (0) High Potential (+1)
1. Identification of
target market for the
proposed new venture
Difficult to identify May be able to identify Identified
2. Ability to create
“barriers to entry” for
potential competitors
Unable to create May or may not be able
to create
Can create
3. Purchasing power of
customers
Low Moderate High
4. Ease of making
customers aware of
the new product or
service
Low Moderate High
5. Growth potential of
target market
Low Moderate High
Low Potential (-1) Moderate Potential (0) High Potential (+1)
1. Number of
competitors
Many Few None
2. Stage of industry life
cycle
Maturity phase or
decline phase
Growth phase Emergence phase
3. Growth rate of
industry
Little or no growth Moderate growth Strong growth
4. Importance of
industry’s products
and/or services to
customers
“Ambivalent” “Would like to have” “Must have”
5. Industry operating
margins
Low Moderate High
Part 3: Target Market and Customer-Related Issues
Low Potential (-1) Moderate Potential (0) High Potential (+1)
1. Identification of
target market for the
proposed new venture
Difficult to identify May be able to identify Identified
2. Ability to create
“barriers to entry” for
potential competitors
Unable to create May or may not be able
to create
Can create
3. Purchasing power of
customers
Low Moderate High
4. Ease of making
customers aware of
the new product or
service
Low Moderate High
5. Growth potential of
target market
Low Moderate High
Part 4: Founder- (or Founders-) Related Issues
Low Potential (-1) Moderate Potential (0) High Potential (+1)
1. Founder or founders
experience in the
industry
No experience Moderate experience Experienced
2. Founder or founders
skills as they relate to
the proposed new
venture’s product or
service
No skills Moderate skills Skilled
3. Extent of the founder
or founders
professional and
social networks in the
relevant industry
None Moderate Extensive
4. Extent to which the
proposed new venture
meets the founder or
founders personal
goals and aspirations
Weak Moderate Strong
5. Likelihood that a
team can be put
together to launch
and grow the new
venture
Unlikely Moderately likely Very likely
Part 5: Financial Issues
Low Potential (-1) Moderate Potential (0) High Potential (+1)
1. Initial capital
investment
High Moderate Low
2. Number of revenue
drivers (ways in
which the company
makes money)
One Two to three More than three
3. Time to break even More than two
years
One to two years Less than one year
4. Financial
performance of
similar businesses
Weak Modest Strong
5. Ability to fund initial
product (or service)
development and/or
initial startup
expenses from
personal funds or via
bootstrapping
Low Moderate High
Low Potential (-1) Moderate Potential (0) High Potential (+1)
1. Founder or founders
experience in the
industry
No experience Moderate experience Experienced
2. Founder or founders
skills as they relate to
the proposed new
venture’s product or
service
No skills Moderate skills Skilled
3. Extent of the founder
or founders
professional and
social networks in the
relevant industry
None Moderate Extensive
4. Extent to which the
proposed new venture
meets the founder or
founders personal
goals and aspirations
Weak Moderate Strong
5. Likelihood that a
team can be put
together to launch
and grow the new
venture
Unlikely Moderately likely Very likely
Part 5: Financial Issues
Low Potential (-1) Moderate Potential (0) High Potential (+1)
1. Initial capital
investment
High Moderate Low
2. Number of revenue
drivers (ways in
which the company
makes money)
One Two to three More than three
3. Time to break even More than two
years
One to two years Less than one year
4. Financial
performance of
similar businesses
Weak Modest Strong
5. Ability to fund initial
product (or service)
development and/or
initial startup
expenses from
personal funds or via
bootstrapping
Low Moderate High
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Overall Potential
Each part has five items. Scores will range from -5 to +5 for each part. The score is a
guide—there is no established rule-of-thumb for the numerical score that equates to high
potential, moderate potential, or low potential for each part. The ranking is a judgment
call.
Score
(-5 to +1)
Overall Potential of the
Business Idea Based on
Each Part
Suggestions for
Improving the
Potential
Part 1:
Strength of Business
Idea
High potential
Moderate potential
Low potential
Part 2:
Industry-Related
Issues
High potential
Moderate potential
Low potential
Part 3:
Target Market and
Customer-Related
Issues
High potential
Moderate potential
Low potential
Part 4:
Founder- (or
Founders-) Related
Issues
High potential
Moderate potential
Low potential
Part 5:
Financial Issues
High potential
Moderate potential
Low potential
Overall Assessment High potential
Moderate potential
Low potential
Summary—briefly summarize your justification for your overall assessment:
Each part has five items. Scores will range from -5 to +5 for each part. The score is a
guide—there is no established rule-of-thumb for the numerical score that equates to high
potential, moderate potential, or low potential for each part. The ranking is a judgment
call.
Score
(-5 to +1)
Overall Potential of the
Business Idea Based on
Each Part
Suggestions for
Improving the
Potential
Part 1:
Strength of Business
Idea
High potential
Moderate potential
Low potential
Part 2:
Industry-Related
Issues
High potential
Moderate potential
Low potential
Part 3:
Target Market and
Customer-Related
Issues
High potential
Moderate potential
Low potential
Part 4:
Founder- (or
Founders-) Related
Issues
High potential
Moderate potential
Low potential
Part 5:
Financial Issues
High potential
Moderate potential
Low potential
Overall Assessment High potential
Moderate potential
Low potential
Summary—briefly summarize your justification for your overall assessment:
Loading page 5...
Entrepreneurship
Sixth Edition
Bruce R. Barringer
Duane Ireland
New York, NY
Instructor’s Resource Manual
(Download only) for
Entrepreneurship: Successfully
Launching New Ventures
Ram Subramanian
Sixth Edition
Bruce R. Barringer
Duane Ireland
New York, NY
Instructor’s Resource Manual
(Download only) for
Entrepreneurship: Successfully
Launching New Ventures
Ram Subramanian
Loading page 6...
i
TABLE OF CONTENTS
Part 1 Chapter Outlines, Answers to Boxed Features Questions,
Answers to End-of-Chapter Questions, Analysis of “You Be the
VC” Exercises, and Cases
Chapter 1 Introduction to Entrepreneurship 1
Chapter 2 Recognizing Opportunities and Generating Ideas 23
Chapter 3 Feasibility Analysis 44
Chapter 4 Developing an Effective Business Model 67
Chapter 5 Industry and Competitor Analysis 87
Chapter 6 Writing a Business Plan 111
Chapter 7 Preparing the Proper Ethical and Legal
Foundation
135
Chapter 8 Assessing a New Venture’s Financial Strength
and Viability
161
Chapter 9 Building a New-Venture Team 183
Chapter 10 Getting Financing or Funding 202
Chapter 11 Unique Marketing Issues 224
Chapter 12 The Importance of Intellectual Property 246
Chapter 13 Preparing for and Evaluating the Challenges of
Growth
268
Chapter 14 Strategies for Firm Growth 288
Chapter 15 Franchising 308
Part 2 Sample Course Outlines 332
Part 3 Student and Instructor Resources 336
TABLE OF CONTENTS
Part 1 Chapter Outlines, Answers to Boxed Features Questions,
Answers to End-of-Chapter Questions, Analysis of “You Be the
VC” Exercises, and Cases
Chapter 1 Introduction to Entrepreneurship 1
Chapter 2 Recognizing Opportunities and Generating Ideas 23
Chapter 3 Feasibility Analysis 44
Chapter 4 Developing an Effective Business Model 67
Chapter 5 Industry and Competitor Analysis 87
Chapter 6 Writing a Business Plan 111
Chapter 7 Preparing the Proper Ethical and Legal
Foundation
135
Chapter 8 Assessing a New Venture’s Financial Strength
and Viability
161
Chapter 9 Building a New-Venture Team 183
Chapter 10 Getting Financing or Funding 202
Chapter 11 Unique Marketing Issues 224
Chapter 12 The Importance of Intellectual Property 246
Chapter 13 Preparing for and Evaluating the Challenges of
Growth
268
Chapter 14 Strategies for Firm Growth 288
Chapter 15 Franchising 308
Part 2 Sample Course Outlines 332
Part 3 Student and Instructor Resources 336
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Part 2: Sample Course Outlines
332
PART 2
SAMPLE COURSE OUTLINES
Sample Weekly Schedule
Entrepreneurship
Based on 15-Week Semester
(Class Meets Twice a Week)
Date Topic Assigned
Reading
Week 1: Class 1 Introduction to Entrepreneurship Chapter 1
Week 1: Class 2 Introduction to Entrepreneurship
Case 1.1 or Case 1.2
You Be the VC 1.1 or You Be the VC 1.2
Chapter 1
Week 2: Class 1 Recognizing Opportunities and Generating Ideas Chapter 2
Week 2: Class 2 Recognizing Opportunities and Generating Ideas
Case 2.1 or Case 2.2
Chapter 2
Week 3: Class 1 Feasibility Analysis Chapter 3
Week 3: Class 2 Feasibility Analysis
You Be the VC 3.1 or You Be the VC 3.2
Chapter 3
Week 4: Class 1 Developing an Effective Business Model Chapter 4
Week 4: Class 2 Developing an Effective Business Model
Case 4.1 or Case 4.2
Chapter 4
Week 5: Class 1 Industry and Competitor Analysis Chapter 5
Week 5: Class 2 Guest Speaker—To discuss the topic of developing the
importance of a firm’s industry to its success;
Local Successful Entrepreneur
Week 6: Class 1 Individual Exam #1 Chapters 1–5
Week 6: Class 2 Writing a Business Plan
Case 6.1 or Case 6.2
Chapter 6
Week 7: Class 1 Preparing the Proper Ethical and Legal Foundation Chapter 7
Week 7: Class 2 Preparing the Proper Ethical and Legal Foundation
Case 7.1
You Be the VC 7.1 or You Be the VC 7.2
Chapter 7
Week 8: Class 1 Assessing a New Venture’s Financial Strength and
Viability
Chapter 8
Week 8: Class 2 Assessing a New Venture’s Financial Strength and
Viability
Case 8.1 or Case 8.2
You Be the VC 8.1 or You Be the VC 8.2
Chapter 8
332
PART 2
SAMPLE COURSE OUTLINES
Sample Weekly Schedule
Entrepreneurship
Based on 15-Week Semester
(Class Meets Twice a Week)
Date Topic Assigned
Reading
Week 1: Class 1 Introduction to Entrepreneurship Chapter 1
Week 1: Class 2 Introduction to Entrepreneurship
Case 1.1 or Case 1.2
You Be the VC 1.1 or You Be the VC 1.2
Chapter 1
Week 2: Class 1 Recognizing Opportunities and Generating Ideas Chapter 2
Week 2: Class 2 Recognizing Opportunities and Generating Ideas
Case 2.1 or Case 2.2
Chapter 2
Week 3: Class 1 Feasibility Analysis Chapter 3
Week 3: Class 2 Feasibility Analysis
You Be the VC 3.1 or You Be the VC 3.2
Chapter 3
Week 4: Class 1 Developing an Effective Business Model Chapter 4
Week 4: Class 2 Developing an Effective Business Model
Case 4.1 or Case 4.2
Chapter 4
Week 5: Class 1 Industry and Competitor Analysis Chapter 5
Week 5: Class 2 Guest Speaker—To discuss the topic of developing the
importance of a firm’s industry to its success;
Local Successful Entrepreneur
Week 6: Class 1 Individual Exam #1 Chapters 1–5
Week 6: Class 2 Writing a Business Plan
Case 6.1 or Case 6.2
Chapter 6
Week 7: Class 1 Preparing the Proper Ethical and Legal Foundation Chapter 7
Week 7: Class 2 Preparing the Proper Ethical and Legal Foundation
Case 7.1
You Be the VC 7.1 or You Be the VC 7.2
Chapter 7
Week 8: Class 1 Assessing a New Venture’s Financial Strength and
Viability
Chapter 8
Week 8: Class 2 Assessing a New Venture’s Financial Strength and
Viability
Case 8.1 or Case 8.2
You Be the VC 8.1 or You Be the VC 8.2
Chapter 8
Loading page 8...
Part 2: Sample Course Outlines
333
Week 9: Class 1 Building a New-Venture Team Chapter 9
Week 9: Class 2 Building a New-Venture Team
Case 9.1 or Case 9.2
Chapter 9
Week 10: Class 1 Getting Financing or Funding Chapter 10
Week 10: Class 2 Guest Speaker on Getting Funding or Financing;
Local Venture Capitalist or Business Angel
Case 10.1
Week 11: Class 1 Individual Exam #2 Chapters 6–10
Week 11: Class 2 Unique Marketing Issues
Case 11.2
Chapter 11
Week 12: Class 1 The Importance of Intellectual Property Chapter 12
Week 12: Class 2 The Importance of Intellectual Property
Case 12.1 or Case 12.2
Chapter 12
Week 13: Class 1 Preparing for and Evaluating the Challenges of Growth Chapter 13
Week 13: Class 2 Preparing for and Evaluating the Challenges of Growth
You Be the VC 13.1 or You Be the VC 13.2
Case 13.1
Chapter 13
Week 14: Class 1 Strategies for Firm Growth Chapter 14
Week 14: Class 2 Strategies for Firm Growth
Case 14.1 or Case 14.2
Chapter 14
Week 15: Class 1 Franchising Chapter 15
Week 15: Class 2 Franchising
Case 15.1 or Case 15.2
Chapter 15
Final Exam Administered During Final Week Chapters 11–15 or
comprehensive
333
Week 9: Class 1 Building a New-Venture Team Chapter 9
Week 9: Class 2 Building a New-Venture Team
Case 9.1 or Case 9.2
Chapter 9
Week 10: Class 1 Getting Financing or Funding Chapter 10
Week 10: Class 2 Guest Speaker on Getting Funding or Financing;
Local Venture Capitalist or Business Angel
Case 10.1
Week 11: Class 1 Individual Exam #2 Chapters 6–10
Week 11: Class 2 Unique Marketing Issues
Case 11.2
Chapter 11
Week 12: Class 1 The Importance of Intellectual Property Chapter 12
Week 12: Class 2 The Importance of Intellectual Property
Case 12.1 or Case 12.2
Chapter 12
Week 13: Class 1 Preparing for and Evaluating the Challenges of Growth Chapter 13
Week 13: Class 2 Preparing for and Evaluating the Challenges of Growth
You Be the VC 13.1 or You Be the VC 13.2
Case 13.1
Chapter 13
Week 14: Class 1 Strategies for Firm Growth Chapter 14
Week 14: Class 2 Strategies for Firm Growth
Case 14.1 or Case 14.2
Chapter 14
Week 15: Class 1 Franchising Chapter 15
Week 15: Class 2 Franchising
Case 15.1 or Case 15.2
Chapter 15
Final Exam Administered During Final Week Chapters 11–15 or
comprehensive
Loading page 9...
Part 2: Sample Course Outlines
334
Sample Weekly Schedule
Entrepreneurship
Based on 15-Week Semester
(Class Meets Once a Week)
Date Topic Assigned
Reading
Week 1 Introduction to Entrepreneurship
Case 1.1 or Case 1.2
You Be the VC 1.1 or You Be the VC 1.2
Chapter 1
Week 2 Recognizing Opportunities and Generating Ideas
Case 2.1 or Case 2.2
Chapter 2
Week 3 Feasibility Analysis
Case 2 in the Case Appendix
You Be the VC 3.1 or You Be the VC 3.2
Chapter 3
Week 4 Developing an Effective Business Model
Case 4.1 or Case 4.2
Chapter 4
Week 5 Industry and Competitor Analysis
Guest Speaker—To discuss the topic of developing the
importance of a firm’s industry to its success;
Local Successful Entrepreneur
Chapter 5
Week 6 Individual Exam #1 Chapters 1–5
Writing a Business Plan
Case 6.1 or Case 6.2
Chapter 6
Week 7 Preparing the Proper Ethical and Legal Foundation
Case 7.1
You Be the VC 7.1 or You Be the VC 7.2
Chapter 7
Week 8 Assessing a New Venture’s Financial Strength and
Viability
Case 8.1 or Case 8.2
You Be the VC 8.1 or You Be the VC 8.2
Chapter 8
Week 9 Building a New-Venture Team
Case 9.1 or Case 9.2
Chapter 9
Week 10 Guest Speaker on Getting Financing or Funding;
Local Venture Capitalist or Business Angel
Case 10.1
Chapter 10
Week 11 Individual Exam #2 Chapters 6–10
Unique Marketing Issues
Case 11.2
Chapter 11
334
Sample Weekly Schedule
Entrepreneurship
Based on 15-Week Semester
(Class Meets Once a Week)
Date Topic Assigned
Reading
Week 1 Introduction to Entrepreneurship
Case 1.1 or Case 1.2
You Be the VC 1.1 or You Be the VC 1.2
Chapter 1
Week 2 Recognizing Opportunities and Generating Ideas
Case 2.1 or Case 2.2
Chapter 2
Week 3 Feasibility Analysis
Case 2 in the Case Appendix
You Be the VC 3.1 or You Be the VC 3.2
Chapter 3
Week 4 Developing an Effective Business Model
Case 4.1 or Case 4.2
Chapter 4
Week 5 Industry and Competitor Analysis
Guest Speaker—To discuss the topic of developing the
importance of a firm’s industry to its success;
Local Successful Entrepreneur
Chapter 5
Week 6 Individual Exam #1 Chapters 1–5
Writing a Business Plan
Case 6.1 or Case 6.2
Chapter 6
Week 7 Preparing the Proper Ethical and Legal Foundation
Case 7.1
You Be the VC 7.1 or You Be the VC 7.2
Chapter 7
Week 8 Assessing a New Venture’s Financial Strength and
Viability
Case 8.1 or Case 8.2
You Be the VC 8.1 or You Be the VC 8.2
Chapter 8
Week 9 Building a New-Venture Team
Case 9.1 or Case 9.2
Chapter 9
Week 10 Guest Speaker on Getting Financing or Funding;
Local Venture Capitalist or Business Angel
Case 10.1
Chapter 10
Week 11 Individual Exam #2 Chapters 6–10
Unique Marketing Issues
Case 11.2
Chapter 11
Loading page 10...
Part 2: Sample Course Outlines
335
Week 12 The Importance of Intellectual Property
Case 12.1 or Case 12.2
Chapter 12
Week 13 Preparing for and Evaluating the Challenges of Growth
You Be the VC 13.1 or You Be the VC 13.2
Case 13.1
Chapter 13
Week 14 Strategies for Firm Growth
Case 14.1 or Case 14.2
Chapter 14
Week 15 Franchising
Case 15.1 or Case 15.2
Chapter 15
Final Exam Administered During Final Week Chapters 11–15 or
comprehensive
335
Week 12 The Importance of Intellectual Property
Case 12.1 or Case 12.2
Chapter 12
Week 13 Preparing for and Evaluating the Challenges of Growth
You Be the VC 13.1 or You Be the VC 13.2
Case 13.1
Chapter 13
Week 14 Strategies for Firm Growth
Case 14.1 or Case 14.2
Chapter 14
Week 15 Franchising
Case 15.1 or Case 15.2
Chapter 15
Final Exam Administered During Final Week Chapters 11–15 or
comprehensive
Loading page 11...
Part 3: Student and Instructor Resources
336
PART 3
STUDENT AND INSTRUCTOR RESOURCES
This portion of the Instructor’s Manual contains resources that may be helpful to you and
your students throughout the course of the semester.
LIST OF USEFUL WEB SITES IN THE TEACHING OF ENTREPRENEURSHIP
Entrepreneurship-Focused Periodicals
Periodical Web Site Address
Bloomberg Businessweek www.businessweek.com
Economist http://www.economist.com/
Entrepreneur www.entrepreneur.com
Fast Company www.fastcompany.com
Harvard Business Review https://hbr.org
Home Business Journal www.homebusinessjournal.net
Home Business Magazine www.homebusinessmag.com/
Inc. www.inc.com
Industry Week www.industryweek.com/
Minority Business Entrepreneur www.mbemag.com
MIT Technology Review www.technologyreview.com
San Jose Mercury News www.mercurynews.com/
Small Business Opportunities www.sbomag.com
The Business Journals www.bizjournals.com
The Wall Street Journal www.wsj.com
Wired www.wired.com
Entrepreneurship-Focused Web Sites (general information)
Web Site Web Site Address
3 Day Startup http://3daystartup.org/
All Business www.allbusiness.com
America’s SBDC http://americassbdc.org/
Austin Startup http://austinstartup.com/
BizFilings www.bizfilings.com
BizStats.com www.bizstats.com
Bloomberg Business Week Small Business www.businessweek.com/smallbiz
Both Sides of the Table http://www.bothsidesofthetable.com/
BusinessFinance.com www.businessfinance.com
CEO (Collegiate Entrepreneurs’
Organization)
http://www.c-e-o.org/
336
PART 3
STUDENT AND INSTRUCTOR RESOURCES
This portion of the Instructor’s Manual contains resources that may be helpful to you and
your students throughout the course of the semester.
LIST OF USEFUL WEB SITES IN THE TEACHING OF ENTREPRENEURSHIP
Entrepreneurship-Focused Periodicals
Periodical Web Site Address
Bloomberg Businessweek www.businessweek.com
Economist http://www.economist.com/
Entrepreneur www.entrepreneur.com
Fast Company www.fastcompany.com
Harvard Business Review https://hbr.org
Home Business Journal www.homebusinessjournal.net
Home Business Magazine www.homebusinessmag.com/
Inc. www.inc.com
Industry Week www.industryweek.com/
Minority Business Entrepreneur www.mbemag.com
MIT Technology Review www.technologyreview.com
San Jose Mercury News www.mercurynews.com/
Small Business Opportunities www.sbomag.com
The Business Journals www.bizjournals.com
The Wall Street Journal www.wsj.com
Wired www.wired.com
Entrepreneurship-Focused Web Sites (general information)
Web Site Web Site Address
3 Day Startup http://3daystartup.org/
All Business www.allbusiness.com
America’s SBDC http://americassbdc.org/
Austin Startup http://austinstartup.com/
BizFilings www.bizfilings.com
BizStats.com www.bizstats.com
Bloomberg Business Week Small Business www.businessweek.com/smallbiz
Both Sides of the Table http://www.bothsidesofthetable.com/
BusinessFinance.com www.businessfinance.com
CEO (Collegiate Entrepreneurs’
Organization)
http://www.c-e-o.org/
Loading page 12...
Part 3: Student and Instructor Resources
337
College Startup http://www.collegestartup.org
Dorm Room Fund http://dormroomfund.com
eCorner http://ecorner.stanford.edu/
Entrepreneurship.org www.entrepreneurship.org/
Entrepreneurship Education on the Web http://eweb.slu.edu
Escape From Cubicle Nation http://www.escapefromcubiclenation.com/
Global Entrepreneurship Monitor www.gemconsortium.org
Global Student Entrepreneur Awards www.gsea.org
Growththink www.growththink.com
Hacker News https://news.ycombinator.com/
Harvard Business School Entrepreneurs http://www.hbs.edu/entrepreneurship/
Idea Café www.businessownersideacafe.com
Immpreneur http://immpreneur.com
Mixery www.mixery.com
Morebusiness www.morebusiness.com
National Association for the Self-
Employed
http://www.nase.org/
National Federation of Independent
Business
www.nfib.com
OnStartups www.onstartups.com
Paul Graham’s Essays http://www.paulgraham.com/articles.html
Red Herring www.redherring.com
SEC Filings www.sec.gov/edgar.shtml
Small Business Advisor www.isquare.com
Small Business Labs http://www.smallbizlabs.com/
Small Business Trends www.smallbiztrends.com
Startup Company Lawyer http://www.startupcompanylawyer.com/
Startup Digest https://www.startupdigest.com/
Startup Nation http://www.startupnation.com/
Startup Weekend http://startupweekend.org/
Steve Blank www.steveblank.com
STVP Educators Corner (Stanford) http://edcorner.stanford.edu
TechCrunch http://techcrunch.com/
The Franchise King http://www.thefranchiseking.com/
The Lean Startup http://theleanstartup.com/
The Maverick CEO http://maverick-ceo.com/
TheSelfEmployed www.theselfemployed.com
Under30CEO http://under30ceo.com/
UFunded www.ufunded.com
U.S. Small Business Administration www.sba.gov
Venture Beat http://venturebeat.com/
Venture Hacks http://venturehacks.com/
Yahoo! Finance http://biz.yahoo.com/ic/index.html
Young Upstarts http://www.youngupstarts.com/
337
College Startup http://www.collegestartup.org
Dorm Room Fund http://dormroomfund.com
eCorner http://ecorner.stanford.edu/
Entrepreneurship.org www.entrepreneurship.org/
Entrepreneurship Education on the Web http://eweb.slu.edu
Escape From Cubicle Nation http://www.escapefromcubiclenation.com/
Global Entrepreneurship Monitor www.gemconsortium.org
Global Student Entrepreneur Awards www.gsea.org
Growththink www.growththink.com
Hacker News https://news.ycombinator.com/
Harvard Business School Entrepreneurs http://www.hbs.edu/entrepreneurship/
Idea Café www.businessownersideacafe.com
Immpreneur http://immpreneur.com
Mixery www.mixery.com
Morebusiness www.morebusiness.com
National Association for the Self-
Employed
http://www.nase.org/
National Federation of Independent
Business
www.nfib.com
OnStartups www.onstartups.com
Paul Graham’s Essays http://www.paulgraham.com/articles.html
Red Herring www.redherring.com
SEC Filings www.sec.gov/edgar.shtml
Small Business Advisor www.isquare.com
Small Business Labs http://www.smallbizlabs.com/
Small Business Trends www.smallbiztrends.com
Startup Company Lawyer http://www.startupcompanylawyer.com/
Startup Digest https://www.startupdigest.com/
Startup Nation http://www.startupnation.com/
Startup Weekend http://startupweekend.org/
Steve Blank www.steveblank.com
STVP Educators Corner (Stanford) http://edcorner.stanford.edu
TechCrunch http://techcrunch.com/
The Franchise King http://www.thefranchiseking.com/
The Lean Startup http://theleanstartup.com/
The Maverick CEO http://maverick-ceo.com/
TheSelfEmployed www.theselfemployed.com
Under30CEO http://under30ceo.com/
UFunded www.ufunded.com
U.S. Small Business Administration www.sba.gov
Venture Beat http://venturebeat.com/
Venture Hacks http://venturehacks.com/
Yahoo! Finance http://biz.yahoo.com/ic/index.html
Young Upstarts http://www.youngupstarts.com/
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Entrepreneurship-Focused Web Sites (specific information)
Web Site Web Site Address
Angel Investor News www.angel-investor-news.com
AngelList https://angel.co
BizPlanIt www.bizplanit.com
BizStats www.bizstats.com
BPlans www.bplans.com
BusinessFinance.com www.businessfinance.com
Center for Business Planning www.businessplans.org
Center for Rural Entrepreneurship http://www.energizingentrepreneurs.org/
Chic CEO http://www.chic-ceo.com/
Cool Business Ideas www.coolbusinessideas.com
CollabFinder www.collabfinder.com
Collegiate Entrepreneurs Organization www.c-e-o.org
CrunchBase www.crunchbase.com
Duck Tape Marketing http://www.ducttapemarketing.com/
Dutiee (Social Startups) www.dutiee.com
E2 Environmental Entrepreneurship www.e2.org
EpicLaunch http://epiclaunch.com/
Evan Carmichael www.evancarmichael.com
Fambiz.com (family business) www.fambiz.com
FindLaw http://biz.findlaw.com
Fit Small Business http://fitsmallbusiness.com/
FundersClub https://fundersclub.com/
Franchise.com www.franchise.com
Franchise Direct www.franchisedirect.com
Franchise Opportunities http://www.franchiseopportunities.com/
IRS—Small Business http://www.irs.gov/Businesses/Small-
Businesses-&-Self-Employed/Small-
Business-and-Self-Employed-Tax-Center-1
Knowledge @ Wharton http://knowledge.wharton.upenn.edu/
Ladies Who Launch www.ladieswholaunch.com
Marketwatch From Dow Jones www.marketwatch.com
Microsoft Business Hub http://www.microsoft.com/en-us/business/
Money Tree Report www.pwcmoneytree.com
NASDAQ www.nasdaq.com
National Business Incubation Association www.nbia.org
National Inventor Fraud Center www.inventorfraud.com
National Venture Capital Association www.nvca.org
Quora www.quora.com
Quirky www.quirky.com
338
Entrepreneurship-Focused Web Sites (specific information)
Web Site Web Site Address
Angel Investor News www.angel-investor-news.com
AngelList https://angel.co
BizPlanIt www.bizplanit.com
BizStats www.bizstats.com
BPlans www.bplans.com
BusinessFinance.com www.businessfinance.com
Center for Business Planning www.businessplans.org
Center for Rural Entrepreneurship http://www.energizingentrepreneurs.org/
Chic CEO http://www.chic-ceo.com/
Cool Business Ideas www.coolbusinessideas.com
CollabFinder www.collabfinder.com
Collegiate Entrepreneurs Organization www.c-e-o.org
CrunchBase www.crunchbase.com
Duck Tape Marketing http://www.ducttapemarketing.com/
Dutiee (Social Startups) www.dutiee.com
E2 Environmental Entrepreneurship www.e2.org
EpicLaunch http://epiclaunch.com/
Evan Carmichael www.evancarmichael.com
Fambiz.com (family business) www.fambiz.com
FindLaw http://biz.findlaw.com
Fit Small Business http://fitsmallbusiness.com/
FundersClub https://fundersclub.com/
Franchise.com www.franchise.com
Franchise Direct www.franchisedirect.com
Franchise Opportunities http://www.franchiseopportunities.com/
IRS—Small Business http://www.irs.gov/Businesses/Small-
Businesses-&-Self-Employed/Small-
Business-and-Self-Employed-Tax-Center-1
Knowledge @ Wharton http://knowledge.wharton.upenn.edu/
Ladies Who Launch www.ladieswholaunch.com
Marketwatch From Dow Jones www.marketwatch.com
Microsoft Business Hub http://www.microsoft.com/en-us/business/
Money Tree Report www.pwcmoneytree.com
NASDAQ www.nasdaq.com
National Business Incubation Association www.nbia.org
National Inventor Fraud Center www.inventorfraud.com
National Venture Capital Association www.nvca.org
Quora www.quora.com
Quirky www.quirky.com
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ReadWrite http://readwrite.com/
RealTimeBoard hppp://realtimeboard.com
SCORE https://www.score.org/
SEC Edgar Database www.sec.gov/edgar.shtml
Service Corps of Retired Executives www.score.org
Small Business State Economic Profiles https://www.sba.gov/category/advocacy-
navigation-structure/research-and-
statistics/state-economic-profiles
Springwise http://www.springwise.com/
Startup Lawyer www.startuplawyer.com
The Capital Connection www.capital-connection.com
The Center for Venture Research https://paulcollege.unh.edu/cvr
VentureWell www.venturewell.org
Unassumer www.unassumer.com
U.S. Patent and Trademark Office www.uspto.gov/
Valuation Resources www.valuationresources.com
Yahoo! IPO News http://biz.yahoo.com/reports/ipo.html
YEC http://yec.co
Entrepreneurship-Focused Blogs
Blog Web Site Address
A VC—Musings of a VC in NYC http://avc.blogs.com
Ask the VC http://www.askthevc.com/wp/
Be Excellent http://www.sixdisciplines.com/_blog/The_
Six_Disciplines_Blog
Ben Casnocha http://casnocha.com/blog
Business Opportunity Blog www.businessopportunity.com
Business Opportunities Weblog www.business-opportunities.biz
Canadian Entrepreneur http://canentrepreneur.blogspot.com/
Dan Dodge on the Next Big Thing http://dondodge.typepad.com/
David Cancel http://davidcancel.com/
Dave McClure http://500hats.com/
Entrepreneurs-Journey www.entrepreneurs-journey.com
FeldThoughts www.feld.com
For Entrepreneurs http://www.forentrepreneurs.com/
Guy Kawasaki’s Blog http://blog.guykawasaki.com/
Innovation Net http://venture2.typepad.com/innovationnet/
John Battelle’s Searchblog http://battellemedia.com
Jordan Cooper’s Blog http://jordancooper.wordpress.com/
Pamela Slim http://pamelaslim.com/blog/
Paul Allen www.paulallen.net
Paul Graham http://paulgraham.com/
Practice Trumps Theory http://practicetrumpstheory.com/
339
ReadWrite http://readwrite.com/
RealTimeBoard hppp://realtimeboard.com
SCORE https://www.score.org/
SEC Edgar Database www.sec.gov/edgar.shtml
Service Corps of Retired Executives www.score.org
Small Business State Economic Profiles https://www.sba.gov/category/advocacy-
navigation-structure/research-and-
statistics/state-economic-profiles
Springwise http://www.springwise.com/
Startup Lawyer www.startuplawyer.com
The Capital Connection www.capital-connection.com
The Center for Venture Research https://paulcollege.unh.edu/cvr
VentureWell www.venturewell.org
Unassumer www.unassumer.com
U.S. Patent and Trademark Office www.uspto.gov/
Valuation Resources www.valuationresources.com
Yahoo! IPO News http://biz.yahoo.com/reports/ipo.html
YEC http://yec.co
Entrepreneurship-Focused Blogs
Blog Web Site Address
A VC—Musings of a VC in NYC http://avc.blogs.com
Ask the VC http://www.askthevc.com/wp/
Be Excellent http://www.sixdisciplines.com/_blog/The_
Six_Disciplines_Blog
Ben Casnocha http://casnocha.com/blog
Business Opportunity Blog www.businessopportunity.com
Business Opportunities Weblog www.business-opportunities.biz
Canadian Entrepreneur http://canentrepreneur.blogspot.com/
Dan Dodge on the Next Big Thing http://dondodge.typepad.com/
David Cancel http://davidcancel.com/
Dave McClure http://500hats.com/
Entrepreneurs-Journey www.entrepreneurs-journey.com
FeldThoughts www.feld.com
For Entrepreneurs http://www.forentrepreneurs.com/
Guy Kawasaki’s Blog http://blog.guykawasaki.com/
Innovation Net http://venture2.typepad.com/innovationnet/
John Battelle’s Searchblog http://battellemedia.com
Jordan Cooper’s Blog http://jordancooper.wordpress.com/
Pamela Slim http://pamelaslim.com/blog/
Paul Allen www.paulallen.net
Paul Graham http://paulgraham.com/
Practice Trumps Theory http://practicetrumpstheory.com/
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Rajesh Setty http://www.rajeshsetty.com/
Redeye VC http://redeye.firstround.com
Seth Godin Blog www.sethgodin.com/sg/
Signal vs. Noise https://signalvnoise.com/posts
Silicon Prairie News http://siliconprairienews.com/
Small Business Ideas Blog http://www.smallbusinessideasblog.com/
Start Up Blog http://startupblog.wordpress.com/
Social Entrepreneurship Blog www.socialroi.com
The Entrepreneurial Mind http://www.drjeffcornwall.com/
This Is Going To Be Big… http://www.thisisgoingtobebig.com/
Tony Wright http://www.tonywright.com/
VentureBeat www.venturebeat.com
VentureBlog www.ventureblog.com
YoungEntrepreneur www.youngentrepreneur.com/blog
Xconomy http://www.xconomy.com/
Entrepreneurship-Focused Podcasts
Podcast Web Site Address
Entrepreneur on Fire http://www.entrepreneuronfire.com/
Got Invention Radio Podcast www.gotinvention.com/
Foundation http://foundation.bz
HBR Idea Cast Access via iTunes
Mixergy www.mixergy.com
PRI: Social Entrepreneurship Access via iTunes
Stanford Entrepreneurial Thought Leaders http://ecorner.stanford.edu/podcasts.html
Startups for the Rest of Us http://www.startupsfortherestofus.com/
This Week in Startups http://thisweekinstartups.com/
Entrepreneurs and Organizations to Follow on Twitter
Entrepreneur Twitter Account
Altucher, James—Author and Blogger @jaltucher
Baer, J—Austin, TX Entrepreneur @JoshuaBaer
Blank, Steve—Lean Startup Advocate @sgblank
Branson, Richard @RichardBranson
Conway, Ron—Angel Investor @RonConway
Creative Sandbox @CreativeSandbox
Cuban, Mark—Shark Tank Shark @mcuban
Dorsey, Jack—Co-founder of Twitter @Jack
Entrepreneur Magazine @EntMagazine
Entrepreneurs @EntrepreneursQ
Fast Company @FastCompany
340
Rajesh Setty http://www.rajeshsetty.com/
Redeye VC http://redeye.firstround.com
Seth Godin Blog www.sethgodin.com/sg/
Signal vs. Noise https://signalvnoise.com/posts
Silicon Prairie News http://siliconprairienews.com/
Small Business Ideas Blog http://www.smallbusinessideasblog.com/
Start Up Blog http://startupblog.wordpress.com/
Social Entrepreneurship Blog www.socialroi.com
The Entrepreneurial Mind http://www.drjeffcornwall.com/
This Is Going To Be Big… http://www.thisisgoingtobebig.com/
Tony Wright http://www.tonywright.com/
VentureBeat www.venturebeat.com
VentureBlog www.ventureblog.com
YoungEntrepreneur www.youngentrepreneur.com/blog
Xconomy http://www.xconomy.com/
Entrepreneurship-Focused Podcasts
Podcast Web Site Address
Entrepreneur on Fire http://www.entrepreneuronfire.com/
Got Invention Radio Podcast www.gotinvention.com/
Foundation http://foundation.bz
HBR Idea Cast Access via iTunes
Mixergy www.mixergy.com
PRI: Social Entrepreneurship Access via iTunes
Stanford Entrepreneurial Thought Leaders http://ecorner.stanford.edu/podcasts.html
Startups for the Rest of Us http://www.startupsfortherestofus.com/
This Week in Startups http://thisweekinstartups.com/
Entrepreneurs and Organizations to Follow on Twitter
Entrepreneur Twitter Account
Altucher, James—Author and Blogger @jaltucher
Baer, J—Austin, TX Entrepreneur @JoshuaBaer
Blank, Steve—Lean Startup Advocate @sgblank
Branson, Richard @RichardBranson
Conway, Ron—Angel Investor @RonConway
Creative Sandbox @CreativeSandbox
Cuban, Mark—Shark Tank Shark @mcuban
Dorsey, Jack—Co-founder of Twitter @Jack
Entrepreneur Magazine @EntMagazine
Entrepreneurs @EntrepreneursQ
Fast Company @FastCompany
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Feld, Brad—Venture Capitalist @bfeld
Ferris, Tim—Author of 4-Hour Workweek @Tferris
FOXBusiness @FoxBusiness
Gerber, Michael—Author @MichaelEGerber
Gladwell, Malcolm—Author @Gladwell
Godin, Seth—Author @thisissethsblog
Google for Entrepreneurs @googleforentrepreneurs
Hsieh, Tony—CEO of Twitter @tonyhsieh
Inc Magazine @Inc
Innovation America @Innovation Daily
Innovation LLC @innovation
John, Daymond—Shark Tank Shark @TheSharkDaymond
Kauffman Foundation @KauffmanFDN
Kawasaki, G—Entrepreneur and Author @GuyKawasaki
Khan Academy @khanacademy
Kickstarter @kickstarter
Lean Startup Circle @LeanCircle
Michaels, J—Fitness Guru Entrepreneur @JillianMichaels
NFIB @NFIB
O’Leary, Kevin—Shark Tank Shark @kevinolearytv
Osterwalder, Alex—Author @AlexOsterwalder
Ries, Eric—Lean Startup Advocate @ericries
Start-Ups Co @Start_Ups_Co
Suster, Mark—Venture Capitalist @msuster
SXSW @sxsw
TED Talks @TEDTalks
Techstars @techstars
The Lean Startup @leanstartup
3 Day Startup @3DayStartup
30 Second MBA @30SecMBA
Shark Tank @ABCSharkTank
Startup America @StartupAmerica
Startup Chronicle @StartUpChron
Under30CEO @Under30CEO
Venture Hacks @venturehacks
Vaynerchuk, Gary—Entrepreneur @GaryVee
VentureWell @venturewell
WSJ @wsj
WSJstartup @WSJstartup
Wired @WIRED
Women Entrepreneur @WomenEnt
YCombinator Startups @YCstartups
YoungEntrepreneur @YoungTrep
YoungWorld Inventors @YWInventors
341
Feld, Brad—Venture Capitalist @bfeld
Ferris, Tim—Author of 4-Hour Workweek @Tferris
FOXBusiness @FoxBusiness
Gerber, Michael—Author @MichaelEGerber
Gladwell, Malcolm—Author @Gladwell
Godin, Seth—Author @thisissethsblog
Google for Entrepreneurs @googleforentrepreneurs
Hsieh, Tony—CEO of Twitter @tonyhsieh
Inc Magazine @Inc
Innovation America @Innovation Daily
Innovation LLC @innovation
John, Daymond—Shark Tank Shark @TheSharkDaymond
Kauffman Foundation @KauffmanFDN
Kawasaki, G—Entrepreneur and Author @GuyKawasaki
Khan Academy @khanacademy
Kickstarter @kickstarter
Lean Startup Circle @LeanCircle
Michaels, J—Fitness Guru Entrepreneur @JillianMichaels
NFIB @NFIB
O’Leary, Kevin—Shark Tank Shark @kevinolearytv
Osterwalder, Alex—Author @AlexOsterwalder
Ries, Eric—Lean Startup Advocate @ericries
Start-Ups Co @Start_Ups_Co
Suster, Mark—Venture Capitalist @msuster
SXSW @sxsw
TED Talks @TEDTalks
Techstars @techstars
The Lean Startup @leanstartup
3 Day Startup @3DayStartup
30 Second MBA @30SecMBA
Shark Tank @ABCSharkTank
Startup America @StartupAmerica
Startup Chronicle @StartUpChron
Under30CEO @Under30CEO
Venture Hacks @venturehacks
Vaynerchuk, Gary—Entrepreneur @GaryVee
VentureWell @venturewell
WSJ @wsj
WSJstartup @WSJstartup
Wired @WIRED
Women Entrepreneur @WomenEnt
YCombinator Startups @YCstartups
YoungEntrepreneur @YoungTrep
YoungWorld Inventors @YWInventors
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Part 3: Student and Instructor Resources
342
Entrepreneurship-Focused Scholarly Journals
Journal Web Site Address
Entrepreneurship & Regional Development http://www.tandfonline.com/toc/TEPN20/c
urrent#.VJhzW4AGA
Entrepreneurship Theory & Practice http://onlinelibrary.wiley.com/journal/10.1
111/(ISSN)1540-6520
Frontiers of Entrepreneurship Research http://www.babson.edu/Academics/centers/
blank-center/bcerc/Pages/frontiers-of-
entrepreneurship-research.aspx
Journal of Business Venturing http://www.journals.elsevier.com/journal-
of-business-venturing/
Journal of Small Business Management http://onlinelibrary.wiley.com/journal/10.1
111/(ISSN)1540-627X
Journal of Small Business Strategy http://smallbusinessinstitute.biz/page-
1259165?
Small Business Economics http://www.springer.com/business+%26+m
anagement/business+for+professionals/jour
nal/11187
Strategic Entrepreneurship Journal http://onlinelibrary.wiley.com/journal/10.1
002/(ISSN)1932-443X
The Journal of Product Innovation
Management
http://onlinelibrary.wiley.com/journal/10.1
111/(ISSN)1540-5885
Venture Capital—An International Journal
of Entrepreneurial Finance
http://www.tandfonline.com/toc/tvec20/cur
rent#.VJhyA4AGA
Company Information
Web Site Web Site Address
Annual Report Service www.annualreportservice.com
CEO Express www.ceoexpress.com
BRINT www.brint.com
Business Wire www.businesswire.com
Hoover’s Online www.hoovers.com
PR Newswire www.prnewswire.com
Thomas Register http://www.thomasnet.com/
The Wall Street Journal www.wsj.com
342
Entrepreneurship-Focused Scholarly Journals
Journal Web Site Address
Entrepreneurship & Regional Development http://www.tandfonline.com/toc/TEPN20/c
urrent#.VJhzW4AGA
Entrepreneurship Theory & Practice http://onlinelibrary.wiley.com/journal/10.1
111/(ISSN)1540-6520
Frontiers of Entrepreneurship Research http://www.babson.edu/Academics/centers/
blank-center/bcerc/Pages/frontiers-of-
entrepreneurship-research.aspx
Journal of Business Venturing http://www.journals.elsevier.com/journal-
of-business-venturing/
Journal of Small Business Management http://onlinelibrary.wiley.com/journal/10.1
111/(ISSN)1540-627X
Journal of Small Business Strategy http://smallbusinessinstitute.biz/page-
1259165?
Small Business Economics http://www.springer.com/business+%26+m
anagement/business+for+professionals/jour
nal/11187
Strategic Entrepreneurship Journal http://onlinelibrary.wiley.com/journal/10.1
002/(ISSN)1932-443X
The Journal of Product Innovation
Management
http://onlinelibrary.wiley.com/journal/10.1
111/(ISSN)1540-5885
Venture Capital—An International Journal
of Entrepreneurial Finance
http://www.tandfonline.com/toc/tvec20/cur
rent#.VJhyA4AGA
Company Information
Web Site Web Site Address
Annual Report Service www.annualreportservice.com
CEO Express www.ceoexpress.com
BRINT www.brint.com
Business Wire www.businesswire.com
Hoover’s Online www.hoovers.com
PR Newswire www.prnewswire.com
Thomas Register http://www.thomasnet.com/
The Wall Street Journal www.wsj.com
Loading page 18...
Chapter 1: Introduction to Entrepreneurship
1
CHAPTER 1
INTRODUCTION TO ENTREPRENEURSHIP
LEARNING OBJECTIVES
After studying this chapter students should be ready to:
1. Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
2. Discuss three main reasons people decide to become entrepreneurs.
3. Identify four main characteristics of successful entrepreneurs.
4. Explain five common myths regarding entrepreneurship.
5. Discuss the three types of start-up firms.
6. Discuss the changing demographics of entrepreneurs in the United States.
7. Discuss the positive effects of entrepreneurship and entrepreneurial firms on
economies and societies.
8. Explain the entrepreneurial process.
9. Learn how understanding entrepreneurship and the entrepreneurial process can
facilitate your career success.
CHAPTER OVERVIEW
This chapter (1) introduces the book, (2) provides an overview of the entrepreneurial
process, and (3) introduces a conceptual model that shows how the entrepreneurial
process typically unfolds. The model, which is shown at the top of the next page, depicts
the entrepreneurial process as a 10-step process, beginning with the decision to become
an entrepreneur. The chapters of the book follow the model. We hope that this approach
provides your students a nice visual way of understanding how the entrepreneurial
process unfolds.
The chapter focuses on why people become entrepreneurs, the characteristics of
successful entrepreneurs, the changing demographics of entrepreneurs, and the
importance of entrepreneurship to the economy and society. The three boxed features,
which appear in every chapter, are introduced. The chapter ends with a brief discussion of
each of the major sections of the book.
The chapter, like the rest of the book, is written in an upbeat yet realistic manner.
1
CHAPTER 1
INTRODUCTION TO ENTREPRENEURSHIP
LEARNING OBJECTIVES
After studying this chapter students should be ready to:
1. Describe entrepreneurship, corporate entrepreneurship, and the characteristics of
entrepreneurial firms.
2. Discuss three main reasons people decide to become entrepreneurs.
3. Identify four main characteristics of successful entrepreneurs.
4. Explain five common myths regarding entrepreneurship.
5. Discuss the three types of start-up firms.
6. Discuss the changing demographics of entrepreneurs in the United States.
7. Discuss the positive effects of entrepreneurship and entrepreneurial firms on
economies and societies.
8. Explain the entrepreneurial process.
9. Learn how understanding entrepreneurship and the entrepreneurial process can
facilitate your career success.
CHAPTER OVERVIEW
This chapter (1) introduces the book, (2) provides an overview of the entrepreneurial
process, and (3) introduces a conceptual model that shows how the entrepreneurial
process typically unfolds. The model, which is shown at the top of the next page, depicts
the entrepreneurial process as a 10-step process, beginning with the decision to become
an entrepreneur. The chapters of the book follow the model. We hope that this approach
provides your students a nice visual way of understanding how the entrepreneurial
process unfolds.
The chapter focuses on why people become entrepreneurs, the characteristics of
successful entrepreneurs, the changing demographics of entrepreneurs, and the
importance of entrepreneurship to the economy and society. The three boxed features,
which appear in every chapter, are introduced. The chapter ends with a brief discussion of
each of the major sections of the book.
The chapter, like the rest of the book, is written in an upbeat yet realistic manner.
Loading page 19...
Chapter 1: Introduction to Entrepreneurship
2
Basic Model of the Entrepreneurial Process
The Model Parallels the Chapters in the Book
CHAPTER OUTLINE
CHAPTER OUTLINE
I. Introduction to Entrepreneurship
II. What Is Entrepreneurship and Why Is It Important?
III. Why Do People Become Entrepreneurs?
A. Be Their Own Boss
B. Pursue Their Own Ideas
C. Pursue Financial Rewards
IV. Characteristics of Successful Entrepreneurs
A. Passion for the Business
B. Product/Customer Focus
C. Tenacity Despite Failure
D. Execution Intelligence
V. Common Myths About Entrepreneurs
A. Myth 1: Entrepreneurs Are Born, Not Made
B. Myth 2: Entrepreneurs Are Gamblers
C. Myth 3: Entrepreneurs Are Motivated Primarily by Money
D. Myth 4: Entrepreneurs Should be Young and Energetic
E. Myth 5: Entrepreneurs Love the Spotlight
VI. Types of Start-Up Firms
VII. Changing Demographics of Entrepreneurs
A. Women Entrepreneurs
B. Minority Entrepreneurs
C. Senior Entrepreneurs
D. Millennial Entrepreneurs
VIII. The Positive Effects of Entrepreneurship and Entrepreneurial Firms
2
Basic Model of the Entrepreneurial Process
The Model Parallels the Chapters in the Book
CHAPTER OUTLINE
CHAPTER OUTLINE
I. Introduction to Entrepreneurship
II. What Is Entrepreneurship and Why Is It Important?
III. Why Do People Become Entrepreneurs?
A. Be Their Own Boss
B. Pursue Their Own Ideas
C. Pursue Financial Rewards
IV. Characteristics of Successful Entrepreneurs
A. Passion for the Business
B. Product/Customer Focus
C. Tenacity Despite Failure
D. Execution Intelligence
V. Common Myths About Entrepreneurs
A. Myth 1: Entrepreneurs Are Born, Not Made
B. Myth 2: Entrepreneurs Are Gamblers
C. Myth 3: Entrepreneurs Are Motivated Primarily by Money
D. Myth 4: Entrepreneurs Should be Young and Energetic
E. Myth 5: Entrepreneurs Love the Spotlight
VI. Types of Start-Up Firms
VII. Changing Demographics of Entrepreneurs
A. Women Entrepreneurs
B. Minority Entrepreneurs
C. Senior Entrepreneurs
D. Millennial Entrepreneurs
VIII. The Positive Effects of Entrepreneurship and Entrepreneurial Firms
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Chapter 1: Introduction to Entrepreneurship
3
A. Economic Impact of Entrepreneurial Firms
B. Entrepreneurial Firms’ Impact on Society
C. Entrepreneurial Firms’ Impact on Larger Firms
IX. The Entrepreneurial Process
A. Decision to Become an Entrepreneur (Chapter 1)
B. Developing Successful Business Ideas (Chapters 2–6)
C. Moving from an Idea to an Entrepreneurial Firm (Chapters 7–10)
D. Managing and Growing an Entrepreneurial Firm (Chapters 11–15)
X. Developing Skills for your Career
CHAPTER NOTES
I. Introduction to Entrepreneurship
There is tremendous interest in entrepreneurship around the world.
Although the highest rates of entrepreneurial start-up activity occur in low-
income countries, where good jobs are not plentiful, the rates are also
impressive in high-income countries. According to the GEM Study, 1 out of
every 8 ½ (11.9%) of American adults is actively engaged in starting a
business or is the owner/manager of a business that is less than three-and-a-
half years old.
II. What Is Entrepreneurship and Why Is It Important?
Entrepreneurship is defined as the process by which individuals pursue
opportunities without regard to resources they currently control for the
purpose of exploiting future goods and services.
We want to note here that established firms with an orientation toward acting
entrepreneurially practice corporate entrepreneurship.
All firms fall on a conceptual continuum that ranges from highly conservative
to highly entrepreneurial.
III. Why Do People Become Entrepreneurs?
A. Be Their Own Boss. Many entrepreneurs want to be their own boss because
either they have had a long-term ambition to own their own business or they
have become frustrated working in traditional jobs.
B. Pursue Their Own Ideas. Some people are naturally alert, and when they
recognize ideas for new products or services, they have a desire to see those
ideas realized.
C. Pursue Financial Rewards. People start their own firms to pursue financial
rewards. This motivation, however, is typically secondary to the first two and
often fails to live up to its hype.
3
A. Economic Impact of Entrepreneurial Firms
B. Entrepreneurial Firms’ Impact on Society
C. Entrepreneurial Firms’ Impact on Larger Firms
IX. The Entrepreneurial Process
A. Decision to Become an Entrepreneur (Chapter 1)
B. Developing Successful Business Ideas (Chapters 2–6)
C. Moving from an Idea to an Entrepreneurial Firm (Chapters 7–10)
D. Managing and Growing an Entrepreneurial Firm (Chapters 11–15)
X. Developing Skills for your Career
CHAPTER NOTES
I. Introduction to Entrepreneurship
There is tremendous interest in entrepreneurship around the world.
Although the highest rates of entrepreneurial start-up activity occur in low-
income countries, where good jobs are not plentiful, the rates are also
impressive in high-income countries. According to the GEM Study, 1 out of
every 8 ½ (11.9%) of American adults is actively engaged in starting a
business or is the owner/manager of a business that is less than three-and-a-
half years old.
II. What Is Entrepreneurship and Why Is It Important?
Entrepreneurship is defined as the process by which individuals pursue
opportunities without regard to resources they currently control for the
purpose of exploiting future goods and services.
We want to note here that established firms with an orientation toward acting
entrepreneurially practice corporate entrepreneurship.
All firms fall on a conceptual continuum that ranges from highly conservative
to highly entrepreneurial.
III. Why Do People Become Entrepreneurs?
A. Be Their Own Boss. Many entrepreneurs want to be their own boss because
either they have had a long-term ambition to own their own business or they
have become frustrated working in traditional jobs.
B. Pursue Their Own Ideas. Some people are naturally alert, and when they
recognize ideas for new products or services, they have a desire to see those
ideas realized.
C. Pursue Financial Rewards. People start their own firms to pursue financial
rewards. This motivation, however, is typically secondary to the first two and
often fails to live up to its hype.
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Chapter 1: Introduction to Entrepreneurship
4
IV. Characteristics of Successful Entrepreneurs
A. Passion for the Business. The number one characteristic shared by successful
entrepreneurs is passion for the business. This passion typically stems from
the entrepreneur’s belief that the business will positively influence people’s
lives.
B. Product/Customer Focus. An entrepreneur’s keen focus on products and
customers typically stems from the fact that most entrepreneurs are, at heart,
craftspeople.
C. Tenacity Despite Failure. Because entrepreneurs are typically trying
something new, the failure rate associated with their efforts is naturally high.
Developing a new business may require a certain degree of experimentation
before a success is attained. Setbacks and failures inevitably occur during the
process. The litmus test of entrepreneurs is their ability to persevere through
setbacks and failures.
D. Execution Intelligence. The ability to effectively execute a business idea
means developing a business model, putting together a new-venture team,
raising money, managing finances, leading employees, and so on.
V. Common Myths About Entrepreneurs
A. Myth 1: Entrepreneurs Are Born, Not Made. This myth is based on the
mistaken belief that some people are genetically predisposed to be an
entrepreneur.
B. Myth 2: Entrepreneurs Are Gamblers. Entrepreneurs are usually moderate risk
takers, as are most people.
C. Myth 3: Entrepreneurs Are Motivated Primarily by Money. It is naïve to think
that entrepreneurs don’t seek financial rewards. As discussed previously,
however, money is rarely the primary reason entrepreneurs start new firms.
D. Myth 4: Entrepreneurs Should Be Young and Energetic. Although it is
important to be energetic, investors often site the strength of the entrepreneurs
(in terms of business experience, skill, and talent) as their most important
criterion in the decision to fund a new venture.
E. Myth 5: Entrepreneurs Love the Spotlight. While some entrepreneurs are
flamboyant, the vast majority of them do not seek or attract public attention.
Typically those that are working on proprietary products or services avoid
public notice.
4
IV. Characteristics of Successful Entrepreneurs
A. Passion for the Business. The number one characteristic shared by successful
entrepreneurs is passion for the business. This passion typically stems from
the entrepreneur’s belief that the business will positively influence people’s
lives.
B. Product/Customer Focus. An entrepreneur’s keen focus on products and
customers typically stems from the fact that most entrepreneurs are, at heart,
craftspeople.
C. Tenacity Despite Failure. Because entrepreneurs are typically trying
something new, the failure rate associated with their efforts is naturally high.
Developing a new business may require a certain degree of experimentation
before a success is attained. Setbacks and failures inevitably occur during the
process. The litmus test of entrepreneurs is their ability to persevere through
setbacks and failures.
D. Execution Intelligence. The ability to effectively execute a business idea
means developing a business model, putting together a new-venture team,
raising money, managing finances, leading employees, and so on.
V. Common Myths About Entrepreneurs
A. Myth 1: Entrepreneurs Are Born, Not Made. This myth is based on the
mistaken belief that some people are genetically predisposed to be an
entrepreneur.
B. Myth 2: Entrepreneurs Are Gamblers. Entrepreneurs are usually moderate risk
takers, as are most people.
C. Myth 3: Entrepreneurs Are Motivated Primarily by Money. It is naïve to think
that entrepreneurs don’t seek financial rewards. As discussed previously,
however, money is rarely the primary reason entrepreneurs start new firms.
D. Myth 4: Entrepreneurs Should Be Young and Energetic. Although it is
important to be energetic, investors often site the strength of the entrepreneurs
(in terms of business experience, skill, and talent) as their most important
criterion in the decision to fund a new venture.
E. Myth 5: Entrepreneurs Love the Spotlight. While some entrepreneurs are
flamboyant, the vast majority of them do not seek or attract public attention.
Typically those that are working on proprietary products or services avoid
public notice.
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Chapter 1: Introduction to Entrepreneurship
5
VI. Types of Start-Up Firms
A. Salary-Substitute Firms. Are small firms that afford their owner or owners a
similar level of income to what they would earn in a conventional job.
1. Examples of salary-substitute firms are dry cleaners, convenience stores,
restaurants, accounting firms, and hairstyling salons.
B. Lifestyle Firms. Provide their owner or owners the opportunity to pursue a
particular lifestyle and earn a living while doing so.
1. Examples of lifestyle firms include ski instructors, golf pros, and tour
guides.
C. Entrepreneurial Firms. Bring new products and services to market by creating
and seizing opportunities.
1. Examples of entrepreneurial firms are Dropbox, Facebook, and Uber.
VII. Changing Demographics of Entrepreneurs
A. Women Entrepreneurs. Although men are still more likely to start businesses
than women, the number of women-owned businesses is increasing.
According to a study commissioned by American Express and OPEN, there
were 11.3 million women-owned businesses in the United States in 2016.
B. Minority Entrepreneurs. There has been a substantial increase in minority
entrepreneurs in the United States. In 2012 (the most recent stats available),
there were 8 million minority-owned firms.
1. The average gross receipts for minority-owned firms was $58,119.
C. Senior Entrepreneurs. The number of seniors (those 50 years of age and older)
starting businesses is substantial and growing. In 2015, 5.4 percent of new
businesses were started by people 62 years and older.
D. Millennial Entrepreneurs. A desire to pursue an entrepreneurial career is high
among young people. According to a Bentley University survey, 66 percent of
millennials have a desire to start their own businesses.
VIII. The Positive Effects of Entrepreneurship and Entrepreneurial Firms
A. Economic Impact of Entrepreneurial Firms. For two reasons, entrepreneurial
behavior has a strong impact on an economy’s strength and stability.
5
VI. Types of Start-Up Firms
A. Salary-Substitute Firms. Are small firms that afford their owner or owners a
similar level of income to what they would earn in a conventional job.
1. Examples of salary-substitute firms are dry cleaners, convenience stores,
restaurants, accounting firms, and hairstyling salons.
B. Lifestyle Firms. Provide their owner or owners the opportunity to pursue a
particular lifestyle and earn a living while doing so.
1. Examples of lifestyle firms include ski instructors, golf pros, and tour
guides.
C. Entrepreneurial Firms. Bring new products and services to market by creating
and seizing opportunities.
1. Examples of entrepreneurial firms are Dropbox, Facebook, and Uber.
VII. Changing Demographics of Entrepreneurs
A. Women Entrepreneurs. Although men are still more likely to start businesses
than women, the number of women-owned businesses is increasing.
According to a study commissioned by American Express and OPEN, there
were 11.3 million women-owned businesses in the United States in 2016.
B. Minority Entrepreneurs. There has been a substantial increase in minority
entrepreneurs in the United States. In 2012 (the most recent stats available),
there were 8 million minority-owned firms.
1. The average gross receipts for minority-owned firms was $58,119.
C. Senior Entrepreneurs. The number of seniors (those 50 years of age and older)
starting businesses is substantial and growing. In 2015, 5.4 percent of new
businesses were started by people 62 years and older.
D. Millennial Entrepreneurs. A desire to pursue an entrepreneurial career is high
among young people. According to a Bentley University survey, 66 percent of
millennials have a desire to start their own businesses.
VIII. The Positive Effects of Entrepreneurship and Entrepreneurial Firms
A. Economic Impact of Entrepreneurial Firms. For two reasons, entrepreneurial
behavior has a strong impact on an economy’s strength and stability.
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Chapter 1: Introduction to Entrepreneurship
6
1. Innovation. Innovation is the process of creating something new, which is
central to the entrepreneurial process. Small innovative firms are 16 times
more productive than larger innovative firms in terms of patents per
employee.
2. Job creation. According to the SBA, small businesses create a substantial
number of net new jobs in the United States. Firms with 500 or fewer
employees created more than 7 million out of the 11 million new jobs
created during the recent economic recovery.
B. Entrepreneurial Firms’ Impact on Society. The innovations of entrepreneurial
firms have a dramatic impact on society. Think of all the new products and
services that make our lives easier, enhance our productivity at work, improve
our health, and entertain us. Many of these products and services were
conceived and brought to market by entrepreneurial firms.
C. Entrepreneurial Firms’ Impact on Larger Firms. In addition to the impact
entrepreneurial firms have on the economy and society, entrepreneurial firms
have a positive impact on the effectiveness of larger firms.
1. For example, some entrepreneurial firms are original equipment
manufacturers, producing parts that go into products that larger firms
manufacture and sell.
2. Thus, many exciting new products are not solely the result of the efforts of
larger companies with strong brand names. They were produced with the
cutting-edge component parts or research development efforts provided by
entrepreneurial firms.
3. The evidence shows that many entrepreneurial firms have built their entire
business models around producing products and services that help larger
firms be more efficient or effective.
IX. The Entrepreneurial Process
Figure 1.3 in the book (and reproduced earlier in this review) models the
entrepreneurial process. This process is the guide or framework we use to
develop this book’s contents.
A. Decision to Become an Entrepreneur (Chapter 1). As discussed earlier, people
become entrepreneurs to be their own boss, to pursue their own ideas, and to
realize financial rewards.
B. Developing Successful Business Ideas (Chapters 2–6). Many new businesses
fail not because the entrepreneur didn’t work hard but because there was no
real opportunity to begin with.
6
1. Innovation. Innovation is the process of creating something new, which is
central to the entrepreneurial process. Small innovative firms are 16 times
more productive than larger innovative firms in terms of patents per
employee.
2. Job creation. According to the SBA, small businesses create a substantial
number of net new jobs in the United States. Firms with 500 or fewer
employees created more than 7 million out of the 11 million new jobs
created during the recent economic recovery.
B. Entrepreneurial Firms’ Impact on Society. The innovations of entrepreneurial
firms have a dramatic impact on society. Think of all the new products and
services that make our lives easier, enhance our productivity at work, improve
our health, and entertain us. Many of these products and services were
conceived and brought to market by entrepreneurial firms.
C. Entrepreneurial Firms’ Impact on Larger Firms. In addition to the impact
entrepreneurial firms have on the economy and society, entrepreneurial firms
have a positive impact on the effectiveness of larger firms.
1. For example, some entrepreneurial firms are original equipment
manufacturers, producing parts that go into products that larger firms
manufacture and sell.
2. Thus, many exciting new products are not solely the result of the efforts of
larger companies with strong brand names. They were produced with the
cutting-edge component parts or research development efforts provided by
entrepreneurial firms.
3. The evidence shows that many entrepreneurial firms have built their entire
business models around producing products and services that help larger
firms be more efficient or effective.
IX. The Entrepreneurial Process
Figure 1.3 in the book (and reproduced earlier in this review) models the
entrepreneurial process. This process is the guide or framework we use to
develop this book’s contents.
A. Decision to Become an Entrepreneur (Chapter 1). As discussed earlier, people
become entrepreneurs to be their own boss, to pursue their own ideas, and to
realize financial rewards.
B. Developing Successful Business Ideas (Chapters 2–6). Many new businesses
fail not because the entrepreneur didn’t work hard but because there was no
real opportunity to begin with.
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Chapter 1: Introduction to Entrepreneurship
7
1. Developing a successful business idea includes opportunity recognition,
feasibility analysis, developing an effective business model, industry and
competitor analysis, and writing a business plan.
C. Moving from an Idea to an Entrepreneurial Firm (Chapters 7–10). This is a
critical stage in the entrepreneurial process.
1. This section deals with preparing the proper ethical and legal foundation,
assessing a new venture’s financial strength and viability, building a new-
venture team, and getting financing or funding.
D. Managing and Growing an Entrepreneurial Firm (Chapters 11–15). Given
today’s competitive environment, all firms must be managed and growth
properly maintained to ensure their ongoing success. This is the final stage of
the entrepreneurial process.
1. This section deals with unique marketing issues, the importance of
intellectual property, preparing for and evaluating the challenges of
growth, strategies for growth, and franchising.
X. Developing Skills for your Career
A. Whether you want to be an entrepreneur or not, the contents of this book
address a number of “employability” skills that are critical to have a
successful career in organizations. Key among these skills are ethics and
social responsibility, critical thinking, collaboration, and data literacy.
BOXED FEATURES: QUESTIONS FOR CRITICAL THINKING
Note: Each boxed feature in the textbook is followed by four questions. The questions
can be used for individual or group assignments or can be used to stimulate classroom
discussion. The following are suggested answers for the questions at the end of each
boxed feature.
What Went Wrong?
Prim: How a Lack of Passion and Resolve Can Kill a Business
1. Why is passion such a critical part of entrepreneurial success? Prim’s founders
were apparently passionate about building a company but not the laundry
business specifically. In what ways is this combination problematic?
Answer: The number one characteristic shared by successful entrepreneurs is a
passion for their business. The passion typically stems from the entrepreneur’s
belief that the business will positively influence people’s lives. Prim’s founder
may have mistakenly developed a passion for starting a business rather than a
7
1. Developing a successful business idea includes opportunity recognition,
feasibility analysis, developing an effective business model, industry and
competitor analysis, and writing a business plan.
C. Moving from an Idea to an Entrepreneurial Firm (Chapters 7–10). This is a
critical stage in the entrepreneurial process.
1. This section deals with preparing the proper ethical and legal foundation,
assessing a new venture’s financial strength and viability, building a new-
venture team, and getting financing or funding.
D. Managing and Growing an Entrepreneurial Firm (Chapters 11–15). Given
today’s competitive environment, all firms must be managed and growth
properly maintained to ensure their ongoing success. This is the final stage of
the entrepreneurial process.
1. This section deals with unique marketing issues, the importance of
intellectual property, preparing for and evaluating the challenges of
growth, strategies for growth, and franchising.
X. Developing Skills for your Career
A. Whether you want to be an entrepreneur or not, the contents of this book
address a number of “employability” skills that are critical to have a
successful career in organizations. Key among these skills are ethics and
social responsibility, critical thinking, collaboration, and data literacy.
BOXED FEATURES: QUESTIONS FOR CRITICAL THINKING
Note: Each boxed feature in the textbook is followed by four questions. The questions
can be used for individual or group assignments or can be used to stimulate classroom
discussion. The following are suggested answers for the questions at the end of each
boxed feature.
What Went Wrong?
Prim: How a Lack of Passion and Resolve Can Kill a Business
1. Why is passion such a critical part of entrepreneurial success? Prim’s founders
were apparently passionate about building a company but not the laundry
business specifically. In what ways is this combination problematic?
Answer: The number one characteristic shared by successful entrepreneurs is a
passion for their business. The passion typically stems from the entrepreneur’s
belief that the business will positively influence people’s lives. Prim’s founder
may have mistakenly developed a passion for starting a business rather than a
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Chapter 1: Introduction to Entrepreneurship
8
passion for the business they started. This is problematic because once the initial
excitement of starting the business was over (and the business started
experiencing challenges), the founders were left with the day-to-day grind of
running the business and may have found that they weren’t as interested in the
(laundry) business as they originally thought they would be. One way to check
whether one’s passion is real is to work in the industry your firm will participate
in (over an extended period of time, if possible) to see if you like it. Some
franchise organizations, for example, require prospective franchisees to work in
one of the company’s franchise outlets for a period of time, just to ensure that
they like the work before they become franchisees.
As illustrated throughout the book, starting a business is a rewarding yet
challenging process. There will be many ups and downs. A person’s passion for
the business that he or she starts is what sustains one during the challenging
periods.
2. How could Prim’s co-founders have better anticipated that laundry services
would eventually see Prim as siphoning off their own business and be reluctant
to work with them?
Answer: Students will vary in terms of their answer to this question. One thing
Prim’s co-founders could have done prior to starting the business is complete a
thorough feasibility analysis. This topic is addressed in Chapter 3. By talking to
laundry services in advance, the founders may have gained an awareness that
their business model was not viable.
3. Rather than employ its own drivers to pick up and deliver laundry for its
customers, Prim relied on the use of third-party delivery services. In what ways
do you think this approach could have limited Prim’s growth in other markets?
Answer: Prim was not developing core competencies in the logistics of its
operations. At its heart, Prim was a pick up and delivery service. It picked up its
customers’ laundry, took the laundry to a laundry service to have washed and
folded, and then returned the laundry to the customer. If Prim had developed
unique capabilities in performing this task, it could have extended its pick up and
delivery service to other industries. Instead, Prim outsourced this service so it
developed no core competencies in this area.
4. San Francisco, the city in which Prim launched, has several innovative laundry
services. These services include LaundryLocker, where you drop your clothes in
a public locker; Sfwash, a delivery service where you pay by the pound; and
Sudzee, which requires special lockable bags. Spend some time studying
LaundryLocker (https://laundrylocker.com), Sfwash (https://sfwash.com), and
Sudzee (http://sudzee.com). Select the service that you think has the most
potential and explain the rationale for your selection. Compare the service to
Prim’s approach.
8
passion for the business they started. This is problematic because once the initial
excitement of starting the business was over (and the business started
experiencing challenges), the founders were left with the day-to-day grind of
running the business and may have found that they weren’t as interested in the
(laundry) business as they originally thought they would be. One way to check
whether one’s passion is real is to work in the industry your firm will participate
in (over an extended period of time, if possible) to see if you like it. Some
franchise organizations, for example, require prospective franchisees to work in
one of the company’s franchise outlets for a period of time, just to ensure that
they like the work before they become franchisees.
As illustrated throughout the book, starting a business is a rewarding yet
challenging process. There will be many ups and downs. A person’s passion for
the business that he or she starts is what sustains one during the challenging
periods.
2. How could Prim’s co-founders have better anticipated that laundry services
would eventually see Prim as siphoning off their own business and be reluctant
to work with them?
Answer: Students will vary in terms of their answer to this question. One thing
Prim’s co-founders could have done prior to starting the business is complete a
thorough feasibility analysis. This topic is addressed in Chapter 3. By talking to
laundry services in advance, the founders may have gained an awareness that
their business model was not viable.
3. Rather than employ its own drivers to pick up and deliver laundry for its
customers, Prim relied on the use of third-party delivery services. In what ways
do you think this approach could have limited Prim’s growth in other markets?
Answer: Prim was not developing core competencies in the logistics of its
operations. At its heart, Prim was a pick up and delivery service. It picked up its
customers’ laundry, took the laundry to a laundry service to have washed and
folded, and then returned the laundry to the customer. If Prim had developed
unique capabilities in performing this task, it could have extended its pick up and
delivery service to other industries. Instead, Prim outsourced this service so it
developed no core competencies in this area.
4. San Francisco, the city in which Prim launched, has several innovative laundry
services. These services include LaundryLocker, where you drop your clothes in
a public locker; Sfwash, a delivery service where you pay by the pound; and
Sudzee, which requires special lockable bags. Spend some time studying
LaundryLocker (https://laundrylocker.com), Sfwash (https://sfwash.com), and
Sudzee (http://sudzee.com). Select the service that you think has the most
potential and explain the rationale for your selection. Compare the service to
Prim’s approach.
Loading page 26...
Chapter 1: Introduction to Entrepreneurship
9
Answer: LaundryLocker’s customers place their laundry in a locker and the
customers are notified by text when the laundry is finished and returned to the
locker (within two business days). Sfwash picks up your laundry (at your home
or business) and returns it to the same address. The pick up and delivery times
are done within agreed upon windows of time. Sudzee offers two options. It
offers home pick up and return, similar to Sfwash. It also offers a service where
customers can place their laundry in a large secure container in a Sudzee bag.
Sudzee will notify the customer when the laundry is done. The laundry can be
retrieved from the container via a secure four-digit code. Pricing seems to be
similar across the companies. Sudzee seems to be the best—capturing the
advantages of both Sfwash, which offers a pick up and delivery service, and
LaundryLocker, which offers a dropoff and retrieval service as explained. It also
beats out Prim, which offered only the pick up and delivery service.
Savvy Entrepreneurial Firm
Start-Up Incubators and Accelerators: A Smart Way of Gaining Access to Mentors,
Partners, Investors, and Other Critical Start-Up Resources
1. If you were starting a new venture, do you think you would benefit from
participating in a business incubator or accelerator program? If so, what do you
think the primary benefits would be?
Answer: Most students will say they would benefit from participating in a
business incubator or accelerator program. The obvious benefits are gaining
access to mentors and advisors. Start-up incubators and accelerators are also
fertile places for entrepreneurs to meet potential co-founders, business partners,
and equity investors.
2. Find an example of a start-up incubator or accelerator at the college or university
you are attending or in the town you live in or a nearby city. Describe the
program. Which one of the programs mentioned in this feature does it resemble
the most?
Answer: Answers will vary for this question. Many university entrepreneurship
programs support a start-up incubator or accelerator, as do many towns and
cities. The incubators and accelerators will vary in terms of the programs and
terms they offer, but the benefits are similar across locations.
3. If you have a promising business idea, what can you do while you’re in college
to improve your chances of being admitted to a prestigious start-up incubator or
accelerator program when you graduate?
Answer: Answers will vary to this question. Most students will say that
involvement in the following college activities will boost their chances of being
accepted into an incubator:
9
Answer: LaundryLocker’s customers place their laundry in a locker and the
customers are notified by text when the laundry is finished and returned to the
locker (within two business days). Sfwash picks up your laundry (at your home
or business) and returns it to the same address. The pick up and delivery times
are done within agreed upon windows of time. Sudzee offers two options. It
offers home pick up and return, similar to Sfwash. It also offers a service where
customers can place their laundry in a large secure container in a Sudzee bag.
Sudzee will notify the customer when the laundry is done. The laundry can be
retrieved from the container via a secure four-digit code. Pricing seems to be
similar across the companies. Sudzee seems to be the best—capturing the
advantages of both Sfwash, which offers a pick up and delivery service, and
LaundryLocker, which offers a dropoff and retrieval service as explained. It also
beats out Prim, which offered only the pick up and delivery service.
Savvy Entrepreneurial Firm
Start-Up Incubators and Accelerators: A Smart Way of Gaining Access to Mentors,
Partners, Investors, and Other Critical Start-Up Resources
1. If you were starting a new venture, do you think you would benefit from
participating in a business incubator or accelerator program? If so, what do you
think the primary benefits would be?
Answer: Most students will say they would benefit from participating in a
business incubator or accelerator program. The obvious benefits are gaining
access to mentors and advisors. Start-up incubators and accelerators are also
fertile places for entrepreneurs to meet potential co-founders, business partners,
and equity investors.
2. Find an example of a start-up incubator or accelerator at the college or university
you are attending or in the town you live in or a nearby city. Describe the
program. Which one of the programs mentioned in this feature does it resemble
the most?
Answer: Answers will vary for this question. Many university entrepreneurship
programs support a start-up incubator or accelerator, as do many towns and
cities. The incubators and accelerators will vary in terms of the programs and
terms they offer, but the benefits are similar across locations.
3. If you have a promising business idea, what can you do while you’re in college
to improve your chances of being admitted to a prestigious start-up incubator or
accelerator program when you graduate?
Answer: Answers will vary to this question. Most students will say that
involvement in the following college activities will boost their chances of being
accepted into an incubator:
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Chapter 1: Introduction to Entrepreneurship
10
Coursework in entrepreneurship.
Participation in entrepreneurship-related activities, such as pitch
competitions and business plan competitions, and winning awards in
those activities.
Participating in a college or university-sponsored incubator.
Networking (to the extent that the student could ask several high-profile
entrepreneurs or investors to write letters of support).
Make good headway on a business idea, so the student is partway down
the runway prior to applying for admittance to the incubator.
4. Make a list of the types of mentors that a participant in a start-up incubator or
accelerator program might encounter.
Answer: There are a number of partnership opportunities that are likely to
emerge from participating in an accelerator program. They include:
Identifying a potential co-founder for a business.
Identifying potential channel partners.
Identifying potential investors.
Identifying potential advisory board members and other mentors and
advisors.
Partnering for Success
Partnering with College Students via Campus Ambassador and Campus Rep Programs
1. As part of your college experience, do you think you would benefit from
participating in a campus ambassador or campus rep program? Why or why not?
Answer: Most students will say they would benefit from participating in a
campus ambassador or campus rep program. These are more like paid
internships and so the obvious benefits are gaining access to prospective
employers and gaining experience at the same time. In addition, such positions
also help to defray living costs.
2. In what ways would participating in a campus ambassador or campus rep
program help you prepare to own your own business someday?
Answer: The main way is that a campus ambassador or a campus rep becomes an
evangelist for the product. This helps when marketing the product of one’s own
business. It also helps in creating a network which would be useful in helping a
start-up succeed.
3. Why do you think companies such as Apple, Flex Watches, and Her Campus
Media sponsor campus ambassador or campus rep programs? How do the
companies benefit?
10
Coursework in entrepreneurship.
Participation in entrepreneurship-related activities, such as pitch
competitions and business plan competitions, and winning awards in
those activities.
Participating in a college or university-sponsored incubator.
Networking (to the extent that the student could ask several high-profile
entrepreneurs or investors to write letters of support).
Make good headway on a business idea, so the student is partway down
the runway prior to applying for admittance to the incubator.
4. Make a list of the types of mentors that a participant in a start-up incubator or
accelerator program might encounter.
Answer: There are a number of partnership opportunities that are likely to
emerge from participating in an accelerator program. They include:
Identifying a potential co-founder for a business.
Identifying potential channel partners.
Identifying potential investors.
Identifying potential advisory board members and other mentors and
advisors.
Partnering for Success
Partnering with College Students via Campus Ambassador and Campus Rep Programs
1. As part of your college experience, do you think you would benefit from
participating in a campus ambassador or campus rep program? Why or why not?
Answer: Most students will say they would benefit from participating in a
campus ambassador or campus rep program. These are more like paid
internships and so the obvious benefits are gaining access to prospective
employers and gaining experience at the same time. In addition, such positions
also help to defray living costs.
2. In what ways would participating in a campus ambassador or campus rep
program help you prepare to own your own business someday?
Answer: The main way is that a campus ambassador or a campus rep becomes an
evangelist for the product. This helps when marketing the product of one’s own
business. It also helps in creating a network which would be useful in helping a
start-up succeed.
3. Why do you think companies such as Apple, Flex Watches, and Her Campus
Media sponsor campus ambassador or campus rep programs? How do the
companies benefit?
Loading page 28...
Chapter 1: Introduction to Entrepreneurship
11
Answer: The companies benefit because they get low cost grassroots marketing.
Also, when a company’s target market is young people, this allows for peer-to-
peer selling. Finally, it helps these companies in their recruitment process.
4. What types of start-ups would benefit the most from starting campus ambassador
programs?
Answer: It is likely that such programs help companies that sell a product or a
service to consumers and not businesses. In addition, if the target demographic
is young people, these programs help in grassroots marketing.
REVIEW QUESTIONS
1-1. Do you anticipate that entrepreneurship will continue spreading throughout the
world, or do you think its appeal will subside over time?
Answer: All indicators point to entrepreneurship continuing to spread throughout
the world. The primary reasons are: (1) the downsizing of large firms, which
have placed a large number of people off the job market that would rather start
their own firm than work for another large firm; (2) the push for improved
efficiency and effectiveness on the part of firms and individuals, which has
provided entrepreneurs the opportunity to meet needs; (3) the rapid pace of
change that is taking place worldwide, which provides entrepreneurs additional
opportunities to meet needs; and (4) the increasing recognition that
entrepreneurship is the engine that fuels economic growth and prosperity
worldwide. Most students will argue that there is no reason to think the appeal of
entrepreneurship will subside over time. The need to solve problems and meet
unmet needs is universal worldwide.
1-2. What key insights does the GEM study provide us about entrepreneurship?
Answer: The key insight provided by the GEM study is that entrepreneurial
activity is taking place across the world. In addition, although the highest rates of
entrepreneurial start-up activities occur in low-income countries, where good
jobs are not as plentiful, the rates are also impressive in high-income countries
such as France, United Kingdom, and the United States. The GEM study also
identifies whether its respondents are starting a new business to take advantage
of an attractive opportunity or because of necessity to earn an income. The
majority of people in high-income countries are drawn to entrepreneurship to
take advantage of attractive opportunities. The reverse is true of people in low-
income countries, who tend to be drawn to entrepreneurship primarily because of
necessity.
11
Answer: The companies benefit because they get low cost grassroots marketing.
Also, when a company’s target market is young people, this allows for peer-to-
peer selling. Finally, it helps these companies in their recruitment process.
4. What types of start-ups would benefit the most from starting campus ambassador
programs?
Answer: It is likely that such programs help companies that sell a product or a
service to consumers and not businesses. In addition, if the target demographic
is young people, these programs help in grassroots marketing.
REVIEW QUESTIONS
1-1. Do you anticipate that entrepreneurship will continue spreading throughout the
world, or do you think its appeal will subside over time?
Answer: All indicators point to entrepreneurship continuing to spread throughout
the world. The primary reasons are: (1) the downsizing of large firms, which
have placed a large number of people off the job market that would rather start
their own firm than work for another large firm; (2) the push for improved
efficiency and effectiveness on the part of firms and individuals, which has
provided entrepreneurs the opportunity to meet needs; (3) the rapid pace of
change that is taking place worldwide, which provides entrepreneurs additional
opportunities to meet needs; and (4) the increasing recognition that
entrepreneurship is the engine that fuels economic growth and prosperity
worldwide. Most students will argue that there is no reason to think the appeal of
entrepreneurship will subside over time. The need to solve problems and meet
unmet needs is universal worldwide.
1-2. What key insights does the GEM study provide us about entrepreneurship?
Answer: The key insight provided by the GEM study is that entrepreneurial
activity is taking place across the world. In addition, although the highest rates of
entrepreneurial start-up activities occur in low-income countries, where good
jobs are not as plentiful, the rates are also impressive in high-income countries
such as France, United Kingdom, and the United States. The GEM study also
identifies whether its respondents are starting a new business to take advantage
of an attractive opportunity or because of necessity to earn an income. The
majority of people in high-income countries are drawn to entrepreneurship to
take advantage of attractive opportunities. The reverse is true of people in low-
income countries, who tend to be drawn to entrepreneurship primarily because of
necessity.
Loading page 29...
Chapter 1: Introduction to Entrepreneurship
12
1-3. What does evidence show us about the rate of failure associated with
entrepreneurial ventures?
Answer: One criticism of entrepreneurship, which is often repeated in the press,
is that the majority of new businesses fail. It simply isn’t true. The often used
statistic that 9 out of 10 businesses fail in their first few years is an exaggeration.
According to the Bureau of Labor Statistics, over half the businesses started are
still in existence five years later.
1-4. What is entrepreneurship?
Answer: The standard definition for entrepreneurship is that it’s “the process by
which individuals pursue opportunities without regard to resources they
currently control.” It can occur at the individual level, the team or group level, or
at the corporate level. There are other definitions of entrepreneurship. Fred
Wilson, a venture capitalist, defines entrepreneurship as “the art of turning an
idea into a business.” Both definitions focus on behaviors. In general,
entrepreneurship is associated with the task of identifying opportunities and
putting useful ideas into practice.
1-5. In what ways is an entrepreneur who just launched a restaurant different from
someone who just took a job as the general manager of a restaurant owned by a
major restaurant chain?
Answer: Entrepreneurial firms, which are the focus of this book, bring new
products and services to market by seizing opportunities. The person who just
launched a restaurant is bringing a new product or service to market, and is
assuming the risk associated with doing that. The person who just took a job as
the general manager of a restaurant isn’t bringing something new to market.
Although the person is assuming employment risk, he/she isn’t assuming the risk
of owning a business.
1-6. What are the three main attributes of firms that pursue high levels of corporate
entrepreneurship?
Answer: Entrepreneurial firms are typically proactive, innovative, and not averse
to taking risks.
1-7. What are the three primary reasons people become entrepreneurs?
Answer: The three primary reasons that people become entrepreneurs and start
their own firms are to (1) be their own boss, (2) pursue their own ideas, and (3)
realize financial rewards.
12
1-3. What does evidence show us about the rate of failure associated with
entrepreneurial ventures?
Answer: One criticism of entrepreneurship, which is often repeated in the press,
is that the majority of new businesses fail. It simply isn’t true. The often used
statistic that 9 out of 10 businesses fail in their first few years is an exaggeration.
According to the Bureau of Labor Statistics, over half the businesses started are
still in existence five years later.
1-4. What is entrepreneurship?
Answer: The standard definition for entrepreneurship is that it’s “the process by
which individuals pursue opportunities without regard to resources they
currently control.” It can occur at the individual level, the team or group level, or
at the corporate level. There are other definitions of entrepreneurship. Fred
Wilson, a venture capitalist, defines entrepreneurship as “the art of turning an
idea into a business.” Both definitions focus on behaviors. In general,
entrepreneurship is associated with the task of identifying opportunities and
putting useful ideas into practice.
1-5. In what ways is an entrepreneur who just launched a restaurant different from
someone who just took a job as the general manager of a restaurant owned by a
major restaurant chain?
Answer: Entrepreneurial firms, which are the focus of this book, bring new
products and services to market by seizing opportunities. The person who just
launched a restaurant is bringing a new product or service to market, and is
assuming the risk associated with doing that. The person who just took a job as
the general manager of a restaurant isn’t bringing something new to market.
Although the person is assuming employment risk, he/she isn’t assuming the risk
of owning a business.
1-6. What are the three main attributes of firms that pursue high levels of corporate
entrepreneurship?
Answer: Entrepreneurial firms are typically proactive, innovative, and not averse
to taking risks.
1-7. What are the three primary reasons people become entrepreneurs?
Answer: The three primary reasons that people become entrepreneurs and start
their own firms are to (1) be their own boss, (2) pursue their own ideas, and (3)
realize financial rewards.
Loading page 30...
Chapter 1: Introduction to Entrepreneurship
13
1-8. Of the three primary reasons people become entrepreneurs, which one is given
most commonly and why?
Answer: Be their own boss. The reason this is the most common motivation for
becoming an entrepreneur is either because some people have a long-standing
ambition to be their own boss or because they become frustrated working in
traditional jobs. For many people, a traditional job may be too confining and
they yearn for the freedom that entrepreneurship brings.
1-9. Why is passion such an important characteristic of successful entrepreneurs?
Answer: The passion that an entrepreneur feels for his or her business typically
stems from a belief that the business will positively influence people’s lives. It is
important that this passion exist because the process of starting and building a
new firm is demanding.
1-10. What is it about passion that makes it particularly compatible with the
entrepreneurial process?
Answer: Passion is particularly important because, although rewarding, the
process of starting a firm or building a business is demanding. Absent passion,
the demands would outweigh the potential rewards for people who are not
passionate about what they’re doing.
1-11. Why is product/customer focus an important characteristic of successful
entrepreneurs?
Answer: Although all parts of the entrepreneurial process are important,
ultimately if a new business does not have a successful product that is directed
toward a receptive market the business will fail. A product/market focus also
involves the diligence to spot product opportunities and to see them through to
completion.
1-12. What is it about “tenacity” that makes it such an important characteristic for
entrepreneurs?
Answer: Because entrepreneurs are typically trying something new, the
possibility of failure exists. The litmus test for entrepreneurs is the tenacity that
they have to persevere through setbacks and failures.
1-13. What are the five common myths of entrepreneurship?
Answer: The five common myths of entrepreneurship are as follows:
13
1-8. Of the three primary reasons people become entrepreneurs, which one is given
most commonly and why?
Answer: Be their own boss. The reason this is the most common motivation for
becoming an entrepreneur is either because some people have a long-standing
ambition to be their own boss or because they become frustrated working in
traditional jobs. For many people, a traditional job may be too confining and
they yearn for the freedom that entrepreneurship brings.
1-9. Why is passion such an important characteristic of successful entrepreneurs?
Answer: The passion that an entrepreneur feels for his or her business typically
stems from a belief that the business will positively influence people’s lives. It is
important that this passion exist because the process of starting and building a
new firm is demanding.
1-10. What is it about passion that makes it particularly compatible with the
entrepreneurial process?
Answer: Passion is particularly important because, although rewarding, the
process of starting a firm or building a business is demanding. Absent passion,
the demands would outweigh the potential rewards for people who are not
passionate about what they’re doing.
1-11. Why is product/customer focus an important characteristic of successful
entrepreneurs?
Answer: Although all parts of the entrepreneurial process are important,
ultimately if a new business does not have a successful product that is directed
toward a receptive market the business will fail. A product/market focus also
involves the diligence to spot product opportunities and to see them through to
completion.
1-12. What is it about “tenacity” that makes it such an important characteristic for
entrepreneurs?
Answer: Because entrepreneurs are typically trying something new, the
possibility of failure exists. The litmus test for entrepreneurs is the tenacity that
they have to persevere through setbacks and failures.
1-13. What are the five common myths of entrepreneurship?
Answer: The five common myths of entrepreneurship are as follows:
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Entrepreneurship