1. Business is risky.

Entrepreneurial Myths

3.1© 2004 Ewing Marion Kauffman Foundation

2. Entrepreneurs need great ideas.

3. Entrepreneurs need lots of experience.

4. It takes a lot of money.

5. Big business will ruin small business.

6. Entrepreneurs get rich quick

7. Entrepreneurs are born, not made.

8. Entrepreneurs are unethical.

1. Oil companies, Bank of America

2. Gilbert International

3. Microsoft, Dell

4. Green silver

5. Garrison confections

6. Burt Bees

7. Seven starts bakery

8. Marion Labs Kauffman Foundation

Entrepreneurial Myths: examples

3.1 © 2004 Ewing Marion Kauffman Foundation

1. Business is risky.

2. Entrepreneurs need great ideas.

3. Entrepreneurs need lots of experience.

4. It takes a lot of money.

5. Big business will ruin small business.

6. Entrepreneurs get rich quick.

7. Entrepreneurs are born, not made.

8. Entrepreneurs are unethical.

The Entrepreneurial Mindset

2.1 © 2004 Ewing Marion Kauffman Foundation

Entrepreneurial Characteristics

2.2

Thrives on ambiguity

Accepts responsibility

Desire

Initiative/Aggressiveness

Low support needs

Perseverance

Problem solver

Persuasiveness

Self-discipline

Self-confidence

Knows valueof money

© 2004 Ewing Marion Kauffman Foundation

Market awarenessEnergyEgo development

Personal Criteria questions (exercise 2a)

1.2 © 2004 Ewing Marion Kauffman Foundation

• Desire

• Initiative

• Energy

• Low support needs

• Thriving on ambiguity

• Perseverance

• Responsibility

• Problem solving

• Persuasiveness

• Self-discipline

• Belief in value of money

• Self-confidence

• Balance ego development

• Market awareness

• Generosity

• Honesty

• Good people judgment

• Patience

• Business knowledge

• Value appropriate control systems

Entrepreneurial Characteristics

2.2

Desire

Perseverance

Knows valueof money

© 2004 Ewing Marion Kauffman Foundation

Market awareness

Personal Criteria to start a business

1.2 © 2004 Ewing Marion Kauffman Foundation

• Job security

• Money

• Lifestyle

• Power

• Age

• Health

• Family considerations

• Location

• Investment

• Attitudes and values

• Control my destiny

• Accommodate my personal values

• Engage in activities I want to do

Personal Criteria questions (exercise 1a)

1.2 © 2004 Ewing Marion Kauffman Foundation

At home: Consider questions in 1a when defining your own business idea

Activity 1b

Identifying Venture Opportunities

1.2 © 2004 Ewing Marion Kauffman Foundation

Trend studies are one of the tools that entrepreneurs use in finding a business concept and keeping their products and services up to date in the future

1.2 © 2004 Ewing Marion Kauffman Foundation

Recent Trends

• Globalization

4.1 © 2004 Ewing Marion Kauffman Foundation

• Changing demographics

• Changing retail

• Outsourcing

• Technology

Recent Trends

• Time scarcity

4.2 © 2004 Ewing Marion Kauffman Foundation

• Work at home

• Search for simplicity

• Shifting sports interest

• Obesity

Entry Strategies

5.1 © 2004 Ewing Marion Kauffman Foundation

• Customer in hand

Entry Strategies: Upgrading

5.1 © 2004 Ewing Marion Kauffman Foundation

• Carts and kiosks

• Development of a home-based business

• Expansion of part-time activity

• Hobbies

Entry Strategies: From business to business

• Inheritance

• Salvage investment

• Company outsourcing

• Spin-offs

• Licensing

• Buying an existing business

• Joining a franchise system

• Strategic alliances; joint partnerships

• Network (multilevel) marketing

5.1 © 2004 Ewing Marion Kauffman Foundation

Entry Strategies: Brand new

• Personal preferences

• Desperation

• Friends and family

• Technical expertise

• Chance

• Commitment to growth industry

• Observation of a market need

• New inventions

• Forming a nonprofit company

5.2 © 2004 Ewing Marion Kauffman Foundation

Business Strategy

• What business do I want?

• What is my exit?

• How big should the business be?

• What is the profit source?

• Who will own the enterprise?

• What money sources will be needed?

• What marketing strategies will be used?

5.4 © 2004 Ewing Marion Kauffman Foundation