Friday, August 8, 2008
Sunday, May 4, 2008
Tuesday, April 29, 2008
Sunday, April 27, 2008
Intrapreneurship everywhere
Wherever we find innovation in large organizations we find intrapreneurs making it happen. Every innovation, large or small, requires some courage, some vision, and a willingness to take charge and make it happen. The tireless persistence and practical imagination of the intrapreneur are essential to the success of any new idea.
Even the little everyday innovations that keep a company responsive to customers begin with a vision of how to serve customers better or more cost-effectively. They grow out of a small dream and require significant initiative and courage to carry through. Even the most minor innovation thus represents a small intrapreneurial act.
Intrapreneurs naturally arise because they are passionate about making some idea a commercial reality. But though intrapreneuring is almost everywhere, so are management practices that make it more difficult. In this book, we will show how to radically increase the rate of innovation—without increasing the financial resources devoted to it. We will show how to bring out, focus, and guide the organization’s intrapreneurial energy without frustrating its intrapreneurs.
Source: by Gifford Pinchot and Ron Pellman (Intrapreneuring in Action: A Handbook for Business Innovation)
Even the little everyday innovations that keep a company responsive to customers begin with a vision of how to serve customers better or more cost-effectively. They grow out of a small dream and require significant initiative and courage to carry through. Even the most minor innovation thus represents a small intrapreneurial act.
Intrapreneurs naturally arise because they are passionate about making some idea a commercial reality. But though intrapreneuring is almost everywhere, so are management practices that make it more difficult. In this book, we will show how to radically increase the rate of innovation—without increasing the financial resources devoted to it. We will show how to bring out, focus, and guide the organization’s intrapreneurial energy without frustrating its intrapreneurs.
Source: by Gifford Pinchot and Ron Pellman (Intrapreneuring in Action: A Handbook for Business Innovation)
Innovation of human capital
For more than half a century, research and development (R&D) has been closely associated with technological innovation (Miller & Morris, 1999). Invention is the narrowest definition of innovation. Drucker (1994) maintained that there are seven basic sources of opportunities to innovate. Only one of them refers to inventing something new. Innovation is thus more than invention and does not have to be technical. There are, for instance, numerous examples of social and economic innovations (Drucker, 1994). Innovation is a proposed theory or design concept that synthesizes extant knowledge and techniques to provide a theoretical basis for a new concept (Bright, 1969; Sundbo, 1998). Innovation thus has many facets and is multi-dimensional.
The most prominent innovation dimensions can be expressed as dualisms—(1) radical vs. incremental; (2) product vs. process and (3) administrative vs. technological (Cooper, 1998). Innovation can be radical and incremental. Radical innovations refer to path-breaking, discontinuous, revolutionary, original, pioneering, basic or major innovations (Green, Gavin, & Aiman-Smith, 1995). Incremental innovations are small improvements made to enhance and extend the established processes, products and services. However, this contradistinction does not "necessarily [correspond] to the more fine-tuned reality" because "radicality is a continuum" (Katila, 2002, p. 307). Product innovation, as the name suggests, "reflects change in the end product or service offered by the organizations, [whereas] process innovation represents changes in the way firms produce end products or services" (Utterback cited in Cooper, 1998, p. 498). Some researchers have categorized innovation as either technological or administrative. Technological innovation refers to "the adoption of a new idea that directly influences the basic output processes", whereas administrative innovations "include changes that affect the policies, allocation of resources, and other factors associated with the social structure of the organization" (Daft, 1978 cited in Cooper, 1998, p. 497).
For the purpose of the present study, innovation is defined broadly to include new products, new processes, new services (including new uses of established products, processes and services), new forms of organization, new markets and the development of new skills and human capital.
Source: by Fang Zhao (Maximum business profit through E-Partnership)
The most prominent innovation dimensions can be expressed as dualisms—(1) radical vs. incremental; (2) product vs. process and (3) administrative vs. technological (Cooper, 1998). Innovation can be radical and incremental. Radical innovations refer to path-breaking, discontinuous, revolutionary, original, pioneering, basic or major innovations (Green, Gavin, & Aiman-Smith, 1995). Incremental innovations are small improvements made to enhance and extend the established processes, products and services. However, this contradistinction does not "necessarily [correspond] to the more fine-tuned reality" because "radicality is a continuum" (Katila, 2002, p. 307). Product innovation, as the name suggests, "reflects change in the end product or service offered by the organizations, [whereas] process innovation represents changes in the way firms produce end products or services" (Utterback cited in Cooper, 1998, p. 498). Some researchers have categorized innovation as either technological or administrative. Technological innovation refers to "the adoption of a new idea that directly influences the basic output processes", whereas administrative innovations "include changes that affect the policies, allocation of resources, and other factors associated with the social structure of the organization" (Daft, 1978 cited in Cooper, 1998, p. 497).
For the purpose of the present study, innovation is defined broadly to include new products, new processes, new services (including new uses of established products, processes and services), new forms of organization, new markets and the development of new skills and human capital.
Source: by Fang Zhao (Maximum business profit through E-Partnership)
Intrapreneurship construct
Drucker (1994) made an important contribution to the theoretical construct of entrepreneurship in large organizations when he referred to "corporate entrepreneurship" or "intrapreneurship". In the present study, entrepreneurship includes corporate entrepreneurship and intrapreneurship. Corporate entrepreneurship can be used to improve competitive positioning and transform corporations, their markets and industries, as opportunities for value-creating innovations are developed and exploited (Lumpkin & Dess, 1996; Miller, 1983; Naman & Slevin, 1993). Antoncic and Hisrich (2003) argued that intrapreneurship goes on within organizations, regardless of their size. Intrapreneurship research has studied the individual intrapreneur, the formation of new corporate ventures and the characteristics of entrepreneurial organization (Antoncic & Hisrich, 2003). There is a firmly established empirical base for claiming the effectiveness of corporate entrepreneurship (Lumpkin & Dess, 1996; Zahra & Covin, 1995). Corporate entrepreneurship rejuvenates and reengineers corporate growth through innovations in various forms.
Source: Maximum business profit through E-Partnership
Source: Maximum business profit through E-Partnership
Saturday, April 19, 2008
Lumpkin and Dess Intrapreneurship model
As depicted in Figure 2.5, Lumpkin and Dess (1996) present an alternative intrapreneurship model which describes intrapreneurial behaviour in terms of five dimensions: autonomy; innovativeness; risk taking; proactiveness; and competitive aggressiveness. According to Lumpkin and Dess (1996), intrapreneurial behaviour refers to the processes, practices and decision-making activities that lead to entering new markets with existing or new goods and services. In this context, a new entry is the idea that underlies the concept of intrapreneurship (Adonisi, 2003: 47). Key dimensions that characterise intrapreneurial behaviour include a propensity to act autonomously, and a willingness to innovate and take opportunities (Lumpkin & Dess, 1996).
Zahra Intrapreneurship model
Zahra (1995: 227; 1996: 1715) sees Intrapreneurship as the combination of all the firm's efforts on innovation, renewal and venturing. Innovation involves creating and introducing new products, organizational processes and systems; venturing encompasses expanding existing operations or entering into new markets; and renewal entails revitalising the organization's business model.
Zahra (1993) essentially revises Covin and Slevin's (1990) model in that he merges the technological environmental factor with the dynamism environmental factor; he adds a new construct called `munificence' to draw attention to a related construct of opportunity seeking; and he defines intrapreneurial behaviour more clearly, by differentiating between constructs such as `intensity of behaviour', `formality of intrapreneurial activities', `types of intrapreneurial behaviour' and `duration of such efforts'.
Zahra (1993) also recognises the possibility that different kinds of intrapreneurial posture may influence different dimensions of performance differently and at different times. Regarding the locus of intrapreneurship, he argues that intrapreneurship occurs at multiple levels within an organization.
Thursday, April 17, 2008
Covin and Slevin Intrapreneurship model
According to Covin and Slevin (1991), intrapreneurship involves extending the firm's domain of competencies and corresponding opportunity set through internally generated new combinations of resources. These authors developed a model, as illustrated in figure 2.3, which seems to improve on that of Guth and Ginsberg (1990) in at least two ways: by depicting feedback loops between intrapreneurship factors and intrapreneurship; and by not being too specific about the type of intrapreneurship-reference is only made to entrepreneurial posture.
The key feature of the model is the recognition that intrapreneurship influences the external environment and the internal variables, albeit to a weaker extent. Conversely, organizational performance has a weaker effect on intrapreneurship. Significantly, it also highlights the acknowledgement that the three intrapreneurship factors - environment, strategic variables and internal variables-have a moderating effect on the relationship between intrapreneurship and organizational performance.
Zahra (1991; 1993) criticized the reference in Covin and Slevin's (1990) model to the intrapreneurial posture construct without defining it. Zahra's criticisms and improvements of the model are incorporated in his own model, which is discussed next.
Monday, April 14, 2008
Guth and Ginsberg Intrapreneurship model
In their definition of the intrapreneurship construct, Guth and Ginsberg (1990: 5) posit that intrapreneurship encompasses two types of phenomenon and the processes that surround them: the birth of new businesses within existing organizations (i.e. internal innovations or ventures); and the transformation of organizations through renewal. These authors' conceptual model depicts intrapreneurship from a strategic management perspective, as shown in Figure 2.2.The model by Guth and Ginsberg (1990) treats the following factors as antecedents of intrapreneurship: environment, such as competition or technology; strategic leadership posture, such as values and behaviours; organizational form, such as structure and processes; and organizational performance, such as efficiency and job satisfaction.
The key weakness of the model is that it resembles a flow chart, and therefore depicts a sequential relationship between the intrapreneurship factors and intrapreneurship. Except for the relationship between intrapreneurship and organizational performance, possible feedback loops and interrelationships between the intrapreneurship factors on the one hand, and between intrapreneurship and the intrapreneurship factors on the other, are not depicted.
Sunday, April 6, 2008
What it takes to be a successful intrapreneur?
WHAT'S AN IDEA WORTH? TO A CORPORATE entity willing to embrace and support it, the right idea could bring millions, Lockheed Martin Information Technology, a subsidiary of Lockheed Martin and the brainchild of its president, Linda Gooden, made more than $2 billion this year. Dafina Books, an imprint of Kensington Publishing conceived by Karen Thomas, has grossed more than $12 million a year. And when Microsoft dropped from $7.3 billion in 2001 to $5.4 billion in 2002 to a competitor offering a software system for free, Martin Taylor developed a strategic platform to recapture those dollars without discounting Microsoft's offering.
Gooden, Thomas, and Taylor are among an elite grouping of enterprising and innovative corporate professionals called intrapreneurs. Coined by author and business educator Gifford Pinchot in 1978, intrapreneurship, also referred to as corporate entrepreneurship and corporate renewal, is a concept by which perspicacious corporate employees--at any level of the company--identify and construct a unique business model that offers significant growth opportunities for their company. "Intrapreneurship is creating some type of value inside of an existing entity by taking some kind of new product or business and looking for new ways to bring it into the market," explains Joe Watson, CEO of Reston, Virginia-based Strategic Hire, an executive search firm. "But in order for it to be truly an intrapreneurial opportunity, it has to be a product or service that's different from the company's traditional business."
Many of the same precepts apply to entrepreneurship: developing a unique idea, constructing a market analysis, assessing the competition, creating a sales and marketing plan, determining risks and rewards, and executing a plan. For the intrapreneur, however, there is the security of knowing that the parent company will provide the necessary resources and still pay a salary even if the venture is not as successful as anticipated. But even with those benefits, there is still inherent risk An unsuccessful venture could derail your career.
Both endeavors require a certain type of individual to be successful--a process-oriented, creative thinker. Coming up with a great idea is easy. The intrapreneur is someone who can develop an exciting concept into a profit-driven enterprise. Successful intrapreneurs are also unwavering in achieving their goals. Your level of resilience will be challenged against obstacles and roadblocks, says Watson. Failure to properly navigate problems that could arise is a sure way to hurt yourself and your reputation. Gooden, Thomas, and Taylor exemplify the true spirit as well as the intricate components of intrapreneurship: discovering a concept, developing a plan, generating buy-in from senior management, executing the business model, and having the ability to adapt and overcome challenges.
At its very core, intrapreneurship is the innovation that corporations need to keep them competitive--particularly in today's aggressive and rapidly changing business environment of globalization, emerging markets, and technology innovations. Pinchot, who is today chairman of Pinchot & Co., a consulting firm focusing on intrapreneurship and sustainability, says that the degree to which corporations encourage intrapreneurial activity can also be impacted by economic conditions. "Intrapreneurship changes as the nation goes through phases," he offers. "When corporations are trying to generate revenue, intrapreneurship opportunities increase." He explains that, despite the demands for the creative development of new products and services that can enhance the profitability of a business, in large organizations such innovation only takes place when there are intrapreneurs to drive it. They are the individuals who, because of their work in a specialized area or unit, gain a unique perspective on how changes in one area of a company's business can impact the organization overall. Enterprising employees will often make recommendations to senior executives on how they can capitalize on these market shifts.
Source Citation:Richardson, Nicole Marie. "What it takes to be a successful intrapreneur: three corporate dynamos run with a big idea and bring in megaprofits for their companies ." Black Enterprise 36.5 (Dec 2005): 92(6). General OneFile. Gale. Open University Malaysia. 6 Apr. 2008
Gooden, Thomas, and Taylor are among an elite grouping of enterprising and innovative corporate professionals called intrapreneurs. Coined by author and business educator Gifford Pinchot in 1978, intrapreneurship, also referred to as corporate entrepreneurship and corporate renewal, is a concept by which perspicacious corporate employees--at any level of the company--identify and construct a unique business model that offers significant growth opportunities for their company. "Intrapreneurship is creating some type of value inside of an existing entity by taking some kind of new product or business and looking for new ways to bring it into the market," explains Joe Watson, CEO of Reston, Virginia-based Strategic Hire, an executive search firm. "But in order for it to be truly an intrapreneurial opportunity, it has to be a product or service that's different from the company's traditional business."
Many of the same precepts apply to entrepreneurship: developing a unique idea, constructing a market analysis, assessing the competition, creating a sales and marketing plan, determining risks and rewards, and executing a plan. For the intrapreneur, however, there is the security of knowing that the parent company will provide the necessary resources and still pay a salary even if the venture is not as successful as anticipated. But even with those benefits, there is still inherent risk An unsuccessful venture could derail your career.
Both endeavors require a certain type of individual to be successful--a process-oriented, creative thinker. Coming up with a great idea is easy. The intrapreneur is someone who can develop an exciting concept into a profit-driven enterprise. Successful intrapreneurs are also unwavering in achieving their goals. Your level of resilience will be challenged against obstacles and roadblocks, says Watson. Failure to properly navigate problems that could arise is a sure way to hurt yourself and your reputation. Gooden, Thomas, and Taylor exemplify the true spirit as well as the intricate components of intrapreneurship: discovering a concept, developing a plan, generating buy-in from senior management, executing the business model, and having the ability to adapt and overcome challenges.
At its very core, intrapreneurship is the innovation that corporations need to keep them competitive--particularly in today's aggressive and rapidly changing business environment of globalization, emerging markets, and technology innovations. Pinchot, who is today chairman of Pinchot & Co., a consulting firm focusing on intrapreneurship and sustainability, says that the degree to which corporations encourage intrapreneurial activity can also be impacted by economic conditions. "Intrapreneurship changes as the nation goes through phases," he offers. "When corporations are trying to generate revenue, intrapreneurship opportunities increase." He explains that, despite the demands for the creative development of new products and services that can enhance the profitability of a business, in large organizations such innovation only takes place when there are intrapreneurs to drive it. They are the individuals who, because of their work in a specialized area or unit, gain a unique perspective on how changes in one area of a company's business can impact the organization overall. Enterprising employees will often make recommendations to senior executives on how they can capitalize on these market shifts.
Source Citation:Richardson, Nicole Marie. "What it takes to be a successful intrapreneur: three corporate dynamos run with a big idea and bring in megaprofits for their companies ." Black Enterprise 36.5 (Dec 2005): 92(6). General OneFile. Gale. Open University Malaysia. 6 Apr. 2008
Friday, April 4, 2008
Tips To Get Your Entrepreneurship Off And Running
by: Michael Johnson
One of the best of the small business associations is the University of Central Arkansas Small Business Advancement National Center (SBANC.)
While the ideal way of starting a small business would be to free yourself up from every other venture, problem, time consuming effort and obligation and throw yourself into starting a small business every waking moment, this isn't an ideal world. Few of us can afford the luxury of setting everything else aside to devote all our time and efforts, as well as capital - to starting a small business.
Some of us have the itch to become an entrepreneur but have to "keep our day jobs" while we give this starting a small business idea a go. It may well be, in fact, that starting a small business part time is the most common entrepreneurial process.
Part of succeeding at starting a small business if you have to do so part time is to know your schedule and your time limitations and choose a business concept that you enjoy, have some training or expertise in and can be accomplished around your work schedule. The other alternative is to change your work schedule either with your current employer or choose an alternative employer. Starting a small business takes effort and focus as well as time.
It may be that your current job is not only time consuming but also the type of work that requires a great deal of energy, a great deal of concentration, a very regimented schedule and perhaps the responsibility that tends to have you taking your work home with you either actually or mentally. This sort of work style doesn't lend itself well to starting a small business part time.
Let's look at an example of a journalist who has a successful writing and editing business from her home office. When she decided she was interested in starting a small business she had been working for many years in newspaper management. Her executive responsibilities required 70 and 80 hour workweeks and even then she took work home.
After many years of this she began to think more and more about her dream of starting a small writing business. It called to her more and more urgently. But how was she to even think of starting a small business when she had little time, energy or focus left in her busy work week? Besides, she had to work to keep the roof over her head.
What she did to determine if starting a small business was even possible, was to sit down and write out a budget, deciding where she could eliminate some non-essential expenses in her life, and what she absolutely had to have to live on. She then looked for, and found, a job that not only brought in enough money to live on but freed up a lot of her daytime work week hours as well as her mental focus. She took a customer service job in a call center.
Starting a small business was going to be possible with this job where it had not been with her newspaper career for a number of reasons. It required considerably less mental acumen, it didn't require that she take her work home with her, it was easy, the hours were flexible (she worked 3pm-midnight Thursday through Sunday) and the dress code was highly casual. She could work all day starting her small business and then don her jeans and go into the call center in the evening. Now she's quit that call center job and her dream of starting a small business has been fulfilled. Her business is thriving and she works at it full time.
You will find links to other small business associations from the SBANC site. These small business associations include the Service Corps of Retired Executives (SCORE) offering one on one counseling in person or online, the Small Business Administration (SBA) and its Small Business Development Centers which provide a ton of small business assistance including mentoring, training, publications, tapes, workshops and financing, Allied Academies - a worldwide research and training group, the Small Business Institute which provides entrepreneurial teaching and training, and the Federation of Business Disciplines, a group of educators devoted to small business teaching conferences.
About The Author
Michael Johnson operates a variety of small business websites and newsletters. Visit the website for many business start up ideas. http://www.smallbiztipscenter.com.
mikej_094@yahoo.com
One of the best of the small business associations is the University of Central Arkansas Small Business Advancement National Center (SBANC.)
While the ideal way of starting a small business would be to free yourself up from every other venture, problem, time consuming effort and obligation and throw yourself into starting a small business every waking moment, this isn't an ideal world. Few of us can afford the luxury of setting everything else aside to devote all our time and efforts, as well as capital - to starting a small business.
Some of us have the itch to become an entrepreneur but have to "keep our day jobs" while we give this starting a small business idea a go. It may well be, in fact, that starting a small business part time is the most common entrepreneurial process.
Part of succeeding at starting a small business if you have to do so part time is to know your schedule and your time limitations and choose a business concept that you enjoy, have some training or expertise in and can be accomplished around your work schedule. The other alternative is to change your work schedule either with your current employer or choose an alternative employer. Starting a small business takes effort and focus as well as time.
It may be that your current job is not only time consuming but also the type of work that requires a great deal of energy, a great deal of concentration, a very regimented schedule and perhaps the responsibility that tends to have you taking your work home with you either actually or mentally. This sort of work style doesn't lend itself well to starting a small business part time.
Let's look at an example of a journalist who has a successful writing and editing business from her home office. When she decided she was interested in starting a small business she had been working for many years in newspaper management. Her executive responsibilities required 70 and 80 hour workweeks and even then she took work home.
After many years of this she began to think more and more about her dream of starting a small writing business. It called to her more and more urgently. But how was she to even think of starting a small business when she had little time, energy or focus left in her busy work week? Besides, she had to work to keep the roof over her head.
What she did to determine if starting a small business was even possible, was to sit down and write out a budget, deciding where she could eliminate some non-essential expenses in her life, and what she absolutely had to have to live on. She then looked for, and found, a job that not only brought in enough money to live on but freed up a lot of her daytime work week hours as well as her mental focus. She took a customer service job in a call center.
Starting a small business was going to be possible with this job where it had not been with her newspaper career for a number of reasons. It required considerably less mental acumen, it didn't require that she take her work home with her, it was easy, the hours were flexible (she worked 3pm-midnight Thursday through Sunday) and the dress code was highly casual. She could work all day starting her small business and then don her jeans and go into the call center in the evening. Now she's quit that call center job and her dream of starting a small business has been fulfilled. Her business is thriving and she works at it full time.
You will find links to other small business associations from the SBANC site. These small business associations include the Service Corps of Retired Executives (SCORE) offering one on one counseling in person or online, the Small Business Administration (SBA) and its Small Business Development Centers which provide a ton of small business assistance including mentoring, training, publications, tapes, workshops and financing, Allied Academies - a worldwide research and training group, the Small Business Institute which provides entrepreneurial teaching and training, and the Federation of Business Disciplines, a group of educators devoted to small business teaching conferences.
About The Author
Michael Johnson operates a variety of small business websites and newsletters. Visit the website for many business start up ideas. http://www.smallbiztipscenter.com.
mikej_094@yahoo.com
Monday, March 31, 2008
Miami Schools Teach Entrepreneurship
National Foundation for Teaching Entrepreneurship Funds Programs in Miami Schools
This summer, 126 students from Miami Schools entered a six-week training session and contest to learn about entrepreneurship. Funded and run by the National Foundation for Teaching Entrepreneurship, the six week summer session will teach the students how to create a business plan, how to secure start up funds and then how to pitch the idea to real business people. The twelve best plans will compete in the National Foundation for Teaching Entrepreneurship Macy’s 2006 Business Plan Competition. Only one winner will represent Florida in New York in October with a chance to win $10,000.
The Miami Schools system has some of the highest dropout rates in the state of Florida. One of the principal reasons for this may be that students a bored and do not see how their school work relates to the real world. The National Foundation for Teaching Entrepreneurship contest shows how owning a business relates to math and reading skills. This gives a meaning and a relevance to education. A study by the Harvard Graduate School of Education found that students exposed to entrepreneurship classes are more interested in education, are more likely to go to college and more likely to engage in independent reading than their peers.
New National Foundation for Teaching Entrepreneurship Programs in the Miami Schools
The National Foundation for Teaching Entrepreneurship will, over the next two years, establish programs in 20 Miami Schools resulting in the program being accessible by nearly 3,400 middle and high school students. Some schools will offer more than just the summer contest but integrated into the curriculum. A Miami business lawyer and one of the judges who helped pick the finalists, stressed issues pertaining to the insurance and salary of the employees. This is the same issues that he would address with actual entrepreneurs. Several of the students from Miami Schools in the program have attempted to actually start a company. One student in the contest, Steve Rodriguez, has created X-Paks, a company that sells drawstring backpacks that can be produced in the shape and color the client wants. The sixteen year old is an aspiring engineer that wants to go on to MIT. He hopes that word of mouth marketing will lead his company to success. His partner is his mother who does the sewing and shares in half the profits.
Another student in the competition, Elise Lorenzo, has created a plan for a company call Envision Art. This high school sophomore’s company plan, based around creating an online art gallery, won points with the judges for her creative use of an S Corporation structure, which will allow her to reflect company profits on her personal tax returns.
National Foundation for Teaching Entrepreneurship
National Foundation for Teaching Entrepreneurship was founded in 1987. National Foundation for Teaching Entrepreneurship was started by a businessman and former teacher, Steve Mariotti. National Foundation for Teaching Entrepreneurship Miami Schools program aims to prevent dropout and improve academic performance among students who were at risk of failing or quitting school. Mr. Mariotti used his knowledge of business to help him to connect to his low-income students by giving them the opportunity to learn about entrepreneurship, their innate “street smarts” can easily develop into “academic smarts” and “business smarts.” Through entrepreneurship, youth discover that what they are learning in the classroom is relevant to the real world.
About The Author
Stacy Andell is a staff writer for Schools K-12, Which provides free, in-depth reports on all U.S. public and private K-12 schools. Stacy has a nose for research and writes stimulating news and views on school issues.
View their website at: http://www.schoolsk-12.com/Florida/Miami/index.html
This summer, 126 students from Miami Schools entered a six-week training session and contest to learn about entrepreneurship. Funded and run by the National Foundation for Teaching Entrepreneurship, the six week summer session will teach the students how to create a business plan, how to secure start up funds and then how to pitch the idea to real business people. The twelve best plans will compete in the National Foundation for Teaching Entrepreneurship Macy’s 2006 Business Plan Competition. Only one winner will represent Florida in New York in October with a chance to win $10,000.
The Miami Schools system has some of the highest dropout rates in the state of Florida. One of the principal reasons for this may be that students a bored and do not see how their school work relates to the real world. The National Foundation for Teaching Entrepreneurship contest shows how owning a business relates to math and reading skills. This gives a meaning and a relevance to education. A study by the Harvard Graduate School of Education found that students exposed to entrepreneurship classes are more interested in education, are more likely to go to college and more likely to engage in independent reading than their peers.
New National Foundation for Teaching Entrepreneurship Programs in the Miami Schools
The National Foundation for Teaching Entrepreneurship will, over the next two years, establish programs in 20 Miami Schools resulting in the program being accessible by nearly 3,400 middle and high school students. Some schools will offer more than just the summer contest but integrated into the curriculum. A Miami business lawyer and one of the judges who helped pick the finalists, stressed issues pertaining to the insurance and salary of the employees. This is the same issues that he would address with actual entrepreneurs. Several of the students from Miami Schools in the program have attempted to actually start a company. One student in the contest, Steve Rodriguez, has created X-Paks, a company that sells drawstring backpacks that can be produced in the shape and color the client wants. The sixteen year old is an aspiring engineer that wants to go on to MIT. He hopes that word of mouth marketing will lead his company to success. His partner is his mother who does the sewing and shares in half the profits.
Another student in the competition, Elise Lorenzo, has created a plan for a company call Envision Art. This high school sophomore’s company plan, based around creating an online art gallery, won points with the judges for her creative use of an S Corporation structure, which will allow her to reflect company profits on her personal tax returns.
National Foundation for Teaching Entrepreneurship
National Foundation for Teaching Entrepreneurship was founded in 1987. National Foundation for Teaching Entrepreneurship was started by a businessman and former teacher, Steve Mariotti. National Foundation for Teaching Entrepreneurship Miami Schools program aims to prevent dropout and improve academic performance among students who were at risk of failing or quitting school. Mr. Mariotti used his knowledge of business to help him to connect to his low-income students by giving them the opportunity to learn about entrepreneurship, their innate “street smarts” can easily develop into “academic smarts” and “business smarts.” Through entrepreneurship, youth discover that what they are learning in the classroom is relevant to the real world.
About The Author
Stacy Andell is a staff writer for Schools K-12, Which provides free, in-depth reports on all U.S. public and private K-12 schools. Stacy has a nose for research and writes stimulating news and views on school issues.
View their website at: http://www.schoolsk-12.com/Florida/Miami/index.html
Friday, March 28, 2008
Embrace Entrepreneurship - Five Solid Reasons to Become a Home-Based Business Entrepreneur
by: Cheryl Neithercott
Embrace Entrepreneurship
1. Opportunity for Unlimited Income
2. Overcome Fear
3. Personal Growth
4. Empowerment
5. Enhance the Lives of Others
Opportunity for Unlimited Income
Life is full of opportunity if we allow ourselves to welcome it. New ideas and direction come to us each and every day of our lives. Often we don't have much time to think about opportunity that could enhance our life and greatly improve quality of life for others. We are so caught up with our everyday shuffle. Rather than consuming life, life seems to be consuming us.
Working from home as a home-based business entrepreneur offers many advantages worth considering. Unlimited income potential, tax benefits, working when you choose and with whom are just a few. There are numerous companies within the home based business industry (also referred to as the Direct Sales Industry, Network Marketing Industry, Multi-Level Marketing Industry) that offer unique products and services to choose from. These products and/or services can become a vehicle to create substantial residual walk-away income - income without a ceiling that can lead to full income replacement and well beyond. Being your own C.E.O. and earning income for you rather than for a Corporate dynasty with limited personal and financial advancement, is unthinkable for some and a reality for many.
Sound enticing? Take a little time to explore the booming home-based business industry. Say Yes to opportunity. Yes to your entrepreneurial calling. Accept challenges along the way. Enhance your life and the lives of others.
Embrace opportunity and start creating your own future.
Overcome Fear
Overcoming Fear allows us to move forward. Fear is a very big and challenging obstacle for many, especially women. Entrepreneurship within the home-based business industry is the perfect vehicle for assisting us in letting go of fear. Numerous resources and support within the industry abound to assist in overcoming this obstacle. Overcoming fear builds strength and a strong foundation for momentum.
Embrace your fear and experience the joy of letting go.
Personal Growth
Entrepreneurship naturally brings out personal growth. Many people in the home-based business industry summarize success in two words - Personal Development. Numerous resources are available to assist in this area.
Self-confidence and self-esteem issues, common for women, will strengthen into building blocks for leadership skills. Success is the outcome of personal growth. The joy along the way is rewarding, will be noticed by others and attract many to your business.
Learn how to get out of your own way. If you find yourself in a place in life where you are ready to receive, learn, willing to grow, the home-based industry is the perfect vehicle. It encourages you to work on yourself, and commit to lifelong learning.
Embrace desire for growth. Embrace your own personal development.
Empowerment
Taking control of your own life is very empowering. Time freedom and financial freedom allow you to create and live life on your own terms. Thinking 'outside of the box' is a common mindset within the home-based business industry. Owning your days, your future, thinking big and dreaming big are frequent topics of discussion. Empower yourself - a shift in mindset towards building your own future can change the quality of your life.
Embrace life, your dreams, and your freedom.
Enhance the Lives of Others
Enhancing the lives of others by helping others along the way is often the most rewarding aspect of building a business within the home-based business industry. For women, we are nurturers in our own way just by being women. Eighty percent of the people within the home-based business industry are women. As we build our business, we have an opportunity to take others with us, build cohesiveness and assist them in achieving personal and financial goals. Network marketing is relational marketing. Making new friends and building lifelong relationships is the core of our business. Unlimited abundance naturally follows for those with vision, belief and persistence. Impacting others makes a difference on a personal, community and global level.
Embrace your ability to make a difference. Abundance will follow.
Have Faith in Yourself.
Believe in your Dreams.
Become a Home-Based Business Entrepreneur.
About The Author
Businesswoman, Friend, Collaborator, and Team player Cheryl Neithercott fulfills her Entrepreneurial calling by offering a great service that enriches the lives of others. Together with other fellow BraveHeart Community members, her goal is to empower Women to be multi-dimensional success stories and inspiration to others. Be Sure to Visit: http://BraveHeartWomen.com/Cheryl
Embrace Entrepreneurship
1. Opportunity for Unlimited Income
2. Overcome Fear
3. Personal Growth
4. Empowerment
5. Enhance the Lives of Others
Opportunity for Unlimited Income
Life is full of opportunity if we allow ourselves to welcome it. New ideas and direction come to us each and every day of our lives. Often we don't have much time to think about opportunity that could enhance our life and greatly improve quality of life for others. We are so caught up with our everyday shuffle. Rather than consuming life, life seems to be consuming us.
Working from home as a home-based business entrepreneur offers many advantages worth considering. Unlimited income potential, tax benefits, working when you choose and with whom are just a few. There are numerous companies within the home based business industry (also referred to as the Direct Sales Industry, Network Marketing Industry, Multi-Level Marketing Industry) that offer unique products and services to choose from. These products and/or services can become a vehicle to create substantial residual walk-away income - income without a ceiling that can lead to full income replacement and well beyond. Being your own C.E.O. and earning income for you rather than for a Corporate dynasty with limited personal and financial advancement, is unthinkable for some and a reality for many.
Sound enticing? Take a little time to explore the booming home-based business industry. Say Yes to opportunity. Yes to your entrepreneurial calling. Accept challenges along the way. Enhance your life and the lives of others.
Embrace opportunity and start creating your own future.
Overcome Fear
Overcoming Fear allows us to move forward. Fear is a very big and challenging obstacle for many, especially women. Entrepreneurship within the home-based business industry is the perfect vehicle for assisting us in letting go of fear. Numerous resources and support within the industry abound to assist in overcoming this obstacle. Overcoming fear builds strength and a strong foundation for momentum.
Embrace your fear and experience the joy of letting go.
Personal Growth
Entrepreneurship naturally brings out personal growth. Many people in the home-based business industry summarize success in two words - Personal Development. Numerous resources are available to assist in this area.
Self-confidence and self-esteem issues, common for women, will strengthen into building blocks for leadership skills. Success is the outcome of personal growth. The joy along the way is rewarding, will be noticed by others and attract many to your business.
Learn how to get out of your own way. If you find yourself in a place in life where you are ready to receive, learn, willing to grow, the home-based industry is the perfect vehicle. It encourages you to work on yourself, and commit to lifelong learning.
Embrace desire for growth. Embrace your own personal development.
Empowerment
Taking control of your own life is very empowering. Time freedom and financial freedom allow you to create and live life on your own terms. Thinking 'outside of the box' is a common mindset within the home-based business industry. Owning your days, your future, thinking big and dreaming big are frequent topics of discussion. Empower yourself - a shift in mindset towards building your own future can change the quality of your life.
Embrace life, your dreams, and your freedom.
Enhance the Lives of Others
Enhancing the lives of others by helping others along the way is often the most rewarding aspect of building a business within the home-based business industry. For women, we are nurturers in our own way just by being women. Eighty percent of the people within the home-based business industry are women. As we build our business, we have an opportunity to take others with us, build cohesiveness and assist them in achieving personal and financial goals. Network marketing is relational marketing. Making new friends and building lifelong relationships is the core of our business. Unlimited abundance naturally follows for those with vision, belief and persistence. Impacting others makes a difference on a personal, community and global level.
Embrace your ability to make a difference. Abundance will follow.
Have Faith in Yourself.
Believe in your Dreams.
Become a Home-Based Business Entrepreneur.
About The Author
Businesswoman, Friend, Collaborator, and Team player Cheryl Neithercott fulfills her Entrepreneurial calling by offering a great service that enriches the lives of others. Together with other fellow BraveHeart Community members, her goal is to empower Women to be multi-dimensional success stories and inspiration to others. Be Sure to Visit: http://BraveHeartWomen.com/Cheryl
Saturday, March 22, 2008
5 characteristics of winning entrepreneurs
5 characteristics of winning entrepreneurs
A reader of this blog sent me this note recently asking for help:
"I just started small business management and entrepreneurship at Mohawk College and I would like to hear some of your ideas and experience on owners of small businesses, entrepreneurs and the top people you have guided that have been successful. I am very interested in any advice you may have."
My reply suggested that her query was rather too open-ended fr me to deal with well. But that sounded harsh, so I added the following to try to sum up what I've learned about entrepreneurs in the past 20 years. It turned out okay, so I decided to share it with you:
"For what it's worth, here are the five most important characteristics I think most entrepreneurs can have:
1) Vision. The ability to see a goal or objective, and then make it clear enough so that others (employees, bankers, customers, etc.) can make that vision their own.
2) Passion. This gives them the courage to begin and the strength to persist.
3) Genuine interest in people. Others will be more likely to help you when you show interest in them.
4) Relentless curiosity. Entrepreneurs must always ask themselves, how does this work? How could it work better? How did they do it? How can I learn more about this? And they must feed this curiosity by reading and absorbing all the knowledge and information they can.
5) Self-Awareness. This tells them when to talk and when to shut up and listen."
And then of course I directed her to my book, which is available still in some libraries: Secrets of Success from Canada's Fastest-Growing Companies.
A reader of this blog sent me this note recently asking for help:
"I just started small business management and entrepreneurship at Mohawk College and I would like to hear some of your ideas and experience on owners of small businesses, entrepreneurs and the top people you have guided that have been successful. I am very interested in any advice you may have."
My reply suggested that her query was rather too open-ended fr me to deal with well. But that sounded harsh, so I added the following to try to sum up what I've learned about entrepreneurs in the past 20 years. It turned out okay, so I decided to share it with you:
"For what it's worth, here are the five most important characteristics I think most entrepreneurs can have:
1) Vision. The ability to see a goal or objective, and then make it clear enough so that others (employees, bankers, customers, etc.) can make that vision their own.
2) Passion. This gives them the courage to begin and the strength to persist.
3) Genuine interest in people. Others will be more likely to help you when you show interest in them.
4) Relentless curiosity. Entrepreneurs must always ask themselves, how does this work? How could it work better? How did they do it? How can I learn more about this? And they must feed this curiosity by reading and absorbing all the knowledge and information they can.
5) Self-Awareness. This tells them when to talk and when to shut up and listen."
And then of course I directed her to my book, which is available still in some libraries: Secrets of Success from Canada's Fastest-Growing Companies.
Wednesday, March 19, 2008
Entrepreneurship: What does it REALLY mean?
by: Dr.Alvin Chan
Introduction:
In a world where ideas drive economies, it is no wonder that innovation and entrepreneurship are often seen as inseparable bedfellows. The governments around the world are starting to realize that in order to sustain progress and improve a country’s economy, the people have to be encouraged and trained to think out-of-the-box and be constantly developing innovative products and services. The once feasible ways of doing business are no longer guarantees for future economic success!
In response to this inevitable change, some governments are rethinking the way the young are educated by infusing creative thinking and innovation in their nation’s educational curriculum. In the same vein, they are putting much emphasis on the need to train future entrepreneurs through infusing entrepreneurship components within the educational system, especially at the tertiary level. Some countries have taken this initiative to a higher level by introducing entrepreneurship education at elementary schools and encouraging them to be future entrepreneurs when they are of age. In a series of survey funded by Kauffman Center for Entrepreneurial Leadership, it was found that nearly seven out of 10 youths (aged 14-19) were interested in becoming entrepreneurs. Being an entrepreneur is now the choice of the new generation as compared to the preferred career choices of yesteryears such as being a doctor, lawyer or a fighter pilot. In a recent visit to the bustling city of Shanghai in China, an informal survey was carried out among Chinese youths by the author. The results of the survey showed that being an entrepreneur, especially in the field of computer and e-commerce, is perceived as a ‘cool’ career and is an aspiration for many Chinese youths Prior to the ‘opening up’ of modern China, being an entrepreneur was perceived as the outcome of one’s inability to hold a good government job and those who dared to venture, were often scorned at by their peers. Times have indeed changed.
With this change in mindset and the relative knowledge that entrepreneurs bring forth increased job creations, the awareness and academic studies of entrepreneurship have also heightened. In many tertiary institutes, many courses of entrepreneurship and innovation are being developed and offered to cater to the increasing demand. The term “entrepreneurship” has also evolved with numerous variations. The proliferation of jargons such as netpreneur, biotechpreneur, technopreneur and multipreneur are coined to keep up with the ever-changing times and business conditions that surround us.
In view of these changes, it is important that the definition of entrepreneurship be refined or redefined to enable its application in this 21st century. To put it succinctly, “Good science has to begin with good definitions (Bygrave & Hofer, 1991, p13).” Without the proper definition, it will be laborious for policymakers to develop successful programs to inculcate entrepreneurial qualities in their people and organizations within their country.
The paper will provide a summary of the definitions of entrepreneurship provided by scholars in this subject area. The author will also expand on one of the definitions by Joseph Schumpeter to create a better understanding of the definition of the term “entrepreneurship” as applied in today’s business world.
Entrepreneurship through the Years:
It was discovered that the term ‘entrepreneurship’ could be found from the French verb ‘entreprende’ in the twelfth century though the meaning may not be that applicable today. This meaning of the word then was to do something without any link to economic profits, which is the antithesis of what entrepreneurship is all about today. It was only in the early 1700’s, when French economist, Richard Cantillon, described an entrepreneur as one who bears risks by buying at certain prices and selling at uncertain prices (Barreto, 1989, Casson 1982) which is probably closer to the term as applied today.
In the 1776 thought-provoking book ‘The Wealth of Nations’, Adam Smith explained clearly that it was not the benevolence of the baker but self-interest that motivated him to provide bread. From Smith’s standpoint, entrepreneurs were the economic agents who transformed demand into supply for profits.
In 1848, the famous economist John Stuart Mill described entrepreneurship as the founding of a private enterprise. This encompassed the risk takers, the decision makers, and the individuals who desire wealth by managing limited resources to create new business ventures.
One of the definitions that the author feels best exemplifies entrepreneurship was coined by Joseph Schumpeter (1934). He stated that the entrepreneur is one who applies “innovation” within the context of the business to satisfy unfulfilled market demand (Liebenstein, 1995). In elaboration, he saw an entrepreneur as an innovator who implements change within markets through the carrying out of new combinations. The carrying out of new combinations can take several forms:
The introduction of a new good or standard of quality;
The introduction of a novel method of production;
The opening of a new market;
The acquisition of a new source of new materials supply; and
The carrying out of the new organization in any industry.
Though the term ‘innovation’ has different meanings to different people, several writers tended to see “innovation” in the form of entrepreneurship as one not of incremental change but quantum change in the new business start-ups and the goods/services that they provide (egs, Bygrave, 1995; Bygrave & Hofer, 1991).
In the view of Drucker (1985), he perceived entrepreneurship as the creation of a new organization, regardless of its ability to sustain itself, let alone make a profit. The notion of an individual who starts a new business venture would be sufficient for him/her to be labeled as an entrepreneur. It is this characteristic that distinguishes entrepreneurship from the routine management tasks of allocating resources in an already established business organization. Though the definition tends to be somewhat simplistic in nature, it firmly attaches the nature of entrepreneurial action with risk-taking and the bearing of uncertainty by the individual (Swoboda, 1983)
In a Delphi study, Gartner (1990) found eight themes expressed by the participants that constitute the nature of entrepreneurship. They were the entrepreneur, innovation, organization creation, creating value, profit or non-profit, growth, uniqueness, and the owner-manager. The themes could be seen as a derivative and expansion of Schumpter’s earlier concept.
Expanding on Schumpeter’s Definition:
After digesting the numerous definitions of entrepreneurship, one would tend to see a strong link between these two terms: entrepreneurship and innovation. In retrospect, most of the definitions tended to be, to some extent, a re-work and expansion of Schumpeter’s definition of entrepreneurship (which is that of innovation being applied in a business context). As defining the term of ‘innovation’ is highly debatable and would merit a paper on its own, the author has thus, for convenience, summarised the definition of innovation. Innovation can be perceived simply as the transformation of creative ideas into useful applications by combining resources in new or unusual ways to provide value to society for or improved products, technology, or services.
In the author’s opinion, the difficulties of defining “innovation” could be the reason for the quandary one finds in attempting to arrive at a clear-cut definition of the term “ Entrepreneurship”.
Take for example, if someone starts another run-of-the-mill hot dog stand in the streets of New York, will he termed as an entrepreneur? According to Drucker’s definition, he will be seen as one. However, if the above definition by Schumpeter was used as a guideline, the answer is probably ‘NO’. Why? The core of the matter lies in what is so innovative about setting up another hot-dog stand which are in abundance in New York. On the contrary, if he is the first one to start a stand selling hot-dogs with Oriental Sweet and Sour sauce topping; he could be termed as an entrepreneur (even based on Schumpeter’s requirement) as he has done what others have not done before. In the context of entrepreneurship, creativity and innovation are key points in the whole scheme of things.
In this manner, by adding “innovative” features to a product or services and setting up a business based on these additional features to compete in the existing market, new entrants may be able to gain this competitive advantage over existing market players.
In the case of the hot-dog seller, it may be argued that his addition of Oriental Sweet and Sour sauce toppings may be seen as nondescript. This runs in contrary to some scholars’ definition of entrepreneurship as requiring quantum changes in the products/ services to be justified as being entrepreneurial (Bygrave, 1985; Bygrave & Hofer, 1991).
Consistent with creating new products for sale, someone who starts a business by providing a totally new way of serving his customers/ clients is considered to be entrepreneurial too. Though, it is often argued that there are no real new products or services in a case where one does not look to the past products and services for ideas for improvements. Thus, the notion of incremental improvements should be accepted as being innovative too.
Innovation in the business sense may not necessarily involve, in the physical sense, the introduction of a new product or service. It can be in the form of what is commonly known as creative imitations. For example, if an individual starts selling a product that is already common in his area or country, he will not be seen as being entrepreneurial. However, if he is the first to sell the same product in a virgin locale or to an untouched market segment, he will be seen as an entrepreneur in his own rights.
Take Muhammad Yunus, for example. Yunus became an entrepreneur when he started a micro-loan program for the poor villagers in a rural part of Bangladesh named Grameen, with only US$26. The loan was divided among 42 villagers to assist them to buy small items such as combs, scissors, needles and other necessities to start their own home businesses. In the past 22 years, Grameen Bank has grown with over $2 billion loans granted. It has now become a model for several micro-loan facilities.
>From the following example, Yunus created banking and lending facilities in Grameen specifically for the poor villagers. Banking and lending money activities are not new but Yunus was the first to provide such facilities in a rural part of Bangladesh and that is definitely innovation and risk-bearing on his part as a social entrepreneur. In short, innovation need not arise mainly from a new product or service but it could be an old product or service finding a new market for penetration.
An individual could be termed as an entrepreneur if he or she sells a product or service using new systems and/ or mediums of marketing, distribution or production methods as a basis for a new business venture. A good example will be Jeff Bezos, the founder of Amazon, the successful Web-based bookstore. He was one of the first to sell books on a large scale using an online store and also patented the one-click system for online buying. Though selling books is not an innovation in itself, Jeff Bezos was innovative in the use of the Internet then as a viable marketing and sales channel for selling books.
Another example from the field of e-commerce is Stuart Skorman, the founder of Reel.com. Reel.com is essentially one of the first cyber movie store with a very large inventory of over a 100 000 videos. Though setting a movie store was revolutionary then, Reel.com main distinction was being known as the first online store to expand by opening an offline store. The founder felt that by doing so, the online store could be an advertisement for the offline store and vice versa, thus strengthening this click and mortar business venture- an example of creativity and innovation applied in a profitable business context.
Conclusion:
This paper has started as an attempt to redefine the term of entrepreneurship but ended up ‘updating’ the wheel, based on the definition as proposed by Schumpeter. The paper expanded on this influential work by giving examples to illustrate what innovation in entrepreneurship was and hope that along the way, new insights were unearthed in the study of defining entrepreneurship.
In summary, the author hopes that this paper would further encourage the infusion of creative thinking and innovation within the educational system to nurture future entrepreneurs with a competitive edge. In the author’s view, the characteristics and capabilities to set up a new business venture based on doing things that have not done before should be encouraged. Innovation needs to be the cornerstone of entrepreneurship as opposed to the mere setting up of another new enterprise without implementing changes or adding features of improvements to the products and services provided and/ or its business processes.
Introduction:
In a world where ideas drive economies, it is no wonder that innovation and entrepreneurship are often seen as inseparable bedfellows. The governments around the world are starting to realize that in order to sustain progress and improve a country’s economy, the people have to be encouraged and trained to think out-of-the-box and be constantly developing innovative products and services. The once feasible ways of doing business are no longer guarantees for future economic success!
In response to this inevitable change, some governments are rethinking the way the young are educated by infusing creative thinking and innovation in their nation’s educational curriculum. In the same vein, they are putting much emphasis on the need to train future entrepreneurs through infusing entrepreneurship components within the educational system, especially at the tertiary level. Some countries have taken this initiative to a higher level by introducing entrepreneurship education at elementary schools and encouraging them to be future entrepreneurs when they are of age. In a series of survey funded by Kauffman Center for Entrepreneurial Leadership, it was found that nearly seven out of 10 youths (aged 14-19) were interested in becoming entrepreneurs. Being an entrepreneur is now the choice of the new generation as compared to the preferred career choices of yesteryears such as being a doctor, lawyer or a fighter pilot. In a recent visit to the bustling city of Shanghai in China, an informal survey was carried out among Chinese youths by the author. The results of the survey showed that being an entrepreneur, especially in the field of computer and e-commerce, is perceived as a ‘cool’ career and is an aspiration for many Chinese youths Prior to the ‘opening up’ of modern China, being an entrepreneur was perceived as the outcome of one’s inability to hold a good government job and those who dared to venture, were often scorned at by their peers. Times have indeed changed.
With this change in mindset and the relative knowledge that entrepreneurs bring forth increased job creations, the awareness and academic studies of entrepreneurship have also heightened. In many tertiary institutes, many courses of entrepreneurship and innovation are being developed and offered to cater to the increasing demand. The term “entrepreneurship” has also evolved with numerous variations. The proliferation of jargons such as netpreneur, biotechpreneur, technopreneur and multipreneur are coined to keep up with the ever-changing times and business conditions that surround us.
In view of these changes, it is important that the definition of entrepreneurship be refined or redefined to enable its application in this 21st century. To put it succinctly, “Good science has to begin with good definitions (Bygrave & Hofer, 1991, p13).” Without the proper definition, it will be laborious for policymakers to develop successful programs to inculcate entrepreneurial qualities in their people and organizations within their country.
The paper will provide a summary of the definitions of entrepreneurship provided by scholars in this subject area. The author will also expand on one of the definitions by Joseph Schumpeter to create a better understanding of the definition of the term “entrepreneurship” as applied in today’s business world.
Entrepreneurship through the Years:
It was discovered that the term ‘entrepreneurship’ could be found from the French verb ‘entreprende’ in the twelfth century though the meaning may not be that applicable today. This meaning of the word then was to do something without any link to economic profits, which is the antithesis of what entrepreneurship is all about today. It was only in the early 1700’s, when French economist, Richard Cantillon, described an entrepreneur as one who bears risks by buying at certain prices and selling at uncertain prices (Barreto, 1989, Casson 1982) which is probably closer to the term as applied today.
In the 1776 thought-provoking book ‘The Wealth of Nations’, Adam Smith explained clearly that it was not the benevolence of the baker but self-interest that motivated him to provide bread. From Smith’s standpoint, entrepreneurs were the economic agents who transformed demand into supply for profits.
In 1848, the famous economist John Stuart Mill described entrepreneurship as the founding of a private enterprise. This encompassed the risk takers, the decision makers, and the individuals who desire wealth by managing limited resources to create new business ventures.
One of the definitions that the author feels best exemplifies entrepreneurship was coined by Joseph Schumpeter (1934). He stated that the entrepreneur is one who applies “innovation” within the context of the business to satisfy unfulfilled market demand (Liebenstein, 1995). In elaboration, he saw an entrepreneur as an innovator who implements change within markets through the carrying out of new combinations. The carrying out of new combinations can take several forms:
The introduction of a new good or standard of quality;
The introduction of a novel method of production;
The opening of a new market;
The acquisition of a new source of new materials supply; and
The carrying out of the new organization in any industry.
Though the term ‘innovation’ has different meanings to different people, several writers tended to see “innovation” in the form of entrepreneurship as one not of incremental change but quantum change in the new business start-ups and the goods/services that they provide (egs, Bygrave, 1995; Bygrave & Hofer, 1991).
In the view of Drucker (1985), he perceived entrepreneurship as the creation of a new organization, regardless of its ability to sustain itself, let alone make a profit. The notion of an individual who starts a new business venture would be sufficient for him/her to be labeled as an entrepreneur. It is this characteristic that distinguishes entrepreneurship from the routine management tasks of allocating resources in an already established business organization. Though the definition tends to be somewhat simplistic in nature, it firmly attaches the nature of entrepreneurial action with risk-taking and the bearing of uncertainty by the individual (Swoboda, 1983)
In a Delphi study, Gartner (1990) found eight themes expressed by the participants that constitute the nature of entrepreneurship. They were the entrepreneur, innovation, organization creation, creating value, profit or non-profit, growth, uniqueness, and the owner-manager. The themes could be seen as a derivative and expansion of Schumpter’s earlier concept.
Expanding on Schumpeter’s Definition:
After digesting the numerous definitions of entrepreneurship, one would tend to see a strong link between these two terms: entrepreneurship and innovation. In retrospect, most of the definitions tended to be, to some extent, a re-work and expansion of Schumpeter’s definition of entrepreneurship (which is that of innovation being applied in a business context). As defining the term of ‘innovation’ is highly debatable and would merit a paper on its own, the author has thus, for convenience, summarised the definition of innovation. Innovation can be perceived simply as the transformation of creative ideas into useful applications by combining resources in new or unusual ways to provide value to society for or improved products, technology, or services.
In the author’s opinion, the difficulties of defining “innovation” could be the reason for the quandary one finds in attempting to arrive at a clear-cut definition of the term “ Entrepreneurship”.
Take for example, if someone starts another run-of-the-mill hot dog stand in the streets of New York, will he termed as an entrepreneur? According to Drucker’s definition, he will be seen as one. However, if the above definition by Schumpeter was used as a guideline, the answer is probably ‘NO’. Why? The core of the matter lies in what is so innovative about setting up another hot-dog stand which are in abundance in New York. On the contrary, if he is the first one to start a stand selling hot-dogs with Oriental Sweet and Sour sauce topping; he could be termed as an entrepreneur (even based on Schumpeter’s requirement) as he has done what others have not done before. In the context of entrepreneurship, creativity and innovation are key points in the whole scheme of things.
In this manner, by adding “innovative” features to a product or services and setting up a business based on these additional features to compete in the existing market, new entrants may be able to gain this competitive advantage over existing market players.
In the case of the hot-dog seller, it may be argued that his addition of Oriental Sweet and Sour sauce toppings may be seen as nondescript. This runs in contrary to some scholars’ definition of entrepreneurship as requiring quantum changes in the products/ services to be justified as being entrepreneurial (Bygrave, 1985; Bygrave & Hofer, 1991).
Consistent with creating new products for sale, someone who starts a business by providing a totally new way of serving his customers/ clients is considered to be entrepreneurial too. Though, it is often argued that there are no real new products or services in a case where one does not look to the past products and services for ideas for improvements. Thus, the notion of incremental improvements should be accepted as being innovative too.
Innovation in the business sense may not necessarily involve, in the physical sense, the introduction of a new product or service. It can be in the form of what is commonly known as creative imitations. For example, if an individual starts selling a product that is already common in his area or country, he will not be seen as being entrepreneurial. However, if he is the first to sell the same product in a virgin locale or to an untouched market segment, he will be seen as an entrepreneur in his own rights.
Take Muhammad Yunus, for example. Yunus became an entrepreneur when he started a micro-loan program for the poor villagers in a rural part of Bangladesh named Grameen, with only US$26. The loan was divided among 42 villagers to assist them to buy small items such as combs, scissors, needles and other necessities to start their own home businesses. In the past 22 years, Grameen Bank has grown with over $2 billion loans granted. It has now become a model for several micro-loan facilities.
>From the following example, Yunus created banking and lending facilities in Grameen specifically for the poor villagers. Banking and lending money activities are not new but Yunus was the first to provide such facilities in a rural part of Bangladesh and that is definitely innovation and risk-bearing on his part as a social entrepreneur. In short, innovation need not arise mainly from a new product or service but it could be an old product or service finding a new market for penetration.
An individual could be termed as an entrepreneur if he or she sells a product or service using new systems and/ or mediums of marketing, distribution or production methods as a basis for a new business venture. A good example will be Jeff Bezos, the founder of Amazon, the successful Web-based bookstore. He was one of the first to sell books on a large scale using an online store and also patented the one-click system for online buying. Though selling books is not an innovation in itself, Jeff Bezos was innovative in the use of the Internet then as a viable marketing and sales channel for selling books.
Another example from the field of e-commerce is Stuart Skorman, the founder of Reel.com. Reel.com is essentially one of the first cyber movie store with a very large inventory of over a 100 000 videos. Though setting a movie store was revolutionary then, Reel.com main distinction was being known as the first online store to expand by opening an offline store. The founder felt that by doing so, the online store could be an advertisement for the offline store and vice versa, thus strengthening this click and mortar business venture- an example of creativity and innovation applied in a profitable business context.
Conclusion:
This paper has started as an attempt to redefine the term of entrepreneurship but ended up ‘updating’ the wheel, based on the definition as proposed by Schumpeter. The paper expanded on this influential work by giving examples to illustrate what innovation in entrepreneurship was and hope that along the way, new insights were unearthed in the study of defining entrepreneurship.
In summary, the author hopes that this paper would further encourage the infusion of creative thinking and innovation within the educational system to nurture future entrepreneurs with a competitive edge. In the author’s view, the characteristics and capabilities to set up a new business venture based on doing things that have not done before should be encouraged. Innovation needs to be the cornerstone of entrepreneurship as opposed to the mere setting up of another new enterprise without implementing changes or adding features of improvements to the products and services provided and/ or its business processes.
The Reality of Online Entrepreneurship
by: Audrey Hoffman
Who doesn't want to run a business from their home and wear a bathrobe to virtual business meetings? Since the go-go days of the dotcom boom, the ideal of starting an online business has drawn many to try their business legs in the challenges of online commerce. And indeed, the statistics are attractive: Fifty-five percent of American households are wired for the Internet, and nearly a third, or 32 percent have made a purchase online, according to the US Census Bureau. There's buckets of money being made online, but who's making it and who's not?
When one speaks of "making money online," one creates an image of simply turning on a computer and getting money out of it as if it were an ATM machine. In fact, the Internet, and all the commercial features of it, are merely tools in the entrepreneur's toolbox that should be used alongside other, more traditional tools. When you're building a house, sometimes that high-tech, laser pointing thingamabob is great, but sometimes you just need a hammer. And so it is with online business, and supplementing all that high-tech with old-fashioned business, or in many cases, supplementing old-fashioned business with some high-tech, is what it takes to be successful. Success online comes not in replacing the old with the new, but blending them together.
With a few high-profile exceptions, most businesses that "make money online" successfully aren't exclusive virtual sales companies, but instead, they use the Internet as just one of several sales channels. While people are buying things online, they enjoy having the Internet as an option—but don't want it to be their only option. More often, the Internet is used as a vehicle for researching products that will actually be bought in an actual brick-and-mortar store.
Creating a virtual business doesn't mean that it should be exclusively virtual. The most successful online businesses are those that have promoted themselves offline as well as on, through traditional media such as television and newspaper as well as via clickthroughs and email advertising. Yahoo! is an excellent example of a fabulously successful online company—but what do we remember most when we think of Yahoo!? The silly yodel from their television commercials.
Perhaps one of the most important things to remember when starting an online business, is not to get lost in the online mystique. The Internet revolution has, and continues to bring us all manner of useful tools and techniques for commerce, but if you want to get customers to visit your new online boutique, you have to actually change out of your bathrobe, get out of your den, and actually talk to some people face-to-face.
Who doesn't want to run a business from their home and wear a bathrobe to virtual business meetings? Since the go-go days of the dotcom boom, the ideal of starting an online business has drawn many to try their business legs in the challenges of online commerce. And indeed, the statistics are attractive: Fifty-five percent of American households are wired for the Internet, and nearly a third, or 32 percent have made a purchase online, according to the US Census Bureau. There's buckets of money being made online, but who's making it and who's not?
When one speaks of "making money online," one creates an image of simply turning on a computer and getting money out of it as if it were an ATM machine. In fact, the Internet, and all the commercial features of it, are merely tools in the entrepreneur's toolbox that should be used alongside other, more traditional tools. When you're building a house, sometimes that high-tech, laser pointing thingamabob is great, but sometimes you just need a hammer. And so it is with online business, and supplementing all that high-tech with old-fashioned business, or in many cases, supplementing old-fashioned business with some high-tech, is what it takes to be successful. Success online comes not in replacing the old with the new, but blending them together.
With a few high-profile exceptions, most businesses that "make money online" successfully aren't exclusive virtual sales companies, but instead, they use the Internet as just one of several sales channels. While people are buying things online, they enjoy having the Internet as an option—but don't want it to be their only option. More often, the Internet is used as a vehicle for researching products that will actually be bought in an actual brick-and-mortar store.
Creating a virtual business doesn't mean that it should be exclusively virtual. The most successful online businesses are those that have promoted themselves offline as well as on, through traditional media such as television and newspaper as well as via clickthroughs and email advertising. Yahoo! is an excellent example of a fabulously successful online company—but what do we remember most when we think of Yahoo!? The silly yodel from their television commercials.
Perhaps one of the most important things to remember when starting an online business, is not to get lost in the online mystique. The Internet revolution has, and continues to bring us all manner of useful tools and techniques for commerce, but if you want to get customers to visit your new online boutique, you have to actually change out of your bathrobe, get out of your den, and actually talk to some people face-to-face.
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