The Entrepreneurial Mind-Set in the Twenty-First Century Part 1 Chapter overview Photograph Entrepreneurship: Evolutionary Development—Revolutionary Impact 2 The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics 31 The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship 67 Social Entrepreneurship and the Global Environment for Entrepreneurship 98 Entrepreneural case analysis Corporate Entrepreneurship and Innovation in Silicon Valley: The Case of Google, Inc. 127 Entrepreneurship: Evolutionary Development—Revolutionary Impact Chapter 1 “Entrepreneurial Thought Most of what you hear about entrepreneurship is all wrong. It’s not magic; it’s not mysterious; and it has nothing to do with genes. It’s a discipline and, like any discipline, it can be learned.”Peter F. DruckerInnovation and Entrepreneurshipline> Photograph Contents To examine the historical development of entrepreneurship To explore and debunk the myths of entrepreneurship To define and explore the major schools of entrepreneurial thought To explain the process approaches to the study of entrepreneurship To set forth a comprehensive definition of entrepreneurship To examine the entrepreneurial revolution taking place today To illustrate today’s entrepreneurial environment Entrepreneurs—Breakthrough Innovators Entrepreneurs are individuals who recognize opportunities where others see chaos, contradiction, and confusion. They are aggressive catalysts for change within the marketplace. They have been compared to Olympic athletes challenging themselves to break new barriers, to long-distance runners dealing with the agony of the miles, to symphony orchestra conductors balancing different skills and sounds into a cohesive whole, and to top-gun pilots continually pushing the envelope of speed and daring. Whatever their passion, entrepreneurs are the heroes of today’s marketplace. They start companies and create jobs at a breathtaking pace. The global economy has been revitalized because of their efforts, and the world now embraces free enterprise as the most significant force for economic development. The passion and drive of entrepreneurs move the world of business forward. They challenge the unknown and continuously create breakthroughs for the future. One anonymous quote sums up the realities for entrepreneurs: “Anyone [can be an entrepreneur] who wants to experience the deep, dark canyons of uncertainty and ambiguity; and who wants to walk the breathtaking highlands of success. But I caution, do not plan to walk the latter, until you have experienced the former.”1 Entrepreneurs versus Small-Business Owners: A Distinction The terms entrepreneur and small-business owner sometimes are used interchangeably. Although some situations encompass both terms, it is important to note the differences in the titles. Small businesses are independently owned and operated, are not dominant in their fields, and usually do not engage in many new or innovative practices. They may never grow large, and the owners may prefer a more stable and less aggressive approach to running these businesses; in other words, they manage their businesses by expecting stable sales, profits, and growth. Because small firms include those purchased as already established businesses as well as franchises, small-business owners can be viewed as managers of small businesses. On the other hand, entrepreneurial ventures are those for which the entrepreneur’s principal objectives are innovation, profitability, and growth. Thus, the business is characterized by innovative strategic practices and sustainable growth. Entrepreneurs and their financial backers are usually seeking rapid growth and immediate profits. They may even seek the sale of their businesses if there is potential for large capital gains. Thus, entrepreneurs may be viewed as having a different perspective from
small-business owners on the development of their firms. In this book, we concentrate on entrepreneurs...
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