Dollinger index

16 ENTREPRENEURSHIP

DIMENSIONS OF ENTREPRENEURSHIP

New Venture Creation

This book is concerned with entrepreneurship as the formation of a new business enter-

prise—most often called simply new venture creation. It contains theory and research

about, and descriptions of, practice and techniques of entrepreneurship. We take an eco-

nomic and managerial approach to entrepreneurship and new venture creation, although

at times we borrow important material from other disciplines. Much has been written

about the phenomenon of entrepreneurship and new venture creation from the econom-

ic and managerial perspectives. There have been numerous descriptive studies and some

valuable empirical research, but no textbook, including this one, can offer prospective

entrepreneurs advice that will ensure their success. There is no “rule for riches” as we

will see in the next chapter. Not enough is known about entrepreneurship (or business

Then

Small-business founder

Boss

Lone Ranger

Secretive

Self-reliant

Seat of the pants

Snap decisions

Male ownership

Now

True entrepreneur

Leader

Social and business networker

Open

Inquisitive

Business plan

Consensus

Mixed ownership

(In 1993, women owned one-third of all

sole proprietorships, up from one-quarter

in 1980.)

Idea

In 1982, 80% of the CEOs of the Inc. 500

companies believed their companies’

success was based on novel, unique, or

proprietary ideas.

Knows the Trade

Eastern, one of the first airlines in the

United States, was founded by pilot

Eddie Rickenbacker.

Automation

Technology lets business automate the

work people had always done

Execution

1992, 80% of the CEOs of Inc. 500

companies said that the ideas for their

companies were ordinary, and that they

owed their success to better business

models.

Knows the Business

Federal Express, an overnight delivery

service using airplanes, was developed

from a business plan written by Fred

Smith while he was studying for his MBA

at Yale.

Innovation

Technology lets people do things never

done before.

TABLE 1.3 Entrepreneurs

SOURCE: Adapted from Tom Richman, ”The Evolution of the Professional Entrepreneur,” Inc.’s the State of Small Business

Special Issue, l997: 50–53.