Unit 1: Elements of Entrepreneurship
Entrepreneurs assume the risk of creating an enterprise that will provide them with a return on the capital employed. In this introductory unit, we will look more closely at small business creation and the history and evolution of entrepreneurship. You will study various economists and their theories, assess entrepreneurial characteristics, and learn about the phases of the entrepreneurial process. Finally, you will review ethics and social responsibility as they relate to entrepreneurship before evaluating methods for launching a business geared towards your target market.
Completing this unit should take you approximately 7 hours.
Upon successful completion of this unit, you will be able to:
- analyze the entrepreneurial process through which business ideas are evaluated;
- identify the characteristics of successful entrepreneurs;
- distinguish between business ideas and opportunities; and
- examine entrepreneurial potential.
1.1: The History of Small Business and Entrepreneurship
This chapter explains the concept of entrepreneurship and the evolution of its meaning.
In this video, Kavita Ramdas, President and CEO of the Global Village for Women, defines entrepreneurship by looking to the word's roots in the French language.
Complete this survey for a personal assessment of your preparedness for becoming an entrepreneur. The key for interpreting your results can be found at the bottom of the assessment.
1.1.1: Small Business Development in America
In this article, a former editor for The Wall Street Journal explains how small businesses have built the economy and bolstered democracy throughout history.
1.1.2 Microeconomics and Entrepreneurship
This article includes a good glossary of terms that can be used to describe successful entrepreneurs.
The scholarly understanding of entrepreneurship is partially due to the work of economist Joseph Schumpeter. He defined an entrepreneur as a person with the ability to convert an idea into a successful innovation or business venture. Additionally, he coined the term creative destruction and credited entrepreneurs for the dynamism of the industries' long-term economic growth.
1.1.4: Types of Entrepreneurs
This article outlines the function of entrepreneurs and describes the different kinds of entrepreneurs.
22.214.171.124: Entrepreneurs vs. Intrapreneurs
This article explains the difference between entrepreneurs and intrapreneurs.
126.96.36.199: Small Business vs. High-Growth Enterprises
- This video is part of a series that brings innovation leaders from business, finance, technology, education, and philanthropy together to share their insights with aspiring entrepreneurs all over the world. Many business subjects are covered, including intrapreneurship, entrepreneurship, and high-growth business.
1.2: The Planning Process
This article outlines the parts of a business plan and the importance of having one before launching a small business.
1.2.1: Characteristics of a Successful Entrepreneur
This article identifies some of the common qualities of successful entrepreneurs.
This article outlines some useful guidelines for determining whether one should pursue entrepreneurship as a choice.
Entrepreneurship is an attractive career choice. But many decisions have to be made before launching and managing a new business, no matter its size. Among the questions that need to be answered are:
- Does the individual truly want to be responsible for a business?
- What product or service should be the basis of the business?
- What is the market, and where should it be located?
- Is the potential of the business enough to provide a living wage for its employees and the owner?
- How can a person raise the capital to get started?
- Should an individual work full- or part-time to start a new business? Should the person start alone or with partners?
Answers to these questions are not empirically right or wrong. Rather, the answers will be based on each entrepreneur's judgment. An entrepreneur gathers as much information and advice as possible before making these and other crucial decisions.
1.2.2: Phases of the Entrepreneurial Process
Watch this lecture to learn about different frameworks for entrepreneurship.
As you read this article, think about the definition of an entrepreneur and whether or not this definition is in line with your personality and professional goals. Consider the commitment required to create an idea, write a business plan, and obtain financing to see a product or service through to the marketplace. Do you have that commitment? If so, what steps would you take to begin the process?
1.2.3: Business Evaluation Checklist
This section outlines a checklist for investors, family members, business partners, and employees to evaluate an entrepreneur's business plan.
1.2.4: Legal Issues
188.8.131.52: Legal Forms of Business
This article introduces the various forms of business ownership. Pay attention to the advantages and disadvantages of each form of ownership. This will help you understand the foundational elements of legal business structures.
184.108.40.206: Intellectual Property Rights
Read this article.
1.2.5: Business Ethics
Read this chapter, which covers ethics and social responsibility.
1.2.6: Entrepreneurship Myths
Read this section. You will want to reference the entrepreneur survey assessment you did in subunit 1.1.
Unit 1 Assessment
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.