MGT100H1 Chapter Notes - Chapter 6: Skunkworks Project, Angel Investor, Intrapreneurship
Chapter 6: Starting Your Own Business: The Entrepreneurship Alternative
●Entrepreneur: person who seeks a profitable opportunity and takes the necessary risks to set up
and operate a business
●Categories of Entrepreneurs
○Classic entrepreneur: person who sees a business opportunity and sets aside
resources to gain access to that market
○Serial entrepreneur: person who starts one business, runs it, and then starts and runs
more businesses, one after another
○Social entrepreneur: person who seeks societal problems and uses business principles
to develop new solutions
○Lifestyle entrepreneur: person who starts a business to reduce work hours and create a
more relaxed lifestyle
●Reasons to choose entrepreneurship as a career path
○Desire to be one’s own boss
○Desire to succeed financially
○Desire for job security
○Desire for an improved quality of life
●The environment for entrepreneurs
○Globalization
○Education
○Demographic and economic trends
○Information technology
●Characteristics of entrepreneurs
○Vision
■An overall idea for how to make their business idea a success, viewing the world
in a slightly different way
○High energy level
○Need to achieve
○Self-confidence and optimism
○Tolerance and failure
○Creativity
■Thinking of new ideas for goods and services
■Devise new ways to overcome difficult problems and situations
○Tolerance for ambiguity
○Internal locus of control
■Believing that they control their own future
●Starting a new venture
○Selecting a business idea
■Finding something you love to do and are good at doing
■Find an idea that meets a need in the marketplace
●Finding Financing
○Seed capital: initial funding needed to launch a new venture
○Debt financing: borrowed funds that entrepreneurs must repay
■Ex: loans from banks, finance companies, credit-card companies, etc.
○Equity financing: funds invested in new ventures in exchange for part ownership
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Document Summary
Chapter 6: starting your own business: the entrepreneurship alternative. Entrepreneur: person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business. Classic entrepreneur: person who sees a business opportunity and sets aside resources to gain access to that market. Serial entrepreneur: person who starts one business, runs it, and then starts and runs more businesses, one after another. Social entrepreneur: person who seeks societal problems and uses business principles to develop new solutions. Lifestyle entrepreneur: person who starts a business to reduce work hours and create a more relaxed lifestyle. Reasons to choose entrepreneurship as a career path. Desire for an improved quality of life. An overall idea for how to make their business idea a success, viewing the world in a slightly different way. Thinking of new ideas for goods and services. Devise new ways to overcome difficult problems and situations. Believing that they control their own future.
