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8/8/2019 Entrepreneurship Only For Website

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Entrepreneurship

Professor Josef Mittlemann

Brown University


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Break activity into two camps: Leaders and

Followers. Entrepreneurship camp = Leader Camp: Royalty - Military Entrepreneur Camp: Merchants - Adventurers

Mid 18th

Century A zero sum game- ones gain anothers loss

This resulted in Negative connotations forthe business person

A Brief History of

Entrepreneurship


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Differences between the Capitalist

vs. Merchant Capitalist:

No risk to Life and

limb

Favored by Laws of

usury

Adventurer

Actively trading and

voyaging, resultedin

Development of

Skills

Was forced to

survive. Use of

new tools and skills


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The word Entrepreneur

Definitions

Dictionary in France (1723)

one undertaking a project, a manufacturer, a master builder

England (18th Century)

An adventurer, projector, or undertaker


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Richard Cantillon

LEssai sur la nature du commerce en

general published 1755 first clear

definition of an entrepreneur

Market as a place vs.market asMechanisms

An equilibrating mechanism

The entrepreneur is a key player -MarketMaker


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Cantillon continued

Focuses on function: Risk is

confronted in search of Profit

Broke population down into Fixed vs

Variable Income earners.

Product emphasis versus marketing


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Later 18th &19th Century France

Quesnay, Baudeau and Turgot in mid 18th

Century France: Focused on:

The ability of the entrepreneur toInnovate and Organize

J.B Say in late 18th and early 19th said:

Entrepreneur is not a force ininvention but rather theCommercializer of the Invention

Thus the planner for its production


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Adam Smith

Inquiry into the Nature and Causes of the

Wealth of Nations (1776)

Capital is the Driver of Profit

People are naturally Industrious versus

entrepreneurial

The Entrepreneur lost standing


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Early 20th Century

Francis Walker, Frederick Hawley, and

John Clark

Resurrected the entrepreneurs role

Individual versus source of capital


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Joseph Schumpeter in the early 30s-50s

resurrected more completely the entrepreneur.

Saw the Entrepreneur as Combining

existing goods

He referred to the Entrepreneurs as

Creative destroyers.

Disrupters of equilibrium.


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Later 20th Century

Entrepreneur is viewed as a Change

Agent

Leaders as Change Makers

Entrepreneurship as Process


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Entrepreneurship as Process

Concept encouraged in U.S. by T.W.

Schultz in 1970s

Entrepreneurial activity goes beyond

the borders of business.

Education can be a source of

entrepreneurial learning.

Entrepreneurs: a somewhat scarce

and limited resource.


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General Consensus

on Entrepreneur Creative

Innovative

Promoter and marketer

Assumes risk which others see as

greater than they do.


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Entrepreneur

Decision maker

Organizer but special type of Manager

Re-allocator or accessor of various

resources.

Both Leader and Proprietor


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Entrepreneurship Myths


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Myth no. 1 is that an entrepreneur

is one who Starts and Runs a

Business.

Versus: Plan forGrowth and Expansion


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Myth 2: Entrepreneurship Happens

at one given point in time,

The phenomenon is not Fixedand takes place as a Process over Time


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Next myth is that You are or you

are not an entrepreneur.

I think it more generous to say that theEntrepreneur enters Periods of dormancy

In the long run, it can be an on/off

phenomenon But not really an either or phenomenon.


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Here is a popular one, the E is a

BIG Risk Taker My experience is that while any

innovation is somewhat risky, the

Entrepreneur takes his or her Analysis

quite carefully:

does research, and

manages the risk, through experience,

special knowledge or

enlistin the aid of others


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An entrepreneur is Born to Be

Popularization of a Cult Concept:

Richard Branson, or Ted Turner, also enlists the arguments found

in the

Nature vs. nurture discussion.

Our Environment plays a large role


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So too, that the entrepreneur is in

it Only For Moneys Sake

Entrepreneurs are excited by acting as

Change agents and

Are motivated as much if not more by

Achievement than money.


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Its only about the Individual

I think it fair to say that the notion of

individual success in todays global

economy is bankrupt if not romantic.

Teams can and do exhibit the

entrepreneurial spirit.

While the entrepreneur is a potentially

dynamic leader- but short of teamwork, the

innovation of ideas will fall flat.


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It Only Exists in Business

Suffice it to say that entrepreneurial

activity is showing up everywhere. Even now in social work where there are

some cities that are investigating

entrepreneurship class requirements for

their workers.


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It Takes Luck and Money

No more than any other endeavor,perhaps we can say that the resource here

is idea and opportunity generated not

capitally generated.

Of course there is an abundant measure

of Hard Work and Application of Skills


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And finally, is the world of the E.

Unstructured and Chaotic

The world is Chaotic The Entrepreneur usually finds opportunity

in that arena and is quite good at dealing

with uncertainty.

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