GMS 200 Lecture Notes - Lecture 5: Angel Investor, Initial Public Offering, Intrapreneurship

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Franklin Gorospe

Document Summary

Entrepreneurship: creating new businesses by strategic thinking and taking. Entrepreneurs: individuals who establish businesses on their own. Entrepreneurs are : founders of businesses that become large-scale enterprises, people who, buy a local franchise outlet, open a small retail shop, operate a self-employed service business, remember that entrepreneurs usually begin with a great idea. Internal locus of control ability to control your own destiny: high need for achievement, tolerance for ambiguity willing to live with uncertainty, self-confidence believing in yourself, passion and action-orientation. Entrepreneurs: respond quickly to changes, are owned and run by the same person, show greater flexibility. Agency theory states that individuals try to make as much money as possible. Using this theory, entrepenurs try to cut costs wherever possible. Entrepreneurs try to use economies of scale, but it"s difficult. The cost advantage that arises with increased output of a product. Entrepreneurs have to remember that 50% of small businesses fail in first 4 years of operation.