GMS 200 Lecture Notes - Lecture 5: Angel Investor, Initial Public Offering, Intrapreneurship
DepartmentGlobal Management Studies
Course CodeGMS 200
This preview shows half of the first page. to view the full 3 pages of the document.
Chapter 5: Entrepreneurship and Small Business Management
Entrepreneurship: Creating new businesses by strategic thinking and taking
Entrepreneurs: Individuals who establish businesses on their own
•Founders of businesses that become large-scale enterprises.
oBuy a local franchise outlet
oOpen a small retail shop
oOperate a self-employed service business
oRemember that entrepreneurs usually begin with a great idea
Typical characteristics of entrepreneurs:
•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
•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
What are economies of scale?
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
You're Reading a Preview
Unlock to view full version