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Lecture 2

ENT 3003 Lecture 2: ENT3003- Cupcake 2 Information (Modules 1 and 2)

Course Code
ENT 3003
Christopher Garrett Pryor

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Module 1 (Jan. 14)
Myths & Truths No. 1:
Believing myths can skew our risk assessment.
Believing myths can make us follow the wrong paths.
o #1: Entrepreneurship is about starting and running a small business.
Entrepreneurship emphasizes the pursuit of growth.
Entrepreneurs innovate, are proactive, and take risks.
Small Business
Entrepreneurial Ventures
Status quo-oriented
Not aggressive
More aggressive
Interaction between personal and
professional activities
Clear separation between personal and
professional activities
Involvement of family members
Involvement of professionals
More informal
More formal
Resource driven
Opportunity driven
Concerned with personal profit
Concerned with growth and appreciation of
business value
o #2: Entrepreneurship is a discrete event that just “happens.
When does entrepreneurship occur?
There is a process… that can be learned and managed.
o #3: Entrepreneurship is about taking wild risks.
What does it mean to take a wild risk?
Are entrepreneurs really wild-eyed gamblers?
Turns out, they don’t like risks more or less than anyone else.
They ARE good at risk mitigation (def: reducing negative effects caused
by risks).
o #4: Entrepreneurs are born.
o #5: Entrepreneurship is about making a lot of money.
What motivates entrepreneurs? (problem-solving, support family, own
boss, etc.)
There are other, more important, motivators.
This is a good thing…because entrepreneurs often earn less money.
o #6: Entrepreneurship is about individuals.
o #7: Entrepreneurship requires a lot of money.
Entrepreneurs are opportunity driven, not resource driven.

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“The pursuit of opportunity without regard to resources currently under
The average entrepreneur begins with about $10,000. (Not cash, but
credit card)
Often, the more money they begin with, the worse off they are.
Entrepreneurs leverage resources, they don’t necessarily own them.
o #8: Entrepreneurship is about luck.
It can be.
Thomas Jefferson: “I am a great believer in luck, and I find the harder I
work, the more of I have of it.”
o #9: Entrepreneurship begins with a new product or service.
“If you build it, they will come.”
“If you build a better mousetrap, the world will beat a path to your door.”
Tons of failed products that are both good and bad that no one wants.
o #10: Most entrepreneurial ventures fail.
Many do, many don’t.
Depends on the industry.
Besides, so what?
Failure can be good for the entrepreneur and for society. (if you learn
from mistakes)
o #11: The more customers the better.
If you make a product or service with features that anyone will buy, you
end up making a product that no one really wants.
The 80/20 rule rules!
80% of your revenue comes from 20% of your customers (100%
Always target a specific niche market.
o #12: Entrepreneurship is empowering! (some is true)
Empowering from what?
Regular Schedule?
Creating a venture takes a profound amount of work, and the returns are
not always better than working a day job.
Myths & Truths No. 2:
83.4% of self-employed by 0 number of employees.
USA consistently at the bottom of self-employment scales compared to other countries.
The United States is becoming less entrepreneurial?
o Self-employment is declining.
White entrepreneurs dropped, while latino entrepreneurs experienced a
big jump (+). (Latinos don’t have working visas, so they have to make
their own living). From 1996 to 2015
So, what’s the story?

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o ‘Self-employment’ is all around us. It’s really hard work. (would rather have a
normal job with breaks and weekends) It’s everyday, regular folks. It really is
How often do you really think about the world around you?
The beginning entrepreneur’s challenge: Open your eyes!
A Bug List is not about fostering creativity. It’s about finding problems that we can solve!
o Start with your own experience. Then look out there!
Entrepreneurs see a problem and fix it.
The Five Why’s technique…getting to the root cause. (Why does the problem exist?)
Entrepreneurship Defined:
What is Entrepreneurship?
o The activity of organizing, managing, and assuming the risks of a business
enterprise. (Miriam Webster definition)
o Entrepreneurship is the pursuit of opportunity beyond resources controlled.
(Harvard Business School) Pryor loves this definition (Act without having the
resources to pull it off)
o University of Florida definition: Entrepreneurship is the process of creating value
by bringing together a unique combination of resources to exploit an
What’s so great about that definition?
Nothing about starting a business, managing a business, making a
profit, or risk-taking.
Process, Creating Value, Bringing together a unique combination
of resources, and Opportunity.
Entrepreneurship Process:
User Generated Entrepreneurship
o Start -> Middle -> End
Start: Individual comes up with cool new product or service that they use
for themselves.
Middle: The individual finds a group of friends or acquantances who want
the product, too.
End: Eventually, the individual finds that there is a large group of
individuals who want to buy the product.
o Start -> Middle -> End
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