Chapter 1 - The power of entrepreneurship. Chapter 1 discusses the role of entrepreneurship in the U.S. economy and looks at the entrepreneurial competitiveness of nations throughout the world.
The Powe r of Ent r e pr e ne ur s hi p Chapt e r Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © DEFI NI TI ON OF ENTREPRENEURSHI P Sc humpe t e r An entrepreneur is the person who destroys the existing economic order by introducing new products and services, by introducing new methods of production, by creating new forms of organization, or by exploiting new raw materials Si mpl e r An entrepreneur is the person who perceives an opportunity and creates an organization to pursue it Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © BUSI NESS I N THE U S Full-time businesses (14 million) 99.9% are small businesses (with 500 or fewer employees) Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © 28 million businesses Part-time businesses (14 million) 33% are incorporated 10 YEAR SURVI VAL RATES YEAR YEARS Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © 10 YEARS YEARS The GEM Conc e pt ual Fr ame wor k Source: and http://www.gemconsortium.org Zacharakis, Bygrave Corbett, Entrepreneurship, New York: Wiley, 2017 © Phas e s of t he e nt r e pr e ne ur s hi p pr oc e s s and GEM I ndi c at or s Source: http://www.gemconsortium.org Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © DJI A COMPANI ES 1896 American Cotton Oil American Sugar American Tobacco Chicago Gas Distilling & Cattle Feeding General Electric Laclede Gas Light National Lead Allied Can Allied Chemical American Smelting & Refining American Sugar American Tobacco Atlantic Refining Bethlehem Steel Chrysler 3M Alcoa American Express AT&T Bank of America Boeing Caterpillar Chevron Corporation North American General Electric Cisco Systems General Motors Coca-Cola General Railway Goodrich International Harvester International Nickel Mack Trucks Nash Motors North American Paramount Publix Postum Radio Corporation Sears, Roebuck Standard Oil (NJ) Texas Corporation Texas Gulf Sulphur Union Carbide U.S Steel Victor Talking Machines Westinghouse Woolworth Wright DuPont ExxonMobil General Electric Hewlett-Packard The Home Depot Intel IBM Johnson & Johnson JPMorgan Chase UnitedHealth Group McDonald's Merck Microsoft Pfizer Procter & Gamble Travelers United Technologies Corporation Verizon Walmart Walt Disney Tennessee Coal, Iron & Railroad U.S Leather U.S Rubber 1928 Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © 2015 2012 3M American Express Apple Boeing Caterpillar Chevron Corporation Cisco Systems Coca-Cola Disney DuPont DuPont ExxonMobil Exxon Mobil General Electric Goldman Sachs Home Depot Intel IBM Johnson & Johnson JPMorgan Chase McDonald’s Merck Microsoft Nike Pfizer Procter & Gamble Travelers United Technologies Corporation United Health Verizon Visa Walmart I NTERNET PENETRATI ON AROUND THE WORLD World Regions Population ( 2015 Est.) Population Internet Users Penetration Growth % of World 30 Nov 2015 (% Population) 2000-2015 Africa 1,158,355,663 16.0 % 330,965,359 28.6 % 7,231.3% Asia 4,032,466,882 55.5 % 1,622,084,293 40.2 % 1,319.1% Europe 821,555,904 11.3 % 604,147,280 73.5 % 474.9% Middle East 236,137,235 3.3 % 123,172,132 52.2 % 3,649.8% North America 357,178,284 4.9 % 313,867,363 87.9 % 190.4% Latin America / Caribbean 617,049,712 8.5 % 344,824,199 55.9 % 1,808.4% Oceania / Australia 0.5 % 27,200,530 73.2 % 256.9% 100.0 % 3,366,261,156 46.4 % 832.5% WORLD TOTAL 37,158,563 7,259,902,243 Source: internetworldstats.com http://www.internetworldstats.com/stats.htm Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © NEW TECHNOLOGY ADOPTI ON TI ME FOR NEW TECHNOLOGI ES TO PENETRATE 25% OF U S POPULATI ON Household electricity (1873) 46 years Telephone (1875) 35 years Automobile (1885) 55 years Airplane travel (1903) 54 years Radio (1906) 22 years Television (1925) 26 years VCR (1952) 34 years PC (1975) 15 years Mobile Phone (1983) 13 years World Wide Web (1992) years Source: The Wall Street Journal, June 1997; http://en.wikipedia.org/wiki/Advanced_Mobile_Phone_Service; www.netbanker.com/2000/04/internet_usage_web_users_world.html Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © ENTREPRENEURSHI P STRI KES GOLD Ne ts c ape Co mmunic atio ns $6 millio n of own money +$6 millio n of VC money = $2.2 billio n of market capitalization on the first day of IPO e Bay Benchmark Capital’s investment of $5 millio n in eBay multiplied 1500fo ld in just two years – the all-time record for Silicon Valley Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 â 10 VC FAST FACTS • • $500 billion of venture capital has backed 32,000 U.S companies since the early 1970s Venture-backed companies employed more than 12 million people in 2010 Venture-backed companies generated revenues of $3.1 trillion, or 21% of the U.S GDP, in 2010 Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © 11 SHI FTI NG I NFLUENCES ON ENTREPRENEURSHI P Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © 12 TOTAL ENTREPRENEURI AL ACTI VI TY BY COUNTRY Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © 13 TOTAL ENTREPRENEURI AL ACTI VI TY BY COUNTRY Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © 14 TEA BY AGE FOR GEOGRAPHI C REGI ONS GEM 2015/2016 Bygrave Global Report Zacharakis, and 2017 © Corbett, Entrepreneurship, New York: Wiley, 15 TEA BY AGE FOR GEOGRAPHI C REGI ONS GEM 2015/2016 Bygrave Global Report Zacharakis, and 2017 © Corbett, Entrepreneurship, New York: Wiley, 16 Jobs pe r phas e of e c onomi c de ve l opme nt Source: GEM 2015 Job Creation Projections http://www.gemconsortium.org Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © 17 TEA by Phas e and Count r y Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © 18 TEA BY GENDER FOR GEOGRAPHI C REGI ONS 35 30 25 20 15 10 Male (%TEA) Female (%TEA) Latin America Middle East Sub-Saharan Asia Pacific & South Asia Africa & Caribbean & North Africa European Union Non-European United States Union Source: GEM 2012 Global Report http://www.gemconsortium.org/docs/download/2645 Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © 19 De ve l opme nt Phas e Ave r age s f or Mal e and Fe mal e TEA and Ne c e s s i t y Pr opor t i on of TEA i n 60 Ec onomi e s , GEM 2015 Stage of economic developmen t MALE TEA (% of adult male populati on) Factor driven 23 Efficiency driven Innovation driven 17 11 FEMALE MALE FEMALE TEA (% TEA TEA Ratio of Ratio of of adult Necessit Necessit Female/M Female/M female y (% of y (% of ale TEA ale TEA populati TEA TEA Necessity on) males) females) 20 0.86 24 32 1.32 13 0.73 26 33 1.26 0.59 17 19 1.13 Source: GEM 2015 http://www.gemconsortium.org Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © 20 21s t CENTURY ECONOMI ES ANGLO-SAXON OR SOCIAL MODELS? AngloSaxon Economic Systems Anglo-Saxon economic systems have a high prevalence rate of high-expectation entrepreneurial activity Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2017 © 21 ... 1, 622,084,293 40.2 % 1, 319 .1% Europe 8 21, 555,904 11 .3 % 604 ,14 7,280 73.5 % 474.9% Middle East 236 ,13 7,235 3.3 % 12 3 ,17 2 ,13 2 52.2 % 3,649.8% North America 357 ,17 8,284 4.9 % 313 ,867,363 87.9 % 19 0.4% Latin... 20 0.86 24 32 1. 32 13 0.73 26 33 1. 26 0.59 17 19 1. 13 Source: GEM 2 015 http://www.gemconsortium.org Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley, 2 017 © 20 21s t CENTURY ... electricity (18 73) 46 years Telephone (18 75) 35 years Automobile (18 85) 55 years Airplane travel (19 03) 54 years Radio (19 06) 22 years Television (19 25) 26 years VCR (19 52) 34 years PC (19 75) 15 years