ENTREPRENEURSHIP - GBV
ENTREPRENEURSHIPEIGHTHEDITIONROBERT D. H I S R I C H . P h DGarvin Professor of Global EntrepreneurshipDirector, Walker Center for Global EntrepreneurshipThunderbird School of Global ManagementMICHAEL P. PETERS, PhDProfessor EmeritusCarroll School of ManagementBoston CollegeDEAN A. SHEPHERD, PhDRandall L. Tobias Chair in Entrepreneurial Leadership andProfessor of EntrepreneurshipKelley School of BusinessIndiana UniversityMcGraw-HillIrwin
CONTENTSPREFACEPARTvi1THE ENTREPRENEURIALPERSPECTIVE1ENTREPRENEURSHIP AND THEENTREPRENEURIAL MIND-SET2Opening Profile: Ewing Marion Kauffman 3Nature and Development of Entrepreneurship 6The Entrepreneurial Process 7Identify and Evaluate the Opportunity 7Develop a Business Plan 9Determine the Resources Required 9Manage the Enterprise 10How Entrepreneurs Think 10Effectuation 10Cognitive Adaptability 13As Seen in Entrepreneur Magazine: What Me Worry?.How Smart Entrepreneurs Harness the Powerof Paranoia 14Learning from Business Failure 18Recovery and Learning Process 20A Dual Process for Learning from Failure 21Ethics and Social Responsibility of Entrepreneurs 21Ethics: Company's Code of Ethics 23Role of Entrepreneurship in Economic Development 232ENTREPRENEURIAL INTENTIONS ANDCORPORATE ENTREPRENEURSHIPOpening Profile: Robert Mondavi 35The Intention to Act Entrepreneurially 38Entrepreneur Background and CharacteristicsEducation 3838Ethics: Ethical Conduct of Entrepreneurs versusManagers 39Age 40Work History 40Role Models and Support Systems 40Moral-Support Network 41Professional-Support Network 4134
CONTENTSAs Seen in Entrepreneur Magazine: Hot or Not? 42Minority Entrepreneurs 43As Seen in Entrepreneur Magazine: Provide Adviceto an Entrepreneur about Improving a Businessthrough Certification as a Woman-OwnedBusiness 44Entrepreneurial Intentions within ExistingOrganizations 45Managerial versus Entrepreneurial DecisionMaking 45Strategic Orientation and Commitment toOpportunity 46Commitment of Resources and Control ofResources 46Management Structure and Reward Philosophy 47Growth Orientation and Entrepreneurial Culture 48Causes for Interest in Corporate Entrepreneurship 48Establishing a Culture for Corporate Entrepreneurship 51Leadership Characteristics of Corporate Entrepreneurs 53Establishing Corporate Entrepreneurship in theOrganization 54Problems and Successful Efforts 563ENTREPRENEURIAL STRATEGY: GENERATINGAND EXPLOITING NEW ENTRIESOpening Profile: Justin Parer 65New Entry 66Generation of a New Entry Opportunity 67Resources as a Source of Competitive Advantage 67Creating a Resource Bundle That Is Valuable, Rare,and Inimitable 68Assessing the Attractiveness of a New EntryOpportunity 70Information on a New Entry 70As Seen in Entrepreneur Magazine: Elevator Pitchfor Project Alabama 71Comfort with Making a Decision underUncertainty 72Decision to Exploit or Not to Exploit theNew Entry 72Entry Strategy for New Entry Exploitation 73Environmental Instability and First-Mover(Dis)Advantages 74Customers' Uncertainty and First-Mover(Dis)Advantages 76Ethics: Do the Right Thing 78Lead Time and First-Mover (Dis)Advantages 78As Seen in Entrepreneur Magazine: Provide Advice toan Entrepreneur about Being More Innovative 8064
CONTENTSxiRisk Reduction Strategies for New EntryExploitation 81Market Scope Strategies 81Imitation Strategies 82Managing Newness 84PART2FROM IDEA TO THE OPPORTUNITY91CREATIVITY AND THE BUSINESS IDEA92Opening Profile: Frederick W. SmithTrends 96Green Trend 96Clean-Energy Trend 96Organic-Orientation Trend 96Economic Trend 97Social Trend 97Health Trend 97Web Trend 97Sources of New Ideas 97Consumers 97Existing Products and Services 98Distribution Channels 98Federal Government 98Research and Development 9893As Seen in BusinessWeek: The Myth of CreativityMethods of Generating Ideas 9999Focus Groups 99Brainstorming 100Brainwriting 100Problem Inventory Analysis 100Creative Problem Solving 101Brainstorming 102Reverse Brainstorming 102Gordon Method 102Checklist Method 103Free Association 103Forced Relationships 103Collective Notebook Method 103As Seen in BusinessWeek: How to ProduceBig Ideas on Demand 104Attribute Listing 105Big-Dream Approach 106Parameter Analysis 106Innovation 106Types of Innovation 106Defining a New Innovation (Product or Service)Classification of New Products 109108
xiiCONTENTSOpportunity Recognition 110Product Planning and Development Process111Establishing Evaluation Criteria 111Ethics: Leadership Is about Doing, Not Saying112Idea Stage 114Concept Stage 114Product Development Stage 117Test Marketing Stage 117E-Commerce and Business Start-Up 117Using E-Commerce Creatively 118WebSites 118Tracking Customer Information 119Doing E-Commerce as an Entrepreneurial Company5"*119IDENTIFYING AND ANALYZING DOMESTIC ANDINTERNATIONAL OPPORTUNITIESOpening Profile: A. Malachi Mixon III 125Introduction 127Opportunity Recognition and the OpportunityAssessment Plan 128Information Sources 130General Information 130Industry and Market Information 131Competitive Company and Product InformationGovernment Sources 131As Seen in BusinessWeek: Mom-and-PopMultinationals 132.' Search Engines 132Trade Associations 132Trade Publications 133The Nature of International Entrepreneurship 133The Importance of International Business tothe Firm 134International versus Domestic Entrepreneurship 134Economics 134Stage of Economic Development 134Current Account 135Type of Economic System 135Political-Legal Environment 135Language 137Technological Environment 137Ethics: Ethics Must Be Global Not LocalCulture 138Social Structure 140Religion 141Political Philosophy 141Economics and Economic PhilosophyEducation 141Manners and Customs 141138141131124
CONTENTSAvailable Distribution Systems 142Motivations to Go Global 142Strategic Effects of Going Global 143Foreign Market Selection 144xiii.As Seen in BusinessWeek: Stranger in aStrange Land 145Entrepreneurial Entry Strategies 147Exporting 147Nonequity Arrangements 148Direct Foreign Investment 149Entrepreneurial Partnering 151Barriers to International Trade 152General Agreement on Tariffs and Trade(GATT) 152Increasing Protectionist Attitudes 152Trade Blocs and Free Trade Areas 152Entrepreneur's Strategy andTrade Barriers 153Implications for the Global Entrepreneur 153Appendix 5A: Example Outline of an InternationalBusiness Plan 156PROTECTING THE IDEA AND OTHER LEGAL ISSUESFOR THE ENTREPRENEUROpening Profile: Steve Lipscomb 159What Is Intellectual Property? 161Need for a Lawyer 161,/ How to Select a Lawyer 161As Seen in Entrepreneur Magazine: Provide Adviceto an Entrepreneur about Intellectual PropertyProtection 162Legal Issues in Setting Up theOrganization 163Patents 163International Patents 164The Provisional Application 164The Patent Application 165Patent Infringement 166Business Method Patents 166Start-Up without a Patent 167As Seen in BusinessWeek: Provide Advice to anEntrepreneur Inventor about How toMake Patents Pay 168Trademarks 167Registering the Trademark 169Copyrights 170Ethics: How Much Responsibility Should Our YouthHave for Illegal Downloading? 171Trade Secrets 171158
xivCONTENTSLicensing 173Product Safety and LiabilityInsurance 175Sarbanes-Oxley Act 177Contracts 178PART37175FROM THE OPPORTUNITY TOTHE BUSINESS PLANTHE BUSINESS PLAN: CREATING AND STARTINGTHE VENTUREOpening Profile: Belinda Guadarrama 187Planning as Part of the Business Operation 189What Is the Business Plan? 189Who Should Write the Plan? 190Scope and Value of the Business Plan—Who Readsthe Plan? 191As Seen in BusinessWeek: Don't Expect a Fee for Makingan Introduction 192How Do Potential Lenders and Investors Evaluatethe Plan? 192Ethics: Protecting Your Business Idea 194Presenting the Plan 194Information Needs 195Market Information 195Operations Information Needs 198Financial Information Needs 199Using the Internet as a Resource Tool 199Writing the Business Plan 200Introductory Page 202Executive Summary 202Environmental and Industry Analysis 203Description of Venture 205Production Plan 207Operations Plan 207Marketing Plan 208Organizational Plan 208Assessment of Risk 209Financial Plan 209As Seen in BusinessWeek: Elevator Pitch forPerfect Dinner 210Appendix 210Using and Implementing the Business Plan 210Measuring Plan Progress 211Updating the Plan 212Why Some Business Plans Fail 212Appendix 7A: Sample Business Plan—Gopher It 216185186
CONTENTS8THE MARKETING PLANxv222Opening Profile: Warren G. Jackson 223Industry Analysis 225Competitor Analysis 225Marketing Research for the New Venture 226Step One: Defining the Purpose or Objectives 2271Step Two: Gathering Data from Secondary Sources 227As Seen in BusinessWeek: How to Expand YourCustomer Base 229Step Three: Gathering Information from PrimarySources 229Step Four: Analyzing and Interpreting theResults 232Understanding the Marketing Plan 232Characteristics of a Marketing Plan 233Ethics: Devil's Advocate 236The Marketing Mix 236Steps in Preparing the Marketing Plan 237Defining the Business Situation 237Defining the Target Market: Opportunities and Threats 237Considering Strengths and Weaknesses 240Establishing Goals and Objectives 240Defining Marketing Strategy and Action Programs 240Marketing Strategy: Consumer versus Business-toBusiness Markets 244As Seen in Entrepreneur Magazine: Provide Adviceto an Entrepreneur about Web Sites 245Budgeting the Marketing Strategy 246Implementation of the Market Plan 246Monitoring the Progress of Marketing Actions 246Appendix 8A: Marketing Plan Outlines 250THE ORGANIZATIONAL PLANOpening Profile: Jim Sinegal255Developing the Management Team 256As Seen in Entrepreneur Magazine: Provide Adviceto an Entrepreneur about Some Legal Aspects ofStarting a Business 257Legal Forms of Business 258Ownership 258Liability of Owners 258Costs of Starting a Business 260Continuity of Business 260Transferability of Interest 261Capital Requirements 261Management Control 262Distribution of Profits and Losses 262Attractiveness for Raising Capital 263254
xviCONTENTSTax Attributes of Forms of Business 263 ,Tax Issues for Proprietorship 263Tax Issues for Partnership 263Tax Issues for Corporation 265The Limited Liability Company versus theS Corporation 265S Corporation 265Advantages of an S Corporation 266Disadvantages of an S Corporation 266Ethics: Lawyers Explain the Steps to Take If YourBusiness Partner Violates His or Her Obligationsto the Business 267The Limited Liability Company 267Advantages of an LLC 268Designing the Organization 268Building the Management Team and a SuccessfulOrganization Culture 271As Seen in BusinessWeek: Elevator Pitchfor 20x200 Web Site 272The Role of a Board of Directors 273The Board of Advisors 274The Organization and Use of Advisors 27410THE FINANCIAL PLAN*280Opening Profile: Tony Hsieh 281Operating and Capital Budgets 282Ethics: Are You a Good Leader?284Pro Forma Income Statements 285Pro Forma Cash Flow 288As Seen in BusinessWeek: Provide Advice to anEntrepreneur about Solving Their Cash-FlowProblem to Stay in Business 290Pro Forma Balance Sheet 292Break-Even Analysis 294Pro Forma Sources and Applications of Funds 296As Seen in BusinessWeek: Elevator Pitchfor Beer Chips 297Software Packages 298PART411FROM THE BUSINESS PLAN TOFUNDING THE VENTURESOURCES OF CAPITALOpening Profile: Scott Walker 305An Overview 308Debt or Equity Financing 308Internal or External Funds 309303304
CONTENTSxviiPersonal Funds 310As Seen in BusinessWeek: Show Me theMoneymen 311Family and Friends 312Commercial Banks 312Types of Bank Loans 313Cash Flow Financing 314Bank Lending Decisions 314Role of the SBA in Small-BusinessFinancing 315Ethics: We Need an Ethics Czar 316Research and Development LimitedPartnerships 318Maj or Elements 318Procedure 319Benefits and Costs 319Examples 320Government Grants 3201As Seen in BusinessWeek: From 401 (k) Nest Eggto Seed Money 321Procedure 322Other Government Grants 323Private Placement 324Types of Investors 324Private Offerings 324Regulation D 324Bootstrap Financing 32612INFORMAL RISK CAPITAL, VENTURE CAPITAL,AND GOING PUBLICOpening Profile: Mark ZuckerbergFinancing the Business 336Informal Risk-Capital Market 337333As Seen in BusinessWeek: Old Banks, NewLending Tricks 338Venture Capital 341Nature of Venture Capital 341As Seen in BusinessWeek: She's an Angel 342Overview of the Venture-Capital Industry 342Venture-Capital Process 347Locating Venture Capitalists 350Approaching a Venture Capitalist 350Valuing Your Company 352Factors in Valuation 352Ratio Analysis 353Liquidity Ratios 353Activity Ratios 354Leverage Ratios 354Profitability Ratios 355332
xviiiCONTENTSGeneral Valuation Approaches 355General Valuation Method 357Evaluation of an Internet Company 358Deal Structure 359Going Public 359Ethics: Financial Transparency a Must 360Advantages 360Disadvantages 362Timing of Going Public and UnderwriterSelection 364Timing 364Underwriter Selection 365Registration Statement and Timetable 366The Prospectus 367The Registration Statement 368Procedure 368Legal Issues and Blue-Sky Qualifications 369Legal Issues 369Blue-Sky Qualifications 369After Going Public 369As Seen in BusinessWeek: Where Venture CapitalNever Ventured Before 370Aftermarket Support 370Relationship with the Financial Community 370Reporting Requirements 371PART513FROM FUNDING THE VENTURE TOLAUNCHING, GROWING, ANDENDING THE NEW VENTURESTRATEGIES FOR GROWTH AND MANAGINGTHE IMPLICATIONS OF GROWTHOpening Profile: Brian and Jennifer Maxwell 379Growth Strategies: Where to Look for Growth Opportunities 380Penetration Strategies 381Market Development Strategies 382Product Development Strategies 382Diversification Strategies 383As Seen in Entrepreneur Magazine: Provide Adviceto an Entrepreneur about Growing into NewMarkets Using the Internet 384Example of Growth Strategies 385Economic Implications of Growth 385Implications of Growth for the Firm 387Pressures on Existing Financial Resources 387Pressures on Human Resources 388377378
CONTENTSPressures on the Management of Employees 388Pressures on the Entrepreneur's Time 388Overcoming Pressures on Existing FinancialResources 388Financial Control 388Ethics: Lessons from Enron 389Managing Cash Flow 390Managing Inventory 392Managing Fixed Assets 393Managing Costs and Profits 394Taxes 395Record Keeping 396Overcoming Pressures on Existing HumanResources 396Overcoming Pressures on the Management ofxix"*Employees 397As Seen in Entrepreneur Magazine: Elevator Pitchfor eVest 398Overcoming Pressures on Entrepreneurs' Time 399Basic Principles of Time Management 400Implications of Firm Growth for the Entrepreneur 401A Categorization of Entrepreneurs and TheirFirms' Growth 402\kACCESSING RESOURCES FOR GROWTHFROM EXTERNAL SOURCES410Opening Profile: Bill Gross 411Using External Parties to Help Grow a Business 412Franchising 413Advantages of Franchising—to the Franchisee 413Advantages of Franchising—to the FranchisorAs Seen in BusinessWeek: Venture Capital'sFavorite Startups 416415Disadvantages of Franchising 417Types of Franchises 417Investing in a Franchise 418Ethics: Fair Enough 419Joint Ventures 421Types of Joint Ventures 422Factors in Joint Venture Success 423Acquisitions 424Advantages of an Acquisition 424Disadvantages of an Acquisition 425Synergy 425Structuring the Deal 425As Seen in Entrepreneur Magazine: Provide Advicet o an Entrepreneur about Entering into AgreementsLocating Acquisition Candidates 427426
xxCONTENTSMergers 428Leveraged Buyouts 429Overcoming Constraints by Negotiating for MoreResources 43015SUCCESSION PLANNING AND STRATEGIES FORHARVESTING AND ENDING THE VENTUREOpening Profile: Teresa Cascioli438439As Seen in BusinessWeek: Provide Advice to an Entrepreneur onHow to Beat Failure and Be the Boss Again 441Exit Strategy 442Succession of Business 442Transfer to Family Members 443Transfer to Nonfamily Members 443Options for Selling the Business 444Direct Sale 445Employee Stock Option Plan 446Management Buyout 446Ethics: Involving Employees, Bankers, and BusinessAssociates in the Problem 447Bankruptcy—An Overview 447Chapter 11—Reorganization 449Surviving Bankruptcy 450As Seen in BusinessWeek: Elevator Pitch for nPower PersonalEnergy Generator 451Chapter 13—Extended Time Payment Plans 452Chapter 7—Liquidation 452Strategy during Reorganization 453Keeping the Venture Going 453Warning Signs of Bankruptcy 454Starting Over 455The Reality of Failure 456Business Turnarounds ase12345678910463Turner Test Prep Co. 465Jim Boothe, Inventor 467A. Monroe Lock and Security Systems 468Beijing Sammies 470"Mamma Mia!" The Little Show That Could! 484The Beach Carrier 492Gourmet to Go 495Intervela d.o.o. Koper—Victory Sailmakers 502The Gril-Kleen Corporation 509The Winslow Clock Company 516
CONTENTSCase 11Case 12Case 13Case 14Case 15Case 16Case 17NeoMed Technologies 525Rug Bug Corporation 540Nature Bros. Ltd. 550Amy's Bread 557Oklahoma National Bank 563Datavantage Corporation 572Dual Pane Company 582INDEX584xxi
ENTREPRENEURSHIP EIGHTH EDITION ROBERT D. HISRICH.PhD Garvin Professor of Global Entrepreneurship Director, Walker Center for Global Entrepreneurship Thunderbird School of Global Management MICHAEL P. PETERS, PhD Professor Emeritus Carroll School of Management Boston College DEAN A. SHEPHERD, PhD Randall L. Tobias Chair in Entrepreneurial .
GBV. Increase public awareness of GBV by moving away from the mere 16 days of activism to a robust 365 days campaign against GBV and encourage every citizen to take specific steps to prevent GBV in both the private and public arena. In light of the recommendations made the Government UN GBV JP facilitated a one day workshop
To define the entrepreneurship. To explain the significance of Entrepreneurship. To explain the Entrepreneurship Development. To describe the Dynamics of Entrepreneurship Development. 1.1 Need and significance of Entrepreneurship Development in Global contexts It is said that an economy is an effect for which entrepreneurship is the cause.
managing a GBV program with an NGO or coordinating a GBV working group. GBV coordinators can and are recruited without GBV program management experience and sometimes move from coordination into program management positions. Many GBV Program Managers do not move
The Gender Based Violence (GBV) conference will bring together partners working in the GBV Sector; Government Department stakeholders; representatives from donors in the Development Sector, SANAC and the Global Fund. The conference will focus on: The State's Response in dealing with GBV Exploring the link between GBV & HIV
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gender-based violence (GBV) across all sectors of humanitarian response. . promotes resilience and supports lasting solutions to the problem of GBV. Two overarching strategic priorities – inclusivity and adopting a supportive communications . Humanitarian actors are aware of and support the GBV Guidelines, and management and leadership .
What is a Gender-based Violence Specialist? . Able to conduct strategic planning for GBV prevention and response (B) . can and are recruited without GBV program management experience and sometimes move from coordination into program management positions. Many GBV Program Managers do not move into
An Introduction to Modal Logic 2009 Formosan Summer School on Logic, Language, and Computation 29 June-10 July, 2009 ; 9 9 B . : The Agenda Introduction Basic Modal Logic Normal Systems of Modal Logic Meta-theorems of Normal Systems Variants of Modal Logic Conclusion ; 9 9 B . ; Introduction Let me tell you the story ; 9 9 B . Introduction Historical overview .
