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| About the book |
This fifth edition of ANNUAL EDITIONS: ENTREPRENEURSHIP provides convenient, inexpensive access to current articles selected from the best of the public press. Organizational features include: an annotated listing of selected World Wide Web sites; an annotated table of contents; a topic guide; a general introduction; brief overviews for each section; a topical index; and an instructor?s resource guide with testing materials. USING ANNUAL EDITIONS IN THE CLASSROOM is offered as a practical guide for instructors. ANNUAL EDITIONS titles are supported by our student website, www.dushkin.com/online. |
| Table of contents |
UNIT 1. Mastering Entrepreneurship Market economies rely on entrepreneurs as their driving force. In this article, Formaini examines why entrepreneurs are important for us today. He traces the history of the concept of entrepreneurship in economic theory, showing how the concept’s popularity has varied greatly since its first use. Not only does the United States have a high rate of new business starts, as this article points out, but the U.S. breeds a constant flow of new high-impact ventures. These ventures create value and stimulate economic growth by bringing new ideas to the market. The U.S. has been relatively successful in creating a policy environment that nurtures entrepreneurial activity. These economists try to explain the differences in entrepreneurship across countries and regions around the world. 4. Who Are the Self-Employed?, Yannis Georgellis and Howard J. Wall, Review (Federal Reserve Bank of St. Louis), November/December 2000 This snapshot of U.S. self-employment reveals many interesting characteristics and data concerning entrepreneurship. These include differences in characteristics, such as sex, race, region, age, and education, as well as occupations and industries in which self-employment occurs. The author, who has made the transition from employee to entrepreneur, writes that there is a fine line between employee and entrepreneur—and that it is difficult to describe. Learn how to prepare for entrepreneurship and why it is so critical to do. Fred Smith, who pursued an idea in 1971, transformed it into a $25-billion-a-year company called FedEx. His tale, discussed here in this article, is one of the most remarkable entrepreneurial stories of the 20th and now the 21st century. 7. Success Rules!, Thomas Melville, Success, September 2000 Read how to succeed with these 5 rules of success from five entrepreneurs who have made it. Also included in this article is an excerpt from Joe Mancuso’s 20 commandments, which includes advice such as “Abdicate vs. Delegate” and “Avoid the ‘Sandbox syndrome.’” Accoring to this article, an estimated 1.4 million companies are owned by minority women in the U.S., generating nearly $147 billion in sales. Read why it is difficult for Hispanic, and other minority women, to take the plunge into entrepreneurship. According to this author, here’s how entrepreneurs can get ahead in the post-bubble world: look for golden opportunities; understand the rules of the new road; build a company cheap; flip it fast; and do it all over again!UNIT 2. Creating and Launching the Business Venture 10. One More Time … Should Small Companies Attempt Strategic Planning?, William R. Sandberg, Richard Robinson, and John A. Pearce II, The Entrepreneurial Executive, April 2001 Most entrepreneurs and small business owners agree they need a strategic plan, but few are willing to spend the time to complete one. This article explains why a strategic plan is needed. 11. How Entrepreneurs Craft Strategies That Work, Amar Bhidé, Harvard Business Review, March/April 1994 In crafting a new business venture strategy, Amar Bhide suggests that the entrepreneur should play with and explore ideas surrounding that opportunity, thereby letting the business strategy evolve on its own. These seven keys are by no means the only things entrepreneurs need to do in building entrepreneurial success, but they will provide a head start in understanding the ingredients necessary to building an effective entrepreneurial team. 13. Characteristics of a Successful Entrepreneurial Management Team, Alexander L. M. Dingee, Brian Haslett, and Leonard E. Smollen, Pratt’s Guide to Venture Capital Sources, 1997 The authors share guidelines for building great venture teams. They also present elements of the seven key entrepreneurial management functions that venture capitalists look for in new business opportunities. This author suggests that when a problem defies all of the obvious solutions, it is important for entrepreneurs to step back and take a whole new approach to creativity. From this new approach, inspirations will come for a new opportunity. 15. How to Write a Great Business Plan, William A. Sahlman, Harvard Business Review, July/August 1997 A business plan must readily communicate the entrepreneur’s mastery of the “game” from identification of opportunity to harvest. In this comprehensive article, William Sahlman points out what’s wrong with most business plans. 16. Outline for a Business Plan: A Proven Approach for Entrepreneurs Only, Ernst & Young LLP, 1997 The business plan is probably the single most important document for the entrepreneur. It is the preferred mode of communication between entrepreneurs and potential investors and becomes a selling document that conveys excitement and promise to any potential investor or stakeholder. A generalized business plan outline is presented here.UNIT 3. Financing the New Venture Securing venture capital is a matter of entrepreneurs understanding that they need to approach the risk capital market as both sellers and buyers. What William Link presents is a look at the steps necessary on each side. The venture capital contribution to U.S. jobs, economic growth, and technological progress has climbed steadily over the last three years. According to this detailed report commissioned by the National Venture Capital Association (NVCA), venture backed companies added jobs in all but two of ten major industry sectors. 19. Venture Capitalists’ Assessment of New Venture Survival, Dean A. Shepherd, Management Science, May 1999 This study provides detailed insight into why venture capitalists consider certain criteria in their assessment of new venture survival as well as why some criteria are more important in their assessment than others. 20. Ready or Not?, David R. Evanson and Art Beroff, Entrepreneur, August 1999 The authors explain that, without proper groundwork, financing efforts are often for naught because the entrepreneurs are not well prepared. They state that none of the seven key strategic points on raising money that they introduce will by themselves win, but falling short on any one of them could very easily lose the investor. A serial entrepreneur, and now experienced venture capitalist, presents important sage advice. He presents some fundamental financial tenets that all early-state entrepreneurs should be aware of, understand, and heed. 22. Solving the Puzzle of the Cash Flow Statement, Julie H. Hertenstein and Sharon M. McKinnon, Business Horizons, January/February 1997 Entrepreneurs should know that the cash flow statement provides a treasure chest of clues to potential investors as to how a company is balancing its payables and receivables, paying for its growth, and otherwise managing its flow of funds. The authors present a step-by-step method that readers can use in creating this valuable financial statement. Securing the capital to push a high-growth potential start-up to the next level can be tricky and confusing. Here is an expert analysis of the financing options available to entrepreneurs. According to this article, some internal R&D operations at large corporations can become overly bureaucratic and therefore slower getting to market with new products and services. Innovative corporate venture capitalists will often fund smaller companies with big ideas that can aid in growth. More than 20 years ago the U.S. Congress created the Small Business Innovative Research Program (SBIR) to fund research and lead commercialization of high technologies. Read in this article how entrepreneurs are using the federal government to fund their new product development and launch. With venture capital now flowing and deep technological change afoot, it’s the best time in years to pitch a new business venture before investors. Here are the secrets to tailoring a Perfect Pitch. Once a financial proposal is favorably received from an investor, the venture must assemble a negotiation team. This team must be very keen on the latest deal points. Andrew Sherman, a legal expert for a venture law firm, describes the “must knows” in negotiating private equity fundings. 28. The Do’s and Don’ts of Fund Raising, Barbara Jorgensen, Electronic Business, May 2001 Simple mistakes reduce chances of closing a venture investment deal. Barbara Jorgensen succinctly lists the top ten reasons why businesses don’t get funding. When entrepreneurs are having trouble finding investors, it could be the way they are selling their investment opportunity. This article provides some insight to making a successful presentation before potential investors.UNIT 4. Managing Growth and Creating Harvest Options 30. “Are You Built to Grow?”, Seth Godin, Fast Company, November 2000 As a primer to this unit’s subject matter, Seth Godin, a leading business consultant, introduces some issues he faced in growing his business venture. He gives suggestions on how to organize for ongoing growth. 31. Managing Growth, Michael J. Roberts, New Business Venture and the Entrepreneurs, McGraw–Hill/Irwin 1999 The set of changes that smaller, younger firms need to make as they grow is often termed the transition from entrepreneurial to professional management. This article addresses the issues that firms must deal with in making that transition. As new business ventures grow, they face new hurdles and challenges. Recognizing that an opportunity to ride another economic wave might be coming, there may be no difficult question for an entrepreneur than this: how big should the small business be? 33. Three Strategies for Managing Fast Growth, Georg von Krogh and Michael A. Cusumano, MIT Sloan Management Review, Winter 2001 Entrepreneurs can’t afford to leave growth to chance. This article suggests that entrepreneurs should have a strategy for growing as well as for applying new knowledge faster than their competitors. 34. Managing Global Expansion: A Conceptual Framework, Anil K. Gupta and Vijay Govindarajan, Business Horizons, March/April 2000 The need to become global is becoming a mandate for virtually all corporations. Since global expansion needs no grand design but does need a clear strategy, according to this article, a company should not wander aimlessly into the global jungle. According to this article, what sets the great entrepreneurs apart isn’t how they start businesses; it’s how they keep them growing. Read about some that have kept the entrepreneurial spirit alive at their business. 36. Harvesting Firm Value: Process and Results, J. William Petty, Entrepreneurship 2000, Upstart Publishing Company, 1997 Having a harvest goal in mind from the beginning and knowing how to craft an option to achieve it are what separates a successful entrepreneur from the rest. This article explains the importance of building a company that generates wealth and thereby creates the entrepreneurs’ and stakeholders’ harvest options. 37. Choosing Your Exit Strategy, William H. Payne, Kauffman Center for Entrepreneurial Leadership, 2001 An entrepreneur’s exit strategy impacts the future direction of a growing business. In this synopsis, William Payne, a long-time angel investor, provides keen insight and guidance on how to create an exit strategy. 38. The Initial Public Offering: Early Planning Considerations, Michael D. Donahue, Donahue & Mesereau, LLP, March 14, 2001 In this excellent white paper presented by Michael Donahue at one of the nation’s largest venture capital conferences, one can read about the important steps to planning for an initial public offering (IPO). An employee stock ownership plan (ESOP) is an exit strategy where the founders start transferring ownership of the company to employees. This article discusses why employee ownership can make employees feel more connected to the business. There are more than four million family-owned businesses in the U.S., most of them employing fewer than 10 people each. This article provides advice for those entrepreneurs looking to exit their businesses. Beyond the emotional value entrepreneurs invest in their ventures, a business is worth whatever the market will pay. This article provides expert tips to maximize the liquidity event. 42. Company for Sale by Owner—Or Maybe Not, Jill Andresky Fraser, Inc Magazine, June 2000 Who should sell your company? As with so many decisions in business, it all depends on the circumstances. In this article, learn why entrepreneurs should hire an expert to help them through the liquidity event. |
