02.05.2021
Entrepreneurship and Family Business
Week 1: Tuesday
In-session
Small Businesses (SMEs), high growth firms and young firms
- High growth firms: While all forms of entrepreneurship play a critical role in the economy,
the high-growth firms are the key drivers of innovation and job creation
- Young firms are the only ones contributing to net job creation, that is, their aggregate gross
job creation is higher than their gross job destruction among these young firms, the high-
growth ones (known as Gazelles) are mainly responsible for the new jobs
Entrepreneur
- A person who recognizes an opportunity and organizes and manages a business, assuming
the risk for the sake of potential return
- They are somehow engaged in the buying and selling of products or services in order to earn
money: Entrepreneurs may have different reasons to start and continue their businesses, but
they share the common focus of creating sustained-value.
Entrepreneurship Vs. Intrapreneurship
Entrepreneurship Intrapreneurship
Entrepreneurial activity by Entrepreneurial activity by employees
Entrepreneur and managers
Rewards go to Entrepreneur Rewards (most) go to company
Risk taken by Entrepreneur Risk taken by company
1
, 02.05.2021
What is a Startup?
Entrepreneurial systems (Global Entrepreneurship Index 2019)
- We define entrepreneurial ecosystems at the socioeconomic level having properties of self-
organization, scalability and sustainability as “…dynamic institutionally embedded interaction
between entrepreneurial attitudes, abilities and aspirations, by individuals, which drives the
allocation of resources through the creation and operation of new ventures.”
- Most important qualities of an Entrepreneur:
Schumpeter’s definition describes five basic ways that entrepreneurs find opportunities to create
new businesses:
1. Using a new technology to produce a new product
2. Using an existing technology to produce a new product
3. Using an existing technology to produce an old product in a new way
4. Finding a new supply of resources (that might enable the entrepreneur to produce a
product more economically)
5. Developing a new market for an existing product
➔ An entrepreneur recognized that the problem was actually an opportunity. Where there are
dissatisfied consumers, there are likely opportunities for entrepreneurs!
2
Entrepreneurship and Family Business
Week 1: Tuesday
In-session
Small Businesses (SMEs), high growth firms and young firms
- High growth firms: While all forms of entrepreneurship play a critical role in the economy,
the high-growth firms are the key drivers of innovation and job creation
- Young firms are the only ones contributing to net job creation, that is, their aggregate gross
job creation is higher than their gross job destruction among these young firms, the high-
growth ones (known as Gazelles) are mainly responsible for the new jobs
Entrepreneur
- A person who recognizes an opportunity and organizes and manages a business, assuming
the risk for the sake of potential return
- They are somehow engaged in the buying and selling of products or services in order to earn
money: Entrepreneurs may have different reasons to start and continue their businesses, but
they share the common focus of creating sustained-value.
Entrepreneurship Vs. Intrapreneurship
Entrepreneurship Intrapreneurship
Entrepreneurial activity by Entrepreneurial activity by employees
Entrepreneur and managers
Rewards go to Entrepreneur Rewards (most) go to company
Risk taken by Entrepreneur Risk taken by company
1
, 02.05.2021
What is a Startup?
Entrepreneurial systems (Global Entrepreneurship Index 2019)
- We define entrepreneurial ecosystems at the socioeconomic level having properties of self-
organization, scalability and sustainability as “…dynamic institutionally embedded interaction
between entrepreneurial attitudes, abilities and aspirations, by individuals, which drives the
allocation of resources through the creation and operation of new ventures.”
- Most important qualities of an Entrepreneur:
Schumpeter’s definition describes five basic ways that entrepreneurs find opportunities to create
new businesses:
1. Using a new technology to produce a new product
2. Using an existing technology to produce a new product
3. Using an existing technology to produce an old product in a new way
4. Finding a new supply of resources (that might enable the entrepreneur to produce a
product more economically)
5. Developing a new market for an existing product
➔ An entrepreneur recognized that the problem was actually an opportunity. Where there are
dissatisfied consumers, there are likely opportunities for entrepreneurs!
2
