Manual
TABLE OF CONTENTS
Purpose and Perspective of the Chapter..................................................................................................2
Chapter Objectives....................................................................................................................................2
Complete List of Chapter Activities and Assessments............................................................................2
Key Terms..................................................................................................................................................4
What’s New in This Chapter....................................................................................................................6
Chapter Outline.........................................................................................................................................6
Suggested Answers for Review and Discussion Questions (End-of-Chapter).....................................16
Additional Discussion Questions............................................................................................................20
Additional Activities and Assignments..................................................................................................21
Additional Resources...............................................................................................................................22
Cengage Video Resources.....................................................................................................................22
,PURPOSE AND PERSPECTIVE OF THE CHAPTER
This chapter concentrates on entrepreneurs and entrepreneurial ventures where the entrepreneur’s
principal objectives are innovation, profitability, and growth. Entrepreneurship is a dynamic process of
vision, change, and creation. It requires an application of energy and passion toward the creation and
implementation of new ideas and creative solutions.
Essential ingredients include the willingness to take calculated risks—in terms of time, equity, or career;
the ability to formulate an effective venture team; the creative skill to marshal needed resources; the
fundamental skill of building a solid business plan; and, finally, the vision to recognize opportunity where
others see chaos, contradiction, and confusion.
[return to top]
CHAPTER OBJECTIVES
The following objectives are addressed in this chapter:
1.1. Identify the major types of entrepreneurial ventures
1.2. Examine the historical development of entrepreneurship
1.3. Summarize the myths of entrepreneurship
1.4. Define the major schools of entrepreneurial thought
1.5. Explain the process and framework approaches to the study of entrepreneurship
1.6. Paraphrase a comprehensive definition of entrepreneurship
1.7. Examine the entrepreneurial revolution taking place today
1.8. Illustrate today’s entrepreneurial environment
1.9. Outline the trends in entrepreneurship research
1.10. Examine the future trajectory of entrepreneurship
1.11. Define the key concepts in entrepreneurship
[return to top]
COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS
The following table organizes activities and assessments by objective, so that you can see how all this
content relates to objectives and make decisions about which content you would like to emphasize in your
class based on your objectives. For additional guidance, refer to the Teaching Online Guide.
Chapter Activity/Assessment Source (i.e., PPT Duration Certification
Objective slide, Workbook) Standard
LO1.1 Identify the major types of Page 3 (of text) 5 minutes
entrepreneurial ventures
LO1.2 Examine the historical Page 5 (of text) 5 minutes
development of
entrepreneurship
LO1.3 Summarize the myths of Page 6 (of text) 5 minutes
entrepreneurship
, LO1.3 Group Activity 1-1 Slide 14 of PPT 5 minutes
LO1.4 Define the major schools of Page 9 (of text) 5 minutes
entrepreneurial thought
LO1.4 Discussion Activity Slide 21 of PPT 5 minutes
LO1.5 Explain the process and Page 11 (of text) 5 minutes
framework approaches to the
study of entrepreneurship
LO1.6 Paraphrase a comprehensive Page 4 (of text) 5 minutes
definition of entrepreneurship
LO1.7 Examine the entrepreneurial Page 13 (of text) 5 minutes
revolution taking place today
LO1.7 Group Activity 1-2 Slide 32 of PPT 5 minutes
LO1.8 Illustrate today’s Page 16 (of text) 5 minutes
entrepreneurial environment
LO1.9 Outline the trends in Page 18 (of text) 5 minutes
entrepreneurship research
LO1.10 Examine the future trajectory of Page 19 (of text) 5 minutes
entrepreneurship
LO1.11 Define the key concepts in Page 20 (of text) 5 minutes
entrepreneurship
[return to top]
KEY TERMS
Better widget strategies: Innovation that encompasses new or existing markets.
Corridor principle: States that with every venture launched, new and unintended opportunities arise.
Decacorn: A firm with a $10 billion market value.
Displacement school of thought: A school of entrepreneurial thought that focuses on group phenomena,
such as the political, cultural, and economic environments.
Dynamic states model: A network of relationships and systems that convert opportunity tension into
value for a venture’s customers, generating new resources that maintain the dynamic state.
Entrepreneur: An innovator or developer who recognizes and seizes opportunities; converts these
opportunities into workable/marketable ideas; adds value through time, effort, money, or skills; assumes
the risks of the competitive marketplace to implement these ideas; and realizes the rewards from these
efforts.
Entrepreneurial discipline: Entrepreneurship is based on the same principles, whether the entrepreneur
is an existing large institution or an individual starting their new venture single-handed.
Entrepreneurial leadership: An entrepreneur’s ability to anticipate, envision, maintain flexibility, think
strategically, and work with others to initiate changes that will create a viable future for the organization.
Entrepreneurial mindset: All the characteristics and elements that compose the entrepreneurial potential
in every individual.
, Entrepreneurial Revolution: The tremendous increase in entrepreneurial business and entrepreneurial
thinking that has developed during the past 20 years. This revolution will be as powerful to the twenty-
first century as the Industrial Revolution was to the twentieth century (if not more!).
Entrepreneurial trait school of thought: A school of entrepreneurial thought that focuses on identifying
traits that appear common to successful entrepreneurs.
Entrepreneurship: A dynamic process of vision, change, and creation. It requires an application of
energy and passion toward the creation and implementation of new ideas and creative solutions. Essential
ingredients include the willingness to take calculated risks—in terms of time, equity, or career; the ability
to formulate an effective venture team; the creative skill to marshal needed resources; the fundamental
skill of building a solid business plan; and, finally, the vision to recognize opportunity where others see
chaos, contradiction, and confusion.
Environmental school of thought: A school of entrepreneurial thought that focuses on the external
factors and forces—values, mores, and institutions—that surround a potential entrepreneur’s lifestyle.
External locus of control: A point of view in which external processes are sometimes beyond the control
of the individual entrepreneur.
Financial/capital school of thought: A school of entrepreneurial thought that focuses on the ways
entrepreneurs seek seed capital and growth funds.
Framework of frameworks: Allows for the entrepreneurship theory to move forward identifying the
static and dynamic elements of new theories, typologies, or frameworks.
Gazelle: A business establishment with at least 20 percent sales growth every year, starting with a base of
at least $100,000.
Great chef strategies: The skills or special talents of one or more individuals around whom a venture is
built.
Hectacorn: A firm with a $100 billion market value.
Internal locus of control: The viewpoint in which the potential entrepreneur has the ability or control to
direct or adjust the outcome of each major influence.
Macro view of entrepreneurship: A broad array of factors that relate to success or failure in
contemporary entrepreneurial ventures.
Managed growth venture: A venture with a workable business model that seeks stable growth over time
with occasional launches of new products and a steady expansion of facilities to establish a strong local or
regional brand.
Micro view of entrepreneurship: Examines the factors specific to entrepreneurship and part of the
internal locus of control.
Mountain gap strategies: Identifying major market segments as well as interstice (in-between) markets
that arise from larger markets.
Strategic formulation school of thought: A school of entrepreneurial thought that focuses on the
planning process used in successful venture formulation.
Unicorn: A start-up with a $1 billion market value.
TABLE OF CONTENTS
Purpose and Perspective of the Chapter..................................................................................................2
Chapter Objectives....................................................................................................................................2
Complete List of Chapter Activities and Assessments............................................................................2
Key Terms..................................................................................................................................................4
What’s New in This Chapter....................................................................................................................6
Chapter Outline.........................................................................................................................................6
Suggested Answers for Review and Discussion Questions (End-of-Chapter).....................................16
Additional Discussion Questions............................................................................................................20
Additional Activities and Assignments..................................................................................................21
Additional Resources...............................................................................................................................22
Cengage Video Resources.....................................................................................................................22
,PURPOSE AND PERSPECTIVE OF THE CHAPTER
This chapter concentrates on entrepreneurs and entrepreneurial ventures where the entrepreneur’s
principal objectives are innovation, profitability, and growth. Entrepreneurship is a dynamic process of
vision, change, and creation. It requires an application of energy and passion toward the creation and
implementation of new ideas and creative solutions.
Essential ingredients include the willingness to take calculated risks—in terms of time, equity, or career;
the ability to formulate an effective venture team; the creative skill to marshal needed resources; the
fundamental skill of building a solid business plan; and, finally, the vision to recognize opportunity where
others see chaos, contradiction, and confusion.
[return to top]
CHAPTER OBJECTIVES
The following objectives are addressed in this chapter:
1.1. Identify the major types of entrepreneurial ventures
1.2. Examine the historical development of entrepreneurship
1.3. Summarize the myths of entrepreneurship
1.4. Define the major schools of entrepreneurial thought
1.5. Explain the process and framework approaches to the study of entrepreneurship
1.6. Paraphrase a comprehensive definition of entrepreneurship
1.7. Examine the entrepreneurial revolution taking place today
1.8. Illustrate today’s entrepreneurial environment
1.9. Outline the trends in entrepreneurship research
1.10. Examine the future trajectory of entrepreneurship
1.11. Define the key concepts in entrepreneurship
[return to top]
COMPLETE LIST OF CHAPTER ACTIVITIES AND ASSESSMENTS
The following table organizes activities and assessments by objective, so that you can see how all this
content relates to objectives and make decisions about which content you would like to emphasize in your
class based on your objectives. For additional guidance, refer to the Teaching Online Guide.
Chapter Activity/Assessment Source (i.e., PPT Duration Certification
Objective slide, Workbook) Standard
LO1.1 Identify the major types of Page 3 (of text) 5 minutes
entrepreneurial ventures
LO1.2 Examine the historical Page 5 (of text) 5 minutes
development of
entrepreneurship
LO1.3 Summarize the myths of Page 6 (of text) 5 minutes
entrepreneurship
, LO1.3 Group Activity 1-1 Slide 14 of PPT 5 minutes
LO1.4 Define the major schools of Page 9 (of text) 5 minutes
entrepreneurial thought
LO1.4 Discussion Activity Slide 21 of PPT 5 minutes
LO1.5 Explain the process and Page 11 (of text) 5 minutes
framework approaches to the
study of entrepreneurship
LO1.6 Paraphrase a comprehensive Page 4 (of text) 5 minutes
definition of entrepreneurship
LO1.7 Examine the entrepreneurial Page 13 (of text) 5 minutes
revolution taking place today
LO1.7 Group Activity 1-2 Slide 32 of PPT 5 minutes
LO1.8 Illustrate today’s Page 16 (of text) 5 minutes
entrepreneurial environment
LO1.9 Outline the trends in Page 18 (of text) 5 minutes
entrepreneurship research
LO1.10 Examine the future trajectory of Page 19 (of text) 5 minutes
entrepreneurship
LO1.11 Define the key concepts in Page 20 (of text) 5 minutes
entrepreneurship
[return to top]
KEY TERMS
Better widget strategies: Innovation that encompasses new or existing markets.
Corridor principle: States that with every venture launched, new and unintended opportunities arise.
Decacorn: A firm with a $10 billion market value.
Displacement school of thought: A school of entrepreneurial thought that focuses on group phenomena,
such as the political, cultural, and economic environments.
Dynamic states model: A network of relationships and systems that convert opportunity tension into
value for a venture’s customers, generating new resources that maintain the dynamic state.
Entrepreneur: An innovator or developer who recognizes and seizes opportunities; converts these
opportunities into workable/marketable ideas; adds value through time, effort, money, or skills; assumes
the risks of the competitive marketplace to implement these ideas; and realizes the rewards from these
efforts.
Entrepreneurial discipline: Entrepreneurship is based on the same principles, whether the entrepreneur
is an existing large institution or an individual starting their new venture single-handed.
Entrepreneurial leadership: An entrepreneur’s ability to anticipate, envision, maintain flexibility, think
strategically, and work with others to initiate changes that will create a viable future for the organization.
Entrepreneurial mindset: All the characteristics and elements that compose the entrepreneurial potential
in every individual.
, Entrepreneurial Revolution: The tremendous increase in entrepreneurial business and entrepreneurial
thinking that has developed during the past 20 years. This revolution will be as powerful to the twenty-
first century as the Industrial Revolution was to the twentieth century (if not more!).
Entrepreneurial trait school of thought: A school of entrepreneurial thought that focuses on identifying
traits that appear common to successful entrepreneurs.
Entrepreneurship: A dynamic process of vision, change, and creation. It requires an application of
energy and passion toward the creation and implementation of new ideas and creative solutions. Essential
ingredients include the willingness to take calculated risks—in terms of time, equity, or career; the ability
to formulate an effective venture team; the creative skill to marshal needed resources; the fundamental
skill of building a solid business plan; and, finally, the vision to recognize opportunity where others see
chaos, contradiction, and confusion.
Environmental school of thought: A school of entrepreneurial thought that focuses on the external
factors and forces—values, mores, and institutions—that surround a potential entrepreneur’s lifestyle.
External locus of control: A point of view in which external processes are sometimes beyond the control
of the individual entrepreneur.
Financial/capital school of thought: A school of entrepreneurial thought that focuses on the ways
entrepreneurs seek seed capital and growth funds.
Framework of frameworks: Allows for the entrepreneurship theory to move forward identifying the
static and dynamic elements of new theories, typologies, or frameworks.
Gazelle: A business establishment with at least 20 percent sales growth every year, starting with a base of
at least $100,000.
Great chef strategies: The skills or special talents of one or more individuals around whom a venture is
built.
Hectacorn: A firm with a $100 billion market value.
Internal locus of control: The viewpoint in which the potential entrepreneur has the ability or control to
direct or adjust the outcome of each major influence.
Macro view of entrepreneurship: A broad array of factors that relate to success or failure in
contemporary entrepreneurial ventures.
Managed growth venture: A venture with a workable business model that seeks stable growth over time
with occasional launches of new products and a steady expansion of facilities to establish a strong local or
regional brand.
Micro view of entrepreneurship: Examines the factors specific to entrepreneurship and part of the
internal locus of control.
Mountain gap strategies: Identifying major market segments as well as interstice (in-between) markets
that arise from larger markets.
Strategic formulation school of thought: A school of entrepreneurial thought that focuses on the
planning process used in successful venture formulation.
Unicorn: A start-up with a $1 billion market value.
