What is Entrepreneurship

hi my name is Bella let I’m going to talk about disciplined entrepreneurship 24 steps to successfully launching a new venture what I’m going to start with is what is entrepreneurship because this term is used all the time it’s bandied about everyone’s for entrepreneurship however there’s two fundamentally different types of entrepreneurship that I want to talk about first of all we we have entrepreneurship we have what we call SME entrepreneurship SME stands for small medium enterprise entrepreneurship these are fundamentally small companies that will stay small and they may have been around for a while they’re focused on local markets they’re often service service businesses that are servicing a local opportunity but they’re not something that’s looking to go global they know there’s no there’s a need local they want to address that this could be a drycleaner this could be a nail salon this could be a restaurant or our pizza parlors we reference in the paper that fiona marie and i wrote these are fundamentally important companies to an economy in a region because they serve a need but relative to the way they’re made up is the system that they create is one that shows kind of linear growth and then at some point it usually taps out of the market not this is an approximation of what goes on but that’s what it look usually looked like linear growth work but you notice that that if this is cash flow here from the business that there’s not a tremendous amount of cash flow out again a simplification however when we go to AI bees over here which I will call innovation-driven entrepreneurship or innovation driven Enterprise entrepreneurship we have a fundamentally different business this one is looking for global markets or super general markets to serve in deep well while this one is usually owner the owner is usually you know maintaining control of it this one is going to require more cash because the dynamics of this business look it loses money and then it’s going to start showing exponential growth so there’s this negative cash flow here if this is cash flow on the y axis and this is time along the x axis it will initially have to require some capital be put into it but then if it works it will take off because it’s got basically unlimited markets underline what they’re doing here is an innovation that’s unique that allows them to address much broader markets so they’re not just focused on the local market but much broader markets this is very important because this is going to require more cash as I mentioned while this is owned by the you know this is controlled by the family or the owner this over here is going to have shareholders and a bunch of other people this is very important difference here because while this business is a very important business the underlying demographics for the underlying system and training for this does not look the same as this it’s almost like you have two sports basketball and baseball you know sure you run in both you jump in both but one and that’s true of these but Michael Jordan was a great basketball player he turned out not to be a great baseball player all his training was for that so likewise there could be some crossover here but generally there’s more risk in these the people that are trained for these are doing you know how to manage multiple stakeholders how to do an underlying innovation the next section we’re going to look at what is innovation and define that more precisely but the point of this is two types of entrepreneurship small medium and enterprise entrepreneurship small companies distributed geographically and then innovation driven Enterprise entrepreneurship companies that might not make it but then if they make it they get to grow and be very very big these end up you don’t need a lot of these to generate a lot of jobs these you need a lot these tend to be more clustered these tend to not be so clustered

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Read More: What is Entrepreneurship

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