In this chapter you will: Characterize the entrepreneurial process, describe entrepreneurship and some characteristics of entrepreneurs, indicate three megatrends providing waves of entrepreneurial opportunities, list and describe the seven principles of entrepreneurial finance,. | Chapter 1 INTRODUCTION AND OVERVIEW 1 © 2012 South-Western Cengage Learning ENTREPRENEURIAL FINANCE Leach & Melicher 1 Chapter 1: Learning Objectives Characterize the entrepreneurial process Describe entrepreneurship and some characteristics of entrepreneurs Indicate three megatrends providing waves of entrepreneurial opportunities List and describe the seven principles of entrepreneurial finance Discuss entrepreneurial finance and the role of the financial manager Describe the various stages of a successful venture’s life cycle Identify, by life cycle, the relevant types of financing and investors Understand the life cycle approach used in the textbook 2 The Entrepreneurial Process Process: Developing opportunities Gathering resources Managing and building operations Goal: Creating value 3 The Entrepreneurial Process 4 Entrepreneurship Fundamentals Entrepreneurship: process of changing ideas into commercial opportunities and creating value Entrepreneur: individual who thinks, . | Chapter 1 INTRODUCTION AND OVERVIEW 1 © 2012 South-Western Cengage Learning ENTREPRENEURIAL FINANCE Leach & Melicher 1 Chapter 1: Learning Objectives Characterize the entrepreneurial process Describe entrepreneurship and some characteristics of entrepreneurs Indicate three megatrends providing waves of entrepreneurial opportunities List and describe the seven principles of entrepreneurial finance Discuss entrepreneurial finance and the role of the financial manager Describe the various stages of a successful venture’s life cycle Identify, by life cycle, the relevant types of financing and investors Understand the life cycle approach used in the textbook 2 The Entrepreneurial Process Process: Developing opportunities Gathering resources Managing and building operations Goal: Creating value 3 The Entrepreneurial Process 4 Entrepreneurship Fundamentals Entrepreneurship: process of changing ideas into commercial opportunities and creating value Entrepreneur: individual who thinks, reasons, and acts to convert ideas into commercial opportunities and to create value 5 Definition & Explanation of Entrepreneur Definition: An individual who, rather than working as an employee, runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes. 6 Con Explanation: Entrepreneurs play a key role in any economy. These are the people who have the skills and initiative necessary to take good new ideas to market and make the right decisions to make the idea profitable. The reward for the risks taken is the potential economic profits the entrepreneur could earn. Source: 7 Some Examples of Today’s Innovation During the past century, entrepreneurial firms’ innovations included personal computers, heart pacemakers, optical scanners, soft contact .
