Chapter 1 - The power of entrepreneurship. Chapter 1 discusses the role of entrepreneurship in the . economy and looks at the entrepreneurial competitiveness of nations throughout the world. | The Power of Entrepreneurship Chapter 1 2 DEFINITION OF ENTREPRENEURSHIP An entrepreneur is the person who destroys the existing economic order by introducing new products and services, by introducing new methods of production, by creating new forms of organization, or by exploiting new raw materials. Schumpeter An entrepreneur is the person who perceives an opportunity and creates an organization to pursue it. Simpler BUSINESS IN THE . 3 are small businesses (with 500 or fewer employees) 28 million businesses Full-time businesses (14 million) Part-time businesses (14 million) 33% are incorporated In 2010, there are 28 million or so businesses in the , of which approximately percent are small businesses (with 500 or fewer employees) One quarter of all small businesses have only one employee Each year at least 3 million new ventures are born 3 10-YEAR SURVIVAL RATES 4 1 YEAR 2 YEARS 5 YEARS 10 YEARS 5 The GEM Conceptual Framework Source: 6 Phases of the entrepreneurship process and GEM Indicators Source: DJIA COMPANIES 7 1896 1928 2012 2015 American Cotton Oil Allied Can 3M 3M American Sugar Allied Chemical Alcoa American Express American Tobacco American Smelting & Refining American Express Apple Chicago Gas American Sugar AT&T Boeing Distilling & Cattle Feeding American Tobacco Bank of America Caterpillar General Electric Atlantic Refining Boeing Chevron Corporation Laclede Gas Light Bethlehem Steel Caterpillar Cisco Systems National Lead Chrysler Chevron Corporation Coca-Cola North American General Electric Cisco Systems Disney DuPont Tennessee Coal, Iron & Railroad General Motors Coca-Cola DuPont ExxonMobil . Leather General Railway DuPont Exxon Mobil . Rubber Goodrich ExxonMobil General Electric International Harvester General Electric Goldman Sachs International Nickel Hewlett-Packard Home Depot Mack Trucks The Home Depot Intel Nash Motors Intel IBM North American IBM . | The Power of Entrepreneurship Chapter 1 2 DEFINITION OF ENTREPRENEURSHIP An entrepreneur is the person who destroys the existing economic order by introducing new products and services, by introducing new methods of production, by creating new forms of organization, or by exploiting new raw materials. Schumpeter An entrepreneur is the person who perceives an opportunity and creates an organization to pursue it. Simpler BUSINESS IN THE . 3 are small businesses (with 500 or fewer employees) 28 million businesses Full-time businesses (14 million) Part-time businesses (14 million) 33% are incorporated In 2010, there are 28 million or so businesses in the , of which approximately percent are small businesses (with 500 or fewer employees) One quarter of all small businesses have only one employee Each year at least 3 million new ventures are born 3 10-YEAR SURVIVAL RATES 4 1 YEAR 2 YEARS 5 YEARS 10 YEARS 5 The GEM Conceptual Framework Source: 6
