ENTREPRENEURSHIP, 4/e

Chapter 1:
Entrepreneurship Today
Peggy A. Lambing and Charles
R. Kuehl
PowerPoint presentation created by Peggy
Lambing
PRENTICE HALL
ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

2007 by Pearson Education, Inc.

Upper Saddle River, NJ 07458

Learning Objectives

To become aware of the way in which

entrepreneurship emerged as a leading
economic force during the 1980s and the
1990s
To appreciate the nature of the U.S.
economy is undergoing important changes
as we start the new century
To see that countries worldwide have
discovered entrepreneurship as a source
of economic vitality
To comprehend that small business has
what it takes to compete successfully
with much larger organizations

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Industry Structure

1955focus on big business

1955one small business for
every 38 people
2000one small business for
every 12.7 people

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Increasing Number of
Small Businesses

Foreign competitors
disrupting big corporations
Start of deregulation

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Increase in Small
Businesses
Year
Person
1955
1965
1975
1985
1998
2000
ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

Businesses Per
1/38
1/29
1/26
1/20
1/16
1/12.7
5

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Downsizing

Firms systematically and

substantially reduce the
number of people they employ
to achieve a reduction in
cost
Organizational survival or
top-management greed?

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Societal Change

End of jobs?
Post-industrial society: a
country where large-scale
businesses are no longer as
important as they were

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Consequences for the

Individual

Unemployment or
underemployment
Uncertainties and pressures
of job insecurity
Wave of interest in
entrepreneurship worldwide

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Entrepreneurship in a
Changing Environment

Changes in Markets

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

Outsourcing
Virtual organizations
Market fragmentation

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

New Markets
Green markets
Market place
Market space

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458

Competitive Advantages
of Small Business

Allows a business to compete

effectively
Personal relationship with
customer
Ability to innovate
Flexibility

ENTREPRENEURSHIP, 4/e
By Lambing and Kuehl

PRENTICE HALL
2007 by Pearson Education, Inc.
Upper Saddle River, NJ 07458