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  1. Preface
  2. 1 The Entrepreneurial Perspective
    1. Introduction
    2. 1.1 Entrepreneurship Today
    3. 1.2 Entrepreneurial Vision and Goals
    4. 1.3 The Entrepreneurial Mindset
    5. Key Terms
    6. Summary
    7. Review Questions
    8. Discussion Questions
    9. Case Questions
    10. Suggested Resources
  3. 2 The Entrepreneurial Journey and Pathways
    1. Introduction
    2. 2.1 Overview of the Entrepreneurial Journey
    3. 2.2 The Process of Becoming an Entrepreneur
    4. 2.3 Entrepreneurial Pathways
    5. 2.4 Frameworks to Inform Your Entrepreneurial Path
    6. Key Terms
    7. Summary
    8. Review Questions
    9. Discussion Questions
    10. Case Questions
    11. Suggested Resources
  4. 3 The Ethical and Social Responsibilities of Entrepreneurs
    1. Introduction
    2. 3.1 Ethical and Legal Issues in Entrepreneurship
    3. 3.2 Corporate Social Responsibility and Social Entrepreneurship
    4. 3.3 Developing a Workplace Culture of Ethical Excellence and Accountability
    5. Key Terms
    6. Summary
    7. Review Questions
    8. Discussion Questions
    9. Case Questions
    10. Suggested Resources
  5. 4 Creativity, Innovation, and Invention
    1. Introduction
    2. 4.1 Tools for Creativity and Innovation
    3. 4.2 Creativity, Innovation, and Invention: How They Differ
    4. 4.3 Developing Ideas, Innovations, and Inventions
    5. Key Terms
    6. Summary
    7. Review Questions
    8. Discussion Questions
    9. Case Questions
    10. Suggested Resources
  6. 5 Identifying Entrepreneurial Opportunity
    1. Introduction
    2. 5.1 Entrepreneurial Opportunity
    3. 5.2 Researching Potential Business Opportunities
    4. 5.3 Competitive Analysis
    5. Key Terms
    6. Summary
    7. Review Questions
    8. Discussion Questions
    9. Case Questions
    10. Suggested Resources
  7. 6 Problem Solving and Need Recognition Techniques
    1. Introduction
    2. 6.1 Problem Solving to Find Entrepreneurial Solutions
    3. 6.2 Creative Problem-Solving Process
    4. 6.3 Design Thinking
    5. 6.4 Lean Processes
    6. Key Terms
    7. Summary
    8. Review Questions
    9. Discussion Questions
    10. Case Questions
    11. Suggested Resources
  8. 7 Telling Your Entrepreneurial Story and Pitching the Idea
    1. Introduction
    2. 7.1 Clarifying Your Vision, Mission, and Goals
    3. 7.2 Sharing Your Entrepreneurial Story
    4. 7.3 Developing Pitches for Various Audiences and Goals
    5. 7.4 Protecting Your Idea and Polishing the Pitch through Feedback
    6. 7.5 Reality Check: Contests and Competitions
    7. Key Terms
    8. Summary
    9. Review Questions
    10. Discussion Questions
    11. Case Questions
    12. Suggested Resources
  9. 8 Entrepreneurial Marketing and Sales
    1. Introduction
    2. 8.1 Entrepreneurial Marketing and the Marketing Mix
    3. 8.2 Market Research, Market Opportunity Recognition, and Target Market
    4. 8.3 Marketing Techniques and Tools for Entrepreneurs
    5. 8.4 Entrepreneurial Branding
    6. 8.5 Marketing Strategy and the Marketing Plan
    7. 8.6 Sales and Customer Service
    8. Key Terms
    9. Summary
    10. Review Questions
    11. Discussion Questions
    12. Case Questions
    13. Suggested Resources
  10. 9 Entrepreneurial Finance and Accounting
    1. Introduction
    2. 9.1 Overview of Entrepreneurial Finance and Accounting Strategies
    3. 9.2 Special Funding Strategies
    4. 9.3 Accounting Basics for Entrepreneurs
    5. 9.4 Developing Startup Financial Statements and Projections
    6. Key Terms
    7. Summary
    8. Review Questions
    9. Discussion Questions
    10. Case Questions
    11. Suggested Resources
  11. 10 Launch for Growth to Success
    1. Introduction
    2. 10.1 Launching the Imperfect Business: Lean Startup
    3. 10.2 Why Early Failure Can Lead to Success Later
    4. 10.3 The Challenging Truth about Business Ownership
    5. 10.4 Managing, Following, and Adjusting the Initial Plan
    6. 10.5 Growth: Signs, Pains, and Cautions
    7. Key Terms
    8. Summary
    9. Review Questions
    10. Discussion Questions
    11. Case Questions
    12. Suggested Resources
  12. 11 Business Model and Plan
    1. Introduction
    2. 11.1 Avoiding the “Field of Dreams” Approach
    3. 11.2 Designing the Business Model
    4. 11.3 Conducting a Feasibility Analysis
    5. 11.4 The Business Plan
    6. Key Terms
    7. Summary
    8. Review Questions
    9. Discussion Questions
    10. Case Questions
    11. Suggested Resources
  13. 12 Building Networks and Foundations
    1. Introduction
    2. 12.1 Building and Connecting to Networks
    3. 12.2 Building the Entrepreneurial Dream Team
    4. 12.3 Designing a Startup Operational Plan
    5. Key Terms
    6. Summary
    7. Review Questions
    8. Discussion Questions
    9. Case Questions
    10. Suggested Resources
  14. 13 Business Structure Options: Legal, Tax, and Risk Issues
    1. Introduction
    2. 13.1 Business Structures: Overview of Legal and Tax Considerations
    3. 13.2 Corporations
    4. 13.3 Partnerships and Joint Ventures
    5. 13.4 Limited Liability Companies
    6. 13.5 Sole Proprietorships
    7. 13.6 Additional Considerations: Capital Acquisition, Business Domicile, and Technology
    8. 13.7 Mitigating and Managing Risks
    9. Key Terms
    10. Summary
    11. Review Questions
    12. Discussion Questions
    13. Case Questions
    14. Suggested Resources
  15. 14 Fundamentals of Resource Planning
    1. Introduction
    2. 14.1 Types of Resources
    3. 14.2 Using the PEST Framework to Assess Resource Needs
    4. 14.3 Managing Resources over the Venture Life Cycle
    5. Key Terms
    6. Summary
    7. Review Questions
    8. Discussion Questions
    9. Case Questions
    10. Suggested Resources
  16. 15 Next Steps
    1. Introduction
    2. 15.1 Launching Your Venture
    3. 15.2 Making Difficult Business Decisions in Response to Challenges
    4. 15.3 Seeking Help or Support
    5. 15.4 Now What? Serving as a Mentor, Consultant, or Champion
    6. 15.5 Reflections: Documenting the Journey
    7. Key Terms
    8. Summary
    9. Review Questions
    10. Discussion Questions
    11. Case Questions
    12. Suggested Resources
  17. A | Suggested Resources
  18. Index

Welcome to Entrepreneurship, an OpenStax resource. This textbook was written to increase student access to high-quality learning materials, maintaining highest standards of academic rigor at little to no cost.

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Art attribution in Entrepreneurship

In Entrepreneurship, most art contains attribution to its title, creator or rights holder, host platform, and license within the caption. For art that is openly licensed, anyone may reuse the art as long as they provide the same attribution to its original source. Some art has been provided through permissions and should only be used with the attribution or limitations provided in the credit.

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Format

You can access this textbook for free in web view or PDF through openstax.org, and for a low cost in print.

About Entrepreneurship

Entrepreneurship is designed to meet the course needs of a one-semester undergraduate course on the subject. This resource will cover the key principles of entrepreneurship alongside the concepts, strategies, and tools needed to succeed as a small business owner, franchisee, founder, or other entrepreneurial professional.

Coverage and scope

Our Entrepreneurship textbook aligns to the scope and sequence of most introductory entrepreneurship courses. We have endeavored to make the core theories and practical concepts engaging, relevant, and accessible to students. We sought to achieve this by relating concepts to everyday life, contemporary issues, and the real-world challenges that students may face as twenty-first century entrepreneurs.

Entrepreneurship course coverage and approach varies greatly by institution. Some programs focus on research or cases, others on simulation or competition, and many synthesize a variety of approaches. While OpenStax engaged a wide array of faculty reviewers, opinions differ based on the purpose, audience, and structure of the course. The material’s open licensing enables you to customize the content and incorporate additional resources in order to fit your course goals.

Engaging Feature Boxes

Throughout Entrepreneurship, you will find features that engage students by taking selected topics a step further and challenge students to apply what they are learning. Each feature box contains either a link to a deeper exploration of the topic at hand or critical thinking questions that may be geared toward class discussion, student projects, or written essays. Our features include:

  • Work It Out. This feature presents entrepreneurial opportunities or dilemmas for which students are asked to work out a solution.
  • Are You Ready? Students are asked to reflect on their readiness for applying the chapter’s concepts in these integrated exercises, partial plans, or scenarios of a plan or project.
  • What Can You Do? This feature challenges students to take the role of a social entrepreneur and balance a host of interests, some conflicting, as they explore possible venture opportunities.
  • Entrepreneur in Action. Chapter-relevant entrepreneurial endeavors are profiled so students can examine the real-life efforts of entrepreneurs.
  • Link to Learning This feature provides online resources and videos that are pertinent to students’ deeper exploration of the topics. Link to Learning boxes allow students to connect easily to some of the most important thought leaders and concepts in the field.

Module materials that reinforce key concepts

  • Learning Objectives. Every module begins with a set of clear and concise learning objectives. These objectives are designed to help the instructor decide what content to include or assign, and to guide students on what they can expect to learn. After completing the module and end-of-module exercises, students should be able to demonstrate mastery of the learning objectives.
  • Summaries. Section summaries distill the information in each module for both students and instructors down to key, concise points addressed in the section.
  • Key Terms. Key terms are bold and are followed by a definition in context. Definitions of key terms are also listed in the glossary, which appears at the end of the module online and at the end of the chapter in print.
  • Assessments. Review, discussion, and case questions accompany every chapter, providing opportunities for students to recall, discuss, and examine the concepts learned in each chapter.
  • Suggested Resources Each chapter concludes with a collection of additional resource links to provide budding entrepreneurs with additional resources to support their entrepreneurial goals.

Additional resources

Student and instructor resources

We’ve compiled additional resources for both students and instructors, including Getting Started Guides Companion PowerPoints, an Instructor Solution Guide, and a Test Bank. Instructor resources require a verified instructor account, which you can apply for when you log in or create your account on openstax.org.

Instructor and student resources are typically available within a few months after the book’s initial publication. Take advantage of these resources to supplement your OpenStax book.

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Technology partners

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About the authors

Senior contributing authors

Michael Laverty, Colorado State University Global

Dr. Laverty received his BA from the University of Notre Dame, his MBA from the Keller Graduate School of Management, and his EdD from Nova Southeastern University. He is also a certified Six Sigma Black belt. He instructs business courses at numerous universities in the US and abroad. As a former equity partner in a very successful venture capital group, Laverty has owned many business ventures ranging in size from $1–35 million. His continuing scholarly and practitioner-oriented focus is paying back through mentoring and developing entrepreneurial leaders of tomorrow.

Chris Littel, North Carolina State University

Chris Littel is a Lecturer in Entrepreneurship and Management at the Poole School of Management at North Carolina State University and previously instructed at the Kelley School of Business at Indiana University and the Institute for Entrepreneurship at Florida Gulf Coast University. Littel holds a B.S. in Engineering from the U.S. Military Academy at West Point and a master’s in International Economics, International Relations and Security Studies from the Nitze School of Advanced International Studies of the Johns Hopkins University in Washington, D.C. Littel has also served in leadership positions in companies such as Johnson & Johnson, and currently works as a consultant. He teaches a variety of entrepreneurial courses in which students work with startup companies to help solve growth challenges.

Contributing authors

Chandra D. Arthur, Cuyahoga Community College

Martin S. Bressler, Southeastern Oklahoma State University

Stephen M. Byars, USC Marshall School of Business

Bryan Coleman, Assumption College

Mehran C. Ferdowsian, Wilkes University

Geoffrey Graybeal, Georgia State University

Wm. David Hawkins, Northwestern Oklahoma State University

Jennifer Herrera, Capella University

Lyzona Marshall, Seton Hill University

Angela Mitchell, Wilmington College

William Nantz, Houston Community College

Denisse Olivas, University of Texas at El Paso

Karli Peterson, Colorado State University Global

Mark A. Poepsel, Southern Illinois University Edwardsville

Kevin Raiford, College of Southern Nevada

Jeffrey J. Sabolish, University of Michigan-Flint

Sally Sledge, Norfolk State University

Kurt Stanberry, University of Houston-Downtown

Reviewers

Joseph F. Adamo, Cazenovia College

Tom Adamson, Midland University

Franklene M. Baker, Grand Rapids Community College

Jennifer Bergenfeld, New York University

Lucian Bifano, Auburn University

Kathy Bowen, Murray State College

Dixon Cooper, Ouachita Baptist University

Shawna Coram, Florida State College at Jacksonville

Peter Hackbert, Berea College

Peter T. Hahn, Roger Williams University

Perry Hidalgo, Gwinnett Technical College

Karen Hines, Berkshire Community College

Nai Lamb, The University of Tennessee at Chattanooga

David LeCount, Tulsa Community College

Ira T. Lovitch, Mount Saint Mary’s University

Debra McCarver, Washington State University

Bruce A. McHenry, South Mountain Community College

Russ Meade, Husson University

Eleonor Moore, Kirtland Community College

Phillip L. Nelsen, Salt Lake Community College

Miguel A. Orta, Nova Southeastern University

Chris Papenhausen, University of Massachusetts Dartmouth

Susan Peters, University of North Carolina at Pembroke

Brian Pusateri, University of Scranton

William R. Sandberg, University of South Carolina

Natalie Sappleton, Quantic School of Business and Technology

Linda Shul, Central New Mexico Community College

Marcene S. Sonneborn, Syracuse University

Andreas Widmer, Catholic University

Lisa Zidek, Florida Gulf Coast University

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© Sep 2, 2020 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License 4.0 license. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.