In factor-driven economies such as Pakistan, Jamaica, and Venezuela, entrepreneurship is essential to helping build personal wealth and breaking the cycle of low-wage jobs, and entrepreneurship levels are very high.As economies develop and go beyond basic manufacturing to a more industrialized economy as seen in Russia, Brazil, and China, it is called an efficiency-driven economy.Entrepreneurship levels in such economies are in the middle range.Innovation-driven economies are focused on high-value-added manufacturing but are marked by a very large service sector providing high-end services to not only the resident population but also for export.Includes Germany, the Republic of Korea, and the U.S.Entrepreneurship levels in these countries average the lowest of the three types of economies.
Global Entrepreneurship: Global Entrepreneurship Monitor gemconsortium.org/
Global Entrepreneurship: OECD oecd.org/sdd/business-stats/
Entrepreneurship is happening around the globe, and as global trade increases, the impact of global entrepreneurship will be increasingly faced by entrepreneurs and their firms everywhere.
THE MANY TYPES OF ENTREPRENEURIAL SMALL BUSINESSES
< >Firms may be identified as a small and medium enterprise (SMEs), independent small businesses, or owner-managed firms.The number of firms outnumbers the number of entrepreneurs because many entrepreneurs are serial entrepreneurs.Michael sold collectible stamps through the mail when he was nine, making $2000.His next business was selling newspaper subscriptions by phone from home, he made $18,000.His third business was reselling IBM PCs from his dorm room at a time when IBM limited sales to official IBM dealers like Sears and IBM’s own personal computer stores.It was Michael’s fourth business, selling PCs, we know today as Dell Inc.The nine-year-old was Michael Dell.Michael Dell’s four businesses point up the difference between small businesses and high-growth ventures.Both may be small when they start.Small businesses are usually intended to remain small, generally a size the owner feels comfortable controlling personallyFor Michael Dell, his stamp, newspaper, and IBM PC resale businesses were designed to be small-scale operation he could handle alone.He did everything himself, and worked when he wanted to.The businesses were conventional, with dozens or even hundreds of competitors all imitating one another.High-growth ventures start small but are intended to grow rapidly, often requiring a team of partners or managers to handle the growth.When Dell created a company, he started hiring others to help out.In his fourth business, Dell led the industry because of his innovativeness, and other imitated him.Small businesses and high-growth venture differ fundamentally in a number of other ways (as illustrated by Table 1.2 and provided below).Table 1.2
Differences between Small Businesses & High-Growth Ventures
Small Businesses
High Growth Ventures
Preferred funding source
Owner’s own money
Other people’s money
When the firm’s in trouble
Cut costs
Sell more
What’s more important
Sales
Marketing
Personal Control Preference
Retain autonomy
Involve key others
Focus
Efficiency
Effectiveness
Meta-strategy
Imitation
Novelty
External Control Preference
Control firm
Control market
Grow
When necessary
When possible
Human Resources
Personalize
Learn More Online
Global Entrepreneurship: Global Entrepreneurship Monitor gemconsortium.org/
Global Entrepreneurship: OECD oecd.org/sdd/business-stats/
Entrepreneurship is happening around the globe, and as global trade increases, the impact of global entrepreneurship will be increasingly faced by entrepreneurs and their firms everywhere.
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< >Firms may be identified as a small and medium enterprise (SMEs), independent small businesses, or owner-managed firms.The number of firms outnumbers the number of entrepreneurs because many entrepreneurs are serial entrepreneurs.Michael sold collectible stamps through the mail when he was nine, making $2000.His next business was selling newspaper subscriptions by phone from home, he made $18,000.His third business was reselling IBM PCs from his dorm room at a time when IBM limited sales to official IBM dealers like Sears and IBM’s own personal computer stores.It was Michael’s fourth business, selling PCs, we know today as Dell Inc.The nine-year-old was Michael Dell.Michael Dell’s four businesses point up the difference between small businesses and high-growth ventures.Both may be small when they start.Small businesses are usually intended to remain small, generally a size the owner feels comfortable controlling personallyFor Michael Dell, his stamp, newspaper, and IBM PC resale businesses were designed to be small-scale operation he could handle alone.He did everything himself, and worked when he wanted to.The businesses were conventional, with dozens or even hundreds of competitors all imitating one another.High-growth ventures start small but are intended to grow rapidly, often requiring a team of partners or managers to handle the growth.When Dell created a company, he started hiring others to help out.In his fourth business, Dell led the industry because of his innovativeness, and other imitated him.Small businesses and high-growth venture differ fundamentally in a number of other ways (as illustrated by Table 1.2 and provided below).Table 1.2
Differences between Small Businesses & High-Growth Ventures
Small Businesses
High Growth Ventures
Preferred funding source
Owner’s own money
Other people’s money
When the firm’s in trouble
Cut costs
Sell more
What’s more important
Sales
Marketing
Personal Control Preference
Retain autonomy
Involve key others
Focus
Efficiency
Effectiveness
Meta-strategy
Imitation
Novelty
External Control Preference
Control firm
Control market
Grow
When necessary
When possible
Human Resources
Personalize