Entrepreneurship and Business Strategy

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Entrepreneurship and Business Strategy

• One often hears, especially from younger, new
  entrepreneurs, the exhortation
• Go for it! You have nothing to lose now. So
  what if it doesnt work out. You can do it
  again. Why wait?
• While the spirit this reflects is commendable
  and there can be no substitute for doing, such
  itchiness can be a mistake unless it is focused
  on a solid opportunity.

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Entrepreneurship and Business Strategy

• The Entrepreneurial Revolution
• During the last 30 years, America has unleashed
  the most revolutionary generation the nation has
  experienced since its founding in 1776. This new
  generation of entrepreneurs (the E-Generation)
  has altered permanently the economic and social
  structure of this nation and the world, and has
  set the entrepreneurial genetic code for future
  generations.

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Entrepreneurship and Business Strategy

• The E-Generation and the Death of Brontosaurus
  Capitalism
• Over 95 percent of the wealth in America today
  has been created by this E-Generation of
  revolutionaries since 1980. By 1997, one of every
  three households in America37 percent or 35
  million householdsincludes someone who has had a
  primary role in a new or emerging business.
• The self-employed report the highest level of
  personal satisfaction, challenge, and pride.

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Entrepreneurship and Business Strategy

• Entrepreneurship Americas Secret Economic
  Weapon
• Job Creation
• Since 1980, America has created over 34 million
  new jobs (Europe had basically stagnant job
  creation during this period), but the Fortune 500
  lost over 5 million jobs. From 199396 alone,
  eight million new jobs were created. Who creates
  these jobs? Just 5 percent of the young and
  fastest growing companies created 77 percent of
  these jobs, and 15 percent of them accounted for
  94 percent of all these net new jobs.
• Fornune 500 employment
• 1980 (1/5 workforce) 1990 (1/14 workforce)

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The steady upward trend in venture capital
continued in the second quarter of 2004 with
investments of 5.6 billion going into 761
companies. This figure compares to 5.0 billion
invested in the first quarter of 2004 and 5.4
billion in the fourth quarter of 2003. Over the
past two years, quarterly investing has drifted
upward at a deliberate pace, ranging from 4.3
billion to this quarters high of 5.6 billion.
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After a dip to 4.6 billion in the third quarter
of 2004, investing in the fourth quarter
rebounded to 5.3 billion. The annual investment
level fell every year beginning in 2001,
culminating in a six-year low of 18.9 billion in
2003. The increase in 2004 was largely
attributable to late stage investments jumping to
7.2 billion in 2004 compared to 4.9 billion in
2003.
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The Stock Market Explosion
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US Stock Markets Average Daily Trading
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The Poorer Get Richer
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