UNIT 1: Understanding Entrepreneurship

Unit Overview

1. Wanted: Entrepreneurs (Just Don't Ask for a Job Description), Ronald A. Wirtz, The Region (Federal Reserve Bank of Minneapolis), June 2008

Entrepreneurship is the new buzzword, and policymakers in many nations and states are trying to develop more entrepreneurs because of their positive effect on jobs and productivity. This article asks: if entrepreneurship is so important, why don't we know more about it?

2. An Idea Whose Time Has Come, The Economist, May 12, 2009

Today entrepreneurship is very much part of economics. Economists have realized that, in a knowledge-based economy, entrepreneurs play a central role in creating new companies and commercializing new ideas. Read more about how entrepreneurship has become cool around the world.

3. Creative Disruption, Douglas Clement, The Region (Federal Reserve Bank of Minneapolis), September 2008

Economists have developed a significant body of research establishing empirical links between increased competition and higher productivity. This article concludes that competitive environments are more favorable to innovation.

4. The World Discovers the Laffer Curve, Stephen Moore, 2009 Index of Economic Freedom, January 2009

The supply-side economics model that President Ronald Reagan first implemented in 1981 is now the economic operating system around the world. The motivation for this tax slashing is the free flow of investment supporting the virtuous cycle of entrepreneurial capitalism.

5. Building Entrepreneurial Economies, Carl J. Schramm, Foreign Affairs, July/August 2004

Not only does the United States have a high rate of new business starts, as this article points out, but the United states breeds a constant flow of new, high-impact ventures. These ventures create value and stimulate economic growth by bringing new ideas to the market.

6. The Role of Small and Large Businesses in Economic Development, Kelly Edmiston, Economic Review (Federal Reserve of Kansas City), Second Quarter 2007

Some economic development experts are abandoning traditional approaches to economic development that support large enterprises with tax breaks. This article explores whether promoting entrepreneurship makes sense as an economic development strategy.

7. Success Rules!, Thomas Melville, Success, September 2000

See how to succeed with these 5 rules of success from five entrepreneurs who have made it. Also included in this article is an excerpt from Joe Mancusco's 20 commandments, which includes advice such as "Abdicate vs. Delegate" and "Avoid the 'Sandbox Syndrome.' "

8. The Greatest Entrepreneurs of All Time, John Tozzi, BusinessWeek, June 27, 2007

The criteria for the greatest entrepreneurs to be considered were simple. If they had the vision to create new markets and change the way people lived in the process, then they were candidates. Read this article to find out who made the top 30 list.

9. The Secrets of Serial Success, Gwendolyn Bounds, Kelly K. Spors, and Raymund Flandez, The Wall Street Journal, August 20, 2007

While some entrepreneurs struggle their whole lives to bring one idea or product to market, serial entrepreneurs do it once, twice, or three times more, and disprove the notion of beginner's luck. Learn from this article what keeps them going.

UNIT 2: Creating and Launching a New Business Venture

Unit Overview

10. Startups in a Downturn, Spencer E. Ante, BusinessWeek, February 23, 2009

Great companies can be created and launched during tough economic times. Entrepreneurs who built startups like Cisco, Oracle, and Google share lessons on how to thrive during tough times in this article.

11. So, You Want to Be an Entrepreneur?, Kelly K. Spors, The Wall Street Journal, February 23, 2009

Thinking about starting a new business? Make sure you are ready for the challenges and entrepreneurial risks. Answer the questions in this article to see if you have what it takes to be the lead entrepreneur and can successfully launch a startup.

12. The B!g Idea, Joan Raymond, BusinessWeek SmallBiz, Fall 2006

In this article entrepreneurs reveal their insightful eureka moments and how they turned a burst of inspiration into a startup and viable new business venture.

13. How to Build a Bulletproof Startup, Michael V . Copeland and Om Malik, Business 2.0, June 2006

Got a great idea for a startup? There are no guarantees in the world of entrepreneurship. But there is a right way to build a new business venture. This article provides a set of blueprints describing just how to launch a business.

14. Market Research on the Cheap, John Tozzi, BusinessWeek, January 9, 2008

For entrepreneurs operating on a limited budget, there are ways to gather key information about new customers and prospects without hiring an outside firm. This article provides five practical suggestions to use when conducting marketing research.

15. 20 Reasons Why You Need a Business Plan, Pete Kennedy, Growthink, April 9, 2008

Since 1999 Growthink's business plan experts have assisted more than 1,500 clients in launching and growing their businesses, and raising more than $1 billion in growth financing. This article stresses the importance of "why" to writing a business plan.

16. How to Write a Great Business Plan, William A. Sahlman, Harvard Business Review, July/August 1997

A business plan must readily communicate the entrepreneur's mastery of the "game," from identification of opportunity to harvest for investors. In this classic article, William Sahlman provides pointers on creating a winning business plan.

17. Outline for a Business Plan: A Proven Approach for Entrepreneurs Only, Ernst & Young LLP, 1997

The business plan is probably the single most important document for the entrepreneur. It is the preferred mode of communication between entrepreneurs and potential investors and becomes a selling document that conveys excitement and promise to any potential investor or stakeholder. A detailed business plan outline is presented here.

18. The 10 Biggest Business Plan Mistakes, Christine Comaford-Lynch, BusinessWeek, January 7, 2008

The author is a former venture capitalist and angel investor who has reviewed hundreds of business plans. In this article she explains where many entrepreneurs go wrong in writing a business plan.

UNIT 3: Financing a New Business Venture

Unit Overview

19. Writing a Compelling Executive Summary, William M. Reichert, Garage Technology Ventures, 2007

The executive summary is often the entrepreneur's first point of contact to a potential investor. So, like a sales call, it is important to create the right first impression. Learn from this article the key components that create a winning sales document.

20. The People's Bank, Andrew Park, BusinessWeek, April 23, 2007

Informal investment from friends and family totaled nearly $92 billion. Learn from this article how to borrow from friends and family, how to minimize the problems on the downside, and how to share the wealth on the upside.

21. Angel Investment Criteria, Richard Sudek, Journal of Small Business Strategy, Fall/Winter 2006/2007

Startups often turn to formal business angels for capital. This detailed study examines what angel investors consider when reviewing an investment opportunity,and how they prioritize their investment analysis.

22. Venture Capital 101: What Is Venture Capital?, Venture Impact, National Venture Capital Association, 2007

Venture capital has enabled the United States to support its entrepreneurial talent and appetite by turning ideas and basic science into products and services that are the envy of the world. This article provides an informative introduction to venture capital and the role venture capital plays in the economy.

23. Pursuing Venture Capital, William J. Link, Kauffman Center for Entrepreneurial Leadership, July 26, 2003

Securing venture capital is a matter of entrepreneurs understanding that they need to approach the risk capital market as both sellers and buyers. What William Link presents in this article is a look at the steps necessary on each side.

24. Evaluating a Venture Capital Firm to Meet Your Company's Needs, Accel Partners, 2009

Venture capital firms are as different as entrepreneurs. There is a wide range among these firms in terms of their industry expertise, business experience, and, most importantly, their ability to work effectively supporting your startup. Here are important guidelines for selecting a winning firm.

25. Perfecting Your Pitch, William M. Reichert, Garage Technology Ventures, 2006

The purpose of pitching to potential investors is to sell, not teach. Investment executives at Garage.com have seen thousands of presentations from startups. They prepared a basic outline for preparing the pitch presentation and tips on improving the effectiveness of the pitch.

26. Writing and Negotiating Term Sheets with a View toward Success, Peter M. Rosenblum, Angel Capital Education Foundation, February 18, 2008

A well-prepared term sheet is an agreement between the investor and the entrepreneur that sets up the business for success. The principal reason for a term sheet is to outline the participants' understanding, not necessarily to set up a plan to enforce in court. This article outlines key deal points for success for both the investor and the entrepreneur.

UNIT 4: Managing and Growing a New Business Venture

Unit Overview

27. How Entrepreneurs Craft Strategies That Work, Amar Bhidé, Harvard Business Review, March/April 1994

In crafting a new business venture strategy, Amar Bhidé suggests that the entrepreneur should play with, and explore, ideas surrounding that opportunity, thereby letting the business strategy evolve on its own.

28. Seven Keys to Shaping the Entrepreneurial Organization, Michie P. Slaughter, Kauffman Center for Entrepreneurial Leadership, 2004

These seven keys are by no means the only things entrepreneurs need to do in building entrepreneurial success, but they will provide a head start in understanding the ingredients necessary to building an effective entrepreneurial team.

29. Characteristics of a Successful Entrepreneurial Management Team, Alexander L. M. Dingee, Brian Haslett, and Leonard E. Smollen, Pratt's Guide to Venture Capital Sources, 1997

The authors share guidelines for building great venture teams. They also present elements of the seven key entrepreneurial management functions that venture capitalists look for in new business opportunities.

30. Managing Growth, Michael J. Roberts, New Business Venture and the Entrepreneurs, McGraw-Hill/Irwin, 1999

The set of changes that smaller, younger firms need to make as they grow is often termed the transition from entrepreneurial to professional management. This article addresses the issues that firms must deal with in making that transition.

31. Three Strategies for Managing Fast Growth, Georg von Krogh and Michael A. Cusumano, MIT Sloan Management Review, Winter 2001

Entrepreneurs can't afford to leave growth to chance. This article suggests that entrepreneurs should have a strategy for growing as well as for applying new knowledge faster than their competitors.

32. The Zappos Way of Managing, Max Chafkin, Inc. Magazine, May 2009

Learn from this article how Tony Hsieh used relentless innovation, stellar customer service, and a staff of believers to make Zappos.com into one of the most innovative startups in America this past decade.

33. Give Me the Bad News: Successful Entrepreneurs Need Negative Feedback, Kerri Susan Smith, Knowledge@W.P. Carey, January 14, 2009

It's critical for entrepreneurs to get feedback in order to refine their ideas for a startup. But they are often too personally attached to their idea and their vision for the business. This article suggests that entrepreneurs need an experienced mentor more than a fan.

34. Ask an Angel: Berkus on Building a Board of Directors, Mary Jane Grinstead, Angel Capital Education Foundation, July 8, 2008

Dave Berkus has invested in 68 small technology companies since 1993. He is a board member of 10 private companies, chair of six of those, and an active member of four non-profit boards. In this article Dave shares his advice on the best practices for boards of directors for early-stage companies.

35. Why a CEO Needs to Have a Plan B: An Interview with Jack Stack, Bo Burlingham, Inc. Magazine, May 2009

For nearly three decades, in good times and bad, Jack Stack has managed his company as though disaster could strike at any moment. Now, with the global economic crisis, he is glad he did. Learn from this article how to emerge from the crisis stronger than when it began.

36. Top Ten Reasons Why Startups Fail (Venture Capital), Mohanjit Jolly, VCCircle, March 17, 2009

Entrepreneurship is best for those with the persistence to overcome many obstacles and knowledge of the entrepreneurial risks. Passion alone is no guarantee for success. This article shares valuable points from respected venture capitalists Mohanjit Jolly and Tim Draper from Draper Fisher Jurvetson.

UNIT 5: Special Issues for the Entrepreneur

Unit Overview

37. Taking Social Entrepreneurship Seriously, J. Gregory Dees, Society, March/April 2007

Social entrepreneurs bring to social problems the same kind of determination, creativity, and resourcefulness found among business entrepreneurs. This article argues that they will become the "new engines for reform" to improve social and environmental conditions.

38. The Microfinance Revolution: An Overview, Rajdeep Sengupta and Craig P. Aubuchon, Review (Federal Reserve Bank of St. Louis), January/February 2008

The field of microfinance has come a long way as an effective tool in reducing poverty. This article is intended as a non-technical overview on the growth and development of microcredit and microfinance.

39. The Hidden Economy of Nonprofits, Ronald A. Wirtz, The Region (Federal Reserve Bank of Minneapolis), September 2006

One key reason to develop a clearer understanding of nonprofits is that they are growing disproportionately to the economy as a whole and are slowly assuming alarger share of the overall economy. This states that it would seem useful to be able to understand what's driving this growth in nonprofits.

40. Eminence Green, Susan Casey, Fortune, May 29, 2007

This article describes how Patagonia founder Yvon Chouinard took his passion for the outdoors and turned it into an amazing business that earns $270 million a year, and still remains socially responsible.

41. Managing Global Expansion: A Conceptual Framework, Anil K. Gupta and Vijay Govindarajan, Business Horizons, March/April 2000

The need to become global is becoming a mandate for virtually all corporations. Since global expansion needs no grand design but does need a clear strategy, according to this article, a company should not wander aimlessly into the global jungle.

42. The Global Entrepreneur, Daniel J. Isenberg, Harvard Business Review, December 2008

Startups now do business in many countries before dominating their home markets. They are global from day one. This article describes the challenges global entrepreneurs face when they are born global and the skills entrepreneurs need to tackle them.

43. Harvesting Firm Value: Process and Results, J. William Petty, Entrepreneurship 2000, Upstart Publishing Company, 1997

Having a harvest goal in mind from the beginning and knowing how to craft an option to achieve it are what separates a successful entrepreneur from the rest. This article explains the importance of building a company that generates wealth and thereby creates the entrepreneurs' and stakeholders' harvest options.

44. Choosing Your Exit Strategy, William H. Payne, Kauffman Center for Entrepreneurial Leadership, 2001

An entrepreneur's exit strategy impacts the future direction of a growing business. In this synopsis, William Payne, a long-time angel investor, provides keen insight and guidance on how to create an exit strategy.

Test-Your-Knowledge Form

Article Rating Form

Reading 1 - Wanted: Entrepreneurs (Just Don't Ask for a Job Description)

Reading 2 -- An Idea Whose Time Has Come

Reading 7 -- Success Rules!

Something Ventured

Reading 11 -- So You Want to Be an Entrepreneur?

Readings 16 and 17 -- Outline for a Business Plan

Reading 18 -- The !0 Biggest Business Plan Mistakes

Readings 20, 21 -- The People's Bank and Angel Investment Criteria

Readings 22, 23, and 24 - Venture Capitalist