Origin and Evolution of New Businesses FROM THE PUBLISHER
Few would argue the crucial role that entrepreneurs play in our increasingly global economy — but exactly what is this vital, yet loosely defined business force we call the entrepreneurial spirit? This landmark study is the first to examine analytically the nature of the opportunities that entrepreneurs pursue, the problems they face, the traits they require, and the social and economic contributions they make.
Until recently, entrepreneurs have been largely ignored in modern economic theory. But at the dawn of a networked age, marked by the advent of e-business and the home office, there's no question that entrepreneurs have recaptured the popular imagination. Studies now show that most men and women dream of starting their own businesses rather than rising through the corporate ranks. Yet in spite of increased attention by many of today's leading business schools, entrepreneurship has remained largely a mystery, an apparantly intuitive sense of values possessed by certain individuals. This book targets the issues central to successful start-up ventures, such as endowments and opportunities, planning versus adaptation, securing resources, corporate initiatives, venture capital, revolutionary ventures and the evolution of fledgling businesses. Focusing on hard data and evaluations of numerous start-up businesses, including many of today's major industry leaders, this book presents a new economic model—a key to understanding the guts, determination, luck and skills that constitute the underpinnings of corporate success.
Written in clear, concise prose, The Origin and Evolution of New Businesses goes behind the charts and graphs of business theory tothe true heart of success. It is essential reading for business students, would-be entrepreneurs, or executives wanting to incorporate the vitality of the entrepreneul spirit into their organization.
SYNOPSIS
The first major study of entrepreneurs and the nature of the opportunities they exploit
What is this mysterious activity we call entrepreneurship? Does success require special traits and skills or just luck? Can large companies follow their example? What role does venture capital play?
In a field dominated by anecdote and folklore, this landmark study integrates more than ten years of intensive research and modern theories of business and economics. The result is a comprehensive framework for understanding entrepreneurship that provides new and penetrating insights. Examining hundreds of successful ventures, the author finds that the typical business has humble, improvised origins. Well-planned start-ups, backed by substantial venture capital, are exceptional. Entrepreneurs like Bill Gates and Sam Walton initially pursue small, uncertain opportunities, without much capital, market research, or breakthrough technologies. Coping with ambiguity and surprises, face-to-face selling, and making do with second-tier employees is more important than foresight, deal-making, or recruiting top-notch teams.
Transforming improvised start-ups into noteworthy enterprises requires a radical shift, from "opportunistic adaptation" in niche markets to the pursuit of ambitious strategies. This requires traits such as ambition and risk-taking that are initially unimportant. Mature corporations have to pursue entrepreneurial activity in a much more disciplined way. Companies like Intel and Merck focus their resources on large-scale initiatives that scrappy entrepreneurs cannot undertake. Their success requires carefully chosen bets, meticulous planning, and the smooth coordination ofmany employees rather than the talents of a driven few.
This clearly and concisely written book is essential for anyone who wants to start a business, for the entrepreneur or executive who wants to grow a company, and for the scholar who wants to understand this crucial economic activity.
FROM THE CRITICS
Library Journal
The entrepreneurial function has long been overlooked both by economists and business theorists, though courses in entrepreneurship are increasingly popular in business schools. Bhid (Harvard Business Sch.) draws on both of those disciplines for theory, which he then extends through the analysis of data from 100 interviews with leaders of high-growth companies. This groundbreaking work shows the complementary roles held by innovative startup companies in areas with high uncertainty and little financial investment and by more established companies, which focus on large-scale projects with more certain payoffs. The characteristics of promising startups and their founders are carefully outlined and contrasted with those of more established firms, and Bhid explains why so few firms make the transition from successful startup to ongoing large enterprise. Offering a wealth of avenues for future research as well as insights for potential entrepreneurs, this book is sure to be cited for years to come.--A.J. Sobczak, Covina, CA Copyright 1999 Cahners Business Information.
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