The   Powe r   of  
Ent r e pr e ne ur s hi p
Chapt e r   1

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©


DEFI NI TI ON  OF
ENTREPRENEURSHI P
Sc humpe t e r
An entrepreneur is the person who destroys the existing economic 
order by introducing new products and services, by introducing new 
methods of production, by creating new forms of organization, or by 
exploiting new raw materials.

Si mpl e r
An entrepreneur is the person who perceives an opportunity and 
creates an organization to pursue it.

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

2


BUSI NESS  I N  THE  U. S.

Full-time
businesses
(14 million)

99.9% are small
businesses
(with 500 or
fewer
employees)

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

28 million
businesses
Part-time
businesses
(14 million)

3

33% are
incorporated


10­ YEAR  SURVI VAL  RATES

1 YEAR

2
YEARS

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,

2017 ©

10
YEARS

5
YEARS

4


The   GEM  Conc e pt ual  
Fr ame wor k

Source: and

Zacharakis, Bygrave
Corbett, Entrepreneurship, New York: Wiley,
2017 ©

5


Phas e s   of   t he   e nt r e pr e ne ur s hi p 
pr oc e s s   and  GEM  I ndi c at or s

Source:
Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©


6


DJI A  COMPANI ES

1896
American Cotton Oil
American Sugar
American Tobacco
Chicago Gas
Distilling & Cattle Feeding
General Electric
Laclede Gas Light
National Lead

Allied Can
Allied Chemical
American Smelting & Refining
American Sugar
American Tobacco
Atlantic Refining
Bethlehem Steel
Chrysler

3M
Alcoa
American Express
AT&T
Bank of America
Boeing

Caterpillar
Chevron Corporation

North American

General Electric

Cisco Systems

General Motors

Coca-Cola

General Railway
Goodrich
International Harvester
International Nickel
Mack Trucks
Nash Motors
North American
Paramount Publix
Postum
Radio Corporation
Sears, Roebuck
Standard Oil (NJ)
Texas Corporation
Texas Gulf Sulphur
Union Carbide
U.S. Steel
Victor Talking Machines

Westinghouse
Woolworth
Wright

DuPont
ExxonMobil
General Electric
Hewlett-Packard
The Home Depot
Intel
IBM
Johnson & Johnson
JPMorgan Chase
UnitedHealth Group
McDonald's
Merck
Microsoft
Pfizer
Procter & Gamble
Travelers
United Technologies Corporation
Verizon
Walmart
Walt Disney

Tennessee Coal, Iron &
Railroad
U.S. Leather
U.S. Rubber


1928

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

2015

2012
3M
American Express
Apple
Boeing
Caterpillar
Chevron Corporation
Cisco Systems
Coca-Cola
Disney
DuPont
DuPont
ExxonMobil

Exxon Mobil
General Electric
Goldman Sachs
Home Depot
Intel
IBM
Johnson & Johnson
JPMorgan Chase
McDonald’s

Merck
Microsoft
Nike
Pfizer
Procter & Gamble
Travelers
United Technologies Corporation
United Health
Verizon
Visa
Walmart

7


I NTERNET  PENETRATI ON 
AROUND  THE  WORLD
World Regions

Population
( 2015 Est.)

Population Internet Users Penetration
Growth
% of World 30 Nov 2015 (% Population) 2000-2015

Africa

1,158,355,663


16.0 %

330,965,359

28.6 %

7,231.3%

Asia

4,032,466,882

55.5 % 1,622,084,293

40.2 %

1,319.1%

Europe

821,555,904

11.3 %

604,147,280

73.5 %

474.9%


Middle East

236,137,235

3.3 %

123,172,132

52.2 %

3,649.8%

North America

357,178,284

4.9 %

313,867,363

87.9 %

190.4%

Latin America / Caribbean
617,049,712

8.5 %

344,824,199


55.9 %

1,808.4%

Oceania / Australia

0.5 %

27,200,530

73.2 %

256.9%

100.0 % 3,366,261,156

46.4 %

832.5%

WORLD TOTAL

37,158,563
7,259,902,243

Source: internetworldstats.com  />
Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©


8


NEW  TECHNOLOGY  ADOPTI ON
TI ME  FOR  NEW  TECHNOLOGI ES  TO 
PENETRATE  25%  OF  U. S.   POPULATI ON 
Household electricity (1873)

46 years

Telephone (1875)

35 years

Automobile (1885)

55 years

Airplane travel (1903)

54 years

Radio (1906)

22 years

Television (1925)

26 years


VCR (1952)

34 years

PC (1975)

15 years

Mobile Phone (1983)

13 years

World Wide Web (1992)

5 years
Source: The Wall Street Journal, June 1997;
/>www.netbanker.com/2000/04/internet_usage_web_users_world.html

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

9


ENTREPRENEURSHI P
STRI KES  GOLD
Ne ts c ape  Co mmunic atio ns
$6 millio n of own money +$6 millio n of VC money = $2.2 billio n of
market capitalization on the first day of IPO
e Bay

Benchmark Capital’s investment of $5 millio n in eBay multiplied
1500­fo ld in just two years – the all-time record for Silicon Valley

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

10


VC  FAST  FACTS
•

•

•

$500 billion of venture capital has backed
32,000 U.S. companies since the early 1970s
Venture-backed companies employed more
than 12 million people in 2010
Venture-backed companies generated
revenues of $3.1 trillion, or 21% of the U.S.
GDP, in 2010

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

11



SHI FTI NG  I NFLUENCES  ON
ENTREPRENEURSHI P

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

12


TOTAL  ENTREPRENEURI AL  ACTI VI TY  BY  COUNTRY

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

13


TOTAL  ENTREPRENEURI AL  ACTI VI TY  BY  COUNTRY

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

14


TEA  BY  AGE  FOR  GEOGRAPHI C 
REGI ONS

GEM
2015/2016 Bygrave

Global Report
Zacharakis,
and

2017 ©

Corbett, Entrepreneurship, New York: Wiley,

15


TEA  BY  AGE  FOR  GEOGRAPHI C 
REGI ONS

GEM
2015/2016 Bygrave
Global Report
Zacharakis,
and

2017 ©

Corbett, Entrepreneurship, New York: Wiley,

16


Jobs   pe r   phas e   of   e c onomi c  
de ve l opme nt


Source: GEM 2015 Job Creation Projections.

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

17


TEA  by  Phas e   and  Count r y

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

18


TEA  BY  GENDER  FOR 
GEOGRAPHI C  REGI ONS
35
30
25
20
15
10
Male (%TEA)

5
0

Female (%TEA)


Latin America Middle East Sub-Saharan Asia Pacific
& South Asia
Africa
& Caribbean & North Africa

European
Union

Non-European United States
Union

Source: GEM 2012 Global Report. />
Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

19


De ve l opme nt   Phas e   Ave r age s   f or   Mal e   and 
Fe mal e   TEA  and  Ne c e s s i t y  Pr opor t i on  of  
TEA  i n  60  Ec onomi e s ,   GEM  2015
Stage of
economic
developmen
t

MALE
TEA (%
of adult

male
populati
on)

Factor
driven

23

Efficiency
driven
Innovation
driven

17
11

FEMALE
MALE
FEMALE
TEA (%
TEA
TEA
Ratio of
Ratio of
of adult
Necessit Necessit Female/M
Female/M
female
y (% of

y (% of
ale TEA
ale TEA
populati
TEA
TEA
Necessity
on)
males) females)

20

0.86

24

32

1.32

13

0.73

26

33

1.26


6

0.59

17

19

1.13

Source: GEM 2015.

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

20


21s t   CENTURY  ECONOMI ES
ANGLO-SAXON OR SOCIAL MODELS?

AngloSaxon
Economic
Systems

Anglo-Saxon economic systems have a high prevalence rate of
high-expectation entrepreneurial activity

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©


21