12/02/2004

Entrepreneurship

Michael Malone, a guest speaker for the MBA program at Oxford School of Business, talked to the students about entrepreneurship. He asked the audience to raise their hands if they considered themselves entrpreneurs. About 200 out of 400 raised their hands. Malone then reported that four years prior only about 20 hands went up in an audience of about 400. What a drastic increase!

More individuals are seeing businesses be successful and want to join in on those profits. However, with so many entrepreneurs desiring to enter the market, demand will decrease within their industry of choice and economic profits will also decrease to zero. But of course, the market will not support this, so some will pull out and profitability will rise again. However, the cycle continues. Others will join the market hoping to find profits and will decrease demand and economic profits. The only companies that are most likely to survive are those with the most capital and equity to sustain them in the long-run.

11 comments:

Kova said...

I think the increase in the entreprenurial spirit is a great thing! The ability a person has to start a business at any time is one of the things that makes capitalism so great! It seems like many of my professors are talking about how so many of the students will end up working in their own business and I guess they just might be right!

Jake said...

One good thing that comes out of so many individuals wanting to become entrepreneurs is that the marketing schemes and strategies will have to become more and more unique to become a leader or a competitor in a particular market. With these new strategies other businesses will hopefully learn new ideas and apply them to their own businesses and become profitable as well.

daniel said...

The flood of entrepreneurs will undoubtedly have a huge impact on our market. The effect, however, may not just be the saturation of existing industries. Young entrepreneurs will not just enter the market to match what has already been done; they will enter the market with fresh, innovative, never before imaged ideas. The market will become a rapidly change very competitive environment. Large capital is not the saving grace. Firms that will survive are the one’s that are able to adjust and adapt to change to remain competitive.

pramahaphil said...

Entrepreneurship is considered to be the USA's greatest competitive advantage. Starting a business is a difficult undertaking that few truely have the courage to take.

peter_parker said...

I think it was Schumpeter that determined that entrepreneurship is vital for the growth of the economy. Just as you mentioned the cycle, entrepreneurship seems to come in spurts. We can see the effect that entrepreneurship has had on the growth of the U.S. economy over the last century or so.

The ironic thing is that Schumpeter visualized the collapse and decay of capitalism already starting because of the lack of new ideas. Unfortunately he did not live long enough to see what has happened.

Bruce Banner said...

Entreprenuership is a great opportunity to invest to hit the niche marktet. Entreprenuership will make you or break you. There is a good feeling if a business becomes successful. Entreprenuers will make risks to make a profit and if the profit is good, they sell it and do it all over again. As long the market continues to change, there will be entrepenuers.

Student 01 said...

Entrepreneurs should be esteemed and hailed for their efforts. This very country was founded on the entrepreneur’s sprit. Anything that can be done should be done to help the entrepreneur succeed. However, they should not be helped at the expense of the public, such as subsidizing or offering heavy tax breaks.

John West said...

It isn't surprising that more and more individuals want to become entreprenuers. Graduates coming out of college I think mostly have it in mind to initially work for a firm and gain some real world experience, but ultimately are planning to leave that company and do something on their own. That is my plan and I cannot wait to see if I have what it takes to be successful. People should now though, that owning your own business is hard work and very time consuming. Something like 75% percent of small businesses started will ultimately fail. So SUU graduates lets see what you are made of!

Joe said...

As we see more people go into business for themselves we will also see more people fail. I also beleive that we will not see a whole lot more people succeed. I can also predict that more people will become bankrupt because of this fact. Lets hope it doesn't happen.

miles said...

It seems like more and more business students are focused on entrepreneurship. I think it is great. Of course, some will fail and some will succeed depending on their course of action and the market. This is all part of business and economics. Education of these things can help students identify what areas will be profitable, risky, or just stupid. It is great that there is a wide selection of choice for entrpreneurs.

Dr. Tufte said...

I have three thoughts.

First, SUU professors talk so much about entrepreneurship because our students are so interested in staying in this area. There are not that many good opportunities that don't require entrepreneurship around here.

Second, I think the increased interest in business entrepreneurship noted by Malone is a fad. It's currently seen as rewarding to be an entrepreneur, but I haven't seen the (actual) revenues or costs change at all.

Third, having said that, I think that this is a useful fad if it educates people about how broad entrepreneurship actually is. Artists and professors (even humanities and social sciences professors) are among the most entrepreneurial professions. Think about it: they are in the business of creating things that are brand new and then convincing others to put money on the table for them. Yet those two groups probably don't see themselves as closely aligned with business entrepreneurs (and vice versa). The world will probably be a better place when they do.