The Evolution Of An Entrepreneur
- 10% of the population controlled over 50% the wealth and income.
- 50% of the population shared about 15% of the wealth.
- 25% had no wealth.
- 15% the growing merchant class.
- About 25% of occupations in the Middle Ages were outside of agriculture (merchants, craftsmen, other jobs): 1) Craftsmen learned their craft through apprenticeships, some taking up to 7 years; 2) Guilds of craftsmen
developed to earn higher wages and utilize power in civic affairs.
- The marketplace became a central focus: 1) Developed commerce; 2) Increased demand for new products; 3) Lead to trade expansion into other countries.
- Ship building advancement leads to increased international trade: 1) Started the first "global" companies; 2) 1637. The Dutch East India Company (VOC). 4.785 ships transported more than 2.5 million tons of goods.
- Merchants build trading posts along major trade routes providing supplies to shipping crews.
- American farmers and plantation owners capitalize on cash crops such as: 1) Tobacco; 2) Sugar cane.
- Most entrepreneurs would invent something, sell it and move onto the next invention. Most inventions were thought to: 1) Increase productivity and automate manufacturing; 2) Scale manufacturing to reduce costs.
- The first use of expanded system of credit helped entrepreneurs secure capital for large-scale, risky new ventures.
- Entrepreneurs of the Industrial Revolution: 1) Transformed 19th century commerce and industry; 2) Producing remarkable advancements: Technology; Transportation; Energy; Communications; Industrial productions.
- Advertising expenditure increased to 4% of the national income ($600 million). 1910 - $600 million was spent on advertising by big businesses.
- Increased use of mass media advertising changed the way entrepreneurs marketed products. Now marketers can sell products nationally with: 1) Newspaper; 2) Television; 3) Radio.
- 1948 - television advertising boom: 1) Advertising revenues up 515% from 1947; 2) 933 sponsors bought TV ads.
- Personal computers have changed everyday life: 1) Internet allows for global reach and constant connectivity; 2) Can sell goods online at low costs.
- Small business marketplace - popular online sales. In 2012: 1) $895 million in sales; 2) New buyers up 83%; 3) 70% increase from 2011.
- Value of merchandise sold +14% each year: 1) 57% of marketplace revenue is from outside the United States; 2) 113 million users - 13% increase from a year ago.
- Advertising on Google: 1) Savvy marketers can use Adwords to be noticed on Google at low costs and high ROI; 2) Entrepreneurs can complete with big business easily.
- Crowdsourcing increases the place of innovation: 1) Generating new ideas or completing tedious tasks by soliciting contributions from larger groups of people; 2) 25% of all new products result from crowdsourcing
idea generation; 3) Increases new product success rate from 15% to 50%; 4) Modern day entrepreneurs don't just innovate products/services, they manage employees and head new companies.
- Even with the changing technology, aspiring entrepreneurs take the same basic path.
- #1 Idea: Have a product, service, something to sell.
- #2 Concept: Determining if the idea is viable, market research, developing a business plan.
- #3 Building: Finding and securing resources (usually financial, but this can be other types of resources), marketing, investing time, implementing resources to launch business.
- #4 Growth: Ideally, the business does well enough to require continued cultivation, interest and secure investors if applicable, maturing and expanding the business once profitable.
- #5 Exit: This should be determined by the business plan and all ventures have an exit, be it a family business passed down, sold to another company, or an initial public offering ROI.
Modern technology and the Internet have improved the ways we conduct business. Entrepreneurs now have the luxury of putting their business idea into action through the click of a button. What's stopping you?
Homestead | Sources: http://blog.gcase.org/global-entrepreneur/entrepreneurial-life-cycle; http://www.pbs.org/wgbh/amex/goldrush/peopleevents/p_brannan.html; http://www.baronyofvatavia.org/articles/medcul/demogrph0
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for-successful-entrepreneurships-in-the-digital-age; http://onvab.com/blog/crowdsourcing-facts-statistics-trends; http://www.internetretailer.com/2012/07/18/sales-ebay-jump-10; http://can.finance.yahoo.com/photos/
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