Kuratko CH 01 Instructor's Manual.pdf

PART I: Understanding the Entrepreneurial Mind-Set Chapter 1 - The Revolutionary Impact of Entrepreneurship Chapter 2 - The Individuals Entrepreneurial Mind-Set Chapter 3 - Corporate Entrepreneurial Mind-Set Chapter 4 - The Social and Ethical Perspectives of Entrepreneurship

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CHAPTER 1

THE REVOLUTIONARY IMPACT OF ENTREPRENEURSHIP

CHAPTER OUTLINE I. II. III. IV. V. VI.

VII.

VIII. IX.

X. XI.

Entrepreneurs—Challenging the Unknown Entrepreneurs/Small-Business Owners: A Distinction Entrepreneurship: A Mind-Set The Evolution of Entrepreneurship Avoiding Folklore: The Myths of Entrepreneurship Approaches to Entrepreneurship A. The schools of entrepreneurial thought B. The macro view 1. The environmental school of thought 2. The financial/capital school of thought 3. The displacement school of thought C. The micro view 1. The entrepreneurial trait school of thought 2. The venture opportunity school of thought 3. The strategic formulation school of thought D. Schools of entrepreneurial thought: A summary Process Approaches A. An integrative approach B. Entrepreneurial assessment approach Our Entrepreneurial Economy—The Environment for Entrepreneurship A. Predominance of new ventures in the economy The Age of the Gazelles A. Innovation B. Growth C. Survival D. Entrepreneurial firm’s impact 21st Century Trends in Entrepreneurship Research Key Concepts A. Entrepreneurship B. Entrepreneur C. Entrepreneurial management

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CHAPTER OBJECTIVES 1. 2. 3. 4. 5. 6. 7.

To examine the historical development of entrepreneurship To explore and debunk the myths of entrepreneurship To define and explore the major schools of entrepreneurial thought To explain the process approaches to the study of entrepreneurship To set forth a comprehensive definition of entrepreneurship To examine the Entrepreneurial Revolution taking place today To illustrate today’s entrepreneurial environment

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CHAPTER SUMMARY This opening chapter attempts to provide a broad perspective of the entrepreneurial evolution occurring throughout the U.S. and the world. Beginning with a discussion of entrepreneurs challenging the unknown like Olympic athletes, symphony conductors, or top gun pilots, the chapter presents the perspective of entrepreneurship as a force that has revolutionized business. Entrepreneurship is a mindset that anyone can develop regardless of the setting. The environment of entrepreneurship reflects a predominance of small firms and new ventures. Over the last few years, there has been a tremendous increase in new-venture activity. There are many statistics that illustrate this fact. For example, during the past ten years, new business incorporations averaged 600,000 per year. Approximately one new firm with employees is established every year for every 300 adults in the United States. As the typical new firm has at least two owner-managers, one of every 150 adults participates in the founding of a new firm each year. More specifically, one in 12 is involved in trying to launch a new firm. The net result is that the United States has a very robust level of firm creation. Among the 6 million establishments (single- and multi-site firms) with employees, approximately 600,000 to 800,000 are added each year. This translates into an annual birthrate of 14 to 16 per 100 existing establishments. This chapter also provides definitions of entrepreneurship and stresses the importance historically of entrepreneurship. It provides a basic understanding of the beginning and the modern economic definitions. To be a successful entrepreneur, an individual must be an independent thinker who is willing to take risks and to dare to be different. Personal initiative, ability to consolidate resources, management skills, and risk taking are just a few of the important qualities needed to be a successful entrepreneur. The chapter continues to define and discuss ten specific myths associated with entrepreneurship. The myths are presented to debunk misconceptions about entrepreneurship, and educate the reader to the true nature of entrepreneurship. An individual’s understanding may be increased by many approaches. Two specific approaches are “macro” and “micro” views. Within each view, there are three “schools of thought.” According to the chapter, the “schools of thought” are considered to be a foundation for entrepreneurship theory. Also, there are the process approaches: “integrative approach.” The integrative approach is built around the concept of input to the entrepreneurial process and outcomes from the entrepreneurial process, which can determine the entrepreneurial intensity. Entrepreneurial assessment approach involves quantitative, qualitative, strategic, and ethical assessments in regards to the entrepreneur, the venture, and the environment. Gazelles are firms that are growing rapidly, and are defined as generating sales growth of 20 percent per year for five years, with a $100,000 base. Gazelles can sometimes experience challenges that come with fast growth. Trends in entrepreneurship in the 21st century and discussion of the key factors of entrepreneurship, entrepreneur, and entrepreneurial management conclude the chapter.

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LECTURE NOTES THE REVOLUTIONARY IMPACT OF ENTREPRENEURSHIP I.

II.

III.

IV.

Entrepreneurs—Challenging the Unknown A. Individuals recognize opportunities where others see chaos or confusion. B. They are compared to Olympic athletes, symphony conductors, or top gun pilots. Entrepreneurs/Small Business Owners: A Distinction A. The terms entrepreneur and small business owner are used interchangeably, but there are differences. B. Small business owners are not dominant in their field and are not innovative. C. The objectives of entrepreneurial ventures are innovation, profitability, and growth. Entrepreneurship: A Mindset A. More than mere creation of business B. Special perspective that permeates individuals C. This mindset has revolutionized business throughout the country. The Evolution of Entrepreneurship A. Taken from the French “entre prendre,” means “to undertake” B. An entrepreneur is an innovator or developer who recognizes and seizes opportunities; converts those opportunities into workable/marketable ideas; adds value through time, effort, money, or skills; assumes the risks of the competitive marketplace to implement these ideas; and realizes the rewards from these efforts. C. Characteristics 1. Personal initiative 2. The ability to consolidate resources 3. Management skills 4. A tendency toward autonomy and risk taking 5. Competitive 6. Goal-oriented behavior 7. Aggressiveness 8. Ability to employ human relations skills D. Historical developments 1. No single definition of entrepreneur exists. 2. Recognition of entrepreneurs dates back to eighteenth-century France. 3. Until 1950, the majority of definitions and references came from economists. 4. Over the decade, writers have continued to modify the definition. 5. Robert C. Ronstadt said, “Entrepreneurship is the dynamic process of creating incremental wealth.” 6. In present day, the word entrepreneur has become closely linked with free enterprise and capitalism. 7. Entrepreneurs serve as agents for change, provide creative, innovative ideas for business enterprise, and help businesses grow and become profitable. 8. Entrepreneurs are considered heroes of free enterprise.

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9.

V.

Many people regard entrepreneurship as “pioneership” on the frontier of business. 10. Entrepreneurship is a dynamic process of vision, change, and creation. Avoiding Folklore: The Myths of Entrepreneurship A. Entrepreneurs are doers, not thinkers. 1. Entrepreneurs have a tendency toward action, but they are also thinkers. 2. Emphasis today is on the creation of clear and complete business plans. B. Entrepreneurs are born, not made. 1. Traits include aggressiveness, initiative, drive, a willingness to take risks, analytical ability, and skill in human relations. 2. Entrepreneurship has models, processes, and case studies that allow the traits to be acquired. C. Entrepreneurs are always inventors. 1. This is a result of misunderstanding and tunnel vision. 2. Many inventors or innovators are also entrepreneurs. 3. Numerous entrepreneurs encompass all sorts of innovative activities. D. Entrepreneurs are academic and social misfits. 1. This myth results from people who have started successful enterprises after dropping out of school or quitting a job. 2. Historically, education and social organizations did not recognize the entrepreneur. 3. The entrepreneur is now viewed as a professional. E. Entrepreneurs must fit the “profile.” 1. Many books and articles have presented checklists of characteristics of the successful entrepreneur. 2. The environment, the venture itself, and the entrepreneur have interactive effects, which result in many different profiles. F. All you need is money to be an entrepreneur. 1. Venture needs capital to survive. 2. A large number of business failures occur because of lack of adequate financing. 3. Failure due to lack of financing indicates other problems. a. Managerial incompetence b. Lack of financial understanding c. Poor investments d. Poor planning G. All you need is luck to be an entrepreneur. 1. Being in the right place at the right time is always an advantage. 2. “Luck” happens when preparation meets opportunity. 3. What appears to be luck could really be several factors. a. Preparation b. Determination c. Desire d. Knowledge e. Innovativeness H. Ignorance is bliss for an entrepreneur.

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1.

VI.

Key factors in successful entrepreneurship a. Identifying the strengths and weaknesses of a venture b. Setting up clear timetables with contingencies for handling problems c. Minimizing problems through careful strategy formulation 2. Careful planning is the mark of an accomplished entrepreneur. I. Most entrepreneurial initiatives fail. 1. Many entrepreneurs suffer a number of failures before they are successful. 2. Failure can teach many lessons to those willing to learn and often leads to future success. 3. The corridor principle states that with every venture launched, new and unintended opportunities often arise. 4. The “high failure rate” is misleading according to Bruce Kirchoff. Approaches to Entrepreneurship A. The schools of entrepreneurial thought 1. The macro view a. Presents a broad array of factors that relate to success or failure in contemporary entrepreneurial ventures. b. The macro view exhibits a strong external locus of control point of view. c. Three schools of entrepreneurial thought i. The environmental school of thought a. Deals with the external factors that affect a potential entrepreneur’s lifestyle b. Focuses on institutions, values, and morals c. Friends and family can influence the desire to become an entrepreneur. ii. The financial/capital school of thought a. Deals with the search for seed capital and growth capital b. Views the entire entrepreneurial venture from a financial management standpoint iii. The displacement school of thought a. Holds that the group hinders a person from advancing or eliminates certain factors needed to advance; the individual is projected into entrepreneurship in order to succeed. b. Frustrated individuals are often propelled into entrepreneurial pursuits. c. Three major types of displacement i. Political displacement: Deals with government’s policies and regulations ii. Cultural displacement: Deals with social groups precluded from professional fields

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iii.

2.

3.

Economic displacement: Deals with economic variations of recession and depression

The micro view a. Examines the factors that are specific to entrepreneurship b. The micro view exhibits an internal locus of control point of view. c. Three schools of thought i. The entrepreneurial trait school of thought a. The study of successful people who tend to exhibit similar characteristics that would increase successful opportunities b. Four factors usually exhibited by successful entrepreneurs i. Achievement ii. Creativity iii. Determination iv. Technological knowledge c. Deals with the family development idea i. Focuses on the nurturing and support that exists within the home atmosphere. ii. The venture opportunity school of thought a. The search for sources of ideas, the development of concepts, and the implementation of venture opportunities b. Views creativity and market awareness as essentials c. Deals with the ability to recognize new ideas and opportunities and to implement the necessary steps of action d. Preparation meeting opportunity equals “luck.” iii. The strategic formulation school of thought a. Emphasizes the planning process in successful venture development b. Four major factors in considering the strategic formulation i. Unique markets ii. Unique people iii. Unique products iv. Unique resources Summary of schools of entrepreneurial thought a. Knowledge and research available is in its embryonic stage b. The field of entrepreneurship uses a number of theories in its growth and development

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VII.

VIII.

IX.

Process Approaches A. The integrative approach 1. Focuses on and includes three factors: inputs, outputs, and entrepreneurial intensity a. Built around the concepts of inputs to the entrepreneurial process and outcomes from the entrepreneurial process b. Inputs include environmental opportunities, the individual entrepreneur, the business concept, the organizational context, and financial and nonfinancial resources c. Outputs include ventures, value creation, new products and processes, new technologies, profit, jobs, and economic growth d. Entrepreneurial intensity is the number of entrepreneurial events and how entrepreneurial the events are 2. Entrepreneurial assessment approach a. Focuses on the entrepreneur, the venture, and the environment b. Assessments are made qualitatively, quantitatively, strategically, and ethically c. Career stage—early, middle, or late—is considered Our Entrepreneurial Economy—The Environment for Entrepreneurship A. Predominance of new ventures in the economy i. During the last ten years, there were over 600,000 new business incorporations per year. ii. One of every 150 adults participates in the founding of a new firm each year. iii. One in 12 adults is involved in trying to launch a new firm. iv. The annual birthrate of new firms is 14 to 16 per 100 existing establishments. v. According to the Global Entrepreneurship Monitor (GEM), North America outranks the rest of the world in high expectations of entrepreneurial ability. vi. Entrepreneurs lead to economic growth. vii. The United States has a culture that supports risk taking and seeking opportunities. viii. The United States is a leader in entrepreneurship education at both undergraduate and graduate levels. ix. Americans are relatively alert to unexploited economic opportunity and have a relatively low fear of failure. x. Studies continue to show that entrepreneurship is important for individuals, firms, and entire nations. The Age of Gazelles A. New and smaller firms create the most jobs in the U.S. economy. B. Fastest growing firms are those with at least 20 percent sales growth every year for 5 years, starting with a base of at least $100,000. C. Innovation—gazelles are leaders in innovation with responsibility for 55 percent of innovations in 362 different industries.

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D.

X.

XI.

Growth—during the last 10 years business incorporations have averaged more than 600,000. E. Survival—about half of all start-ups last between five and seven years, depending on economic conditions. F. Entrepreneurial firms’ impact—the United States has achieved its highest economic performance during the last ten years by fostering and promoting entrepreneurial activity. i. Large firms that existed in mature industries have adapted, downsized, restructured, and reinvented themselves. ii. While large companies have been transforming themselves, new entrepreneurial companies have been blossoming. iii. Thousands of smaller firms have been founded, including many established by women, minorities, and immigrants. G. Entrepreneurial firms make two indispensable contributions to the U.S. economy. i. They are an integral part of the renewal process. ii. Entrepreneurial firms are the essential mechanism by which millions enter the economic and social mainstream of America. 21st Century Trends in Entrepreneurship Research A. Venture financing—venture capital, angel investors, and innovative financing techniques B. Corporate entrepreneurship—entrepreneurial actions within large organizations C. Social entrepreneurship D. Entrepreneurial cognition—the psychological aspects of the entrepreneurial process E. Women and minority entrepreneurs F. The global entrepreneurial movement G. Family businesses H. Entrepreneurial education—the number of schools teaching a course in entrepreneurship has grown from two dozen 20 years ago to more than 1600 at this time. Key Concepts A. Entrepreneurship—a dynamic process of vision, change, and creation requiring an application of energy and passion toward the creation of and implementation of new ideas and creative solutions. B. Entrepreneur—an innovator or developer who recognizes and seizes opportunities; converts those opportunities into workable/marketable ideas; adds value through time, effort, money, or skills; and assumes the risks of the competitive marketplace to implement these ideas. C. Entrepreneurial management—an entrepreneur can exist in an existing large institution or can be an individual starting his or her own new venture singlehandedly.

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SUGGESTED ANSWERS FOR DISCUSSION QUESTIONS (END-OF-CHAPTER) 1. Briefly describe the evolution of the term entrepreneurship. The word “entrepreneur” is derived from the French entreprendre, meaning “to undertake.” No single definition of the word exists at present. The recognition of entrepreneurs dates back to eighteenth-century France when economist Richard Cantillon associated the “risk bearing” activity in the economy with the entrepreneur. In England during the same period, the Industrial Revolution was evolving, with the entrepreneur playing a visible role in risk taking and the transformation of resources. Until the 1950s, the majority of definitions and references to entrepreneurship had come from economists. In the twentieth century, the word became synonymous or at least closely linked with free enterprise and capitalism. In the twenty-first century, entrepreneurs are now considered the heroes of free enterprise. 2. What are the ten myths associated with entrepreneurship? Debunk each. (1) Entrepreneurs are doers, not thinkers. They are often very methodical people who plan their moves carefully. Today the emphasis is on the creation of clear, complete business plans. (2) Entrepreneurs are born, not made. The recognition of entrepreneurship as a discipline has helped to dispel this myth. Like all disciplines, entrepreneurship has models, processes, and case studies that allow the topic to be studied and the traits acquired. (3) Entrepreneurs are always inventors. There are numerous entrepreneurs who encompass all sorts of profit-seeking activity. For example, Ray Kroc did not invent the fast-food franchise, but his innovative ideas made McDonald’s the largest fast-food enterprise in the world. (4) Entrepreneurs are academic and social misfits. Today the entrepreneur is considered a hero—socially, economically, and academically. No longer a misfit, the entrepreneur is now viewed as a professional. (5) Entrepreneurs must fit the “profile.” Many books and articles have presented checklists of characteristics of the successful entrepreneur. These lists were neither validated nor complete. Today we realize that a standard entrepreneurial profile is hard to compile. The environment, the venture itself, and the entrepreneur have interactive effects, which result in many different types of profiles. (6) All entrepreneurs need is money. Having money is not a bulwark against failure. Failure due to a lack of proper financing is often an indicator of other problems. (7) All entrepreneurs need is luck. “Luck happens when preparation meets opportunity” is an equally appropriate adage. Prepared entrepreneurs who seize the opportunity when it arises often appear to be lucky. (8) Entrepreneurship is unstructured and chaotic. There is a tendency to think of entrepreneurs as gunslingers—as people who shoot from the hip and ask questions later. They are assumed to be disorganized and unstructured. The reality is that they are typically well-organized, in order to get done all the duties and responsibilities inherent in building and running a business.

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(9)

Most entrepreneurial initiatives fail. It is true that many entrepreneurs suffer a number of failures before they are successful. They follow the adage “If at first you don’t succeed, try, try again.” In fact, failure can teach many lessons to those willing to learn and often leads to future successes. (10) Entrepreneurs are extreme risk takers…the gamblers! The concept of risk is a major element in the entrepreneurship process. However, public’s perception of the risk assumed by most entrepreneurs is distorted. While it may appear that an entrepreneur is gambling on a wild chance, the fact is that the entrepreneur is usually working on a moderate or “calculated” risk. 3. What is the macro view of entrepreneurship? The macro view of entrepreneurship presents a broad array of factors that relate to success or failure in contemporary entrepreneurial ventures. This array includes external processes that are sometimes beyond the individual’s control. 4. What are the schools of thought that use the macro view of entrepreneurship? The environment school of thought, the financial/capital school of thought, and the displacement school of thought. 5. What is the micro view of entrepreneurship? The micro view of entrepreneurship examines the factors that are specific to entrepreneurship and part of the “internal” locus of control. 6. What are the schools of thought that use the micro view of entrepreneurship? The entrepreneurial trait school of thought, the venture opportunity school of thought, and the strategic formulation school of thought. 7. What are the three specific types of displacement? Political displacement, cultural displacement, and economic displacement. 8. In the strategy formulation school of thought, what are the four types of strategies involved with unique elements? Give an example of each. (1) Unique markets—example: College campus businesses would tend to market products college people want and need. (2) Unique people—example: If you were going to open a car repair shop, you need to know how to repair cars. (3) Unique products—example: Coke differs from Pepsi. (4) Unique resources—example: Middle-easterners have the ability to produce more oil products. 9. What is the process approach to entrepreneurship? In your answer describe the entrepreneurial assessment approach. The process approach to entrepreneurship is a way to examine the activities involved in entrepreneurship by using either an “entrepreneurial assessment” approach or a “multidimensional approach.” Both of these methods attempt to describe the entrepreneurial process as a consolidation of diverse factors. The entrepreneurial assessment focuses on the process of entrepreneurial activity and includes the following factors: (1) the entrepreneur; (2) the venture; and (3) the environment. All of these factors are assessed quantitatively, qualitatively, strategically, and ethically. 10. Describe the predominance of new ventures in the economy. During the past ten years there were over 600,000 new business incorporations per year. Ninety-nine percent of U.S. businesses can be considered small. The smallest of our

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enterprises have created a steady sample of net new jobs. More than half of all businesses employ fewer than 5 people. More significantly, almost 90 percent of firms employ fewer than 20 people. 11. How have most net new jobs been created in the economy? Small entrepreneurial firms have created the most net new jobs in the U.S. economy. In addition, the smallest of our enterprises have created a steady supply of net new jobs over the business cycle. It is important to realize that, historically, employment growth in the United States is correlated directly with new-business growth. This fact has been traced back to 1960, demonstrating that new-business formations are the critical foundations for any net increase in U.S. employment. Thus, our employment growth and industry expansions are closely tied to new-venture development. 12. Define a gazelle and discuss its importance. A gazelle is a fast growing firm with at least 20 percent sales growth every year for 5 years, starting with a base of $100,000. Despite the continual downsizing in major corporations, the gazelles provided 5 million new jobs and brought the net employment growth to 42 million jobs.

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TEACHING NOTES FOR END-OF-CHAPTER EXERCISE EXPERIENTIAL EXERCISE: UNDERSTANDING YOUR BELIEFS ABOUT SUCCESSFUL ENTREPRENEURS In this exercise, students are given a list of 10 statements and asked to respond from 1 to 10 on how much they agree with it. They then put their scores in a table, using a scoring system in which some answers are placed directly into the given space while others are subtracted from 11 and put into the given space. The scores in the spaces are then added up and compared to a scoring key. The exercise measures how much the student believes the myths of entrepreneurship. The higher the score, the more the student understands the facts about entrepreneurs. The lower the score, the more the student needs to review material from the chapter.

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TEACHING NOTE FOR END-OF-CHAPTER CASE CASE 1.1: GAZELLE…OR TURTLE? 1. Is Summit Software a gazelle? Support your answer. Yes, Summit Software would be considered a gazelle, since the definition is a business establishment with at least 20 percent sales growth every year over a 5 year period starting with a base of $100,000. 2. What problems may Jim face owning such a fast-growing business? Survival may be Jim’s biggest challenge. Firms can grow too fast and fail from not being able to cope with the growth. Jim is struggling with how to handle the administrative duties simultaneously with generating new accounts. He may need to hire more employees to meet these challenges. 3. Are gazelles more important to the economy than traditional growth businesses? Why or why not? Despite downsizing in major corporations in the 1990s, gazelles produced 5 million jobs and brought the net employment to 4.2 million jobs. More recently, these gazelles (which currently number about 358,000, or 4 percent of all ongoing companies) generated practically as many jobs (10.7 million) as the entire U.S. economy (11.1 million) during the same period. Their extraordinary performance and contribution warrants their recognition. Research shows that they have been leaders in innovation, growth, and survival.

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SMALL BUSINESS AND ENTREPRNEURIAL RESOURCE CENTER Sources: Question 1: Seize the Day Award Honors Cudahy: He's Cited for His Entrepreneurial Spirit. Milwaukee Journal Sentinel (Milwaukee, WI) June 4, 2008 pNA Question 2: Entrepreneurs in Contest Range from Gen Y-ers to Elders.(Business) Jennifer Heldt Powell, The Boston Herald , 0738-5854, Jan 19, 2008 p021 Questions: 1. What is the “Seize the Day Award”? Why did Michael Cudahy receive this award? Would you agree with their decision? A. The “Seize the Day Award” is an entrepreneur award that honors entrepreneurs with vision, courage, adaptability, persistence and resourcefulness. Michael Cudahy received the award for 2008 because "Michael Cudahy is one of the fathers of Milwaukee's tech-based economy," according to Tom Still, chairman of the Wisconsin Technology Council, which organizes the event. Cudahy has smuggled women into military bases in the trunk of his car, fashioned an explosive cigarette that blew up in the face of a Polish general, tinkered with ham radios in their infancy, pioneered the idea of putting background music in planes, and, most importantly, grown an upstart medical devices company (Marquette) into a $578 million business that sold in 1998 for $810 million. Since selling Marquette to GE Healthcare in 1998, Cudahy has continued his entrepreneurial ways with investments in high-growth companies and philanthropy. Cudahy's Endeavors Group LLC put $10 million into Madison-based TomoTherapy in its early years and, following the company's May 2007 initial public offering, owned a 10% interest that was worth more than $100 million last fall, according to SEC filings. He recently pledged an unspecified amount to help the University of Wisconsin-Milwaukee buy land for a new engineering campus and research park in Wauwatosa, and donated $32.4 million to Discovery World. "He's embodied success as an entrepreneur, and he's giving back every direction to Sunday here in the community," said Greg Meier, chief executive of Lansare Corp. in Wauwatosa and a member of the steering committee for the entrepreneurs' conference, which chooses the winner of the award. Cudahy's storied business career is well documented in his 2002 book, "Joyworks," and the memories of former employees

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2. What does this article project as the future for entrepreneurship? Do you agree with this assessment? A. The economy is going to be driven by entrepreneurship over the next decade as people increasingly shun the corporate world to follow their dreams. It will be a much more diverse picture as technology makes it easier than ever to launch a business. These new entrepreneurs are retiring baby boomers, independent-minded Gen-Yers and women gaining confidence in the workplace, according to a 10-year outlook on entrepreneurship compiled by QuickBooks maker Intuit. Intuit hosted a contest for entrepreneurs. "The 1,500 people that entered the `Just Start' contest ran the spectrum of stay-at-home moms looking to start their own businesses, Gen Yers looking for an alternative to the corporate world and baby boomers who wanted a second career," said Brian Dennehy, Intuit's vice president of marketing, small business division. Women increasingly see entrepreneurship as a way to find more flexibility and to move ahead more quickly. While women make up more than 46 percent of the labor force, they are under-represented at the top levels. It will be another 40 years before women have equal access to key positions in large corporations, according to Catalyst, a nonprofit group working to promote women in the workplace. For baby boomers, entrepreneurship is a way to keep working after retirement, only on their own terms. Some boomers find themselves prematurely retired due to corporate downsizing. Others want to use the years of experience they've accumulated. At the other end of the age spectrum is Generation Y. This group appears to be more entrepreneurial, in part because of attitude. They tend to be distrustful of governments, large organizations, and the elite. They also have a different skill set, being the first generation to have grown up in the digital age. Regardless of the demographic trends, whether individuals start small businesses will depend largely on the economy, said Patricia Greene, Babson College provost. If the economy does well, those starting small businesses will be people looking for lifestyle changes and those following their passion. "When the economy is bad, people do it as a survival mechanism, but it's a different set of people," she said.

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