New Venture Creation: Entrepreneurship for the 21st Century, 7/e
Jeffry A. Timmons,
Babson College Stephen Spinelli,
Babson College
ISBN: 0073102792 Copyright year: 2007
About the Authors
Jeffry A. Timmons
Franklin W. Olin Distinguished Professor of Entrepreneurship
and director, Price-Babson College
Fellows Program at Babson College.
AB, Colgate University; MBA, DBA, Harvard University
Graduate School of Business.
Since the late 1960s, Jeffry A. Timmons has been
one of the pioneers in the development of entrepreneurship
education and research in America. He is
recognized as a leading authority internationally for
his research, innovative curriculum development,
and teaching in entrepreneurship, new ventures,
entrepreneurial finance, and venture capital. Babson
College is recognized as a world leader in entrepreneurship
education. U. S. News and World Report
has ranked the F. W. Olin Graduate School of Business
the number one school in entrepreneurship 12
years in a row, Success magazine rated Babson the
number one school for entrepreneurs, and the
Financial Times ranked Babson number one in entrepreneurship
in the world in 2001.
Professor Timmons is somewhat of an academic
heretic--having resigned tenure twice, as well as resigning
two endowed chairs. In 1994, he resigned the
Harvard endowed professorship he had held since
1989 to return to Babson College, which he had
joined in 1982, and in 1995 was named the first
Franklin W. Olin Distinguished Professor of Entrepreneurship.
Earlier he had been the first to hold the
Paul T. Babson Professorship for two years and, subsequently,
became the first named to the Frederic C.
Hamilton Professorship in Free Enterprise Studies,
from which he resigned in 1989 to accept the
Harvard chair. Earlier at Northeastern University in
1973, he launched what is believed to be the first undergraduate
major in new ventures and entrepreneurship
in the country, and later created and led the
Executive MBA program. Both of these programs exist
today. BusinessWeek's 1995 Guide to Graduate
Business Schools rated Timmons as the "best bet"
and among the top 10 professors at Harvard Business
School. A September 1995 Success magazine feature
article called him "one of the two most powerful
minds in entrepreneurship in the nation." Michie P.
Slaughter, former president of the Kauffman Center
for Entrepreneurial Leadership at the Ewing Marion
Kauffman Foundation, calls him "the premier entrepreneurship
educator in America." Before her death
in January 2001, Gloria Appel, as president of the
Price Institute for Entrepreneurial Studies, noted,
"He has done more to advance entrepreneurship
education than any other educator in America." In
1995, the Price Institute and Babson College faculty
and friends chose to honor Dr. Timmons by endowing
The Jeffry A. Timmons Professorship in recognition
of his contributions to Babson and to the field.
In 1985, he designed and launched the Price-
Babson College Fellows Program, aimed at improving
teaching and research by teaming highly successful entrepreneurs
with experienced faculty. This unique initiative
was in response to a need to create a mechanism
enabling colleges and universities to attract and support
entrepreneurship educators and entrepreneurs
with "an itch to teach". There is now a core group of
over 1,100 entrepreneurship educators and entrepreneurs
from approximately 300 colleges and universities
in the United States and 32 foreign countries, who
are alumni of the Price-Babson College Fellows Program.
In May 1995, INC. magazine's "Who's Who"
special edition on entrepreneurship called him "the
Johnny Appleseed of entrepreneurship education"
and concluded that this program had "changed the terrain
of entrepreneurship education." The program was
the winner of two national awards, has been replicated
outside the United States, and has now been expanded
to PriceBabson at Berkeley. In 1998, Dr. Timmons
led an initiative now funded by the Kauffman Center
for Entrepreneurial Leadership to create Lifelong
Learning for Entrepreneurship Education Professionals
(LLEEP), which in addition to Price-Babsonat Berkeley offers a series of training clinics for
entrepreneurship educators. With the Price Babson
College Fellow Program's Symposium for Entrepreneurship
Educators (SEE) as its flagship program,
LLEEP now has as its partners leading faculty members
from Stanford University, University of California
at Berkeley, University of Colorado at Boulder,
Syracuse University, Umass Online, and Rensselaer
Polytechnic Institute.
In 2003 Dr. Timmons worked with Professor Steve
Spinelli to conceive a sister program to the SEE program
that would be available for engineering schools
with an interest in entrepreneurship. They partnered
with colleagues at the new Olin College of Engineering
on the Babson campus--President Rick Miller,
Provost David Kerns, Dean Michael Moody, and Professors
John Bourne, Ben Linder, Heidi Neck, and
Stephen Schiffman--to win a three-year National Science
Foundation grant to design, develop, and deliver
such a program. The first pilot was done is June 2005
with significant success, and will now be offered on
the Babson/Olin Campus in 2006 and 2007.
During the past decades, Dr. Timmons has helped
launch several new initiatives at Babson, including
the Babson-Kauffman Entrepreneurship Research
Conference, the Kauffman Foundation/CEL Challenge
Grant, the Price Challenge Grant, business
plan competitions, and a president's seminar. In 1997
he led an initiative to create the first need-based fulltuition
scholarship for MBA students with a $900,000
matching grant from the Price Institute for Entrepreneurial
Studies. Each year one of the recipients of
this Price-Babson Alumni Scholarship is named the
Gloria Appel Memorial Scholar in honor of this longtime
benefactor, colleague, and friend. In addition to
teaching, Professor Timmons devotes a major portion
of his efforts at Babson to the Price-Babson programs
and to joint initiatives funded by the Kauffman Center
for Entrepreneurial Leadership and Babson, including
new research and curriculum development activities.
He has provided leadership in developing and teaching
in initiatives that assist Native Americans seeking
economic self-determination and community development
most notably through entrepreneurship education
programs at the nation's several Tribal Colleges.
In April 2001, Professor Timmons was recognized for
these efforts in a citation voted by the legislature of
the State of Oklahoma naming him Ambassador for
Entrepreneurship. Currently he is helping replicate
these efforts for other minority communities, most
notably an initiative to support the development of a
consortium of entrepreneurship education programs
at the historically black colleges.
Since 1999, he has served as special advisor to the
National Commission on Entrepreneurship. The
work of the commission culminated in a national
conference held in April 2001 that was jointly sponsored
by the John F. Kennedy School of Government
at Harvard University, the National Commission of
Entrepreneurship, and the Kauffman Center for Entrepreneurial
Leadership. Professor Timmons served
as a lead moderator at conference sessions.
A prolific researcher and writer, he has written
nine books, including this textbook first published in
1974. New Venture Creation has been rated by INC.,
Success, and The Wall Street Journal as a "classic" in
entrepreneurship, and has been translated into both
Japanese and Chinese. In 1996 and 1998, INC. featured
the book's fourth edition as one of the top eight
"must read" books for entrepreneurs. Venture Capital
at the Crossroads written with Babson colleague
William Bygrave (1992) is considered the seminal
work on the venture capital industry and is also translated
into Japanese. Earlier, Dr. Timmons wrote The
Entrepreneurial Mind (1989), New Business Opportunities
(1990), The Insider's Guide to Small Business
Resources (1984), The Encyclopedia of Small Business
Resources (1984), and his contributed chapters
to other books including The Portable MBA in Entrepreneurship
(1994, 1997, 2003). More recently, he
has co-authored How to Raise Capital, with Babson
Professor Andrew Zacharakis (2005), and Business
Plans That Work, with Steve Spinelli (2004). Timmons
has authored over 100 articles and papers,
which have appeared in numerous leading publications,
such as Harvard Business Review and Journal
of Business Venturing, along with numerous teaching
case studies. In 1995, he began to develop a new audiotape
series on entrepreneurship, working with
Sam Tyler, producer of the In Search of Excellence
series for PBS with Tom Peters. He has also appeared
in the national media in the United States and numerous
other countries and has been quoted in INC.,
Success, The Wall Street Journal, The New York
Times, Los Angeles Times, BusinessWeek, Working
Woman, Money, USA Today, and has had feature articles
written about him in The Rolling Stone (1997),
The Boston Globe (1997), and Success (1994).
Dr. Timmons has earned a reputation for "practicing
what he teaches." One former graduate and software
entrepreneur interviewed for the Rolling Stone
article put it succinctly: "When going to his classes I
couldn't wait to get there; and when I got there I didn't
ever want to leave!" For over 35 years he has been
immersed in the world of entrepreneurship as an investor,
director, and/or advisor in private companies
and investment funds including Cellular One in
Boston, New Hampshire, and Maine; the Boston
Communications Group; BCI Advisors, Inc.; Spectrum
Equity Investors; Internet Securities, Inc.;
Chase Capital Partners; Color Kinetics, Inc.; and
others. He also served since 1991 as founding
member of the board of directors of the Kauffman
Center for Entrepreneurial Leadership at the Ewing
Marion Kauffman Foundation. For the next 10 years
he served as a special advisor to the president and
board of directors of the Kauffman Center, where he
conceived of the Kauffman Fellows Program and
served as its dean of faculty. In 2003 he worked
closely with the president and alumni of the Kauffman
Fellows Program to successfully spin the program
out of the Kauffman Foundation into an independent
entity as the Center for Venture Management, and
continues as dean, chairman of the Educational
Advisory Committee, and on the board of directors.
The aim of this innovative program is to create for
aspiring venture capitalists and entrepreneurs what
the Rhodes scholarship and White House Fellows
programs are to politics and public affairs. In 2001,
Dr. Timmons joined the President's Council at the
newly formed Franklin W. Olin College of Engineering.
In 1994 and 1996, he served as a national judge
for the Ernst & Young Entrepreneur of the Year
Awards.
Dr. Timmons received his MBA and DBA from
Harvard Business School, where he was a National
Defense Education Act fellow, and is a graduate of
Colgate University, where he was a Scott Paper Foundation
Scholar. He served as a trustee of Colgate from
1991 to 2000. He lives on his 500+ acre farm in New
Hampshire with his wife of 40 years, Sara, and winters
at Brays Island Plantation near Savannah, Georgia.
He enjoys the outdoors: fly-fishing, hunting with his
Elhew pointer Breeze, and golf. He is one of the
founders of the Wapack Highlands Greenway Initiative
in New Hampshire, is active in the Henry's Fork
Foundation and Wildlife Conservation Trust of New
Hampshire, and serves as a director of Timber Owners
of New England. He is a member of numerous
other wildlife and nature organizations, including The
Monadnock Conservancy, The Harris Center, The
Nature Conservancy, The Moosehead Region Futures
Committee, Atlantic Salmon Federation, and
Ruffed Grouse Society.
Stephen Spinelli, Jr.
Director, Arthur M. Blank Center for Entrepreneurship,
and chairman, Entrepreneurship Division
at Babson College.
Vice provost for Entrepreneurship and Global
Management at Babson College.
Paul T. Babson Chair in Entrepreneurship at Babson
College.
Alan Lewis Chair in Global Management.
B.A., McDaniel College (formerly Western Maryland
College); MBA, Babson Graduate School of
Business; and PhD (Economics), Imperial College,
University of London.
The majority of Dr. Spinelli's professional experience
has been in entrepreneurship. He was a founding
shareholder, director, and manager of Jiffy Lube
International. He was also founder, chairman, and
CEO of American Oil Change Corporation. In 1991,
he completed a sale of Jiffy Lube to Pennzoil Company.
Although Dr. Spinelli now heads the Entrepreneurship
Division at Babson and teaches full-time, he
has not abandoned his business roots. He continues to
consult with regional, national, and international companies;
serves as a director at several corporations including
Keystone Automotive, Tencorp, Inc., and
Alco Equipment; and participates as an angel investor
with investments in more than a dozen start-ups.
Dr. Spinelli is the quintessential "pracademic"--a
business practitioner turned academic. Having successfully
harvested Jiffy Lube, Dr. Spinelli was invited
to attend the Price Babson College Fellows Program
and his career in academia was launched. After several
years of part-time teaching, he joined the ranks of fulltime
faculty after receiving his PhD in October 1995
from the University of London. Dr. Spinelli's expertise
is in start-up and growth management. His research
has focused on an understanding of strategic entrepreneurial
relationships. He is the author of more than
two dozen journal articles, book chapters, academic
papers, and teaching case studies. He is also the author
of Franchising: Pathway to Entrepreneurship (Prentice-
Hall; 2003). His latest book, Never Bet the Farm,
is co-authored with Anthony Iaquinto. A superb educator,
he is now a key member of the faculty of the
Price Babson College Fellows Program's Symposium
for Entrepreneurship Educators, in addition to his
teaching in the undergraduate, graduate, and executive
education programs, and is a shining example of the
many contributions that entrepreneurs can make to an
academic institution. In 2003 Dr. Spinelli founded the
Babson-Historically Black Colleges and Universities
case writing consortium. This group is dedicated to
writing entrepreneurship teaching cases focused on
African-American entrepreneurs.
In 1998–1999, the Arthur M. Blank Center for
Entrepreneurship began a national search for a
Dr. Spinelli proved the best candidate by far, and he
now leads Babson College's Entrepreneurship Division
(perhaps the first such autonomous academic
division in the country) as well as the center, a 16,000-
square-foot building, which houses the largest dedicated
entrepreneurship faculty in the world, as well
as numerous research and outreach programs. The
center includes hatchery space for student entrepreneurs,
teleconferencing facilities, and a resource/
archival space for visiting research scholars. He is a
leading force in curriculum innovation at Babson
and, with his colleagues in the Entrepreneurship
Division, continually defines and delivers new initiavitives. In 1999, he led the design and implementation
of an entrepreneurship intensity track for MBAs
seeking to launch new business ventures upon graduation.
Building on this highly successful initiative, he
led the design and development of ACE, an accelerated
honors curriculum for aspiring entrepreneurs in
Babson's undergraduate program. Dr. Spinelli's presentation
to the United States Association for Small Business
and Entrepreneurship (USASBE) resulted in
the naming of the F. W. Olin Graduate School of
Business as the 2002 National Model MBA program.
Babson currently offers 15 undergraduate courses in
entrepreneurship and 20 courses at the graduate level.
Dr. Spinelli has been a strong voice for entrepreneurship
outside the Babson community as well. He
has been a keynote speaker for Advent International's
CEO Conference, the MCAA National Convention,
and Allied Domecq International's Retailing Conference;
has been called to testify before the U.S. Senate
Subcommittee on Small Business and Entrepreneurship;
and is often quoted as an expert in the field
in such leading publications as The Wall Street Journal,
Forbes, Financial Times, and INC.
Dr. Spinelli continues to give back to his community,
especially in his boyhood hometown of Springfield,
Massachusetts. He and his wife, Carol, maintain
their home in western Massachusetts. He is the
current chairman of Western Massachusetts Entrepreneurship
Consortium (and EntreNet.com), a notfor-
profit consortium of organizations seeking to advance
entrepreneurship in western Massachusetts.
He also serves as a director for several local, regional,
and national not-for-profits or community-based associations,
including the National Foundation for
Teaching Entrepreneurship (NFTE), Visiting Nurses
Association of Western Massachusetts, and UNICO
International.
Jeffry A. Timmonstimmons@babson.edu Stephen Spinelli, Jr.spinelli@babson.edu
Arthur M. Blank Center for Entrepreneurship
Babson College
Babson Park, MA 02457 USA
781-239-4420
781-239-4178 (fax) www.babson.edu/entrep
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