Starting and operating a new business involves considerable risk and effort to overcome the inertia against creating something new. In creating and growing a new venture, the entrepreneur assumes the responsibility and risks for its development and survival and enjoys the corresponding rewards. The fact that consumers, businesspeople, and government officials are interested in entrepreneurship is evident from the increasing research on the subject, the large number of college courses and seminars on the topic, the more than two million new enterprises started each year (despite a 70 percent failure rate), the significant coverage and focus by the media, and the realization that this is an important topic for industrialized, developing, and once-controlled economies.

Who is the focus of all this attention—who is willing to accept all the risks and put forth the effort necessary to create a new venture? It may be a man or a woman, someone from an upper-class or lower-class background, a technologist or someone lacking technologic sophistication, a college graduate or a high school dropout. The person may be an inventor, manager, nurse, salesperson, engineer, student, teacher, homemaker, or retiree. It is someone able to juggle work, family, and civic responsibilities while meeting payroll.

To provide an understanding of this person and the process of creating and growing a new venture, this eighth edition of Entrepreneurship is divided into five major sections.

Part 1—The Entrepreneurial Perspective introduces the entrepreneur and the entrepreneurial process from both a historical and a research perspective. The role and nature of entrepreneurship as a mechanism for creating new ventures and affecting economic development are presented, along with career aspects and the future direction of entrepreneurship. The characteristics and background of entrepreneurs are discussed, as well as some methods for individual self-assessment. Following the presentation of corporate entrepreneurship, this part concludes with a discussion of strategies for generating and exploiting new entries.

Part 2—From Idea to Opportunity focuses on the aspects of creativity and innovation and all the elements in the entrepreneurial process that are a part of creating the new venture. The various sources of ideas as well as trends occurring through this decade are discussed. Specific attention is also paid to various creative problem solving technologies identifying domestic and international opportunities, and creating an opportunity analysis plan. The chapter concludes with a discussion of protecting the idea developed as well as other legal concerns in forming and launching the venture.

Part 3—From Opportunity to the Business Plan focuses on the all-important business plan. First, the overall business plan and its various aspects are presented. Then, a chapter is devoted to each of the major components of the business plan: the marketing plan, the financial plan, and the organizational plan.

Part 4—From the Business Plan to Funding focuses on one of the most difficult aspects of creating and establishing a new venture—raising capital. First the aspects of debt versus equity and internal versus external funding are discussed. After a discussion of the alternative sources of capital (self, family, and friends, suppliers and trade credit, government grants and programs, private placements, and commercial banks), specific attention is given to three financing mechanisms: informal risk capital, venture capital, and going public.

Part 5—From Funding to Launching, Growing, and Ending the New Venture presents material related to establishing, developing, and ending the venture. Particular attention is paid to developing an entrepreneurial strategy, establishing strategies for growth, managing the new venture during growth, early operations, expansion, and accessing external resources for growth. Managerial skills that are important to the successful performance and growth of a new venture are included in this section. This part also addresses methods for ending the venture. Specific topics examined include mergers and acquisitions, franchising, joint ventures, and human and financial resources needed for growth.
To make Entrepreneurship as meaningful as possible, each chapter begins with chapter objectives and a profile of an entrepreneur whose career is especially relevant to the chapter material. Numerous examples occur throughout each chapter along with important Web sites to assist the reader in getting started. Articles and ethics boxes are also included in this eighth edition. Each chapter concludes with research tasks, class discussion questions, and selected readings for further information. Cases are now grouped together after the last chapter in the book, as Part 6.
Many people—students, business executives, entrepreneurs, professors, and publishing staff—have made this book possible. Of great assistance were the detailed and thoughtful comments of our reviewers: Melissa Baucus, University of Louisville; Alan Flury, Georgia Institute of Technology; Lee Grubb, East Carolina University; Brian Hanlon, North Central College; Matt Rutherford, Virginia Commonwealth University; Richard Smith, Iowa State University; Gregory Stoller, Boston College.
Special thanks are given to Carol Pacelli for preparing the manuscript so competently and to Stephanie Arthur, Falyne Chave, Anetta Hunek, and Sarah Liggett for providing research material, editorial assistance, and case development for this edition. Also thanks to our editors Laura Hurst Spell, sponsoring editor, and Jane Beck, editorial assistant.
We are deeply indebted to our spouses, Tina, Debbie, and Suzie, whose support and understanding helped bring this effort to fruition. It is to future entrepreneurs—our children Kary, Katy, Kelly, Christa, Kimberly, Jack, and Meg and grandchildren Rachel, Andrew and Jack—and the generation they represent—that this book is particularly dedicated. May you always beg forgiveness rather than ask permission.

Robert D. Hisrich

Michael P. Peters

Dean A. Shepherd