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  • 1.  Another crazy question?

    Posted 07-10-2007 14:46
    "Why don't entrepreneurship majors rush out & start businesses? Or do
    they? Or.... *Should* they??"

    Has anyone reviewed the literature on any of these questions?

    Do we have a sense of the rate of formation by ENT students:
    a) upon graduation?
    b) while still in school?
    c) after a time lag (IIRC, Harvard & UWO did studies suggesting ~10 year lag)

    Heck, do any of you know (or did) a great study on this question?

    TIA - I have a friend who's getting beat up because his ENT students
    aren't all rushing out to launch businesses. How else might this
    professor sell the impact of his program? (I suggested, of course.
    measuring cognitive changes, LOL - but I suspect there are better
    options!)

    As always, I will post the full list of items sent me!

    Cheers,
    Norris

    --
    Norris Krueger, Jr., Ph.D.
    Teams / Entrepreneurship Northwest
    "How can I help you to help grow entrepreneurs?"
    (208) 440-3747
    skype: norris.krueger

    "I criticize by creation, not by finding fault" -Cicero

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    Ventures HO!


  • 2.  Another crazy question?

    Posted 07-11-2007 13:06
    Norris,

    These are great questions. Measuring the dependent variable in entrepreneurship has always been problematic. I suggest that it should be new wealth creation, not start-ups, which are discontinued 54% of the time after 4 years. This is the average rate of discontinuance reported by the Department of Labor across industries, regardless of the entrepreneur's experience. So with regard to your friend's dilemma, it is easy to see that this problem is not his alone, but it affects all that we do as educators.

    You may find the following paper interesting in this regard:

    Fiet, J.O. & Patel, P. 2006. Evaluating the wealth creating potential of business plans. Journal of Private Equity. 10 (1) 18-32.

    Further, I have organized a symposium for the Academy meeting with a series of presentations on what I refer to as "prescriptive entrepreneurship." Not only do these sessions suggest how to measure new wealth creation, but they also report on a series of studies with pedagogical implications. These studies are interesting because they do no merely attempt to describe what entrepreneurs do--instead, they test theoretically derived relationships that can inform entrepreneurial behavior, and more importantly, can be taught to students. The goal of these presentations is to improve the rate of new wealth creation leading to more successful exploitation, which can be tested, perhaps to convince skeptical administrators.

    Thus, in my view, and in the view of my colleagues at the University of Louisville, students can be taught to launch new ventures and to do it in a way that improves their odds of success. If you are interested in these topics, I hope you will plan on attending this symposium on prescriptive entrepreneurship. Check the program for the date, time and place.

    Best wishes,

    Jim Fiet

    >>> Norris Krueger <norris.krueger@GMAIL.COM> 7/10/2007 2:45 PM >>>
    "Why don't entrepreneurship majors rush out & start businesses? Or do
    they? Or.... *Should* they??"

    Has anyone reviewed the literature on any of these questions?

    Do we have a sense of the rate of formation by ENT students:
    a) upon graduation?
    b) while still in school?
    c) after a time lag (IIRC, Harvard & UWO did studies suggesting ~10 year lag)

    Heck, do any of you know (or did) a great study on this question?

    TIA - I have a friend who's getting beat up because his ENT students
    aren't all rushing out to launch businesses. How else might this
    professor sell the impact of his program? (I suggested, of course.
    measuring cognitive changes, LOL - but I suspect there are better
    options!)

    As always, I will post the full list of items sent me!

    Cheers,
    Norris

    --
    Norris Krueger, Jr., Ph.D.
    Teams / Entrepreneurship Northwest
    "How can I help you to help grow entrepreneurs?"
    (208) 440-3747
    skype: norris.krueger

    "I criticize by creation, not by finding fault" -Cicero

    **************************************
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    Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list.

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    http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1

    If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu.

    Ventures HO!

    **************************************
    This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management.

    Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list.

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    If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu.

    Ventures HO!


  • 3.  Another crazy question?

    Posted 07-11-2007 16:27

    Entrepreneurship is usually studied with insufficient analyses of contextual variables, e.g., national and ethnic culture (motivation to entrepreneurship varies across cultures), economic climate, TYPE of education, etc. Some argue that it is difficult to teach Schumpeterian entrepreneurship, while efforts to teach Kirznerian entrepreneurship appear to have achieved some levels of success. However, to be truly successful, training programmes must be relevant to the host environment.

    See, e.g.,

    "The Role of Education in Self-Employment Success in Finland"

    Authors: Kangasharju, Aki; Pekkala, Sari

    Source: Growth and Change, Volume 33, Number 2, Spring 2002 , pp. 216-237(22)

    This paper analyzes the effect of self-employed persons' education on the success of their firms during the economic downturn and upturn of the 1990's. It is found that the business cycle affects the relative closure rates of firms run by self-employed with any level of education. Exit probability is lower for the highly educated during bust, but higher in boom. This is accounted for by two facts. First, running a small firm is argued to be a less attractive choice to wage work, particularly for the highly educated, due to lower earning prospects, less stable stream of earnings, and the cultural tradition of working in large corporations. Second, the highly educated faced a higher outside demand for their labor than did the less educated during economic upturn. Finally, it was found that regardless of the state of aggregate economy, firms run by the highly educated have higher growth probabilities than those run by less educated persons.

    And:
    “A Comparison of Business Success versus Failure Variables between <st1:country-region><st1:place>U.S.</st1:place></st1:country-region> and <st1:place>Central Eastern Europe</st1:place> Croatian Entrepreneurs”, Robert N. Lussier, Sanja Pfeifer; Entrepreneurship: Theory and Practice, Vol. 24, 2000.


    Norris Krueger <norris.krueger@GMAIL.COM> wrote:
    "Why don't entrepreneurship majors rush out & start businesses? Or do
    they? Or.... *Should* they??"

    Has anyone reviewed the literature on any of these questions?

    Do we have a sense of the rate of formation by ENT students:
    a) upon graduation?
    b) while still in school?
    c) after a time lag (IIRC, Harvard & UWO did studies suggesting ~10 year lag)

    Heck, do any of you know (or did) a great study on this question?

    TIA - I have a friend who's getting beat up because his ENT students
    aren't all rushing out to launch businesses. How else might this
    professor sell the impact of his program? (I suggested, of course.
    measuring cognitive changes, LOL - but I suspect there are better
    options!)

    As always, I will post the full list of items sent me!

    Cheers,
    Norris

    --
    Norris Krueger, Jr., Ph.D.
    Teams / Entrepreneurship Northwest
    "How can I help you to help grow entrepreneurs?"
    (208) 440-3747
    skype: norris.krueger

    "I criticize by creation, not by finding fault" -Cicero

    **************************************
    This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management.

    Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list.

    You can manage your subscription options, including joining or leaving the list here:
    http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1

    If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu.

    Ventures HO!



    "International business is the general case; local business is the special case." - Peter J. Buckley
    Romie F. Littrell, BA, MBA,PhD, FIAIR, An fánaí fiáin
    AUT Business School N.Z., romie.littrell@aut.ac.nz
    http://www.romielittrellpubs.homestead.com/
    http://www.crossculturalcentre.homestead.com/
    Facilitator, Leadership & Management in Sub-Sahara Africa Conferences


    Yahoo! Mail is the world's favourite email. Don't settle for less, sign up for your free account today. ************************************** This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management. Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list. You can manage your subscription options, including joining or leaving the list here: http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1 If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu. Ventures HO!


  • 4.  Another crazy question?

    Posted 07-11-2007 17:41
    Norris,

    Always an interesting question. I can send you a '96 JSBM article I did entitled, "A longitudinal investigation of the impact of family background and gender on interest in small firm ownership" if you have an interest. It was a follow-up to a '95 article entitled, "Family background and gender: Implications for interest in small firm ownership," I published in Entrepreneurship & Regional Development which was non-longitudinal.

    On the specific question of students rushing out to start ventures after completing one of entrepreneurship programs, I have always felt that examining immediate launch is the wrong metric. It is a metric to be sure, but certainly not definitive. We all studied math in school not necessarily to be mathematician; English not necessarily to be poets; history not necessarily to be historians, etc.

    I am sure the mission statement I wrote for the Center for Entrepreneurship here at the University of Cincinnati is very similar to others. In part, it states that the study of entrepreneurship prepares students to:

    - launch their own venture if so desired;
    - interact more knowledgeably with other small, entrepreneurial, and family businesses engaged in commerce with larger firms;
    - think entrepreneurialy across all aspects of entrepreneurism: individual, corporate, and social.

    One of the more difficult aspect of entrepreneurship as an academic discipline is the difficulty that many, including some Dean's, is to get their arms around the fact that entrepreneurship is not primarily about job placement. It is more about a way of thinking and ultimately job creation. Historically/traditionally, it was a fairly simple matter have and measure Accounting majors going to work for a Big Eight or other accounting firm; finance majors being employed by banks, etc.; marketing majors going to work for Procter & Gamble or an advertising firm, etc. To further complicate things, Entrepreneurship majors often double major and seek work experience before launching a venture, especially amongst undergrads.

    Anyway, I have gone on too long... Hope this helps...

    Chuck

    Charles H. Matthews, Ph.D.
    Professor of Entrepreneurship and Strategic Management
    Executive Director, UC Center for Entrepreneurship
    Education & Research Phone: 513-556-7123
    College of Business Fax: 513-556-5499
    University of Cincinnati Email:charles.matthews@uc.edu
    Cincinnati, OH 45221-0165 Web: www.ucecenter.org


    ---- Original message ----
    >Date: Tue, 10 Jul 2007 12:45:40 -0600
    >From: Norris Krueger <norris.krueger@GMAIL.COM>
    >Subject: [ENTREP] Another crazy question?
    >To: ENTREP@AOMLISTS.pace.edu
    >
    >"Why don't entrepreneurship majors rush out & start businesses? Or do
    >they? Or.... *Should* they??"
    >
    >Has anyone reviewed the literature on any of these questions?
    >
    >Do we have a sense of the rate of formation by ENT students:
    >a) upon graduation?
    >b) while still in school?
    >c) after a time lag (IIRC, Harvard & UWO did studies suggesting ~10 year lag)
    >
    >Heck, do any of you know (or did) a great study on this question?
    >
    >TIA - I have a friend who's getting beat up because his ENT students
    >aren't all rushing out to launch businesses. How else might this
    >professor sell the impact of his program? (I suggested, of course.
    >measuring cognitive changes, LOL - but I suspect there are better
    >options!)
    >
    >As always, I will post the full list of items sent me!
    >
    >Cheers,
    >Norris
    >
    >--
    >Norris Krueger, Jr., Ph.D.
    >Teams / Entrepreneurship Northwest
    >"How can I help you to help grow entrepreneurs?"
    >(208) 440-3747
    >skype: norris.krueger
    >
    >"I criticize by creation, not by finding fault" -Cicero
    >
    >**************************************
    >This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management.
    >
    >Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list.
    >
    >You can manage your subscription options, including joining or leaving the list here:
    >http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1
    >
    >If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu.
    >
    >Ventures HO!

    **************************************
    This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management.

    Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list.

    You can manage your subscription options, including joining or leaving the list here:
    http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1

    If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu.

    Ventures HO!