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Entrepreneurship

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Entrepreneurship is the act of creating a new business from scratch, typically by individuals or small teams known as entrepreneurs - which is derived from the French word entreprendre meaning "to undertake."[1] These early-stage organizations are colloquially known as startups, and often employ an innovative, agile business model which may disrupt how traditional business is transacted. A small local firm can have a global impact on positive competition, productivity, and supply-chain management but also communal goals of social responsibility and diversity empowerment. Startups play in an important role as a catalyst for efficient economic growth, but the outcomes of these ventures are incredibly varied.

History

Origins

Steve Jobs

The personal qualities of entrepreneurship - being risk-averse and opportunistic - have been around for eons. Whether instilled from birth or learned from the environment, there are several constants in what the traits of an entrepreneur are. The primary feature is a willingness to assume the risks related to uncertainty. Next, one must be able to supply one's own financial and social capital, as well as potentially entice co-founders and investment partners to do the same. Obviously, to be able to translate a concept to reality one has to be able to both seize existing opportunities in the marketplace and create new ones as well.[2]

Over a century ago, entrepeneurs that are famous today are John D Rockefeller, Andrew Carnegie and J.P Morgan. Each entrepeneur were self-made and became so successful that they ruled entire industries which created monopolies. Rockefeller ruled the energy industry, Morgan ruled the banking industry and Carnegie ruled the steel industry. They became so successful that competitors could not compete which resulted in the destruction of monopolies by the federal government. A century later, the largest companies in the world are technology companies and entrepenuers are faced with huge competition every day from small ad large businesses.

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Because of the small-nature of startups, a well-rounded skillset is highly valued - a founder must balance agreeableness with the duty of serving as a leader and making responsible decisions. And efficiency and savviness in allocating resources - both within the organization (e.g. payroll) as well as personal (e.g. time management) is absolutely necessary to succeed. On this topic Steve Jobs famously delivered during his 2005 Commencement address at Stanford: "Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma – which is living with the results of other people’s thinking. Don’t let the noise of other’s opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary."[3]

Present Day

Larry Page

Yet the following century, entrepreneurs chose to make the mark in a different way than the 19th century industrialists who were nicknamed "robber barons": through innovation instead of exploitation. Bill Gates, the Seattle Windows wonderkind, lead a pack that included his Apple counterpart Steve Jobs, as well as Virgin's Richard Branson, Oracle's Larry Ellison, and Sun Microsystems' Vinod Khosla (the creator of Java). These gave way to the business and tech stars of our day: Larry Page & Sergey Brin, Mark Zuckerberg, Elon Musk, Jack Dorsey (Twitter & Square), Reid Hoffman (LinkedIn), Kevin Systrom (Instagram), Sean Parker (Napster & Facebook), Kevin Rose (Digg & Google Ventures), Steve Huffman (Reddit), Brian Acton (WhatsApp), Drew Houston (Dropbox), and David Karp (Tumblr), Bill Gates (Microsoft), Robert Kalin (Etsy), Pierre Omidyar (Ebay).

Statistics

Success Rate

Because a contemporary entrepreneur must face a significant amount of personal risk, there is an inverse relationship between overall economic health and entrepreneurship activity[4] and only few will even attempt to start their own business in the first place. Even more alarmingly, the rate of small-business employment of 47.6% (small businesses are defined as establishments between 1 to 249 personnel) is at its lowest in decades, although it is expected to recover now that we are further removed from the recession.[5] The U.S. Bureau Labor of Statistics estimates that nearly of a startups will not make it to Year Three, and over a half of startups do not survive by Year Five.[6] However, virtually all of the most affluent self-made individuals in the United States attained their wealth through entrepreneurship, and the average successful technology startup exits at a whopping $243M.[7]

To mitigate some of the stresses around success, it's important to take a close look at your project or product and flesh out some aspects of it. Often times the main problems of a business are obtaining customers and delivering the product/service that asked for [8] The questions to ask -

Can we get enough customers and provide services well enough to become a legit business? Can the business expand a key customer to a greater sales base? Does the company have enough cash to cover considerable cash demands? These are some of the questions that entrepreneurs must ask themselves in order to drive a successful business.

New Media Convergence

The Million Dollar Homepage

In 2005, a 21-year-old English university student named Alex Tew created a website[9] intended as a gimmick to finance his education. The Million Dollar Homepage, as it was aptly titled, sought to sell each of its one million pixels for one dollar a piece. Out of the 1,000 by 1,000 pixel grid, advertisers were able to purchase 10 x 10 blocks and arranged the pixels to form tiny hyper-linked images announcing their service. In addition, a tagline describing each site was seen when hovering up its pixels. An overnight internet phenomenon was launched, and it spread far beyond his friends and family in the town of Wilshire, ultimately netting $1,037,100 in gross earnings. At its peak it rocketed to become the 127th most trafficked website on the Internet.[10] Tew's creative usage at the dawn of contemporary new media redefined the value of a digital pixel, both in terms of dollars and art.

Pixels being purchased

Web Resources for Entrepreneurs

Fiverr

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Fiverr is an Israeli online marketplace for freelance services. The company provides a platform for freelancers to offer services to customers worldwide. Fiverr was founded by Micha Kaufman and Shai Wininger, and was launched in February 2010. The founders came up with the concept of a marketplace that would provide a two sided platform for people to buy and sell a variety of digital services typically offered by freelance contractors. [11]

For buyers, the appeal of these sites is obvious: They’re a great place to find skilled and semi-skilled sellers willing to work for cheap. They track when work has been completed, allow sellers to rate workers, and provide staff who can help resolve disputes. The people selling their skills win, too: Workers—especially those living overseas—can make a decent amount of money being paid in U.S. dollars. It’s free to list services on most of these sites, and once freelancers start getting reviews—which they can get from actual clients, or from friends who buy their service, or from people through “Fiverr review” or other such Facebook groups—other buyers trust them and hire them. [12]

The Lean Startup

MVP

The Lean Startup (term coined by Eric Ries) is just a scientific approach to creating and managing startups and get a desired product to customers' hands faster. Ever since its inception in the last 2000s, it has become the foundation of successful start ups. The more import part of The Lean Startup process is called the MVP or the minimum viable product. A MVP is a development technique in which a new product or website is developed with sufficient features to satisfy early adopters only. Before MVP's startups would get an idea, do market research, spend months putting the idea together and then try to sell to customers. The problem with that was that if the customers didn't like the product it was already too late, the startup had wasted hundreds of thousands maybe millions and months developing a product that no one liked. Then came along the Lean Startup methodology where the first thing after market research was to create a MVP and put it out in the market as fast as possible. Afterwards startups collect data and feedback and then iterate to make the product better as the more feedback is given. Worst case scenario that customers didn't like the product you only wasted 4 weeks and a few hundred bucks.

Shark Tank

Shark Tank

New media has helped individuals looking to uplift their goals and ambition through many streams of internet-related forms of communication. Whether it be websites to music and television streaming services, individuals have the ability to capitalize on new media. One instance, in particular, is this television show called Shark Tank. In this reality show, aspiring entrepreneurs are given the chance to bring their dreams to fruition. They introduce their ideas to the sharks in the tank - five powerful individuals in their respective industries who made their own visions a reality and want to help others as well. The main Sharks are Lori Greiner, Mark Cuban, Robert Herjavec, Kevin O'Leary, Barbara Corcoran, and Daymond John. The main objective of this show is for contestants to try to persuade some of the sharks to invest cash in their idea, in return for a percentage of equity in the company. A bidding war will erupt when more than one of the sharks decides that they want a piece of the action, pushing up the investment price. [13]

One of the most notable deals in Shark Tank history is when Kevin O'Leary offered Zipz, an innovative single-serve wine company, $2.5 million for a 10% stake, contingent upon getting into Costco. In addition, O'Leary has the option to buy another $2.5 million of equity at the same valuation. With this, O'Leary is valuing the company at $25 million.[14]

Entrepreneurs Making An Impact

Tai Lopez

Tai Lopez

Tai Lopez is one of the most recognizable social media entrepreneurs on the planet, and has created his image around social media, specifically businesses using social media marketing and encouraging others to take risks. Born in April of 1977, Tai quickly realized that if he wanted to make a lot of money, focus was necessary starting at a young age. He believes that it doesn't matter what you want to be when you're older or what your monetary goals are, you need to be able to take risks at an early age to see what the world has to offer. [15] Over the course of his youth during middle school and high school, he had a few mentors whom he looked up to for advice whenever he had a question he couldn't figure out. He has made it his mission to be that same person for people who don't know yet what they want to do, and has dedicated his business to helping people make money using strategies he has come up with over the course of his life.

Tai Lopez has his own website, TaiLopez.com, and on it he has a series of programs designed to help make entrepreneurs get a lot more knowledge then they once had before, and of course and opportunity for them to make money. One of his programs, called the Social Media Marketing Program, has become one his most viral courses he offers, and has made over 20 millionaires as a result of that course. He pairs entrepreneurs up with some of the most helpful knowledge, such as learning how to appropriately place your Facebook ads/content for your local business, or learning the ins and outs of using Adobe Illustrator or Photoshop for your different business needs. He then takes it a step further to invite those who do well in his programs, and invites them for different retreats at different times of the year to share what they've done to a room full of hungry entrepreneurs, who can use them as an example for their business ideas. Tai Lopez has millions of followers of social networking sites like Facebook, Twitter and SnapChat, and has even made some of his YouTube videos go viral. [16]

Graham Stephan

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Graham Stephan is an entrepreneur, youtuber, and personal finance teacher. Graham was a college dropout who got into real estate and began his career as an agent while investing in real estate on the side. He started his youtube channel which over the years grew to over a million subscribers. He preaches how to get into real estate as well as how to be frugal every day in your life. A major issue in America is that people live outside of their means.. Graham helps people understand their finances and teaches how to invest your disposable income into real estate. Graham has made millions through his online courses, videos and real estate investing.

Gary Vaynerchuk

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Gary Vaynerchuk is an entrepreneur, author, speaker, and marketing guru. He is a household favorite among millennials for his blunt and raw way of looking at things in the world of entrepreneurship. Gary’s charisma and uncanny ability to engage with his community have allowed him to grow a massive online community with over 4 million followers on Instagram alone. He started off working for his dads' liquor store in the late 90s and soon saw the potential of the internet. Using the internet and E-commerce he took his dads liquor store from 3MM in revenue to 60MM in revenue in just 5 years. Shortly after that he left his dad's business to start VaynerMedia which is a full-service advertising agency servicing Fortune 100 clients such as GM and P&G. If you want some real practical advice on entrepreneurship and marketing you need to be following Gary! Instagram: Garyvee Facebook: Gary Vaynerchuk Vaynerchuk also regularly creates content preaching discipline on Snpchat.

Akon

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Akon is an American singer, songwriter, record producer, entrepreneur, and philanthropist of Senegalese descent. As many people are aware, Akon came to prominence during the early 2000s due to having 2 multi-platinum albums, 27 songs on the Billboard Hot 100, and over 100 guest appearances with pop icons such as Michael Jackson, Whitney Houston, and Eminem.[17]However, after his controversial encounter with an underage teen in Holi, in 2007, Akon turned his energy and focus towards launching the Konfidence Foundation. Leveraging his celebrity status, combined with his earlier passion for philanthropy, Akon formed this non-profit organization to mainly improve the lives of people in Africa. Since its establishment, the Konfidence Foundation has been hosting various youth educational programs, in addition to holding annual Christmas Toy Giveaways.[18]In more recent news, Akon has also started another initiative called Akon Lighting Africa. Through this initiative, Akon is currently installing solar street lights and small energy systems for more than 600 million people across Guinea, Senegal, Mali, Niger, Benin, and Sierra Leone.

50 Cent

50 Cent, or Curtis James Jackson III, is known for being a talented American singer and song writer. He is considered to be one of the best selling recording artist, according to INC.COM [19]. However, Jackson has also been a successful entrepreneur. Indeed, he appeared in several movies including the one about his life, "Get Rich or Die Tryin'". After a difficult childhood, the worldwide know singer has used his popularity and fame to become a serial entrepreneur. As one of many lucrative deals, he teamed up with Vitamin water, which was later bought by Coca-Cola and provided an impressive earning to the rapper. He also created his headphone business named Studio Mastered Sound and is the author of many books and autobiography. Just like Akon, Jackson aims to provide meals and solve hunger issues that are prevalent in Africa.

Baruch College Entrepreneurship Club: The Power of Collaboration and New Media

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In the Spring semester of 2018 at Baruch College, a small group of like-minded individuals came together to form an organization that aimed to create a community of student entrepreneurs. This club, now known as the College Entrepreneurial Organization (CEO), became the first ever entrepreneurship club at Baruch College and has cultivated a family-like community among its members by using collaborative new media tools. While social media often times isolates people from one another, CEO has used new media tools to not only develop genuine relationships among their members but to also reach out and connect with students and professionals by organizing physical events and meetups. CEO is a prime example of how new media tools if used correctly, can bring people together to reach heights that could only be attained through collaboration.

The College Entrepreneurial Organization started with 4 founding members and has now grown to nearly 100 active members in just one semester. The founding members of CEO were determined to create more than just a formal organization, but an informal group of people who genuinely enjoyed spending time together and desired to make their community better through their entrepreneurial efforts. Their success in this endeavor can be attributed largely due to how they have used social media and online tools to communicate, plan and organize. Communication is key in any business, organization, or relationship and CEO uses various applications and online tools to communicate successfully. First, they focus on internal communication within the organization by using an application called Slack. Slack is like a private Twitter feed for team leaders and members to communicate with each other and keep everyone up to date. Within this application, there are separate channels appointed for specific purposes such as team leaders, events planning, job/internship opportunities, new ideas, and even a channel to schedule happy hour meetups! This organized communication has propelled CEO to great success and has kept the organization heading in the right direction. Another online communication tool the College Entrepreneurial Organization uses is MailChimp. MailChimp is used for external communication by sending out newsletters to members and students to inform them of what the club is doing and what to expect in the future. These newsletters advertise and market their upcoming events and meetups and encourage students to physically join them. Finally, CEO uses Instagram to connect with members and students alike. Their Instagram advertises who they are, what they are doing, and how to get involved.

These new media tools are just some of what CEO is using to create a collaborative community of student entrepreneurs. What is unique and special about what this organization is doing is that all of their online efforts are designed to bring people together in a physical space to learn, grow and create together. The College Entrepreneurial Organization shows us the power of collaborative new media tools and how they can be used for social and economic good.

Influencers taking on Entrepreneurship

Entrepreneurship in the 21st century definitely includes influencers. We see 'influencers' all over our instagrams, facebooks, youtube accounts, and even on marketing and advertising for major companies! How exactly are they making their money and how are they considered entrepreneurs in the 21st century: Influencers to entrepreneurs instead of just a good marketing technique for major corporations.

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Who are influencers?

Influencers are normal people like you and I wether that be a celebrity or a person who never had fame-who has managed to shine and build a major network on social media platforms. As the popularity of new media increases, there will always be people who can stir up businesses and utilize the newly found resources to create a living for themselves. Influencers are people who have taken advantage of creating a network through online platforms and now play a major role in the consumption, purchasing decisions and the opinions of society. Influencers can sometimes be highly criticized as people "who are often dismissed as shallow, preening narcissists by adults who don’t know any better". [20] Influencers create their image to anything you can possibly think of, there are influencers who focus on make up and skin care routines, other influencers who focus on cooking, on fitness, gaming, some influencers make content to make you laugh or keep you entertain such as videos, there's motivational speakers and even families who record their daily lifestyles. Other influencers simply have good looks and have a huge following on new media such as Facebook, Instagram or Youtube. The key part of being an influencer is that you are someone who has a MAJOR following. Without a following you won't be able to take out any content that will add any value. Through conventions like VidCon you can meet and greet people who have created a name for themselves on online platforms. https://vidcon.com/

Why are influencers important to companies?

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As there is an increase of demand for influencers and the build up of social media pages. Companies want to collaborate with people who have major followings. Influencers often have THOUSANDS if not MILLIONS of followers which to the marketplace is an extra million potential customers who will be able to see their products/services. Examples of online companies that have blossomed are Glossier, the influencer-beloved beauty company that recently raised $100 million at a valuation of more than $1 billion and Away, the luggage start-up whose ubiquitous Instagram ads helped it reach a valuation of $1.4 billion.[21] Consumers are attracted to word of mouth reviews and want to hear from an actual person who will 'try out' the product and give feedback on wether it is a worthy product or service to purchase. Influencers have created a direct relationship between follower and influencer, that companies are seeking partnerships and sponsorships. This is the new way to advertise and market, there is no more interest in paying companies to create billboards as much as there was in the late 90s.

How do influencers emerge and create their own companies

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In order for influencers to shift roles from being hired and sought out by companies to the creating their own businesses online they have to have an entrepreneurial mindset. As stated previously Tai Lopez utilized his online platform to create a business for himself where he now has content online on how to run your own business and created coaching programs to teach people on how to take advantage of the online platform. Examples of influencers who gained a major following and then created a business through the power of developing a network was Michelle Phan, Alexa Ren, Massy Arias,Jannid Olsson Delér, Benjamin Lowy, Alexa Chung, Annette White, even the ACE family! Michelle Phan was a Youtube personality who uploaded content with tips and hacks for beauty and make up. With the popularity that she gained online she got a partnership with Lancome and other companies. Eventually she opened up her own make up line and opened up her own company named 'Ipsy'.

[22]

References

  1. http://www.etymonline.com/index.php?term=entrepreneur
  2. http://www.jstor.org/discover/10.2307/258039?uid=3739832&uid=2&uid=4&uid=3739256&sid=21105351076463
  3. http://news.stanford.edu/news/2005/june15/jobs-061505.html
  4. http://www.kauffman.org/multimedia/infographics/2013/kiea-interactive
  5. http://www.bls.gov/bdm/entrepreneurship/bdm_chart7.htm
  6. http://www.bls.gov/bdm/entrepreneurship/entrepreneurship.htm
  7. http://techcrunch.com/2013/12/14/crunchbase-reveals-the-average-successful-startup-raises-41m-exits-at-242-9m/
  8. https://hbr.org/1983/05/the-five-stages-of-small-business-growth
  9. http://www.milliondollarhomepage.com/
  10. http://online.wsj.com/news/articles/SB113685629830142277
  11. https://www.crunchbase.com/organization/fiverr
  12. https://www.theatlantic.com/technology/archive/2018/08/fiverr-online-gig-economy/569083/
  13. https://en.wikipedia.org/wiki/Shark_Tank
  14. "https://abc.com/shows/shark-tank/video/success-stories/vdka0_rxawgzff"
  15. https://www.forbes.com/sites/brianrashid/2017/03/20/5-steps-that-took-tai-lopez-from-rags-to-riches/#55f5e94e5bda
  16. https://www.youtube.com/watch?v=Cv1RJTHf5fk
  17. http://akonlightingafrica.com/co-founders/akon/
  18. http://konfidence.org/
  19. https://www.inc.com/lauren-delisa-coleman/you-can-learn-about-entrepreneurship-from-rapper-50-cent.html
  20. https://www.forbes.com/sites/barrettwissman/2017/08/14/dawn-of-the-social-media-influencer-as-entrepreneur/#67c7015a6f86
  21. https://www.forbes.com/sites/barrettwissman/2017/08/14/dawn-of-the-social-media-influencer-as-entrepreneur/#67c7015a6f86
  22. https://blog.hubspot.com/marketing/instagram-influencers