== Definition and terminology==
A collegiate entrepreneur is an
active college student who seeks to capitalize on new and
profitable endeavors or business; usually with considerable
initiative and risk. The term is occasionally used to refer to an
entrepreneur that is of college age (18-22) but is not actively
attending a school, as in someone that forgoes college to launch a
business.
Etymology
The word "entrepreneur" is a
loanword from French. In French the verb "entreprendre" means "to
undertake", with "entre" coming from the Latin word meaning
"between". In French a person who performs a verb, has the ending
of the verb changed to "eur", comparable to the "er" ending in
English. Therefore, an entrepreneur is an undertaker, a person who
undertakes a task.
Enterprise is similar to and has roots in,
the French word "entreprise", which is the past particple of
"entreprendre".
Entrepreneuse is simply the French feminine word
for "entrepreneur".
According to Miller, it is one who is able
to begin, sustain, and when necessary, effectively and efficiently
dissolve a business entity. These are most common in the
Bahamas.
Entrepreneur as a Leader
Scholar
R.
B.
Reich
considers leadership, management ability, and team-building as
essential qualities of an entrepreneur. This concept has its
origins in the work of
Richard Cantillon in his
Essai sur la
Nature du Commerce en Général (1755) and
Jean-Baptiste Say
(1803) in his
Treatise on Political Economy.
A more
generally held theory is that entrepreneurs emerge from the
population on demand, from the combination of opportunities and
people well-positioned to take advantage of them. The entrepreneur
may perceive that they are among the few to recognize or be able to
solve a problem. In this view, one studies on one side the
distribution of information available to would-be entrepreneurs
(see
Austrian School economics) and on the other,
how environmental factors (access to capital, competition, etc.)
change the rate of a society's production of entrepreneurs.
A
prominent theorist of the Austrian School in this regard is
Joseph
Schumpeter who sees the entrepreneur as innovator.
The
Collegiate Entrepreneur Phenomenon
A recent phenomenon in
the United States is the growing number of college students who are
launching their own company while still in college. Thirty years
ago only a handful of colleges offered entrepreneurial programs;
today the number of has grown exponentially. A few trends have
added to the momentum of these collegiate startups. With the
notable collapse of Enron, Arthur Anderson and other major firms -
the prior perception of job security has crumbled and college
students are finding that working for their own company guarantees,
if nothing else, job security.<br />
Also adding to the
trend are super collegiate successes such as Mark Zukerberg. While
a junior at Harvard University in Boston, Massachusetts, Zuckerberg
developed a web based community of fellow students. His site,
Facebook, enabled them to share pictures, jokes, and discuss
anything their hearts desired. Today Facebook has become one of the
most clicked on websites on the internet, and has had acquisition
offers in the billions. Another super success was Michael Dell,
founder of Dell Computer, who started out of his dorm room. These
super successes, while not common place, have added to the allure
of starting young.<br />
Risk Tolerance & Youth
Advantage
Besides the allure of riches, and the guarantee
of job security, collegiate entrepreneurs also typically benefit
from high
risk tolerance and thin personal financial needs.
Traditional older entrepreneurs have the burden of family and
housing costs, that the collegiate entrepreneur often does not
have. Many students live off their parents dime or educational
funding while at school and afterward, great discounting their
immediate financial needs. Younger entrepreneurs in general have
higher risk tolerance, due to the inherent saftey net of youth -
time and energy.<br />
Startup Methodologies
Traditional Methods
For any business to continue long term as
an entity it needs two critical components, customers and positive
cash flow. Customers are a source of ongoing revenue and positive
cash flow provides the money necessary to support the ongoing
entity. During a startup phase, some companies are able to sustain
on just one or the other, customers or cash, or at least a
disproportionate balance of the two.
Some startups are able to
exist without cash being infused or derived from customers for a
short term. Often when founders or other participants in the
company are willing/able to work for free, the company can build a
customer base that ultimately will yield revenue. Alternatively,
some business start exclusively with an influx of cash, and the
business then seeks growing its customer base. Most frequently
business start with a disproportionate mix.
Many traditional
methods of introducing cash and clients to a new business are
outlined below:
Bootstrapping & Organic Growth
Bootstrapping is a term used to cover
different methods for avoiding using the financial resources of
external investors. Bootstrapping and Organic growth can be defined
as “a collection of methods used to minimize the amount of outside
debt and equity financing needed from banks and investors” (Ebben
and Johnsen, 2006:853) and utilizing funds generated as a result of
sales to sustain growth.
The Four F's
When raising
capital for new businesses, some people advise asking for cash from
the Four Fs first: Founders, Friends, Family and Fools. This can be
a quick way of getting the money in return for a lower stake than
e.g. a venture capitalist, although personal relationships could
suffer if the business folds.
Venture & Angel Capital
Venture capital is a type of private equity where outside
investors infuse money to rapid grow a businesses. The intent is
specifically as an investment and most venture capital firms expect
a high return within a short time period (typically 3 to 5 years).
Some notable venture capital firms include Sequoia Capital and
Edison Venture Fund.
Venture CapitalAn
angel investor or
angel, is an affluent individual or group of individuals (known as
an angel group or angel network) who provides capital for a
business start-up, usually in exchange for convertible debt or
ownership equity.
Alternative Methods
Incubators
Business incubators are organizations
that support the entrepreneurial process by providing discounted or
free office space, resources and advice. Incubators help to
increase survival rates for innovative startup companies, as well
as often focus on improving the economic client of specific
economically deprived areas.
Growth Accelerators
A
{{Growth accelerator|growth accelerator]] is a hybrid of a venture
capital firm and business incubator. These firms generally offer a
complete staff infrastructure, micro-funding and strategic
relationships. Growth accelerators started appearing in the
business landscape only recently and are technically referred to as
Private Hybrid Incubators (PHI). Some examples of US based growth
accelerators include Obsidian Launch and Y Combinator.
See
also
Entrepreneur Bootstrap
funding Venture Capital Angel
investorExternal Links
Collegiate entrepreneur
articles on strategy, financing, and belief system Bootstrappers
Bible Other Resources
Ranking of Colleges
Offering Entrepreneurial Studies
Top 10 Universities for
Entrepreneurial Studies, Undergraduate studies (according to a 2007
survey conducted by The Princeton Review & Entrepreneur
Magazine):<br />
1.
Babson
College <br />
2.
University of
Houston<br />
3.
Drexel
University <br />
4.
The
University of Arizona <br />
5.
University of Dayton<br />
6.
Chapman University<br />
7.
DePaul University<br />
8.
Temple University<br />
9.
University of North Dakota <br
/>
10.
Loyola Marymount
University<br />
References
(2007). The
Princeton Review - Top Entrepreneurial Programs(2007).
Entrepreneur Magazine - Top100 Venture Capital Firms
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