"PREFACEStarting and operating a new business involves considerable risk and effort to overcome the inertia againstcreating something new. In creating and growing a new venture, the entrepreneur assumes the responsibility andrisks for its development and survival and enjoys the corresponding rewards. This risk is compounded forentrepreneurs who go international or who are in fact born global. The fact that consumers, businesspeople, andgovernment officials from every part of the world are interested in entrepreneurship is evident from theincreasing research on the subject, the large number of courses and seminars on the topic, the more than twomillion new enterprises started each year (despite a 70% failure rate), the significant coverage and focus by themedia, and the realization that this is an important aspect of the economics of the developed, developing, andeven controlled economies.Who is the focus of all this attention? Who is willing to accept all the risks and put forth the effort necessary tocreate a new venture? It may be a man or a woman, someone from an upper-class or lower-class background, atechnologist or someone lacking technological sophistication, a college graduate, or a high school dropout. Theperson may be an investor, manager, nurse, salesperson, engineer, student, teacher, homemaker, or retiree. It isalways 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 on aninternational basis, this 9th edition of Entrepreneurship is divided into five major sections.Part 1 —The Entrepreneurial Perspective introduces the entrepreneur and the entrepreneurial process from botha historical and research perspective. The role and nature of entrepreneurship as a mechanism for creating newventures and affecting economic development are presented, along with career aspects and the future directionof entrepreneurship. The characteristics and background of entrepreneurs are discussed, as well as somemethods for individual self-assessment. Following the presentation on corporate entrepreneurship, this partconcludes with a discussion on strategies for generating and exploiting new entries. Part 2 —From Idea to the Opportunity focuses on the aspects of creativity and innovation and all the elements inthe entrepreneurial process that are a part of creating the new venture. Focus is on the various sources of ideasas well as trends occurring through this decade. Specific attention is also paid to various creative problem- solving technologies, identifying domestic and international opportunities, as well as other legal concerns informing and launching the venture.Part 3 —From the Opportunity to the Business Plan focuses on the all-important business plan. First, the overallbusiness plan and its various aspects are presented. Then, a chapter is devoted to each of the major componentsof the business plan: the marketing plan, the financial plan, and the organizational plan.Part 4 —From the Business Plan to Funding the Venture focuses on the most difficult aspects of creating andestablishing a new venture —raising capital. First, the aspects of debt versus equity and internal versus externalfunding are discussed. After a discussion of the alternative sources of capital (self, family and friends, suppliersand trade credit,viii government grants and programs, private placements, and commercial banks), specificattention is given to three financing mechanisms: informal risk capital, venture capital, and going public.Part 5 —From Funding the Venture to Launching, Growing, and Ending the New Venture presents materialrelated to establishing, developing, and ending the venture. Particular attention is paid to developing theentrepreneurial strategy, establishing strategies for growth, managing the new venture during growth, earlyoperations, expansion, and accessing external resources for growth. Managerial skills that are important to thesuccessful performance and growth of the new venture are included in this part, which also addresses methodsfor ending the venture. Specific topics examined include mergers and acquisitions, franchising, joint ventures,and human and financial resources needed for growth.To make Entrepreneurship, 9th edition, as meaningful as possible to students, each chapter begins with chapterlearning objectives and a profile of an entrepreneur whose career is especially relevant to the chapter material.Numerous business examples occur throughout each chapter along with important Web sites to assist the readerin getting started. Boxed summaries of articles in the news (As Seen in Business News) that illustrate the chapter discussion and Ethics boxes discussing ethical issues are found in all the chapters. Each chapterconcludes with research tasks, class discussion questions, and selected readings for further research and study.At the end of the book is a selection of Cases that can be used along with any chapter, as well as listing of otherappropriate cases on a chapter-by-chapter basis.Many people —students, business executives, entrepreneurs, professors, and publishing staff —have made thisbook possible. Of great assistance were the detailed and thoughtful comments of our reviewers:Kristopher Blanchard Juliet TracyUpper Iowa University Palm Beach State CollegeRachel Collins Wilson Tammy SohakettMiddle Tennessee State University Ohio Northern UniversitySpecial thanks go to Brandon Shields for preparing this manuscript in a timely manner and to David Kralik forproviding research material and editorial assistance for this edition. Also thanks to SEC attorney, EmilyRenwick, for editing the securities material in Chapter 12. 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, Sarah,and Jack —and the new generation they represent —that this book is particularly dedicated. May you always begfor forgiveness rather than ask permission.Robert D. HisrichMichael P. PetersDean A. Shepherd "