Q Entrepreneurshipand small businessStart-up, growth and nra.

PAUL BURNSProfessor of Entrepreneurship and Dean,

University of Bedford Business School, UK

palgravemacmillan

VII

List of figures xvi

List of tables xviii

Preface to the third edition xix

How to use the book and website xxi

Guided tour of the book and website xxvi

Part 1 Entrepreneurship 1

1 Entrepreneurship in the twenty-first century 3The stuff of dreams 5The entrepreneurial revolution 8The economics of ehtrepreneurship 9Entrepreneurs and owner-managers 11Small firms ^ 16The differences between small and large firms 18Lifestyle and growth firms 19The UK small firms sector 21Global Entrepreneurship Monitor [GEM) 24Summary 27

Case insightsBill Gates and Microsoft 6Michael Dell and the Dell Corporation 8Richard Branson and Virgin 13Shaa Wasmund and Brightstation Ventures 15Marc Demarquette 17Joseph Bamford and JCB 23

Cases with questionsJulie Spurgeon 20Sara Murray - Serial entrepreneur 26

2 Entrepreneurs and owner-managers 31Start-up influences 33Personal character traits 34Character traits of owner-managers 36

Contents

Character traits of entrepreneurs 38Antecedent influences 42Ethnicity and immigration 44Gender 46Growth businesses 48National culture 49Situational factors 53Summary 58

Case insightsSteve Hulme 33Simon Woodroffe and YO! Sushi 39Market traders 43Kenyan Asians 45Elizabeth Gooch and EG Solutions 47Will King and King of Shaves 54

Cases with questionsDuncan Bannatyne, Dragon . 55Hilary Andrews and Mankind 57

3 Innovation and entrepreneurship 63

Innovation 65Innovation and competitive advantage 65Discontinuous innovation 69Innovation and entrepreneurship 71Creativity and entrepreneurship 74Innovation and size 75Innovation and location 77Summary 80

Case insightsJames Dyson 67McDonald's 69Who invented the world wide web {www}? 71Trevor Baylis 72Great Ormond Street Hospital for Children 73Swarfega 73

Case with questionsBig companies and new ideas 79

4 Social and civic entrepreneurship 83The rise of social entrepreneurship 85

Social enterprise and the social economy ' 87Legal forms of social enterprise in the UK 88The social entrepreneur 92The growth and development of the social enterprise 94The civic entrepreneur 96The dangers of social entrepreneurship 99Summary 102

Contents

Case insightsThe Maggie Keswick Jencks Cancer Caring Centres Trust 91Abs-Kids 91Bright Ideas Trust 91

Seven Stories 91

Cases with questionsBig Issue 89Ridgeway Primary School 98Nin Castle, Phoebe Emerson and Goodone 100

Part 2 Start-up 107

5 Developing creativity and the business idea 109Creativity 111

Barriers to creativity 113The creative process 113Techniques for generating new ideas 116Recognising opportunity 121The business idea 125The internet 128Safeguarding your ideas 129Summary 137

Case insightsMartin Dix and Current Cost 115Bruce Bratley and First,Mile 116Tom Mercer and mOma 123Adrian Wood and GTI . 125

Cases with questionsAlex Tew and the Million Dollar Homepage 118eBay 131Andrew Valentine and Streetcar 136

6 Evaluating the business idea 141

What you need to start a business 143Personal attributes 143Knowing your customers 145Knowing your competitors 146Marketing strategies 148Resources 154Capital 155The importance of networks 157Planning and evaluation 159Summary 163

Case insightsQuad Electroacoustics 152Morgan Motor Company 153Alan Pound and Aculab 153Richard Branson 155

Contents

Robbie Cowling and JobserveBig companies and strategic alliances

Cases with questionsDavid Sanger and RolloverMark Constantine and Lush

7 Launching the businessMarketing strategiesPricingDifferentiationDeveloping customer focusEntrepreneurial marketingUndertaking market researchDeveloping selling skillsRetailing on the internetLegal forms of businessSummary

Case insightsMartin Penny and Good Hair DayJean YoungRadio SpiritsMark Dorman and Black VodkaMark Goldsmith and Goldsmith s Fine FoodsGary Frank and the Fabulous Bakin' Boys

, Cases with questions' The Body Shop franchise

Stephen Waring and Green ThumbCalypso Rose and Clippy ,

8 International entrepreneurshipGlobalisation and international entrepreneurshipThe international start-upThe stage model of internationalisationThe influence of networks and learning theoryExport strategiesThe agency dilemmaSummary

Case insightsMichael Ross and FigleavesJohn and Julie Gilbert and Hop BackJulie Diem Le and Zoobug

Cases with questionsB&QHightech Components

9 Running the businessCash flow and Death ValleyThe profit statementThe balance sheet

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Contents

Planning and controlFinancial driversBreak-evenDecision-makingSummary

Case insightsJean Young 225, 226,Chris Hutt and tffe Newt & CucumberDavid Speakman and Travel CounsellorsFlitwick Manor HotelPenforth Sofa BedsAppendix 1: Forecasts and budgets - an exampleAppendix 2: Accounting records - an example

10 Financing the businessMoneyBank financeThe bank's perspectiveBanking relationshipsVenture capital institutions and business angelsThe equity investor's perspectiveStock market floatationIs there a financing gap?Gender, ethnicity and financeSummary

Case insightsMartyn Dowes and Coffee NationPeter Kelly and SoftcatAndrew Barber, Robin Hall and FBS EngineeringFred Turok and LA FitnessBob Holt and Mears GroupElizabeth Gooch and EG Solutions

Cases with questionsSpecsaversNDT

Part 3 Growth

11 Planning for growthIngredients of successA framework for developing strategySustainability and corporate social responsibilityVision and missionValues and ethicsThe SWOT analysisFinancial performance analysisValue chainsSLEPT analysis

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Contents

Strategy intentSecuring competitive advantageSuccessful entrepreneurial strategiesDeveloping entrepreneurial strategies in the real worldSummary

Case insightsJordansDale Vince and EcotricityAbet & CoteJ. J. CashDell Computer Corporation

Cases with questionsDmitry Kotehko and Nitol SolarLastminute.comeasyJet

12 New products and servicesProduct life cyclesProduct portfoliosPortfolio strategiesManaging the product life cycleFinancial implications of the product portfolioImplications for the entrepreneurSummary

Case insightsHeinken

Cases with questionsCadbury 1Barbie and Mattel Corporation

13 Growing the businessGrowth optionsMarket penetrationProduct/service developmentMarket developmentDiversificationRiskBuying growthSummary

Case insightsWilson & SonsVirginTim Slade, Julian Leaver and Fat FaceWing Yip

Cases with questionsJim Ratcliffe and Ineos GroupGeorge Brian BoedeckerJr. and CrocsCadbury 2

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14 Developing the business planWhy you need a business planThe planning processWhat a business plan looks likeUsing the plan to obtain financeThe bankers' viewThe investors' viewPresenting a case for financePro forma business planSummary

Cases with questionsChris Hutt and the Newt & Cucumber

15 Exit: failure and successStagnate and dieFailureThe ingredients of failurePredicting failureDealing with failure as an individual or a sole traderDealing with failure as a companySuccess - selling the businessCompany valuationSummary

Case insightsNick Kenton, Rob Taub'and SportsbaseNicholas HallTech Board and Imperial Board ProductsZedZed.comAlex Meisl and Taotalk, then SpongePeter Durose and the English GrocerKristian Segerstrale and PtayfishVivid ImaginationsThe Body ShopJulian Harley Ian West and Harley West TrainingAnne and Simon Notley and Feather and Black

Cases with questionsCobra Beer

Part 4 Maturity

16 The family firmThe advantages of familyFamily business is big businessThe conflict between family and business culturesSuccessionPoints of conflictThe introvert firmResolving conflict: the family constitution

Contents

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Succession planning 425Summary 428

Case insightsDoreen Lofthouse and Fisherman's Friend 412Adidas vs Puma 414Values and beliefs 415Ferrero Rocher 416Noon Products 419Litttewoods 420Alex Ramsay 420J&B Wild 421Everards Brewery 423Cases with questionsTimberland 416Wates Group 424Mars Inc. 427

17 From entrepreneur to leader 431Growth and crises 433Changing skills 435Coping with crises 439The role of leader 440The evolving vision 442Leadership style 444Building the management team 448The board of directors 450Entrepreneurial structures 451Traditional large firm structures 453Structure, change and task complexity 454Creating culture 456Entrepreneurial leadership skills 459Summary 465

Case insightsDavid Poole and DP&A 455Gary Redman and Now Recruitment 460

Cases with questionsMichael Dell 461

18 Corporate entrepreneurship 469

Defining corporate entrepreneurship 471Entrepreneurial architecture 474Learning organisations 475Building the architecture for entrepreneurial

transformation 477The role of culture 480The role of structure 482Management, structure and control 485Intrapreneurship 489

Organising new venture ideasCorporate venturingSummary

Case insightsJulian Metcalf, Sinclair Beecham and Pret a MangerRichard Branson's Virgin Group

Cases with questionsDavid Hall and HFLNokia3M

Further reading and journals

Subject index

Author index

Quotes index

Contents

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Companion resources

Visitwww.palgrave.com/business/burnsforanaccompanying students' website:

and password-protected lecturers' website:

Students' website0 Video commentaries by the author> Interactive chapter testst> General Enterprise Tendency (GET) Test> Corporate Entrepreneurship Audit Tool> Leadership Style Test> Small business audit checklists :0 Five entrepreneurship assignments including a small business growth

audit> Downloadable versions of the cases with questions, including additional;

cases not included in the bookD> Downloadable versions of a pro forma business plan and the specimen

plans for Sport Retail, Jean Young and Dewhurst Engineering> Additional exercises on basic business skills such as accounting, financial

management and marketing[> Checklist of regulations to be met in setting up a business in the UK> Sources of information, help and advice in the UK> Selected websites offering further learning resources and practical,

up-to-date help and advice, with hyperlinks i

Lecturers' websitet> Powerpoint slides for each chapter> Notes on the entrepreneurship exercises> Teaching notes for cases with questionst> Teaching notes for the specimen business plans> Selected case studies from the European Case Clearing House, many with

related DVDs. These are particularly valuable for postgraduate teaching.