New Course Proposal

Course: ECON 401 – Entrepreneurship and the American Economy

Department: Economics and Finance

Catalog Description: This course focuses on the role of the entrepreneurs in the development of the US economy and the methods used by successful entrepreneurs. The course includes sections on American economic history and on competing economic systems with an emphasis on the role of entrepreneurship in the free-market system.

Prerequisites: ECON 201 – Principles of Microeconomics ECON 202 – Principles of Macroeconomics ACCT 211- Financial Accounting Principles FIN 201 – Introduction to Finance or FIN 360 – Corporate Finance

Grading: Letter grade only

Syllabus: Please see attachment.

Basic Instructional Plan: The course will be taught using a combination of traditional lectures, discussions, case studies, and presentations. The first half of the course will include the reading and analysis of articles and cases in the textbooks, Harvard Business Review, Forbes, Success and other journals widely used for research. Students must complete a comprehensive business plan including financial statements, a competitive market analysis, and a capital acquisition proposal.

Course Requirements: Two exams will be given to assess the comprehension of the articles by the students. Assessment of student skills depends largely on their writing and organizational abilities. Students make a short oral presentation of their plan to fellow students as part of the class requirements. In addition students will be required to find an entrepreneur or business practitioner who can to address the entire class. These guest speakers will be asked to share their experiences within their area of expertise related to entrepreneurship and small business enterprise management.

List of Course Materials and Bibliography: Please refer to the syllabus which includes detailed list of textbooks, case studies and journal articles that the students will be required to read. While the actual material may vary from semester to semester, the list in the syllabus is representative of the type of material that the student can expect to encounter in this course.

Statement of major focus and objectives of the course: The Economics and Finance department teaches a wide range of courses which touch upon the workings of competitive markets and monopolistically competitive markets. Central to the working of markets and US economic history is the role of the entrepreneur. While many of our

New Course Proposal: ECON 401 – Entrepreneurship and the US Economy courses include units on entrepreneurs and entrepreneurial activity, we do not currently have a course that deals specifically with the role of entrepreneurship in the US economy. This course is meant to fill that hole in our curriculum. The course will not replace any of our upper-division elective courses but will complement our existing courses because it will provide students with an opportunity to further examine the workings of the market system that is at the heart of what we teach in economics and finance. It is also an opportunity to bring more case studies to the study of economics – a method used in some of our finance courses.

Impact of the course on other departments, programs, majors, and minors: Because the course is specific in its treatment of the entrepreneur in the US economy and the market system, we do not believe that it duplicates any existing course in the university. It of course, could complement other courses. We anticipate the prerequisites for this ELECTIVE course to have only a small impact on other course. ECON 201 and ECON 202 are already required of economics and finance majors as well as of business majors who may find the course of interest. There would be a slight impact on ACCT 211, FIN 201 and FIN 360 because those are not required for economics majors although they are already required for finance majors. The chair of the accounting department has been notified of the possibility that some economics majors and minors may take ACCT 211 if they wish to take this proposed course.

This course proposal will not change the total number of credits required of any major or program.

Entrepreneurship and the American Economy Syllabus Fall Semester, 2004

Attendance: Each student is responsible for all material or instructions presented in the classroom. Students are expected to be in class, on time, each day that class is held. Class discussion is an important aspect of this class, especially as it relates to contemporary economic and business issues.

Grading: Grades are based on the number of total points the student earns on exams, the oral presentation, and business plan preparation. There are 550 possible points that can be earned in this course. Generally grades for the course will be according to the following percentages: “A” if 90% or more. “B” if 80%-89%. “C” if 70%-79%. “D” if 60%-69%, and “E” if less than 60%.

Exams: Two exams (150 points each) will be given, based on material from specific articles and books listed in the syllabus. In addition, 150 points is assigned to the mandatory business plan to be prepared by all students. 50 points is allocated to the oral presentation of the business plan and the quality and quantity of class participation. Students earn an additional 50 points based on the quality of their chosen in-class guest speaker. No extra credit is given and no student will be permitted to make up an exam

New Course Proposal: ECON 401 – Entrepreneurship and the US Economy unless the instructor is notified prior to the exam or within 24 hours after the exam is administered.

Required Texts: Entrepreneurship, Fourth Edition, Robert W. Price, Senior Research Fellow, Global Entrepreneurship Institute, 2003 The Road to Serfdom, F.A. Hayek. University of Chicago Press, 1994 Capitalism and Freedom, Milton and Rose Friedman. University of Chicago Press, 2002

Instructor: Office: Office Hours: Office Phone: Home Phone: Email:

Entrepreneurship and the American Economy COURSE CALENDAR FALL SEMESTER 2004 M August 28 UNIT 1. Mastering Entrepreneurship/Capitalism vs. Other Economic Systems.

1. The Origin of the Entrepreneurial Species, George Gendron, Inc., February 2000 2. Who Are the Self-Employed?, Yannis Georgellis and Howard J. Wall, Review (Federal Reserve Bank of St. Louis), November/December 2000 3. How a Start-Up Evolves, Rob Landley, The Motley Fool Online, July 31, 2000 4. What It Takes to Start a Startup, Brian O'Reilly, Fortune, June 7, 1999

W August 30 5. Top Ten Entrepreneurs, Red Herring, August 1, 2001 6. The Man and His Money, Howard Means, Upside, June 2001 7. Michael Dell, Richard Murphy, Success, January 1999 8. Success Rules!, Thomas Melville, Success, September 2000 F September 1 9. 10 Stupid Things Entrepreneurs Do!, Supreet Manchanda, Siliconindia, December 2000 10. Go Global, Wendy M. Grossman, Smart Business, October 2000 11. Lights Amid the Gloom, Karen E. Klein, Business Week Online, September 27, 2001

UNIT 2. Creating and Launching the Business Venture/Capitalism vs. Other Economic Systems.

12. One More Time… Should Small Companies Attempt Strategic Planning? Discussion, Road to Serfdom, Parts 1-4 M September 4 No Classes, Labor Day W September 6 Discussion, Road to Serfdom…Part 5-8

New Course Proposal: ECON 401 – Entrepreneurship and the US Economy F September 8 13. How Entrepreneurs Craft Strategies That Work, Amar Bhide, Harvard Business Review, March/April 1994 14. The Success Start-Up Guide, Elaine Pofeldt, Success, March 1999 15. Preliminary Legal Considerations in Forming a New Enterprise, Michael P. Ridley, Pratt's Guide to Venture Capital Sources, 1999 16. How to Write a Great Business Plan, William A. Sahlman, Harvard Business Review, July/August 1997 M September 11 17. Outline for a Business Plan: A Proven Approach for Entrepreneurs Only, Ernst & Young LLP, 1997 18. Finding Your Competitive Edge, Sid Davis, Emerging Business, Summer 2001 19. Bear Opportunities, Jennifer Gilbert and Jane Hodges, Business 2.0, April 17, 2001 20. Get Smart Fast—Or Else, Theresa Forsman, Business Week Online, October 1, 2001 W September 13 Discussion, Road to Serfdom…Part 9-12

F September 15 21. Solving the Puzzle of the Cash Flow Statement, Julie H. Hertenstein and Sharon M. McKinnon, Business Horizons, January/February 1997 22. Characteristics of a Successful Entrepreneurial Management Team, Alexander L. M. Dingee, Brian Haslett, and Leonard E. Smollen, Pratt's Guide to Venture Capital Sources, 1997 23. Going Outside, Christina Le Beau, Wall Street Journal, March 19, 2001 M September 18 Discussion, Road to Serfdom…Part 13-16

W September 20 Exam I. Units 1 and 2 and Road to Serfdom

F September 22 UNIT 3. Financing the New Venture/Free Markets and the Entrepreneur

24. Will Venture Capital Come in From the Cold?, Bernard Wysocki Jr., Wall Street Journal, September 24, 2001 25. Basic Instinct, Bill Stensrud, The Zone News, August 2000 26. Ready or Not?, David R. Evanson and Art Beroff, Entrepreneur, August 1999 27. Venture Capitalists' Assessment of New Venture Survival, Dean A. Shepherd, Management Science, May 1999 M September 25 28. Five Things to Remember When Raising Money, Ross Garber, Red Herring, March 2000 29. The VC On the Corner, Jill Andresky Fraser, Inc., May 1, 2001 30. The Venture Capital Industry: An Overview, National Venture Capital Association, 2001 31. The Man With the Golden Touch, Carleen Hawn, Forbes, February 19, 2001 Discussion: Capitalism and Freedom parts I, II, III W September 27 32. Jackpot!, Entrepreneur, July 2001 33. Not All VCs Are Created Equal, MIT Sloan Management Review, Summer 2001 34. Money Order, David R. Evanson and Art Beroff, Entrepreneur, July 2001 35. Angel Investors Fill Void Left By Risk Capital, Bonnie Azab Powell, New York Times, July 6, 2001 36. The Do's and Don'ts of Fund Raising, Barbara Jorgensen, Electronic

New Course Proposal: ECON 401 – Entrepreneurship and the US Economy Business, May 2001 F September 29 UNIT 4. Managing Growth and Creating Harvest Options

37. “Are You Built to Grow?”, Seth Godin, Fast Company, November 2000 38. Managing Growth, Michael J. Roberts, from New Business Venture and the Entrepreneurs, McGraw–Hill/Irwin 1999 39. Managing Global Expansion: A Conceptual Framework, Anil K. Gupta and Vijay Govindarajan, Business Horizons, March/April 2000 40. Three Strategies for Managing Fast Growth, Georg von Krogh and Michael A. Cusumano, MIT Sloan Management Review, Winter 2001 M October 2 Discussion: Capitalism and Freedom parts IV, V, VI

W October 4 39. Managing Global Expansion: A Conceptual Framework, Anil K. Gupta and Vijay Govindarajan, Business Horizons, March/April 2000 40. Three Strategies for Managing Fast Growth, Georg von Krogh and Michael A. Cusumano, MIT Sloan Management Review, Winter 2001 41. Insular Culture Helped Yahoo! Grow, But Has Now Hurt It in the Long Run, Mylene Mangalindan and Suein L. Hwang, Wall Street Journal, March 9, 2001 42. The Decision, from The Survival Guide to IPOs, American Lawyer Media, 2000 F October 6 43. The Initial Public Offering: Early Planning Considerations, Michael D. Donahue, Donahue & Mesereau, LLP, March 14, 2001 44. Harvesting Firm Value: Process and Results, J. William Petty, from Entrepreneurship 2000, Upstart Publishing Company, 1997 45. Choosing Your Exit Strategy, William H. Payne, Kauffman Center for Entrepreneurial Leadership, 2001 46. The Race to Embrace, Luisa Kroll, Forbes, October 30, 2000 M October 9 No Classes, Student Fall Break Day W October 11 Discussion: Capitalism and Freedom parts VII, VIII, IX

F October 13 47. The Flip Side of the Boom, Jill Andresky Fraser, Inc., September 1, 2000 48. Passing the Baton Peacefully, Eric Wahlgren, Business Week Online, March 5, 2001 49. Company for Sale by Owner—Or Maybe Not, Jill Andresky Fraser, Inc., June 2000 M October 16 Guest Speaker Sessions and Business Plan Reviews

W October 18 Guest Speaker Sessions and Business Plan Reviews

F October 20 Discussion: Capitalism and Freedom parts X, XI, XIII

M October 23 Guest Speaker Sessions and Business Plan Reviews

W October 25 Guest Speaker Sessions and Business Plan Reviews

F October 27 Exam II. Units 3 and 4 and Capitalism and Freedom M October 30 Guest Speaker Sessions and Business Plan Reviews

W November 1 Guest Speaker Sessions and Business Plan Reviews

F November 3 Guest Speaker Sessions and Business Plan Reviews

M November 6 Guest Speaker Sessions and Business Plan Reviews

New Course Proposal: ECON 401 – Entrepreneurship and the US Economy W November 8 Guest Speaker Sessions and Business Plan Reviews

F November 10 Guest Speaker Sessions and Business Plan Reviews

M November 13 Guest Speaker Sessions and Business Plan Reviews

F November 17 Guest Speaker Sessions and Business Plan Reviews B M November 20 Guest Speaker Sessions and Business Plan Reviews

T November 21 Thanksgiving Break Begins at 10:00 p.m. M November 27 Guest Speaker Sessions and Business Plan Reviews

F December 1 Guest Speaker Sessions and Business Plan Reviews

M December 4 Guest Speaker Sessions and Business Plan Reviews

W December 6 Guest Speaker Sessions and Business Plan Reviews

F December 8 Final Draft of Business Plan Due

December 12 Two Hour Course Wrap Up and Faculty Evaluation Session. 8:00 a.m. in Somsen 306

New Course Proposal: ECON 401 – Entrepreneurship and the US Economy