BA 592 -- Economic Perspectives on
Entrepreneurship
Dr. Brian Goff/ GH 414/Phone: 745-3855/
Email: brian.goff@wku.edu/www.wku.edu/~brian.goff/
Offiice Hours ("official"): MW 9-11; TR 1-3
Course Policies / Course
Outline/ Supplemental Resources/
Bad Weather Policy/
Responsibilities
of MBA
Students / Grades
(prelim)
COURSE POLICIES
Objectives of the course: This course identifies and
examines key apsects of entrepenuership using insights and tools from
economics. These include broad empirical studies, a focus on
incentives, narrow empirical studies, and consideration of market
trends and cases. iThe purpose
Resources: Online Readings & Resources (See
Course Outline)
WSJ
(especially "Startup Journal" link and "Career" heading of "Personal
Journal" section) -- Register
at link; Each student must subscribe unless share same household
Student expectations and requirements
Weekly Quizzes
25%
Oral Assignment/Participation 25%
Written Assignments
25%
Final Exam
25%
(A = 90-100%; B=80-89%; C=70-79%; D=60-69%; F<60%)
Weekly Quizzes: With
a few (stated) exceptions, we will begin each class period with a short
quiz over the week's assigned reading. These are intended to
provide an incentive to complete the readings.
Oral Assignments/Participation:
Developing oral communication skills is a key element of management
education. With a few exceptions, you will be expected to be able
to make a short oral summary to the class on an assigned reading or
topic. In addition, you should look through the WSJ each week for
articles related to small business and innovations in business.
Grades
will be based based on my assessment of the quality of these
summaries as well as other contributions to class
based on grasp of material and your ability to communicate the ideas
clearly and concisely. Absence influences these
grades. Everyone begins the class with with an 85% rating with
adjustments from there.
Assignments: See Specific Instructions.
Final Exam: The final exam will be a short-answer/
multiple choice instrument covering main topics. It is intended
to provide an incentive to look back over major course concepts.
MISCELLANEOUS
The schedule necessitates intensive
use
of class time and permits little flexibility in terms of absenteeism.
Consult the Bad
Weather
Contingency Plan for what we will do in the
case of snow/ice. Students
with disabilities
who require accommodations (academic adjustments and/or auxiliary aids
or
services) for this course must contact the first contact the Office for Student Disability
Services in DUC A-200 of the Student Success Center in Downing
University
Center.
COURSE OUTLINE--Some
Topics
Subject to Change
(Some articles, if accessed from off-campus, require going through
WKU's E-Journal system. Go here http://www.wku.edu/Library/ejrnloff.htm#;
and then find the appropriate journal and year.
Authorization #: 100117386; Password: western)
Week 1 (Aug 31) Overview of
Economics & Entrepreneurship
What is Entrepreneurship?
What does Economics have to add to its study?
Analytical Tools -- Understanding Models & Evidence (mechanics +
info from
averages)
(Background: Entrepreneurship
in the US 2004 (Part 2) Entrepreneurship Research Institute
Foundations
& Trends in Entrepreneurship Chapter 4))
Week 2 (Sept 7)
Some Empirical Background on Entrepreneurship
Entrepreneurship
in US 2004 (Part 4), Entrepreneurship Research Institute
First half of The
Returns to Entrepreneurial Investment, American Economic Review
(Sept 2002)
Does
Entrepreneurship Pay? An Analysis of the Returns to
Self-Employment, Journal of Political Economy (2000, 604-631)
Oral Assignment: TBA
[Tables]
Week 3 (Sept 14) More Empirical Background
Nature
v. Nuture, Richmond Fed Regional Focus (Fall 2005)
Some
Empirical Aspects of Entrepreneurship (longitudinal-individual
level study), American Economic Review (June 1989)
(JSTOR access available through WKU)
What
Makes an Entrepreneur? Journal of Labor Economics (1998, pp.
26-60)
[Tables]
Oral Assignment: TBA
Week
4 (Sept 21) External
Environment &
Small Business Success -- Does Location Matter?
Do
Only Big Cities Innovate: Tech Maturity & the Location of
Innovation, KC Fed Economic Review (2nd QTR 2005)
Gauging
a Region's Entrepreneurial Potential (Non-metro county level
analysis) KC Fed Economic Review (QTR 3, 2005)
Entrepreneurs
in US Face Less Red Tape, St. Louis Fed, Regional Economist
(October 2004)
Entrepreneurship
& Policy Environment, St. Louis Fed Review (March/April 2006)
Oral Assignment: TBA
Written
Assignment 1 (Due Oct 12)
Week 5 (Sept 28) -- NO CLASS (I'm out
of town)
Week 6 (Oct 5) -- NO CLASS (Fall Break)
Week 7 (Oct 12)
Unlocking New Markets & Trends in Innovation
BB Chapter 3
Current Markets Trends & Innovations
Are
High Growth Entrepreneurs Building the Rural Economy, KC Fed Main
Street
Week 8 (Oct 19) Key Economic Issues in Managing a Small
Business --
Decision Rights, Incentives, Attracting
& Retaining a Workforce, Information...
BB Chapters 2, 4,
8
Oral Assignment: TBA
Week
9 (Oct 26) Viewpoints on
Economic
Issues in Managing a Small
Business
Guest Speaker -- Mike Coffey, BlueCotton Sportswear
Week 10 (Nov 2) Promoting Innovation
and Managing the Process of Innovation in Small Business
BB Chapters 5 and 7
Oral Assignment: TBA
Written Assignment 2 (due Nov 9)
Week 11 (Nov 9) Managing
& Promoting Innovation and Discovery on a Large Scale
Koch Industries & "Market Based Management" Koch Article; KI MBM Summary
KI
"Guiding Principles" Summary
Decentralization
& Innovation, Philadelphia Fed Business Review (Q1 2003)
When
Does Start-Up Innovation Spur Creative Destruction (examining
start-up choice to compete or cooperate with existing firms), RAND
Journal of Economics (Winter 2002)
Week 12 (Nov 16) Financing
Issues for Small Business
Entrepreneurship
in the US 2004 (Section 5 -- Informal Investors)
Do
Liquidity Constraints Matter for Entreprenuers, Fed Reserve Board
of Governors Working Papers 2004
Stumbling
Blocks to Entreprenuership in Low and Moderate Income Communities &
Comment, KC Fed Conference on Entrepereneurship in Low &
Moderate Income Communities
WSJ Startup Section
Oral Assignment: TBA
Week 13 (Nov 23) NO CLASS
(Thanksgiving Break)
Week 14 (Nov 30) Health Care and Small Business
SBA Health Care Page
(subsections + US Treasury link and subsections, esp FAQ); Trends w/Big Employers ; Small
Biz HC Headaches (BusWeek)
OECD Health Expenditure Data
Oral Assignment: TBA
Week
15 (Dec 7) Viewpoints
on Economic Issues for Small Business
Guest Speaker: Dean Jordan, Southern Ceiling Inc.
Week 16 (DEC 14) -- Final Exam
SUPPLEMENTAL
RESOURCES
Textbooks:
Managerial Economics &
Organizational Architecture, Brickley et al
Economics, Organizations, and
Management, Milgrom and Roberts
Economics of Strategy, Besanko et al
WSJ
"StartUp" Link on WSJ.com and "Career" subheading of PERSONAL JOURNAL
section
Defining/Background/Data
Conside
Encyclopedia of Economics
Entrepreneurship
in the US 2004, Entrepreneurship Research Institute
Entrpreneurs
in Econ Theory (taxonomy; excludes Knight), Dallas Fed
Economic and Financial Review (4th QTR, 2001)
External Environment
Staying
Out of the Way of Entrepreneurs, Speech by William Poole
(President, St. Louis Fed, April 2005)
Creating
a Policy Environment for Entrepreneurs (state level analysis), St.
Louis Fed Working Paper Series 2006
What Makes
a Region Entrepreneurial: Evidence from Britain, St. Louis Fed
Working Paper Series 1999 (Published in Annals of Regional Science)
Gender
Differences in Self-Employment, St. Louis Fed Working Paper Series
2004
Internal Environment
Tech
& Market Turbulence: Dotcom Example (complimentarity &
innovation), KC Fed Working Paper 2006
Financing/Profitability
Part
5 Entrepreneurship in US 2004, Entrepreneurship Research Institute
Entrepreneurial
Decisions and Liquidity Constraints (inheritance study), RAND
Jounal of Economics (Summer 1994)
What
Determines Variation in Entreprenuerial Success & Comment, KC
Fed Conference
Organizational/Managerial Economics
& Entrepreneurship
UC
Berkeley-Haas Business School Seminar Series on the Economics of
Innovation
Chandlerian
Firms v. Entreprenerial Firms, UC Berkeley-Haas Business School
Seminar Series on Economics of Innovation 2005
When
Does Start-Up Innovation Spur Creative Destruction (examining
start-up choice to compete or cooperate with existing firms), RAND
Journal of Economics (Winter 2002)
Visionaries,
Managers, and Strategic Direction (technical), RAND Journal
(Winter 2000)
Bad
Weather Policy
By November and December, some chance of bad winter weather exists.
Here is the plan,
1) If bad weather is looming, check your WKU email account; if I
cannot make it in, I will notify you via an email
2) if class is officially cancelled by WKU or if you are notified of a
cancellation by me
-- Email your materials for your "Briefs" to
me as a Word attachment
-- I will post supplemental notes to the
website that you should consult; direct
questions to me via email
-- If the final class is cancelled, I will
post the Final to the website; you should follow the instructions and
send it back to me via email; also, your final Briefs should be sent to
me via email
2) if class is not cancelled but you live a considerable distance from
campus AND hazardous conditions exist, do not endanger yourself;
-- you may follow the procedures prescribed above
without any penalty for your absence
(Please note: this is a bad weather policy and does not pertain
to other reasons for absence)
Responsibilities
of MBA Students
MBA courses combine graduate education and professional business
eduction both of which place much greater responsibiliites on students
than undergaduate courses. Not all of these
responsibilities are easily summarized in a few lines, but the
following items indicate some of the specific expectations that are
significantly different than expectations in many undergraduate courses.
1. Preparation
i) students are expected to come to class having adequately read
assigned material;
ii) students are expected to consider and contribute to discussions as
well as how topics integrate with business decisions;
2. Initiative
i) if a topic is unclear, the primary responsibility rests with the
student to find and digest supplemental material;
ii) if a student's current or prior work experience does not provide a
background for mid- and upper-level business decisions, the student
should supplement his/her experiences by regularly reading
business periodicals such as the WSJ;
3. Presentation
i) When presenting material or making comments to
class, students should communicate in ways that are beneficial to the
group (audibly, clearly, thoughtfully, ...);
ii) While classroom settings are usually informal, students should keep
in mind that an MBA is professional training -- non-verbal signals such
as lack of punctuality, appearance (within accepted norms), and body
language matter
WRITTEN ASSIGNMENT 1
Using some source such as the Wall Street Journal, summarize 2
succesful product innovations, ii) in each case, discuss how the
innovation relates to the topics emphasized in Chapter 3 of From the
Ballfield to
the Boardroom.
Your assignment should be no more than 3 typed, single-spaced pages in
12 point font (up to two additional pages of tables or figures may be
attached). Label all tables or figures. Use section headings
WRITTEN ASSIGNMENT 2
(Revised 11/2/06)
Using the readings provided as well as further information that you can
uncover, i) summarize key challanges to innovation in larger
organizations (identify ones shared by smaller organizations and ones
that may be much for difficult for larger organizations), ii)
summarize the main features of the Market Based Management philosophy
as
developed by Koch Industries in its attempt to foster "entrepreneurial"
activity within a large firm, and iii) identify and discuss strengths
and weaknesses to such a system.
Your assignment should be no more than 3 typed, single-spaced pages in
12 point font (up to two additional pages of tables or figures may be
attached). Label all tables or figures. Use section
headings.