Collegiate entrepreneur

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 (under the age of 25) 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

According to Young Money Magazine arecent 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.

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.

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.

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 Capital

An 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 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).

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