2. Who Is the Entrepreneur
Entrepreneur is a person who habitually creates and
innovates to build something of recognized value around
perceived opportunities.
In this definition, all words are key words:
'Entrepreneur' – can be an individual entrepreneur, but also
an entrepreneurial team or even entrepreneurial organization
'A person' – emphasizes a personality rather than a system
'Habitually' - just cannot stop being an entrepreneur
'Creates' – starts from scratch and brings into being
something that was not there before
3. Continued…
Innovates – able to overcome obstacles that would stop
most people; turns problems and risks into opportunities;
delivers - sees ideas through to final application
'Builds something' – describes the output of the creation
and innovation process
'Of recognized value' – encompasses economic,
commercial, social, or aesthetic value
'Perceived opportunities' – spotting the opportunity to
exploit an idea that may or may not be original to the
entrepreneur; seeing something other miss or only see in
retrospect1
4. What Entrepreneurs Are Like
• Personality factors
– born/made ratio – 50/50, a synergy of genetic and environmental influence
– motivation and emotion – independence, competitive spirit, challenge, wealth
– behavioral characteristics – perseverance, determination, orientation to clear goals,
need to achieve, opportunity orientation, creativity, persistent problem-solving, risk-
taking, integrity, honesty, internal locus on control
– personality attributes – preferred styles: extrovert/introvert; sensor/intuit;
thinker/feeler; and judger/perceiver
• Environmental factors
– family background – entrepreneurial heritage
– age and education – begin entrepreneurial activity early; are not over-educated
– work experience – most entrepreneurs first gain some work experience in the line of
business they later start up
5. What Entrepreneurs Are Like
( cont)
Action factors
make the difference – initiate change and enjoy it
create and innovate – a continuous activity, seeing creative idea through to the end, and
then start climbing another mountain
exploit opportunities – able to see or craft opportunities that other people miss
find resources and competencies – experts at exploiting contacts and sources
network – expertise oriented; know when they need experts and how to use them
effectively
face adversity – resolve problems under pressure; turn problems into opportunities
manage risk - not adventurers, but manageable risk takers; their success lies in caution,
learning, flexibility and change during implementation
control the business - pay attention to details and essential ratios; exercise strategic
control over their business
put the customer first - listen to the customer and respond to the customers' feedback
creates capital - financial, social, and aesthetic
6. 7 Characteristics of Successful
Entrepreneurial Firms
Entrepreneurs who are passionate about their ventures and communicate that excitement to potential
investors, customers and mentors. The starting point of many great fortunes has been these seven
simple steps.
1. Set a goal and back it with a burning desire.
2. Begin accumulating capital with a regular savings program. Nothing else is possible without this.
You cannot move forward until you start a savings program.
3. Use your current job as a springboard to later success. Learn while you earn. Take the long view.
4. Experiment in business on a limited scale so you can learn the key abilities necessary for success.
5. Search for problems, needs unmet, products or services you can supply of good quality at
reasonable prices.
6. Read everything you can find on your chosen field. Remain flexible. Be willing to change your
mind if you get different information.
7. Implement your plans with courage and persistence. Have complete faith in your ability to
succeed and never, never give up.
7. 5 Rules for Entrepreneurship.
1. Find a Need and Fill It:
2. Find a Problem and Solve It .
3. Look for Solutions : Find a problem and solve it. Find a problem that everybody's got and
see if you can't come up with a solution for it. Find a way to supply a product or a service
better, cheaper, faster or easier.
4. Focus on Your Customer : Here's the key to success in business. Become obsessed with
your customer. Fixated on your customer. Think of the customer. Think of what the
customer wants, what the customer needs. What the customer will pay for, what the
customer's problems are.
5. The Source of Most Great Fortunes: Remember this, most great fortunes in America were
started with an idea and with personal efforts. Most great fortunes were started with the
sale of personal services. This is called sweat equity. In other words, instead of cash equity,
put in sweat equity. Put in the sweat of your brow to begin your business. You can learn
valuable lessons operating on a small scale.
8. 12 Rules of Success
1. Do what you love to do. Find your true passion. Do what you love to do a make a difference! The
only way to do great work is to love what you do.
2. Be different. Think different. "Better be a pirate than to join the navy."
3. Do your best. Do your best at every job. No sleep! Success generates more success. So be hungry
for it. Hire good people with passion for excellence.
4. Make SWOT analysis. As soon as you join/start a company, make a list of strengths and
weaknesses of yourself and your company on a piece of paper. Don't hesitate in throwing bad
apples out of the company.
5. Be entrepreneurial. Look for the next big thing. Find a set of ideas that need to be quickly and
decisively acted upon and jump through that window. Sometimes the first step is the hardest
one. Just take it! Have the courage to follow your heart and intuition.
6. Start small, think big. Don't worry about too many things at once. Take a handful of simple things
to begin with, and then progress to more complex ones. Think about not just tomorrow, but the
future. "I want to put a ding in the universe”.
7. Strive to become a market leader. Own and control the primary technology in everything you do.
If there's a better technology available, use it no matter if anyone else is not using it. Be the first,
and make it an industry standard.
9. 12 Rules of Success ( cont)
8. Focus on the outcome. People judge you by your performance, so focus on the outcome.
Be a yardstick of quality. Advertise. If they don't know it, they won't buy your product. Pay
attention to design.
9. Ask for feedback. Ask for feedback from people with diverse backgrounds. Each one will
tell you one useful thing. If you're at the top of the chain, sometimes people won't give you
honest feedback because they're afraid. In this case, disguise yourself, or get feedback from
other sources. Focus on those who will use your product – listen to your customers first.
10. Innovate. Innovation distinguishes a leader from a follower. Concentrate on really
important creations and radical innovation. Hire people who want to make the best things
in the world. You need a very product-oriented culture.
11. Learn from failures. Sometimes when you innovate, you make mistakes. It is best to admit
them quickly, and get on with improving your other innovations.
12. Learn continually. There's always "one more thing" to learn! Cross-pollinate ideas with
others both within and outside your company. Learn from customers, competitors and
partners.
10. DOs and DON'Ts of a Successful
Innovator
DOs
Analyze the opportunities
Go out to look, to ask, to listen
Keep it simple, keep it focused
Start small – try to do one specific thing
Think big – aim at market leadership
DON'Ts
Don't try to be too clever
Don't diversify, don't splinter, don't try to do too many things at once
Don't undershoot, or you will simply create an opportunity for competition
Don't try to innovate for the future
11. Why Do Many Small
Businesses Fail?
2/3 of new businesses survive for at least two years, and only 44% survive at least four years. There are some
common mistakes that can sink a business in no time. Give your new business venture a fighting chance by
taking care to avoid these fatal errors:
1. Overexpansion.
2. Poor capital structure
3. Overspending.
4. Lack of reserve funds.
5. Bad business location.
6. Poor execution and internal controls.
7. An inadequate business plan.
8. Failure to change with the times.
9. Ineffective marketing and self-promotion.
10. Underestimating the competition.
11. Lack of management ability
12. Failure to select and use appropriate outside professional advisors
13. Inability to market product or services effectively
14. Over dependence on a single individual or on a predicted specific event
15. Failure to understand capital requirements of a growing business
16. Poor timing of expenditures due to poor planning
17. Expedient rather than reasoned decision-making
12. Two Rules for Business
Start-Ups
1. Entrepreneurship is the art of finding profitable
solutions to problems. Every successful entrepreneur,
every successful businessperson has been a person
who has been able to identify a problem and come up
with a solution to it before somebody else did.
2. Entrepreneurship is the art of finding profitable
solutions to problems. Every successful entrepreneur,
every successful businessperson has been a person
who has been able to identify a problem and come up
with a solution to it before somebody else did.
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