The individual enterpruer

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The individual enterpruer

  1. 1. 8/20/2012 11:47:06 PM by Dr.Rajesh Patel,Director,NRVMBA,email:1966patel@gmail.com 1
  2. 2. ENTREPRENEURIAL FEELINGS A.There is no “true entrepreneurialprofile”—entrepreneurs come from manyeducational backgrounds, family situations, andwork experiences. by Dr.Rajesh 8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 2 mail.com
  3. 3. B.Locus of Control. 1.Entrepreneurs must be able tosustain the drive and energy required to form somethingnew and to manage the new enterprise. 2.While research results areinconsistent, internal control seems to be a characteristicof entrepreneurs. 3.Internal beliefs appear to differentiateentrepreneurs from the general public, but not frommanagers since both tend toward internality. by Dr.Rajesh 8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 3 mail.com
  4. 4. C. Feelings about Independence andNeed for Achievement. 1.The entrepreneur also has the need forindependence, to do things in his or her own way and time. 2.Another controversial characteristic is theentrepreneur’s need for achievement. 3.McClelland concluded that a high need forachievement leads individuals to engage in entrepreneurialbehavior, although other studies have been inconsistent. by Dr.Rajesh 8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 4 mail.com
  5. 5. D.Risk Taking. 1. Risk taking seems a partof the entrepreneurial process. 2. Although many studieshave focused on risk taking inentrepreneurship, no conclusiverelationship has been established. by Dr.Rajesh 8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 5 mail.com
  6. 6. ENTREPRENEURIAL BACKGROUND AND CHARACTERISTICS by Dr.Rajesh 8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 6 mail.com
  7. 7. A. Only a few backgroundcharacteristics have differentiatedthe entrepreneur from managers. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 7 mail.com
  8. 8. B. Childhood Family Environment. 1. The impact of birth order and social status has had conflicting researchresults. 2. Some studies have found that entrepreneurs tend to be firstborn; others findno relationship. 3. There is strong evidence that entrepreneurs, both male and female, tend tohave self-employed or entrepreneurial parents. a. Having a father or mother who is self-employed provides a strong inspirationin the example of independence and flexibility of self-employment. b. This feeling of independence is often further enforced by an entrepreneurialmother. 4. The overall parental relationship may be the most important aspect of thechildhood environment in establishing the desirability of entrepreneurial activity. 5. Parents of entrepreneurs need to be supportive and encourage independence,achievement, and responsibility. a. This supportive relationship appears to be most important for females. b. Female entrepreneurs tend to grow up in middle- to upper-classenvironments, where families are child-centered, and are similar to their fathers inpersonality. by Dr.Rajesh 8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 8 mail.com
  9. 9. C. Education. 1. Education appears important inthe upbringing of the entrepreneur, in the level ofeducation obtained, and in playing a major role in copingwith problems. 2. Although formal education is notnecessary for starting a new business, it does provide agood background. 3. Few women entrepreneurs havedegrees in engineering, science, or math. 4. The ability to communicateclearly in written and spoken work is also important. by Dr.Rajesh 8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 9 mail.com
  10. 10. D.Personal Values. 1. Studies have failed to indicate that entrepreneurs can be differentiated on personal valued from managers, unsuccessful entrepreneurs, or the general public. 2. Studies have shown that the entrepreneur has a different set of attitudes about the nature of management. 3. Five consensus characteristics have been found: by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 10 mail.com
  11. 11. E. Age. 1. Entrepreneurial age, ascontrasted to chronological age, is the age of theentrepreneur reflected in the experience. 2. Entrepreneurial experience isone of the best predictors of success. 3. In chronological age, mostentrepreneurs start their careers between ages 22 and 55. 4. There are milestones yearsevery five years. 5. Generally, male entrepreneursstart their first venture in their early 30s, while women tendto do so in their middle 30s. Dr.Rajesh by8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 11 mail.com
  12. 12. F.Work History. 1.Dissatisfaction with one’s job often motivates the launching of anew venture. 2.Previous technical and industry experience is also importantonce the decision to start a business is made. 3.Experience in the following areas is particularly important:financing; product or service development; manufacturing; developmentof distribution channels; and preparation of a marketing plan. 4.As the venture becomes established, managerial experienceand skills become more important. 5. Entrepreneurial experience is also important. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 12 mail.com
  13. 13. III. MOTIVATION A. While motivations may vary, the reasoncited most often for becoming an entrepreneur isindependence—not wanting to work for anyone else. B. Other motivating factors differ betweenmale and female entrepreneurs. 1. Money is the second reason formen’s starting a venture. 2. Job satisfaction, achievement,opportunity, and money are the rank order reasons forwomen. by Dr.Rajesh 8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 13 mail.com
  14. 14. IV. ROLE MODELS AND SUPPORT SYSTEMS by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 14 mail.com
  15. 15. A. One of the most important factors influencingentrepreneurs in their career choice is the choice of rolemodels. 1. Role models can beparents, relatives, or successful entrepreneurs in thecommunity. 2. Role models can also serve in asupportive capacity as mentors during and after the newventure is launched. a. This support system is mostcrucial during the start-up phase. b. It is important that anentrepreneur establish connections and eventually networksearly in the venture formation process. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 15 mail.com
  16. 16. B. Moral-Support Network. 1. It is important for the entrepreneur to establish a moral support network of family and friends. 2. Most entrepreneurs indicate that their spouses are their biggest supporters. 3. Friends can provide advice that is more honest than that received from others; also encouragement, understanding, and assistance. 4. Relatives can also be sources of moral support, particularly if they are also entrepreneurs. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 16 mail.com
  17. 17. C. Professional-Support Network. 1.The entrepreneur also needs advice and counsel which can be obtained from members of aprofessional support network. 2.Most entrepreneurs indicate that they have mentors. a.The mentor is a coach, sounding board, and advocate. b.The individual selected needs to be an expert in the field. c.An entrepreneur can initiate the “mentor-finding process” by identifying andcontacting a number of experts. d.The mentor should be periodically apprised of the progress of the business sothat a relationship can gradually develop. 3.Another source of advice is a network of business associates. a. Self-employed individuals who have experience instarting a business are good sources. b. Clients and buyers are also important as theyprovide word-of-mouth advertising. 4. Suppliers are good components of the professional-supportnetwork—they help to establish credibility with suppliers and provide good information on trends in theindustry. 5. Trade associations are good network additions, as they keepup with new developments and can provide overall industry data. 6. Affiliations with individuals developed in hobbies, sportingevents, civic involvements, and school alumni Dr.Rajesh are excellent sources of referrals, advice, and by groups 8/20/2012 11:47:06 PMinformation Patel,Director,NRVMBA,email:1966patel@g 17 mail.com
  18. 18. V. MALE VERSUS FEMALE ENTREPRENEURS by Dr.Rajesh 8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 18 mail.com
  19. 19. A. Women are now starting new ventures at a higher ratethan men. 1.Women are starting businesses in the U.S. at twicethe rate of all businesses. 2.Women now own about 6.2 million smallbusinesses, employing 9.2 million people. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 19 mail.com
  20. 20. B. In some respects female entrepreneurs possess verydifferent motivations, business skills, and occupationalbackgrounds. 1. Factors in the start-up process formale and female entrepreneurs are different, especially in suchareas as support systems, sources of funds, and problems. 2. Men are motivated by the drive tocontrol their own destinies. 3. Women tend to be more motivatedby the need for achievement arising from job frustration. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 20 mail.com
  21. 21. C.Departure points and reasons for starting the business are similar for both men and women. 1. Both generally have a strong interest and experience in the area of their venture. 2. For men, the transition to a new venture is easier when the venture is an outgrowth of a present job. 3. Women often leave a previous occupation with a high level of frustration and enthusiasm for the new venture rather than experience. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 21 mail.com
  22. 22. D. Start-Up Financing. 1. Males often have investors,bank loans, or personal loans in addition topersonal funds as sources of start-up capital. 2. Women usually rely solelyon personal assets or savings. 3. Obtaining financing andlines of credit are major problems for women. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 22 mail.com
  23. 23. E.Occupations. 1. Both groups tend to haveexperience in the field of their ventures. 2. Men more often haveexperience in manufacturing, finance, or technical areas. 3. Most women usually haveadministrative experience, often in service-related fields. by Dr.Rajesh 8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 23 mail.com
  24. 24. F.Personality. 1. Both men and women tend to be energetic, goal-oriented, and independent. 2. Men are often more confident and less flexible and tolerant than women. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 24 mail.com
  25. 25. G.The backgrounds of male and female entrepreneurstend to be similar. 1. Women are a little older whenthey embark on their careers. 2. Men often have studied intechnical- or business-related areas, while womentend to have liberal arts education. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 25 mail.com
  26. 26. H.Support Groups. 1. Men usually list outsideadvisors as most important supporters, with spousebeing second. 2. Women list their spousesfirst, close friends second, and business associatesthird. 3. Women usually rely moreheavily on a variety of sources for support andinformation than men. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 26 mail.com
  27. 27. I. Nature of the Venture. 1. Women are more likely to start a business in a service-related area. 2. Men are more likely to enter manufacturing, construction, or high- technology fields. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 27 mail.com
  28. 28. VI.MINORITY ENTREPRENEURSHIP by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 28 mail.com
  29. 29. A.The differences in behavior of various groups must be understood in the context of the environment and economic opportunities available, making research difficult. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 29 mail.com
  30. 30. B.Most literature dealing with minorityentrepreneurship has focused on the characteristics ofthe group under study. 1.In terms of ownership, one study found: a.The lowest participation rate is for African-Americans. b.The second highest but fastest growing rate is forHispanics. c.The highest rate is for Asians. 2.Studies have also found differences in education,family background, and age when starting the venture. by Dr.Rajesh 8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 30 mail.com
  31. 31. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 31 mail.com
  32. 32. by Dr.Rajesh8/20/2012 11:47:06 PM Patel,Director,NRVMBA,email:1966patel@g 32 mail.com

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