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Global
innovative
Leadership Module
Disclaimer> The information and views set out in this publication are those of the author(s)
and do not necessarily reflect the official opinion of the European Union. Neither the European
Union institutions and bodies nor any person acting on their behalf may be held responsible for
the use which may be made of the information contained therein.
1.Theoretical
Background
Try to give answers to the
following questions:
❖What is entrepreneurship?
❖Which are the
characteristics of an
entrepreneur?
❖Which are the types of
entrepreneur?
1.1. What is
entrepreneurship?
Entrepreneurship means
independently undertaking a
business activity of which the
outcome is not fixed.
Requires a positive attitude, a
drive to advance and improve.
Basic
Characteristics
External entrepreneurship means acting
as an entrepreneur, establishing a company
and running a business.
Internal entrepreneurship refers
to an individual’s
entrepreneurial behavior at the
service of someone else.
1.2. Characteristics
of an entrepreneur
❖ creativity and independence,
❖ determination and decisiveness,
❖ self-confidence
❖ Innovativeness
❖ risk taking
❖ goal-orientation
❖ initiative taking
❖ desire to achieve positive results
❖ ability to motivate, guide, support and
lead others
❖ extroverted communication skills
❖ vision
❖ ability to learn from both experience
and failure,
❖ ability to learn continuously
❖ ability to draw upon the expertise of
others,
❖ organizational capability,
❖ ability to cooperate,
❖ the understanding that the success of
others also benefits oneself.
A successful
entrepreneur has
1.3. Types of
Entrepreneurs
Classification according to motive and
business practice:
o Opportunistic entrepreneur - seek
growth and continuously scan the business
environment
o Professional entrepreneur - sole
entrepreneur who is independently self-
employed
Classification according to social identity:
o Entrepreneur-manager - natural leader
of growing firms
o Craftsman entrepreneur - emphasize
service and the importance of customer
satisfaction
o Classical entrepreneur - seeks business
results and to maximize the profitability of
the firm
A successful entrepreneur has
2.Applications for
entrepreneurs
iGoStartup is an online
business platform which
provides tools that can guide
students to start a new
business. Using the packs the
entrepreneur is provided with
an instant, professional,
consulting assistance.
Young
entrepreneurs can
use
1. Visit igostartup.com
2. Choose Basic Startup Pack
3. Use the coupon STARTUPNOW
4. Get free access
5. Complete the tools
2.Applications for
entrepreneurs BEFORE STARTING
❖ Do I have the intention to be an
entrepreneur?
❖ Do I have the skills to be entrepreneur?
❖ Am I a risk taker?
❖ Do I have the necessary organizational
skills?
❖ Do I have the necessary planning skills?
❖ What type of decision maker am I?
STARTING MY BUSINESS
 Can I identify entrepreneurial
opportunities?
 Is my business idea viable?
 Analyzing my competition
 Choosing the right name for my company
 Choosing the right location for my
company
Tools for young entrepreneurs
DEALING WITH MONEY
▪ Choosing the best finance option for me
▪ Calculating the startup capital
▪ Forecasting my Cash Flow
▪ Calculating the break-even point
MARKETING STRATEGIES
• Making decisions related to the product
• Product life cycle stages
• Choosing an effective pricing strategy
• Evaluating the distribution channels
• Developing a promotion strategy
3.Case Studies for
entrepreneurship
Every year thousands of entrepreneurs
decide to set up their own business,
anticipating great financial rewards.
However, over half of new business start-
ups fail in their first year.
So what makes the difference between
those and profitable business ventures?
What makes an entrepreneur
extraordinary?
This case study focuses on Duncan
Bannatyne, one of the UK's best-known
entrepreneurs. His career shows that
there is no single factor that makes an
entrepreneur. As he says, 'Anyone can do
it'
A Bannatyne case study
3.Case Studies for
entrepreneurship
Cosmetics is a huge and fast growing
industry comprising fragrances,
traditional cosmetics, beauty and skin-
care preparations as well as many
different hair care and toiletry products.
These are sold in a variety of ways:
through Boots department stores,
supermarkets, pharmacies as well as
other outlets and direct sales.
This case study focuses upon the Ruby &
Millie brand, hailed as Britain’s most
exciting range of personality-driven
make-up since the launch of Mary Quant
30 years ago. First launched in October
1997, the brand comes under the Boots
The Chemists' beauty product portfolio.
A Boots case study
4.Educational Unit
“Starting a
business”
The business idea is a concrete practical
description of how the company plans to
conduct profitable business activities. It
concisely presents the key elements of
the business: who is sold to, what is sold,
what the business does and what kind of
image does the business project to its
stakeholders. In addition to this it is
important to remember the business’
protective measures such as patents and
copyrights.
The business idea
4.Educational Unit
“Starting a
business”
In order to plan the business in more
detail it is important to address the basic
questions more specifically. A useful tool
is the matrix where a young entrepreneur
can map his/her choices and business
ideas according to a number of basic
questions.
Developing the business idea
4.Educational Unit
“Starting a
business”
Identifying the potential customer base’s
needs helps with the development of the
product or service offering.
Segmentation is the categorization of
potential customers in a market into groups by
common needs or demands.
Segmentation criteria can be:
Consumers: Customer information such as
age, gender, income, profession, marital
status, education, location, etc.
Businesses and groups: Size of the
organization, industry, location, stage of
development, etc.
Within a business: professional group, position
within the organization, etc.
Customer / user values and attitudes: lifestyle,
hobbies, etc.
Other criteria such as the intensity of use of
the product or service: heavy-light user, mass-
occasional consumer, potential consumer.
Who do I sell my products / services to?
Example: a gardening contractor could consider
if his or her business should market its offering
to all potential customers or if it is wiser to start
by selling to local building companies as a sub-
contractor.
4.Educational Unit
“Starting a
business”
By limiting the market to newborns and
their parents helps to understand the
customer needs.
Address the customer’s /
segment’s needs
Example which illustrates the market segment
and refers to a products targeted to the below
groups Sleeping Cribs, beds, carriages..
Outdoors Sleeping bag, raincoats...
Clothing Overalls, shirts...
Hygiene Diapers, skin care...
Parties Baptism dresses...
Gifts Rattles…
Food Baby foods, juices…
Dining Cups, plates…
Childcare
Babysitter, changing
table… etc.
4.Educational Unit
“Starting a
business”
When you have gained an understanding
of your future customer base you can
move onto developing the product /
service. It is important to maintain a focus
of what is relevant to your business. An
assessment of your own skills is also a
good starting point in terms of
developing a business idea. In the
translation services example the
entrepreneur would need to specify
whether the offered service involves the
translation of documents or oral
simultaneous translator services.
What can I offer my future
clients?
Example which illustrates the options of
product offering for the profession of a
carpenter
4.Educational Unit
“Starting a
business”
In order for the above to become reality
your product or service has to be
positively differentiated from the
competition’s offering. A useful approach
by which to ensure this is to address the
issue from the perspective of the target
segment. In choosing a product or
service, a customer is faced with actual
differences between product / service
offerings. However, the customer is also
influenced by perceptions.
Add to this diagram the factors that are
relevant to your industry. The diagram is
not complete but it will get you started.
Why would customers buy
your product/service?
4.Educational Unit
“Starting a
business” There is one more square remaining in
the matrix. You should imagine the basic
decisions that need to be made in terms
of the activities that describe your
business. How to organize your
company’s activities so that the selected
target segments can access your
products or services, how they are
produced, with what kind of personnel,
etc. The answers to these questions often
are dependent on the specific industry
and the individual company. An
entrepreneur can look at the best
practices of successful established firms
to gauge the available options. The
solutions don’t need to be replicated
exactly as each entrepreneur has the
opportunity to innovate.
How to organize your
business?
4.Educational Unit
“Starting a
business”
The business idea matrix is the most utilized
tool for describing a business based on a
single product or product area. The tool
addresses many of the entrepreneur’s
fundamental strategic decisions.
o What?
o Products/Services?
o Why?
o Customers’ and target segments’ needs
or problems?
o Who?
o Target segment or segments?
o How? How to organize?
o How is the business organized efficiently
and made profitable?
o Why? Attractiveness?
o Why would the target segment buy the
product/service?
o Image, product profile, product
description?
o Compatibility
o Will the business idea still work in 5 years
time?
Summarizing the business idea
4.Educational Unit
“Starting a
business”
1. Forming a business idea and drafting
a preliminary business plan
2. Assessing the business’ profitability
and organizing financing
3. Selecting a business form
4. Choosing a business name
5. Relevance of business licenses or
notifications
6. Basic notification to the Trade
Register
7. Obtaining a Business Identity Code (Y-
tunnus)
8. Start-up notification to the Tax
Administration
9. Assessing risks and insurance
10. Accounting arrangements
11. Selecting the location for the business
The steps of establishing a
company
4.Educational Unit
“Starting a
business”
Factors that affect the selection of
business form include the number of
founders, the required capital and issues
related to taxation:
❖ Number of founders
❖ Start-up capital
❖ Responsibility & company
❖ Flexibility of operations
❖ Distribution of profits (Coverage of
losses)
❖ Salary
❖ Taxation
Business forms
4.Educational Unit
“Starting a
business”
A private entrepreneur can either be
categorized as a general self-employed
professional or a so-called tradesperson
entrepreneur. A self-employed professional is
an entrepreneur who practices a certain
business and who is not bound to a fixed place
of business.
There are two types of partnerships, general
and limited partnerships. Partnerships are
legally established when the founding partners
agree to the articles of association. The law
does not require adherence to a set form so
the agreement may even be entered into
orally.
Limited companies, both private and public,
cooperatives and foundations are all classified
as corporations. Limited liability companies
are generally established when there are many
partners, there are large scale business
activities or when the entrepreneur wants to
reduce his or her personal risk or liability.
Business forms
4.Educational Unit
“Starting a
business” The purpose of a cooperative is to
manage the finances of its members or
support the member’s trade through the
use of the corporation’s services. The
cooperative entrepreneurship business
form suits those businesses that have a
fixed functional or operational
relationship with their members and
which operate in sectors requiring know-
how and small capital investments.
Establishing a limited liability company
A limited liability company is established
by drafting a memorandum of association
or articles of incorporation and holding a
founding or constitutive meeting. The
memorandum of association must state
the amount of capital stock or share
capital of the company. The minimum
share capital set by the law is 8000 Euros.
Business forms
Establishing a cooperative
A cooperative is established by a written contract known as the charter of foundation. The
signatories of the charter of foundation are the cooperatives founding members and
members of the cooperative. A cooperative may be established by no fewer than three
individuals or other legal entities. There is no upper limit to the number of founders. There
are no minimum requirements concerning the capital requirements of the cooperative. The
co-operative contribution or participation share is the same for all members
Thanks for your attention

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Entrepreneurship

  • 1. Global innovative Leadership Module Disclaimer> The information and views set out in this publication are those of the author(s) and do not necessarily reflect the official opinion of the European Union. Neither the European Union institutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein.
  • 2. 1.Theoretical Background Try to give answers to the following questions: ❖What is entrepreneurship? ❖Which are the characteristics of an entrepreneur? ❖Which are the types of entrepreneur?
  • 3. 1.1. What is entrepreneurship? Entrepreneurship means independently undertaking a business activity of which the outcome is not fixed. Requires a positive attitude, a drive to advance and improve. Basic Characteristics External entrepreneurship means acting as an entrepreneur, establishing a company and running a business. Internal entrepreneurship refers to an individual’s entrepreneurial behavior at the service of someone else.
  • 4. 1.2. Characteristics of an entrepreneur ❖ creativity and independence, ❖ determination and decisiveness, ❖ self-confidence ❖ Innovativeness ❖ risk taking ❖ goal-orientation ❖ initiative taking ❖ desire to achieve positive results ❖ ability to motivate, guide, support and lead others ❖ extroverted communication skills ❖ vision ❖ ability to learn from both experience and failure, ❖ ability to learn continuously ❖ ability to draw upon the expertise of others, ❖ organizational capability, ❖ ability to cooperate, ❖ the understanding that the success of others also benefits oneself. A successful entrepreneur has
  • 5. 1.3. Types of Entrepreneurs Classification according to motive and business practice: o Opportunistic entrepreneur - seek growth and continuously scan the business environment o Professional entrepreneur - sole entrepreneur who is independently self- employed Classification according to social identity: o Entrepreneur-manager - natural leader of growing firms o Craftsman entrepreneur - emphasize service and the importance of customer satisfaction o Classical entrepreneur - seeks business results and to maximize the profitability of the firm A successful entrepreneur has
  • 6. 2.Applications for entrepreneurs iGoStartup is an online business platform which provides tools that can guide students to start a new business. Using the packs the entrepreneur is provided with an instant, professional, consulting assistance. Young entrepreneurs can use 1. Visit igostartup.com 2. Choose Basic Startup Pack 3. Use the coupon STARTUPNOW 4. Get free access 5. Complete the tools
  • 7. 2.Applications for entrepreneurs BEFORE STARTING ❖ Do I have the intention to be an entrepreneur? ❖ Do I have the skills to be entrepreneur? ❖ Am I a risk taker? ❖ Do I have the necessary organizational skills? ❖ Do I have the necessary planning skills? ❖ What type of decision maker am I? STARTING MY BUSINESS  Can I identify entrepreneurial opportunities?  Is my business idea viable?  Analyzing my competition  Choosing the right name for my company  Choosing the right location for my company Tools for young entrepreneurs DEALING WITH MONEY ▪ Choosing the best finance option for me ▪ Calculating the startup capital ▪ Forecasting my Cash Flow ▪ Calculating the break-even point MARKETING STRATEGIES • Making decisions related to the product • Product life cycle stages • Choosing an effective pricing strategy • Evaluating the distribution channels • Developing a promotion strategy
  • 8. 3.Case Studies for entrepreneurship Every year thousands of entrepreneurs decide to set up their own business, anticipating great financial rewards. However, over half of new business start- ups fail in their first year. So what makes the difference between those and profitable business ventures? What makes an entrepreneur extraordinary? This case study focuses on Duncan Bannatyne, one of the UK's best-known entrepreneurs. His career shows that there is no single factor that makes an entrepreneur. As he says, 'Anyone can do it' A Bannatyne case study
  • 9. 3.Case Studies for entrepreneurship Cosmetics is a huge and fast growing industry comprising fragrances, traditional cosmetics, beauty and skin- care preparations as well as many different hair care and toiletry products. These are sold in a variety of ways: through Boots department stores, supermarkets, pharmacies as well as other outlets and direct sales. This case study focuses upon the Ruby & Millie brand, hailed as Britain’s most exciting range of personality-driven make-up since the launch of Mary Quant 30 years ago. First launched in October 1997, the brand comes under the Boots The Chemists' beauty product portfolio. A Boots case study
  • 10. 4.Educational Unit “Starting a business” The business idea is a concrete practical description of how the company plans to conduct profitable business activities. It concisely presents the key elements of the business: who is sold to, what is sold, what the business does and what kind of image does the business project to its stakeholders. In addition to this it is important to remember the business’ protective measures such as patents and copyrights. The business idea
  • 11. 4.Educational Unit “Starting a business” In order to plan the business in more detail it is important to address the basic questions more specifically. A useful tool is the matrix where a young entrepreneur can map his/her choices and business ideas according to a number of basic questions. Developing the business idea
  • 12. 4.Educational Unit “Starting a business” Identifying the potential customer base’s needs helps with the development of the product or service offering. Segmentation is the categorization of potential customers in a market into groups by common needs or demands. Segmentation criteria can be: Consumers: Customer information such as age, gender, income, profession, marital status, education, location, etc. Businesses and groups: Size of the organization, industry, location, stage of development, etc. Within a business: professional group, position within the organization, etc. Customer / user values and attitudes: lifestyle, hobbies, etc. Other criteria such as the intensity of use of the product or service: heavy-light user, mass- occasional consumer, potential consumer. Who do I sell my products / services to? Example: a gardening contractor could consider if his or her business should market its offering to all potential customers or if it is wiser to start by selling to local building companies as a sub- contractor.
  • 13. 4.Educational Unit “Starting a business” By limiting the market to newborns and their parents helps to understand the customer needs. Address the customer’s / segment’s needs Example which illustrates the market segment and refers to a products targeted to the below groups Sleeping Cribs, beds, carriages.. Outdoors Sleeping bag, raincoats... Clothing Overalls, shirts... Hygiene Diapers, skin care... Parties Baptism dresses... Gifts Rattles… Food Baby foods, juices… Dining Cups, plates… Childcare Babysitter, changing table… etc.
  • 14. 4.Educational Unit “Starting a business” When you have gained an understanding of your future customer base you can move onto developing the product / service. It is important to maintain a focus of what is relevant to your business. An assessment of your own skills is also a good starting point in terms of developing a business idea. In the translation services example the entrepreneur would need to specify whether the offered service involves the translation of documents or oral simultaneous translator services. What can I offer my future clients? Example which illustrates the options of product offering for the profession of a carpenter
  • 15. 4.Educational Unit “Starting a business” In order for the above to become reality your product or service has to be positively differentiated from the competition’s offering. A useful approach by which to ensure this is to address the issue from the perspective of the target segment. In choosing a product or service, a customer is faced with actual differences between product / service offerings. However, the customer is also influenced by perceptions. Add to this diagram the factors that are relevant to your industry. The diagram is not complete but it will get you started. Why would customers buy your product/service?
  • 16. 4.Educational Unit “Starting a business” There is one more square remaining in the matrix. You should imagine the basic decisions that need to be made in terms of the activities that describe your business. How to organize your company’s activities so that the selected target segments can access your products or services, how they are produced, with what kind of personnel, etc. The answers to these questions often are dependent on the specific industry and the individual company. An entrepreneur can look at the best practices of successful established firms to gauge the available options. The solutions don’t need to be replicated exactly as each entrepreneur has the opportunity to innovate. How to organize your business?
  • 17. 4.Educational Unit “Starting a business” The business idea matrix is the most utilized tool for describing a business based on a single product or product area. The tool addresses many of the entrepreneur’s fundamental strategic decisions. o What? o Products/Services? o Why? o Customers’ and target segments’ needs or problems? o Who? o Target segment or segments? o How? How to organize? o How is the business organized efficiently and made profitable? o Why? Attractiveness? o Why would the target segment buy the product/service? o Image, product profile, product description? o Compatibility o Will the business idea still work in 5 years time? Summarizing the business idea
  • 18. 4.Educational Unit “Starting a business” 1. Forming a business idea and drafting a preliminary business plan 2. Assessing the business’ profitability and organizing financing 3. Selecting a business form 4. Choosing a business name 5. Relevance of business licenses or notifications 6. Basic notification to the Trade Register 7. Obtaining a Business Identity Code (Y- tunnus) 8. Start-up notification to the Tax Administration 9. Assessing risks and insurance 10. Accounting arrangements 11. Selecting the location for the business The steps of establishing a company
  • 19. 4.Educational Unit “Starting a business” Factors that affect the selection of business form include the number of founders, the required capital and issues related to taxation: ❖ Number of founders ❖ Start-up capital ❖ Responsibility & company ❖ Flexibility of operations ❖ Distribution of profits (Coverage of losses) ❖ Salary ❖ Taxation Business forms
  • 20. 4.Educational Unit “Starting a business” A private entrepreneur can either be categorized as a general self-employed professional or a so-called tradesperson entrepreneur. A self-employed professional is an entrepreneur who practices a certain business and who is not bound to a fixed place of business. There are two types of partnerships, general and limited partnerships. Partnerships are legally established when the founding partners agree to the articles of association. The law does not require adherence to a set form so the agreement may even be entered into orally. Limited companies, both private and public, cooperatives and foundations are all classified as corporations. Limited liability companies are generally established when there are many partners, there are large scale business activities or when the entrepreneur wants to reduce his or her personal risk or liability. Business forms
  • 21. 4.Educational Unit “Starting a business” The purpose of a cooperative is to manage the finances of its members or support the member’s trade through the use of the corporation’s services. The cooperative entrepreneurship business form suits those businesses that have a fixed functional or operational relationship with their members and which operate in sectors requiring know- how and small capital investments. Establishing a limited liability company A limited liability company is established by drafting a memorandum of association or articles of incorporation and holding a founding or constitutive meeting. The memorandum of association must state the amount of capital stock or share capital of the company. The minimum share capital set by the law is 8000 Euros. Business forms
  • 22. Establishing a cooperative A cooperative is established by a written contract known as the charter of foundation. The signatories of the charter of foundation are the cooperatives founding members and members of the cooperative. A cooperative may be established by no fewer than three individuals or other legal entities. There is no upper limit to the number of founders. There are no minimum requirements concerning the capital requirements of the cooperative. The co-operative contribution or participation share is the same for all members
  • 23. Thanks for your attention