6. 1.Assumption of Risk: The entrepreneur assumes all possible risks of business which emerges due to
the possibility of changes in the tastes of consumers, techniques of production and new inventions. Such
risks are not insurable. If they materialize, entrepreneur has to bear the loss himself. Thus, risk-bearing or
uncertainty-bearing remains the most important function of an entrepreneur which he tries to reduce by
his initiative, skill and good judgment.
2. Business Decisions: The entrepreneur has to decide the nature and type of goods to be produced.
He enters the particular industry which offers him the bet prospects and produces whatever commodities
he thinks will pay him the most and employs those methods of production which seem to him the most
profitable. He effects suitable changes in the size of the business, its location, techniques of production
and does everything that is needed for the development of his business
3. Managerial Functions: The entrepreneur performs the managerial function. Though they are different
from entrepreneurial functions. He formulates production plans, sees to the finance, deals with purchase
of raw materials, provides production facilities, organizes sales including management. In a large
establishment, the management functions are delegated to the paid managerial personnel.
9. Role of Creativity
mind set and skill set of an investor .
Entrepreneurship and creativity from a perfect combination. It no longer
takes number-crunching skills and practicality to run a successful business
1.SUCCESS HIGH OVERALL
Entrepreneurs are beginning to realize the importance of bringing
creative people on board. Creative workers can be a game changer in your
company if you harness and shape their skills adequately.
10. 2.Increase productivity
Entrepreneurs are providing the necessary technological resources such as
visual collaboration, which is often confused with video conferencing to help
their workers discover innovative solutions and ideas.
3.Exploit employee potential
Tapping all these opportunities can result in improved financial
strategies , increased profitability, and quick decision making. Creativity also
enables an enterprise to stay ahead of the curve.
4. Transcend boundaries
Creativity enables entrepreneurs to find some of the path-breaking
discoveries . It is a easier for an entrepreneur to get new perspectives towards
solving a financial or operational problems.
11. 5.Encourage critical thinking
Creativity slowly turning out to we one of the best ways to alleviate
problems plaguing today’s enterprise.
6. Foster innovation
Manufacturers create unique products to not only meet customer expectations
but exceed them as well .
13. INNOVATION PROCESS
Understand problem
Collect information,
clearly and identify
the problem
Finding new ideas
Thinking about
solution and finding
some new ideas.
Action and Implement
Take action and
implementation the
solution.
19. DISCOVERY
The stage in which the entrepreneur generates ideas, recognizes
opportunities, and studies market.
Idea
Innovation
Opportunity
20.
21. CONCEPT DEVELOPMENT
Develop a business plan : a detailed
Personal describing the business idea.
1. Choose business location.
2. Will a patent or trademarks
Be required ?
Objective
Mission statement
Executive summary
22. RESOURCING
The stage in which the entrepreneur identifies and acquire the
financial, human ,and capital resources needed for the venture
startup ,etc.
Start-up resources
23.
24. ACTUALIZATION
The stage in which the entrepreneur operates the business and
utilizes resources to achieve its goals and objectives.
$$ Grand Opening $$
Day –to – day operation
25. HARVESTING
The stage in which the entrepreneur decided on business future
growth or development, or demise
What is year 5- year or 10 year plan?
Consider adding locations or providing
different products/ services. Will you go public?
28. Definition of entrepreneur
“Entrepreneur are those people who have the ability to see and evaluate
business opportunities, together with the necessary resources to take
advantages of them and to initiate appropriate action to ensure success”.
-Acc to labour organization (ILO).
“An entrepreneur is someone who exercises some control over the means of
production and produces more than what he can consume in order to sell (or
exchange) it for individual (or household) income”.
-Acc to McClelland.
29. meaning and definition Business model
• Business model is a framework for how a company will create value.
Ultimately, it distills the potential of a business down to its essence. A business
model answers fundamental questions about the problem you are going to
solve, and the growth opportunity within with in a given market.
• “A business model is a national or symbolic representation of a characteristic
of a firm’s strategy. It summarizes the necessary specifications required by a
firm to successfully furnish value to the customers”.
- Magretta.
