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Entrepreneurship 1


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Entrepreneurship 1

  1. 1. WHO IS AN ENTREPRENEUR  An entrepreneur is a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome.
  3. 3. THE ANALYTICAL FRAMEWORK OF ENTREPRENEURSHIP  The person: Personality , Skills , Experience, Motives and Psychological Preferences.  The Task: Perceiving opportunity, marshalling resources, providing leadership.  The Environment: Availability of Resources, infrastructure, competitive pressures, social values, rules and regulations, state of technology, etc  The Organization: structure, policies, rules, culture, human resources systems, communication systems.
  4. 4. SCHUMPETER’S VIEWS ON ENTERPRENEURSHIP  Creative and innovative activity.  Distinction between an innovator and an inventor.  Both wide and narrow.  Entrepreneur is a large scale businessman who creates something new.
  5. 5. WALKER’S VIEWS ON ENTREPRENEURSHIP  Organizer and coordinator.  Different degrees of organizational skill and coordinating capacity.  True entrepreneurs are limited.
  6. 6. DRUCKER’S VIEWS ON ENTREPRENEURSHIP  Entrepreneur is one who always searches for change, responds to it and exploits it as an opportunity.  Purposeful and systematic innovation.  Behavior rather than personality trait.
  8. 8. Entrepreneurship  Mainstream Economic Factors  Land  Labor  Capital  Entrepreneurship
  9. 9. Enterprise  An enterprise may be defined as an undertaking or adventure involving uncertainty and risk and requiring innovation and also to the ability to think out and start new business.
  10. 10. Your own new enterprise serves your interest in significant ways  Salary.  Security  Assets builder  Perks.  Independence  Fulfillment
  11. 11. Entrepreneurs...Traits  Self-confident and optimistic  Able to take calculated risk  Respond positively to changes  Flexible and able to adapt  Knowledgeable of markets  Able to get along well with others  Independent minded
  12. 12. Entrepreneurs...Traits II  Energetic and diligent  Creative, need to achieve  Dynamic Leader  Responsive to suggestions  Take initiatives  Resourceful and persevering  Perceptive with foresight
  13. 13. Entrepreneurship  Joseph Schumpeter...20th century talks about “creative destruction” whereby established ways of doing things are destroyed by the creation of new and better ways of getting things done  Described it as a process and entrepreneurs as innovators who use process to shatter the status quo through new methods...
  14. 14. Entrepreneurship  Is a dynamic process of creating incremental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time and career commitment of providing value for some product or service  The entrepreneur must somehow infuse value to the product or service...
  15. 15. The Creative Process  Idea Germination  Preparation  Incubation  Illumination  Verification
  16. 16. The difference between invention and innovation is:  Invention - is the creation of new products, processes, and technologies not previously known to exist.  Innovation - is the transformation of creative ideas into useful applications by combining resources in new or unusual ways to provide value to society for or improved products, technology, or services.
  17. 17. Organizing entrepreneurship: Does the entrepreneur need a firm?  Entrepreneurship as management : firm is the assets the entrepreneur arranges (not owns).  Entrepreneurship as imagination, creativity : firm can contract for entrepreneurship.
  18. 18.  Entrepreneurship as innovation : entrepreneurship is sui generis, independent of the firm.  Entrepreneurship as alertness or discovery : entrepreneur owns no capital (could be an employee or independent contractor).  Entrepreneurship as charismatic leadership : firm is the entrepreneur plus the employees who follow him.
  19. 19. Advantages of entrepreneurship  Enormous personal financial gain  Self-employment, offering more job satisfaction and flexibility of the work force  Employment for others, often in better jobs  Development of more industries, especially in rural areas or regions disadvantaged by economic changes, for example due to globalization effects
  20. 20. Advantages…  Encouragement of the processing of local materials into finished goods for domestic consumption as well as for export  Income generation and increased economic growth  Healthy competition thus encourages higher quality products
  21. 21. Advantages…  More goods and services available  Development of new markets  Promotion of the use of modern technology in small-scale manufacturing to enhance higher productivity
  22. 22. Advantages…  Encouragement of more researches/ studies and development of modern machines and equipment for domestic consumption  Freedom from the dependency on the jobs offered by others  The ability to have great accomplishments  Serious tax advantages