Traditional vs. Entrepreneurial Career Paths High SchoolHigh School UniversityUniversity Practical ExperienceBig Company Management Training Well Managed, High Growth Firm Startup Venture Growth/ Another Startup?Retire Venture Capital or Bank Loan Never really retire
WHAT IS ECONOMIC GROWTH?ECONOMIC GROWTHMEANS UPWARDCHANGE WHEREBY PERCAPITA INCOMEINCREASES OVER ALONG PERIOD OF TIME.
WHAT CAUSES ECONOMIC GROWTH?Economic growth is effect,entrepreneur is the cause.Entrepreneurs explore opportunities,convert ideas into viable businessproposition and provide newproducts and services to the societyby bringing together and combiningvarious factors of production. Theychange life style of the people.
ENTREPRENEURSHIPEntrepreneurship is a purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or aggrandise profit by production or distribution of economic goods.
ENTREPRENEURSHIPEntrepreneurship is the attempt tocreate value through recognition ofbusiness opportunity, themanagement of risk appropriate toopportunity and through thecommunicative and managementskills to mobilise human, financialand material resources necessaryto bring a project to fruition.
ENTREPRENEURSHIPEntrepreneurship is theability to create and build avision from practicallynothing. It is a dynamicprocess of creatingincremental wealth.
“Who” is the Entrepreneur?Characteristics and Types, Nature versus Nurture
ENTREPRENEUR“It is not the critic who counts, nor the observer who watchesfrom a safe distance. Wealth is created only by doers in thearena who are marred with dirt, dust, blood, and sweat. Theseare producers who strike out on their own, who know highhighs and low lows, great devotions, and who overextendthemselves for worthwhile causes. Without exceptions, theyfail more than they succeed and appreciate this reality evenbefore venturing out on their own. But when these producersof wealth fail, they at least fail with style and grace, and theirgut soon recognizes that failure is only a resting place, not aplace in which to spend a lifetime. Their places will never bewith those nameless souls who know neither victory nordefeat, who receive weekly paychecks regardless of theirweek’s performance, who are hired hands in the labour insomeone else’s garden. These doers are producers and nomatter what their lot is at any given moment, they will nevertake a place beside the takers, for theirs is a unique place,alone, under the sun. They are entrepreneurs!”JOSEPH R MANCUSO
Entrepreneurial Individual Has concept, vision, dream Adapts concept to reflect realities in environment, scans environment Assesses risks versus rewards Mobilizes resources Able to convert dream into products and people within an organizational context Able to champion the concept to a wide range of publics and partners Persevere in overcoming obstacles Optimizes profits
Who is an entrepreneur An entrepreneur is a person who takes risk of setting up his/her own venture for perceived rewards.He is a person who initiates theidea, formulates a plan, organizesresources and puts the plan intoaction to achieve his goal.
Essential qualities of an entrepreneurs Need for achievement: Strong desire to be a winner Perseverance: Quality to stick to it. Moderate risk taker: Prefer a middle of the road strategy when they analyze a risk problem Ability to find and explore opportunity: Alert to opportunities and seize and convert them to their advantages
Analytical ability: Unaffected by personal likes and dislikes while approaching problems Using feedback: Consider it important to know how they are doing, when they work on the goal or a task. Facing uncertainty: Welcome tackling an unfamiliar but interesting situation Independence: Have a dislike for working for other Flexibilities: Flexible in their decisions Planner: Thinks ahead, plan for future and then work to make it come true.
Interpersonal skills: They are comfortable while dealing with people at all level Motivator: Can influence others Stress takers: They are capable of working for long hours and tackling different problems at the same time Positive self concepts: They are aware of themselves Orientation to future: They have high level of future orientation. They do not allow the past to obsess them.
The Entrepreneur’s DreamThe entrepreneur’s dream is almosta kind of madness, and it is almostas isolating. When you seesomething new, your vision usuallyisn’t shared by others. Thedifference between a crazy personand the successful entrepreneur isthat the latter can convince others toshare the vision. That force of will isfundamental to entrepreneurship.
Categories of Entrepreneurs Craftsmen – Narrow in education/training Opportunists – Breadth in education/training, wide experiences Technical entrepreneur – Come up with own inventions and product modifications, work experience in technology environment, more formal technical education – Make greater use of teams
Categories of Entrepreneurs1. INNOVATORS2. IMITATORS3. FABIANS4. DRONES
Entrepreneurial CultureEntrepreneurial CultureImplies A Set Of SharedValues, Norms And TraitsThat Are Conducive To TheGrowth Of Entrepreneurship
Factors Shaping Entrepreneurial Responsei. Socio-Cultural Values, Religious Influencesii. Socio-Political Structure and Conditioniii. Economic Infrastructure and social Overheads; Communication, Education, Credit etc.iv. National Goals and governmental policiesv. Demonstration Effects, Contacts and reference Groups
Entrepreneurial Personality - Psychological 1. Motivation – driven by range of factors - Necessity (survival) - Opportunity (proactivity) - Dissatisfaction (can’t stand job) - Curiosity (What if…?) - Material gain (We could make a killing…) Achievement oriented more than anything else Driven by the task, challenge, opportunity Money as a by-product, but scorecard 2. Strong internal locus of control – change agents Believe they can change their environments
Entrepreneurial Personality - Psychological 3. Calculated risk-takers (financial, career, family & social, psychic) – Attempt to estimate likelihood and magnitude of key risk factors and manage or mitigate them through good planning or decisions 4. High tolerance of ambiguity – Process can be loose, messy, shift directions 5. Prize their independence – self- motivated, self-reliant, prefer autonomy, have perseverance
Situation-Based Characteristics Willingness and ability to assume and manage risks – more critical with new-to-the- world products Political skills important in large corporate settings Adaptability and tenacity are bigger factors in turbulent environments
Dark Side Traits Excessive need for control – Tendency to micromanage Suspicious – others will steal their idea Impatience Need for applause Defensive Externalize internal problems
Entrepreneurial Potential Allof us have entrepreneurial potential. Degree might differ. It is just a matter of developing that potential.
The Process No individual has all the personal attributes and managerial skills needed Know what’s missing: personal attributes or skills Learn how to compensate for what is missing Knowing how to compensate can be as valuable as already having the skill