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1. Entrepreneurship
Assignment by Yasir Hashmi 14 ME-IND 01

2. Content Layout
• Entrepreneural decision process
• Entrepreneural careers & education
• Ethics & social responsibility of entrepreneurs
• Critical factors for starting a new enterprise

3. Entrepreneural decision process
Decision-making is an essential part of modern management. Whatever a
manager does he does by making decisions. A manager makes hundreds of
decisions consciously or subconsciously every day.
Decisions are made by the managers and actions are taken by others.
Major decisions are taken carefully and consciously by the application of
human judgement and experience where as minor decisions are made
almost subconsciously using rules.
What is Decision making

4. Entrepreneural decision process
The decision-making has the following factors.
1. Decision-making implies that there are various alternatives and the most
desirable alternative is chosen to solve the problem.
2. Existence of alternatives suggests that the decision-maker has freedom
to choose an alternative of his liking.
3. Decision-making like any other managerial process is goal oriented. It
implies that the decision maker attempts to achieve some results
through decision making.
Factors of Decision making

5. Entrepreneural decision process
Types of Decisions
There are
five types of
decisions.
1. Programmed and non-
programmed decisions
2. Major and minor
decisions
3. Simple and complex
decisions
4. Strategic and tactical or
operational decisions
5. Individual and group
decisions
• Made in accordance to policy, procedure and
rules. These decisions are routine and
repetitive and programmed decision are
relatively easy to make.
• which have their impact for long-period are
known as major decision. Whereas decisions
which does not have long term effect known
as minor decisions.
• If very few variables are to be considered for
solvinga problem the decision is simple. If the
variables are many, then it is a complex.
• Strategic decision is a major choice of actions
concerning allocation of resources and
contribution to the achievement of
organizational objectives.
• Decision may be taken either by an individual
or group.

6. Entrepreneural decision process
Decision making process
Steps
involved in
the
process
decision
making
1. Recognizing the problem.
2. Deciding priorities among the problems.
3. Diagnosing the problem.
4. Developing alternative solutions or courses
of activities.
5. Evaluating alternatives.
6. Converting the decision into effective action
and follow up of action.

7. Entrepreneural decision process
Environment of Decision-making
A decision-maker may not have the complete knowledge about decision
alternatives or about the outcome of a chosen alternative. This problem may be
highly complex and uncertain. These conditions of knowledge are referred to as
the ‘environment of decision making’

8. Entrepreneural decision process
Environment of Decision-making
The environment may be of three types
All data availabe
Complex
certainity
Some data
available
Risk
No data
available
Complete
uncertainity

9. Entrepreneural careers & education
Entrepreneurship consists in:
• Starting up new companies (start-up entrepreneurship)
• Carrying out new strategic initiatives within existing business (corporate
entrepreneurship).
Entrepreneurship

10. Entrepreneural careers & education
Entrepreneural career choice determinant factors

11. Entrepreneural careers & education
Education, training & research
• The first course on entrepreneurship was offered at the Harvard Business School in
1947.
• The number of universities & business schools with entrepreneurship courses has
increased from fewer than 10 in 1967 to more than 400 today ; the first doctoral
graduates in entrepreneurship and small business appeared in the 1980s.
• More than 1000 publications appear annually in the field of entrepreneurship, related
to more than 50 conferences and published in 25 specialized reviews.

12. Entrepreneural careers & education
Education, training & research
• In the search for more and better ways to develop entrepreneurs, the role of education
and training is absolutely essential.
• The entrepreneurship research literature has demonstrated that entrepreneurs with a
good entrepreneurial education tend on the whole to be noticeably more successful
than those with less entrepreneurial education, and even more successful when
entrepreneurial education combines with experience.

13. Ethics & social responsibility of
entrepreneurs
• Businesses must do more than provide jobs and make a
profit.
• They also are expected to run their business responsibly.

14. Ethics & social responsibility of
entrepreneurs
Being a responsible
entrepreneur involves
more than philanthropy.
philanthropy the act of
making charitable donations
to improve the welfare of
society.
Entrepreneurs & social responsibility

15. Ethics & social responsibility of
entrepreneurs
For a business to
survive, it must exhibit
social responsibility.
social responsibility the
principle that companies
should contribute to the
welfare of society and not be
solely devoted to maximizing
profits
Entrepreneurs & social responsibility

16. Ethics & social responsibility of
entrepreneurs
Contract with
society
• A business must make
safe products
• A business must treat
customers well and
employees fairly
• A business should be run
honestly
Entrepreneurs & social responsibility

17. Ethics & social responsibility of
entrepreneurs
Guidelines for
responsibility to
customers
include
• Do not mislead customers.
• Give complete information
regarding proper use.
• Label unsafe products as
such.
• Offer the best quality
products at the lowest
prices.
Entrepreneurs responsibility to customers

18. Ethics & social responsibility of
entrepreneurs
Environmental
Protection Agency
(EPA) enforces
environmental laws
and regulations.
Environmental Protection
Agency an independent
federal agency established to
coordinate programs and
enforce regulations aimed at
reducing pollution and
protecting the environment.
Entrepreneurs responsibility to Environmental Protection Agency (EPA)

19. Ethics & social responsibility of
entrepreneurs
To protect the
environment:
• Employ environmental
affairs personnel.
• Eliminate wasteful
practices and emissions of
pollutants from
manufacturing processes.
• Improve products to
increase efficiency.
Entrepreneurs responsibility to Environmental Protection Agency (EPA)

20. Ethics & social responsibility of
entrepreneurs
Many small
businesses have
found ways to be
generous to the
community,
including:
• donating their products
and services
• involving employees in
philanthropy
• joining with other
companies to promote
social responsibility
Contributing to the Community

21. Ethics & social responsibility of
entrepreneurs
Being a Socially Responsible Employer
• As a small business owner, you have a responsibility to treat your
employees fairly.
• One can offer flextime, health care, telecommuting, on-site child care,
and assistance to employees with impairments.

22. Ethics & social responsibility of
entrepreneurs
Being a Socially Responsible Employee
• Personal responsibility is the basis of social responsibility.
• Responsible employees maintain high ethical standards when dealing
with coworkers, management, and customers.

23. Critical factors for starting a new enterprise
• Personal factors
• Environmental factors
• Sociological factors

24. Critical factors for starting a new enterprise
• Entrepreneurs have a higher internal locus of control than nonentrepreneurs, which
means that they have a stronger desire to be in control of their own fate.
• This has been confirmed by many surveys in which entrepreneurs said independence was
a very important reason for starting their businesses.
• Main reasons they gave were independence,financial success, self-realization, recognition,
innovation, and roles (to continue a family tradition, to follow the example of an admired
person, to be respected by friends)
• Men rated financial success and innovation higher than women did.
Personal factors

25. Critical factors for starting a new enterprise
• Environment plays an important role in creating a mind to become an entrepreneur.
• The most famous region of high-tech entrepreneurship is Silicon Valley. Becauseeveryone
in Silicon Valley knows someone who has made it big as an entrepreneur, role models
abound.
• It seems as if everyone in the valley catches that bug sooner or later and wants to start a
business. To facilitate the process, there are venture capitalists who understand how to
select and nurture high-tech entrepreneurs, bankers who specialize in lending to them,
lawyers who understand the importance of intellectual property and how to protect it,
landlords who are experienced in renting real estate to fledgling companies,suppliers who
are willing to sell goods on credit to companies with no credit history, and even politicians
who are supportive.
Environmental factors

26. Critical factors for starting a new enterprise
• Knowing successful entrepreneurs at work or in your personal life makes becoming one
yourself seem much more achievable. Indeed, if a close relative is an entrepreneur, you
aremore likely to want to become an entrepreneur yourself, especially if that relative is
your mother or father.
Environmental factors

27. Critical factors for starting a new enterprise
• Entrepreneurs are influenced by other sociological factors. Family responsibilities play an
important role in the decision to start a company.
• It is a relatively easy career decision to start a business when you are 25 years old, single,
and without many personal assets and dependents.
• It is a much harder decision when you are 45 and married, with teenage children
preparing to go to college, a hefty mortgage, car payments, and a secure, well-paying job.
• Another factor that determines the age at which entrepreneurs start businesses is the
trade-off between the experience that comes with age and the optimism and energy of
youth.
Sociological factors

28. Critical factors for starting a new enterprise
According to Linkedin, ages of
entrepreneurs who raised a
round of venture capital funding
in 2013. Clearly, only very
infrequently are the companies
of young entrepreneurs able to
successfully secure venture
capital funding.

29. Critical factors for starting a new enterprise
A model of entrepreneural process with factors in detail
INNOVATION TRIGGERING EVENT IMPLEMENTATION GROWTH
PERSONAL
•Achievement
•Locus of control
•Ambiguity tolerance
•Risk taking
•Personal values
•Education
•Experience
•Opportunity recognition
PERSONAL
•Risk taking
•Job dissatisfaction
•Job loss
•Education
•Age
•Gender
•Commitment
•Resources
SOCIOLOGICAL
•Networks
•Teams
•Parents
•Family
•Role models
•Advisors
PERSONAL
•Entrepreneur
•Leader
•Manager
•Commitment
•Vision
ORGANIZATIONAL
•Team
•Strategy
•Structure
•Culture
•Products
ENVIRONMENTAL
•Opportunities
•Role model
•Creativity
ENVIRONMENTAL
•Economy
•Competition
•Resources
•Incubator
•Government policy
ENVIRONMENTAL
•Competitors
•Customers
•Suppliers
•Investors
•Bankers
•Lawyers
•Resources
•Government policy
•Economy