1. MAR015-6 Entrepreneurship and Small Business Management Lecture 2 Entrepreneurial Characteristics Bedfordshire Business School University of Bedfordshire

2. Entrepreneurship: A Definition The pursuit of opportunity beyond the resources currently controlled. Howard Stevenson (1985) “The Heart of Entrepreneurship” Harvard Business Review , March-April

5. Different Stages of Enterprise Building REALIZATION OF OPPORTUNITY CONSOLIDATION OF RESOURCES IMPLEMENTATION AND CREATION OF VENTURE RUNNING OF AN ENTER- PRISE SUCCESSFULLY When the entrepreneur scan the environment and select the product. After finalization of the product, the entrepreneur needs to consolidate the resources like finance, land, building, machineries, raw materials and other infrastructure. As this stage all the resources are put together and the entrepreneur starts an enterprise. The entrepreneur manages the enterprise by looking after production, marketing and administration of the unit.

6. Entrepreneurial Functions Accounts & Record Keeping Money Management Selling Marketing Management Costing & Pricing Production Establishment of the Unit Procurement of Finance, Land Building & Machinery Applying for Loans Business Plan Preparation Resource Mobilisation Market Survey & Feasibility Study Selection of Product

7. Entrepreneurial Skills High Capacity to: Tolerate uncertainty Build a team Provide leadership Deal with failure Seek and use feedback Persist at problem solving Take a long-term view Not look back (except to learn)

23. Strategic Orientation Entrepreneurial - Diminishing opportunity streams - Rapid changes in - technology, consumer economics, social values, and political roles Administrative - The social contract - Performance criteria - Planning systems and cycles (Stevenson, 2000)

24. Commitment to Opportunity Entrepreneurial - Action orientation - Short decision windows - Risk management - Limited decision constituencies Administrative - Negotiation of strategy - Management of fit - Risk reduction - Multiple decision constituencies (Stevenson, 2000)

25. Commitment of Resources Entrepreneurial - Lack of predictable resource needs - Lack of long-term control - Social needs - International demands Administrative - Personal risk reduction - Incentive compensation - Managerial turnover - Capital allocation & formal planning systems (Stevenson, 2000)

26. Control of Resources Entrepreneurial - Increased resource specialization - Risk of obsolescence - Increased flexibility Administrative - Power, status and financial rewards - Co-ordination - Efficiency - Inertia and cost of change - Industry structures (Stevenson, 2000)

27. Management Structure Entrepreneurial - Need for coordination of key resources - Flexibility - Challenge to owner’s control - Employees’ desire for independence Administrative - Need for clearly defined authority and control - Organizational culture - Reward systems (Stevenson, 2000)

28. Reward Philosophy Entrepreneurial - Individual expectations - Investor demands - Competition Administrative - Social norms - Impacted information - Demands of public shareholders (Stevenson, 2000)

36. From tiny acorns, mighty oaks do grow….