This document discusses entrepreneurship and what it takes to be a successful entrepreneur. It covers topics such as who entrepreneurs are, the importance of having a great idea, the personal traits needed like commitment and risk tolerance. It also discusses common management challenges, how to increase chances of success through opportunity analysis and business plans, and key factors like the people, opportunity, competition and risk/reward. Non-financial resources and entrepreneurial orientation are also summarized.

1. McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
EntrepreneurshipEntrepreneurship
Chapter SevenChapter Seven

2. EntrepreneurshipEntrepreneurship
 Entrepreneurship
 The pursuit of lucrative opportunities by
enterprising individuals.
7-2

3. Who is The Entrepreneur?Who is The Entrepreneur?
7-3
Figure 7.1

4. The IdeaThe Idea
 A great product, a
viable market, and
good timing are
essential ingredients in
any recipe for success.
7-4

5. What Does it Take, Personally?What Does it Take, Personally?
1. Commitment and determination
2. Leadership
3. Opportunity obsession
4. Tolerance of risk, ambiguity, and uncertainty
5. Creativity, self-reliance, and ability to adapt
6. Motivation to excel
7-5

6. Entrepreneurial StrategyEntrepreneurial Strategy
MatrixMatrix
7-6
Figure 7.2

7. Common Management ChallengesCommon Management Challenges
 You might not enjoy it
 Survival is difficult
 Growth creates new challenges
 It’s hard to delegate
 Misuse of funds
 Poor controls
 Mortality
7-7

8. Success and FailureSuccess and Failure
 Business incubators
 Protected
environments for
new, small
businesses
7-8

9. Increasing Your Chances of SuccessIncreasing Your Chances of Success
 Opportunity analysis
 A description of the good or service, an
assessment of the opportunity, an assessment of
the entrepreneur, specification of activities and
resources needed to translate your idea into a
viable business, and your source(s) of capital.
7-9

10. Opportunity AnalysisOpportunity Analysis
7-10
Table 7.3

11. Outline of a Business PlanOutline of a Business Plan
7-11

12. Outline of a Business PlanOutline of a Business Plan
7-12

13. Five Key FactorsFive Key Factors
 The people
 The opportunity
 The competition
 The context
 Risk and reward
7-13

14. Nonfinancial ResourcesNonfinancial Resources
 Legitimacy
 Networks
 Top-Management Teams
 Advisory Boards
 Partners
7-14

15. Entrepreneurial OrientationEntrepreneurial Orientation
 Entrepreneurial orientation
 The tendency of an organization to identify and
capitalize successfully on opportunities to launch
new ventures by entering new or established
markets with new or existing goods or services
7-15