ENTREPRENEURSHIP DEVELOPMENT : AN OVERVIEW

ENTREPRENEURSHIP DEVELOPMENT: AN
OVERVIEW
ASSIGNMENT
SUBMITTED TO: GOLAM MAHBUBUL ALAM
Assistant Professor, Department of Business Administration,
Stamford University Bangladesh.
PREPARED BY: MD. YEASIN ARAFAT KHAN
STUDENT ID NO: BBA 052 (A) 16379
DEPARTMENT OF BUSINESS ADMINISTRATION, STAMFORD
UNIVERSITY BANGLADESH
DATE OF SUBMISSION: 17.06.2016
STAMFORD UNIVERSITY
BANGLADESH

ENTREPRENEURSHIP DEVELOPMENT: AN OVERVIEW ON
ENTREPRENEURSHIP
1
TABLE OF CONTENTS
AN OVERVIEW ON ENTREPRENEURSHIP
1. Introduction 3-5
2. HOW ENTREPRENEUR THINK 6-7
3. Backgrounds and Characteristics 8
4. Establishing Corporate Entrepreneurship in The Organization 9
5. Generation of a New Entry Opportunity 10
6. Sources of New Ideas 11
7. Methods of Generating Ideas 12
8. Opportunity Recognition 13
9. Product Planning and Development Process 14
10. Conclusion 15

ENTREPRENEURSHIP
2
AN OVERVIEW ON
ENTREPRENEURSHIP

ENTREPRENEURSHIP
3
Introduction
How many entrepreneurs have there been in the history of the world? Millions, certainly,
probably even billions. These are the men and women who take capital -- their own or
somebody else’s -- and use it to beget more capital. Some fail, some succeed, some
excel.
Here, are history’s 10 greatest entrepreneurs.
1. King Croesus. A pick by our veterans committee, Croesus, who ruled the Asia Minor
kingdom of Lydia in the sixth century B.C., is owed a huge debt of gratitude for minting
the world’s first coinage, thereby creating in a single stroke the lifeblood of every business:
liquidity and cash flow. Moreover, his opulent lifestyle has given entrepreneurs throughout
history something to shoot for. Is there a greater distinction for the commercially inclined
than to be deemed “as rich as Croesus”?
2. Pope Sixtus IV. Sixtus gets the nod for realizing that the “wages of sin” meant more
than unpleasant repercussions. There was money to be made in damnation, and Sixtus
mined it by opening up a new market -- the dead -- for the indulgences the church had
been selling for years. Relatives of the deceased quickly filled the Vatican’s coffers with
payments intended to lessen the time their loved ones spent in purgatory. In 1478 Sixtus
“grew his market” by authorizing the Spanish Inquisition, which swelled purgatory’s ranks
by 100,000 souls in 15 years. He also was the first pope to license brothels.
3. Benjamin Franklin. In a real sense, Franklin was America’s first entrepreneur. Unlike
other of the Founding Fathers -- the hypermoral Washington, the prodigiously intellectual
Jefferson -- whose virtues and attainments are seen today as anachronisms, Franklin
truly was a model of what many of us would become. Beneath the statesman’s mantle
resided a popular author, a printer, an inventor (the lightning rod, bifocals) and a very
savvy businessman who knew how to commercialize the fruits of his fertile mind.
4. P.T. Barnum. Americans have always loved a good scam and Phineas Taylor Barnum
took the art to new heights. He played on our fascination with the bizarre and freakish
with sideshow acts ranging from the midget Tom Thumb to Jumbo the giant elephant. In
between was a host of more dubious curiosities. He created the Barnum and Bailey Circus

ENTREPRENEURSHIP
4
as a showcase for all this wonderment, and dubbed it “the Greatest Show on Earth.” Along
the way he invented modern advertising and became rich. For the record, he never said
“There’s a sucker born every five minutes,” but he left behind plenty of other bon mots.
Among them: “Every crowd has a silver lining.”
5. Thomas Edison. What do you say about the man who gave the world the electric
light, the phonograph, talking motion pictures and more than 1,300 other patented
inventions? That he was the world’s greatest inventor, certainly. But he was also able to
exploit the profit potential in his creations, an entrepreneurial bent that asserted itself
when Edison was a teen-ager, printing a newspaper in the baggage car of a rolling train
and then selling copies to passengers. His impact on the way people live was and is
pervasive. As a combination of inventive genius and entrepreneurial flair, he stands alone.
6. Henry Ford. Ford also fundamentally changed human lifestyles by making available
a vehicle, the Model T, that vastly extended people’s range of movement. The automobile
would allow America’s masses to fulfill their Manifest Destiny to populate every corner of
the continent. But his more profound impact was on industry. The moving assembly line
he designed to build his cars was the signal breakthrough of the Industrial Age.
Appropriately, Ford earned the seed capital for his enterprise by working as an engineer
at the Edison Illuminating Company in Detroit.
7. Benjamin Siegel. Known as “Bugsy” to his friends, Siegel was a notorious mobster
with a touch of the visionary. Legend has it that he single-handedly invented Las Vegas,
and that’s a stretch. But he was the first to see what the town could become: a lush oasis
of pleasure where gambling was just one of the attractions. He also proved adept at
attracting other people’s money to build his iconic resort, The Flamingo. Trouble was,
some of those other people belonged to an outfit called Murder Inc., and Siegel was
gunned down in 1947 amid rumors he had stolen from his partners. But give the devil his
due: Before there was the Bellagio, there was Bugsy.
8. Ray Kroc. Nothing says entrepreneur like persistence, and nothings says persistence
like Ray Kroc, the kitchen wares salesman who in 1954, at age 52 and in poor health,
had his imagination hijacked by a family-run restaurant in the desert outside Los Angeles.
Once he had bought out the McDonald brothers, Kroc proceeded to take their concept of
a limited menu, fast service and low prices and expand it nationally, in the process

ENTREPRENEURSHIP
5
creating the fast-food industry and dramatically affecting America’s lifestyle and, sadly,
collective health.
9. H. Ross Perot. Within every entrepreneur lurks a touch of the cowboy, and there’s no
better example of the strain than Perot, the diminutive Texan who has become best known
in recent years as a political gadfly. Before that, though, he was all business, using a
$1,000 loan from his wife in 1962 to launch Electronic Data Systems. Perot’s winning idea
was that large corporations and organizations needed data-processing help if they were
to take full advantage of computer technology. When in the mid-’60s he won contracts
with two new federal health-care programs -- Medicare and Medicaid -- EDS was off and
running and Perot was on his way to being one of America’s richest citizens.
10. Jobs & Wozniak. Apple Computer’s two Steves weren’t the first Silicon Valley
entrepreneurs to launch a billion-dollar business from a Palo Alto garage -- Hewlett and
Packard were there before them -- but they were the first to democratize computing by
creating a machine whose use was so wonderfully intuitive that even technophobes
embraced it. Combine the elegance of Wozniak’s operating system design with Jobs’
marketing savvy (remember Apple’s “1984” ad?) and the result was a true phenomenon.
Yes, the Apple was eclipsed by the PC, but only after Microsoft (behind the vision of two
other notable entrepreneurs, Bill Gates and Paul Allen) developed Windows to ape its
rival’s ease of use.
So we can say that “To be one of the few successful entrepreneur requires more
than just hard work and luck. It requires to think in an environment of high
uncertainty, be flexible and learn from one’s failure.”

ENTREPRENEURSHIP
6
How Entrepreneur Thinks
Entrepreneurs are a unique breed of people. While some people sit and fantasize about
the glamor of being their own boss and creating their own business, those in the thick of
business ownership understand that even considering all its rewards, entrepreneurship is
a difficult and complicated path.
The world's most successful entrepreneurs aren’t the ones who impulsively quit their jobs
to chase a get-rich-quick idea. They are the ones with an entrepreneurial mindset, a set
of perspectives and values that allow them to achieve greatness.
Entrepreneurs think differently from non-entrepreneurs. Moreover an entrepreneur in a
particular situation may think differently from when faced with some other task or decision
making environment. Entrepreneurs must often make decisions in highly uncertain
environments where stakes are high, time pressure are immense, and there is
considerable emotional investments. Given the nature of entrepreneurs decision making
environment he or she must sometimes –
 Think Structurally
 Engage in Bricolage
 Effectuate
 And, Cognitively Adapt.
Think Structurally
Forming opportunity beliefs often requires creative mental leaps. These creative mental
leaps are launched froma source- one’s existing knowledge. In the case of
entrepreneurial opportunities, a example of a creative mental leap is from knowledge
about markets to a new technology that could lead to a products/services that satisfy that
market. Alternatively the creative mental leap could be from knowledge about a
technology to a new market that could benefit from its introduction. Making the connection
between new product and a target market where it can be introduced is aided by the
Superficial and Structural Similarities between the source (Market) and the destination.
Superficial similarities exist when the basic elements of the technology resemble
the basic elements of the market.
Structural similarities exist when the underlying mechanism of the technology
resemble the underlying mechanism of the market.

ENTREPRENEURSHIP
7
Bricolage
Entrepreneurs often lack resources. As a result, the either seek resources from others
to provide the “slack” necessary to experiment and generate entrepreneurial
opportunities or they engage in Bricolage. By Bricolage we mean that some
entrepreneurs make do by applying combinations of the resources at hand to new
problems and opportunities.
Effectuate
A potential business leader is trained to thin rationally and perhaps admonioshed if don’t.
This admonishment might be appropriate given the nature of the task, but if appears that
there is an alternative way of thinking that entrepreneur sometimes use specially
thinking about opportunity. Entrepreneur don’t think through a problem in a way that
starts with a desired outcome and focuses on the mean to generate that outcome. Such
a process is reffered to as a Causal Process. But, entrepreneurs sometimes use an
Effectuation Process. Which means that they take what they have and select among
possible outcomes.
Cognitive Adaptibility
Cognitive Adaptibility describes the extent to which entrepreneurs are dynamic, flexible,
self-regulating and engaged in a process of generating multiple decision frameworks
focused on processing changes in their environments and then acting on them.

ENTREPRENEURSHIP
8
Backgrounds and Characteristics
Most people think that entrepreneurs are dropouts and didn’t have a proper education
but that’s not true at all. To evaluate the backgrounds and characteristics of an
entrepreneur we should consider 3 things –
 Education
 Age
 Work history
Education
Although some may feel that entrepreneurs are less educated than the general people,
research findings indicate that this is not the case. Education, both formal and informal
are important in the upbriging of an entrepreneur.
Age
The relationship of the age to the entrepreneurial carrer process is carefully researched.
In evaluating these results, it is important to differentiate between entrepreneurial age
and chronological age. In terms of chronological age most entrepreners initiate their
entrepreneurial carrers between the age of 22-45. A carrer can be initiated before or
after these ages, as long as entrepreneurs has the necessary resources and high energy
level needed to launch and manage a new venture successfully. Also there are milestone
ages ebery five years (25,30,35,40,45) when an individual is more inclined to start an
entrepreneurial carrer.
Work History
Work history can initiate the decision to launch a new venture, but also plays a role in
the growth and eventual success of the new ventures. Eperience in the following areas
is particularly important:
 Financing
 Product/service development
 Manufacturing
 Development of distribution channel

ENTREPRENEURSHIP
9
Establishing Corporate Entrepreneurship in
The Organization
An organization wanting to establish a more entrepreneurial firm must implement
a procedure for its operation. Although this can be done internally frequently it is
easier to use someone outside to facilitate the process. This is particularly true
when the org. structure is very traditional and has a record of little change and
few products being introduced. To establish corporate entrepreneurship the
organization –
 Top management should be commited.
 should identifiy Ideas and general areas that top management is interested in .
 should use cutting edge technology.
 must train their workers .
 should develop ways to get closer to their customer.
 should be productive if have fewer resources.
 should establish a strong support network.
 should have a appropriate reward to the performance system.
 and unsuccessful entrepreneurial unit should be eliminated..

ENTREPRENEURSHIP
10
Generation of a New Entry Opportunity
New entry refers to:
 offering a new product to an established or new market.
 Offering an established product to a new market.
 Creating a new organization.
The entrepreneurial strategy- The set of decision, actions, and reactions that first
generate, and then exploit over time, a new entry.

ENTREPRENEURSHIP
11
Sources of new ideas
Some of the more fruitful sources of ideas for entrepreneurs include consumers, existing
products, and service, distribution channels, the federal government, and research and
development.
1. Consumers:
Potential entrepreneurs should always pay attention to potential customer. This
attention can take the form of informality monitoring potential ideas and needs or
formality arranging for consumers to have an opportunity to express their opinion.
2. Existing Products and Service:
Potential entrepreneurs should also establish a formal method for monitoring an
evaluating competitive products and services on the market. Frequently this analysis
uncovers way to improve on these offerings that may result in a new product and service
that has more market appeal and better sales and profit potential.
3. Distribution Channels:
Members of the distribution channel are also excellent sources of new ideas because of
their familiarity with the needs of market. NO only do channel members frequently have
suggestions for completely new product, but they can also help in marketing the
entrepreneurs newly developed products.
4. Federal Government:
The federal government can be a source of new product ideas in two ways. First, the
files of the patent office contain numerous new product possibilities. Although the patent
themselves may not may be feasible, they can frequently suggest other more
marketable product ideas. Several government agencies and publication are helpful in
monitoring patent application.
5. Research and Development:
The largest sources of new ideas is the entrepreneurs own research and development
efforts, which may be a formal endeavor connected with one’s current employment or
an informal lab in a basement or garage.

ENTREPRENEURSHIP
12
Methods of Generating Ideas
Even with such a wide variety of sources available, coming up with an idea basis for a
new venture can still pose a problem, particularly since the idea is the basis for the
business.
1. Focus Group:
Groups of individuals providing information in a structured format. In addition to generate
new ideas, the focus group is an excellent method for initially screening ideas and
concepts. With the use of one of several procedures available, the results can be
analyzed and more quantitatively, making the focus group a useful method for
generating new product ideas.
2. Brainstorming:
The brainstorming methods stimulates people to be creative by meeting with others and
participating in organized group experience. Although most of the ideas generated by
the group have no basis for further development, sometimes a good idea emerges. This
has a greater frequency of occurrences when the brainstorming effort focuses on a
specific product or market area.
3. Brainwriting:
Brainwriting is a form of written brainstorming. Brainwriting is a silent written generation
of new ideas by a group of people.
4. Problem Inventory Analysis:
Problem inventory analysis a method for obtaining new ideas and solution by focusing
on problem. Problem inventory analysis uses individuals in a manner analogues to focus
groups to generate new product ideas. However, instead of generating new ideas
themselves, consumers are provided with a list of problems in a general product
category.

ENTREPRENEURSHIP
13
Opportunity Recognition
Opportunity recognition means proactively brainstorming a new business venture or
expansion idea. A small-business owner typically engages in opportunity recognition at
the point where he realizes he has an idea, strength or capability that matches well with
a particular target market. Entrepreneurial business owners constantly seek new
revenue streams. Those that seize ripe opportunities tend to perform best financially.
Model of the Opportunity Recognition process:
The goal of this study is to propose a model of the entrepreneurial opportunity recognition
process. A number of research propositions was generated based on the analysis of the
available literature, and then validated by the analysis of in-depth cases of opportunity
recognition that resulted in the creation of successful entrepreneurial ventures. The study
indicates that entrepreneurial opportunities are discovered through recognition rather
than purposeful search; prerequisites for successful opportunity discovery are a
combination of entrepreneurial awareness, access to extended social networks, and
prior knowledge of markets and customer problems; prior knowledge could exist due to
work experience, personal, non-work related experiences and events, or due to relevant
to these markets education. Further, opportunity recognition does not require an
exceptional level of creativity, and is not likely to involve a prior knowledge of the ways
to serve markets.
Source: http://www.worldscientific.com/doi/abs/10.1142/S0218495800000073

ENTREPRENEURSHIP
14
Product planning and Development process
Once ideas emerge and are analyzed through the opportunity analysis plan, they will
need further development and refinement. This refining process—the product planning
and development process—is divided into five major stages: idea stage, concept stage,
product development stage, test marketing stage, and commercialization. These stages
result in the start of the product life cycle.
Idea stage: Ideas may come from internal sources like company’s own Research and
Development (R&D) department, managers, sales-force personnel etc.; or from external
sources like, customers, dealers, competitors, consultants, scientists etc. The ideas
should be screened properly; as any idea passing this stage would cost the firm in terms
of time, money and efforts, at subsequent stages in product planning and development.
Concept stage: Those product ideas which clear the screening stage must be
developed into a product concept – identifying physical features, benefits, price etc. of
the product. At this stage product idea is transformed into a product concept i.e. a
product which target market will accept.
Product Development Stage: Product development encompasses the technical
activities of engineering and design. At this stage, the engineering department converts
the product concept into a concert form of product in view of the required size, shape,
design, weight, color etc. of the product concept. A model or prototype of the product is
manufactured on a limited scale. Decisions are also made with regard to packaging,
brand name, label etc. of the product.
Test Marketing Stage: A sample of the product is tested in a well-chosen and authentic
sales environment; to find out consumers’ reaction. In view of consumers’ reactions, the
product may be improved further.
Source: YourArticleLibrary.com

ENTREPRENEURSHIP
15
Conclusion
We can conclude that successful entrepreneurs are both born and made. It appears that
entrepreneurs have a dual composition – a certain set of born-in personality traits that
drive them to seek out and succeed in the entrepreneurial life, as well as set of learned
skills that enable them to apply their natural gifts most effectively. And study of
Entrepreneurship helps to become a successful entrepreneur.

ENTREPRENEURSHIP DEVELOPMENT : AN OVERVIEW

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (12)

Similar to ENTREPRENEURSHIP DEVELOPMENT : AN OVERVIEW

Similar to ENTREPRENEURSHIP DEVELOPMENT : AN OVERVIEW (20)

Recently uploaded

Recently uploaded (20)

ENTREPRENEURSHIP DEVELOPMENT : AN OVERVIEW