This document discusses the foundations of entrepreneurship. It defines business as any activity undertaken to earn a profit, and defines an entrepreneur as someone who creates a new business by taking risks to identify opportunities and assemble resources to capitalize on them. It lists characteristics of entrepreneurs such as a desire for responsibility and feedback. Benefits of entrepreneurship include creating your own destiny and reaching full potential, while drawbacks include income uncertainty and stress. Deadly mistakes include lack of experience and poor strategic planning. Developing a strategic plan involves assessing strengths, scanning opportunities, and setting goals and objectives. Types of business capital are also discussed.

1. THE FOUNDATIONS OF
ENTREPRENEURSHIP
Created by Fahim Bhatti

2. BUSINESS
“Any activity which is undertaken with an intention
to earn profit is called business”

3. ENTREPRENEUR
“Is the one who creates a new business in
the face of risk and uncertainty, for the
purpose of achieving profit and growth, by
identifying significant opportunities and
assembling the necessary resources to
capitalize on them”

4. CHARACTERISTICS OF ENTREPRENEURS
1) Desire for Responsibility
2) Preference for moderate Risk
3) Confidence in their ability to Succeed
4) Desire for immediate Feedback
5) High level of Energy
6) Future Orientation
7) Organizing Skills
8) Value of Achievement over Money

5. BENEFITS OF ENTREPRENEURSHIP
1) Opportunity to create your own Destiny
2) Opportunity to make a Difference
3) Opportunity to Reach your full Potential
4) Opportunity to Reap impressive Profits
5) Opportunity of being Recognized
6) Opportunity to do What you Enjoy
(DDPPRE)

6. DRAWBACKS OF ENTREPRENEURSHIP
1) Uncertainty of Income
2) Risk of loosing entire Investment
3) Long Hours and Hard work
4) Low quality of life till business Success
5) High levels of Stress
6) Complete Responsibility
7) Discouragement
(IIHSSD)

7. DEADLY MISTAKES OF ENTREPRENEURSHIP
1) Management Mistakes
2) Lack of Experience
3) Poor Financial Controls
4) Weak Marketing Efforts
5) Failure to develop a strategic Plan
6) Uncontrolled Growth
7) Poor Location
8) Improper Inventory Control
9) Incorrect Pricing
10) Inability to make “Entrepreneurial Transition”

8. HOW TO DEVELOP A STRATEGIC PLAN
1) Develop a clear Vision and transform into a
meaningful Mission
2) Assess the company’s strength
3) Scan the Environment for opportunities
4) Identify key factors for Success
5) Analyze the competition
6) Create Company’s Goal and Objectives
7) Formulate Strategic options
8) Translate Strategic plan into Action plan
9) Establish an accurate control

9. WHAT IS STRATEGIC MANAGEMENT??
 Types of Capital
 Financial Capital
 Human Capital
 Structural Capital
 Customer Capital

10. ADVANTAGES OF SOLE PROPRIETORSHIP
1) Simple to create
2) Least Costly
3) Profit Incentive
4) Total Decision Making
5) No Legal restrictions
6) Easy to discontinue

11. DISADVANTAGES OF SOLE PROPRIETORSHIP
1) Unlimited Liability
2) Limited Skills and Liabilities
3) Feeling of Isolation
4) Limited Capital
5) Lack of Continuity

12. ADVANTAGES OF PARTNERSHIP
1) Easy to establish
2) Complementary skills
3) Division of Profits
4) Larger pool of Capital
5) Ability to attract limited Partners
6) Limited Govt. regulations
7) Flexibility
8) Taxation

13. DISADVANTAGES OF PARTNERSHIP
1) Difficult to create
2) Very Costly
3) Profit Division
4) Dependant Decision Making
5) Legal Restrictions
6) Difficult to Discontinue