This document is the first chapter of a textbook on entrepreneurship. It introduces entrepreneurship and discusses who entrepreneurs are, the benefits and drawbacks of entrepreneurship, factors that lead to entrepreneurship, and common mistakes entrepreneurs make. The chapter aims to help students understand entrepreneurship and how to avoid typical entrepreneurial mistakes.

1. BAEB501 : ENTREPRENEURSHIP
CHAPTER 1:
INTRODUCTION TO
ENTREPRENEURSHIP
© 2010 Cosmopoint

2. Chapter 1: Introduction to Entrepreneurship
Topic Outlines
1.1 Introduction to Entrepreneurship
1.1.1 Who is an entrepreneur?
1.1.2 Entrepreneurial Profile
1.2 Benefits of Entrepreneurship
1.2.1 Advantages
1.3 Drawback of Entrepreneurship
1.3.1 Drawback of Entrepreneurship
1.3.2 Factors that lead to entrepreneurship
1.3.3 10 mistakes of entrepreneurship
1.4 How to avoid the mistakes?
1.5 Discussion
© 2010 Cosmopoint Slide 2 of [11]

3. Chapter 1: Introduction to Entrepreneurship
Learning Outcomes
At the end of this chapter, students should be able to:
 Understand what is Entrepreneurship
 The advantages and drawbacks of Entrepreneurship
 Factors that lead Entrepreneurship
© 2010 Cosmopoint Slide 3 of [11] Topics

4. Chapter 1: Introduction to Entrepreneurship
1.1 Introduction to Entrepreneurship
1.1.1 Who is an Entrepreneur?
One who creates a new business
in the face of risk on uncertainty
for the purpose of achieving
profit and growth by identifying
opportunities and assembling the
resources to capitalize on those
opportunities.
© 2010 Cosmopoint Slide 4 of [11] Topics

5. Chapter 1: Introduction to Entrepreneurship
1.1 Introduction to Entrepreneurship
Desire for responsibility Honest Preference for moderate
risk
Confidence for their
Desire for immediate
ability to succeed
feedback
Entrepreneurial Profile Tolerance
High degree of / Characteristics
commitment
Highly Motivated
High level of energy
Future orientation Flexibility
Skill at organizing Value of achievement
over money
© 2010 Cosmopoint Slide 5 of [11]

6. Chapter 1: Introduction to Entrepreneurship
1.2 Benefit of Entrepreneurship
1.2.1 Advantages
Opportunity to make a difference
Opportunity to reach your full
potential
Benefit of
Entrepreneurship Opportunity to get unlimited
profits
Opportunity to do what you
enjoy doing
Opportunity to gain control Opportunity to contribute to
over your own destiny society and be recognized for
your efforts
© 2010 Cosmopoint Slide 6 of [11] Topics

7. Chapter 1: Introduction to Entrepreneurship
1.3 Drawback of Entrepreneurship
1.3.1 Drawback of Entrepreneurship
High levels of stress
Complete responsibility Discouragement
Long hours and Drawback of Uncertainty of
hard work Entrepreneurship income
Risk of losing your Lower quality of life
entire invested until the business
capital gets established
© 2010 Cosmopoint Slide 7 of [11] Topics

8. Chapter 1: Introduction to Entrepreneurship
1.3 Factors that lead to entrepreneurship
1.3.2 Factors that lead to entrepreneurship
• Entrepreneur as Heroes
• Entrepreneurial Education
• Economic and demographic factors
• Shift to a service economy
• Technological advancements
• Independent Lifestyle
• E-commerce and www
• International opportunities
© 2010 Cosmopoint Slide 8 of [11] Topics

9. Chapter 1: Introduction to Entrepreneurship
1.3 10 mistakes of entrepreneurship
1.3.3 10 mistakes of entrepreneurship
• Management incompetence
• Lack of experience
• Undercapitalization
• Poor cash management
• Lack of strategic management
• Weak marketing effort
• Uncontrolled growth
• Poor location
• Lack of inventory control
• Inability to make the ‘entrepreneurial
transition’
© 2010 Cosmopoint Slide 9 of [11] Topics

10. Chapter 1: Introduction to Entrepreneurship
1.4 How to avoid the mistakes?
1.4.1 How to avoid the mistake?
• Know your business in depth
• Prepare a business plan
• Manage financial resources
• Understand financial statements
• Learn to manage people
effectively
• Set your business apart from the
competition
• Keep in tune with yourself
© 2010 Cosmopoint Slide 10 of [11] Topics

11. Chapter 1: Introduction to Entrepreneurship
1.5 Activity: [Discussion]
 How can Entrepreneur energize the economics growth? List
and discuss it in a group of 4.
© 2010 Cosmopoint Slide 11 of [11] Topics