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The Foundations of Entrepreneurshi p

Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)

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Page 1: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)

The Foundations of EntrepreneurshipThe Foundations of Entrepreneurship

Page 2: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)
Page 3: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)

What is an Entrepreneur?A person who start and operates a business

taking on financial risk to do so.

An entrepreneur is one who organizes a new business in the hopes of making a profit.

A person who organizes and manages any business, usually with considerable initiative and risk.

Page 4: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)
Page 5: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)

Entrepreneur is a person who starts an enterprise. The process of creation is called entrepreneurship.

orTurning ideas into marketable products

Page 6: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)

Definition for engineering students

• So entrepreneur is a person who start and operates a business by using engineering skills with business management/ entrepreneurial skills.

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Engineer Entrepreneurship a technical professional /engineering skills

entrepreneurial/ business management skills

He must be able to integrate •Business management skills with •with engineering/technical skills

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Entrepreneurial/ business management skills

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New or revised product/ service idea Managing business portfolio Financial PlanMarketing planAdvertising, sales, Distribution channels managementLeadership skillsOrganizing and Managing People.Employees compensation and reward systemRisk ManagementQuality management…………………………..

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Entrepreneur and Entrepreneurship

Entrepreneur Entrepreneurship Organizer OrganizationDecision maker Decision Making Innovator InnovationMotivator MotivationCreator CreationLeader LeadershipManager ManagementPlanner PlanningCommunicator CommunicationAdministrator Administration

Page 9: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)

Why Study Entrepreneurship?Scientists and engineers who want to lead

companies need to know how to back up ideas with business management/ entrepreneurial skills.

You will learn the complex business processes involved in commercialization.

You learn how to make trade-offs among features, benefits, price, markets, and business operations

You learn how to adapt to uncertainty and changeYou learn techniques for managing people

Page 10: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)

Characteristics of EntrepreneursDesire for responsibilityWillingness to accept risk, Confidence in their ability to succeedHigh level of energyFuture orientationSkilled at organizingFlexibility

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Expectations from an Entrepreneur

An entrepreneur should be willing and able to convert a new idea or

invention into a success innovation,be able to develop new markets of customers and

buyers,discover new sources of materials, mobilize capital resources (land, machines,

buildings, money, humans), introduce new technologies, products and

services.

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Distinction Between An Entrepreneur And A Manager

- An entrepreneur start a business where a manager provides his services……..- An entrepreneur is the owner of the organization and he bears all the risk and uncertainties…- Entrepreneur’s objective is to establish, innovate and expand a business, where a manager implements the entrepreneur’s plans and ideas………-An entrepreneur is faced with more income uncertainties as his income is contingent on the performance of the firm……..- An entrepreneur deals with faults and failures as a part of learning experience where as a manager make every effort to avoid mistakes…….. 

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Page 18: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)

Rewards of Being an EntrepreneurRewards of Being an Entrepreneur

High degree of independence—freedom from constraints

Get to use a variety of skills and talents

Freedom to make decisions

Accountable to only yourself

Opportunity to tackle challenges

Feeling of achievement and pride

Potential for greater financial rewards

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The cultural diversity of EntrepreneurshipYoung entrepreneursWomen entrepreneursMinority-owned enterprisesImmigrant entrepreneursPart-time entrepreneursHome-based businessesFamily businesses

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Nine Deadly Mistakes of Entrepreneurship1. Management incompetence2. Lack of experience3. Poor financial control4. Failure to develop a strategic plan5. Uncontrolled growth6. Poor location7. Improper inventory control8. Incorrect pricing9. Inability to make the “entrepreneurial

transition”

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Benefits of Small Business Ownership

The opportunity to:create your own destinymake a differencereach your full potentialreap unlimited profitscontribute to society and be

recognized for your effortsdo what you enjoy and have fun at it

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Drawbacks of Small Business Ownership

Uncertainty of incomeRisk of losing your entire investmentLong hours and hard workLower quality of life until the business

gets establishedHigh levels of stressComplete responsibilityDiscouragement