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The Foundations of EntrepreneurshipThe Foundations of Entrepreneurship
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.
Entrepreneur is a person who starts an enterprise. The process of creation is called entrepreneurship.
orTurning ideas into marketable products
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
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…………………………..
Entrepreneur and Entrepreneurship
Entrepreneur Entrepreneurship Organizer OrganizationDecision maker Decision Making Innovator InnovationMotivator MotivationCreator CreationLeader LeadershipManager ManagementPlanner PlanningCommunicator CommunicationAdministrator Administration
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
Characteristics of EntrepreneursDesire for responsibilityWillingness to accept risk, Confidence in their ability to succeedHigh level of energyFuture orientationSkilled at organizingFlexibility
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……..
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
The cultural diversity of EntrepreneurshipYoung entrepreneursWomen entrepreneursMinority-owned enterprisesImmigrant entrepreneursPart-time entrepreneursHome-based businessesFamily businesses
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”
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
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