C I Foundation of Entrepreneurship

8/6/2019 C I Foundation of Entrepreneurship

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The Foundations of EntrepreneurshipThe Foundations of Entrepreneurship

CHAPTERCHAPTER

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Ch. 1: The Foundations of Entrepreneurship

The Evolution of EntrepreneurshipThe Evolution of Entrepreneurship

EntrepreneurEntrepreneur isis derivedderived fromfrom thethe FrenchFrenchentreprendre,entreprendre, meaningmeaning toto undertakeundertake..

EntrepreneurEntrepreneur isis oneone whowho undertakesundertakes totoorganize,organize, managemanage andand assumeassume thethe risksrisks ofof aabusinessbusiness..

EntrepreneursEntrepreneurs areare simplysimply thosethose whowho

understandunderstand thatthat therethere isis littlelittle differencedifferencebetweenbetween obstacleobstacle andand opportunityopportunity andand areareableable toto turnturn bothboth toto theirtheir advantageadvantage..


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The World of the EntrepreneurThe World of the Entrepreneur

Global Entrepreneurship Monitor (GEM) studyGlobal Entrepreneurship Monitor (GEM) studyreports:reports: Men are twice as likely to start a business asMen are twice as likely to start a business as

women.women.

Globally, one in eleven adults is actively engagedGlobally, one in eleven adults is actively engagedin launching a business.in launching a business.

Most entrepreneurs turn to family members andMost entrepreneurs turn to family members andfriends for capital.friends for capital.

Entrepreneurs are most likely to launchEntrepreneurs are most likely to launchbusinesses when they arebusinesses when they arebetween the ages of 25 and 44.between the ages of 25 and 44.


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An Integrated DefinitionEntrepreneurship

A dynamic process of vision, change, and creation

- Requires an application of energy and passiontowards the creation and implementation of newideas and creative solutions.

Essentials ingredients include:

The willingness to take calculated risks- in termstime, equity or career

The ability to formulate an effective venture team;

the creative skill to marshal needed resources The vision to recognize opportunity where others

see chaos, contradiction and confusion.


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The myths of Entrepreneurship Entrepreneurs are doers, not thinkers

Entrepreneurs are born, not made

Entrepreneurs are always inventors

Entrepreneurs are academic and social misfit

Entrepreneurs must fit the profile All Entrepreneurs need is money

All Entrepreneurs need is luck

Ignorance is bliss for Entrepreneurs

Entrepreneurs seek success but experience highfailure rates

Entrepreneurs are extreme risk takers (Gamblers)


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What is an Entrepreneur?What is an Entrepreneur?

OneOne whowho createscreates aa newnew businessbusiness inin thethe faceface ofof riskrisk

andand uncertaintyuncertainty forfor thethe purposepurpose ofof achievingachieving profitprofit

andand growthgrowth byby identifyingidentifying opportunitiesopportunities andand

assemblingassembling thethe necessarynecessary resourcesresources toto capitalizecapitalize

onon themthem..

AA catalystcatalyst for for economiceconomic changechange whowho usesuses

purposefulpurposeful searching,searching, carefulcareful planningplanning andand soundsound

judgmentjudgment whenwhen carryingcarrying outout thethe entrepreneurialentrepreneurialprocessprocess..


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Characteristics of EntrepreneursCharacteristics of Entrepreneurs

Desire for responsibilityDesire for responsibility

Preference for moderate levels of riskPreference for moderate levels of risk riskrisk

eliminatorseliminators

Confidence in their ability to succeedConfidence in their ability to succeed

Desire for immediate feedbackDesire for immediate feedback

High level of energyHigh level of energy

Future orientationFuture orientation serial entrepreneursserial entrepreneurs

Skilled at organizingSkilled at organizing

Value achievement over moneyValue achievement over money


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Entrepreneurial Mind Set

Learn, learn and learn as much as you can Be enterprising with an open mind be

creative

Be politically and economically well informed

Create networks of interest

Be analytical and informed critical

Be fair, understand finance, be ethical and

socially and environmentally conscientious Learn to see opportunities within your

network using your specific nous


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EntrepreneurshipEntrepreneurship

OneOne characteristiccharacteristic ofof entrepreneursentrepreneurs standsstandsoutout::

Diversity!Diversity!

AnyoneAnyone regardlessregardless ofof age,age, race,race, gender,gender,color,color, nationalnational origin,origin, or or anyany other othercharacteristiccharacteristic cancan becomebecome anan entrepreneurentrepreneur

(although(although notnot everyoneeveryone should)should)..


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Benefits of EntrepreneurshipBenefits of Entrepreneurship

The opportunity to:The opportunity to:

Create your own destinyCreate your own destiny

Make a differenceMake a difference

Reach your full potentialReach your full potential

Reap impressive profitsReap impressive profits

Contribute to society and toContribute to society and to

be recognized for your effortsbe recognized for your efforts

Do what you enjoy and to have fun at itDo what you enjoy and to have fun at it

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Drawbacks of EntrepreneurshipDrawbacks of Entrepreneurship

Uncertainty of incomeUncertainty of income

Risk of losing your entire investmentRisk of losing your entire investment

Long hours and hard workLong hours and hard work Lower quality of life until the business getsLower quality of life until the business gets

establishedestablished

High levels of stressHigh levels of stress Complete responsibilityComplete responsibility

DiscouragementDiscouragement

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Feeding theFeeding the

Entrepreneurial FireEntrepreneurial Fire Entrepreneurs as heroesEntrepreneurs as heroes

Entrepreneurial educationEntrepreneurial education

Demographic and economic factorsDemographic and economic factors

Shift to a service economyShift to a service economy

Technology advancementsTechnology advancements

Independent lifestyleIndependent lifestyle EE--commerce and the Internetcommerce and the Internet

International opportunitiesInternational opportunities

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The Cultural Diversity ofThe Cultural Diversity of


Young entrepreneursYoung entrepreneurs

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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 1 - 14


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Women entrepreneursWomen entrepreneurs

(continued)

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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 1 - 16Ch. 1: The Foundations of Entrepreneurship

FIGURE 1.4 Why Women Start Businesses

Source:U.S. Small Business Administration, 2007.


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Women entrepreneursWomen entrepreneurs

MinorityMinority--owned enterprisesowned enterprises

Immigrant entrepreneursImmigrant entrepreneurs

PartPart--time entrepreneurstime entrepreneurs

(continued)

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HomeHome--based businessesbased businesses

Family businessesFamily businesses

CopreneursCopreneurs

Corporate castoffsCorporate castoffs

Corporate dropoutsCorporate dropouts

Social entrepreneursSocial entrepreneurs

Retiring Baby BoomersRetiring Baby Boomers

(continued)

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Ten Deadly Mistakes ofTen Deadly Mistakes of


1.1. Management mistakesManagement mistakes

2.2.Lack of experienceLack of experience

3.3. Poor financial controlPoor financial control

4.4. Weak marketing effortsWeak marketing efforts

5.5. Failure to develop a strategic planFailure to develop a strategic plan

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Ten Deadly Mistakes ofTen Deadly Mistakes of


6.6. Uncontrolled growthUncontrolled growth

7.7. Poor locationPoor location8.8. Improper inventory controlImproper inventory control

9.9. Incorrect pricingIncorrect pricing

10.10. Inability to make the entrepreneurialInability to make the entrepreneurialtransitiontransition

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Putting Failure Into PerspectivePutting Failure Into Perspective

Entrepreneurs areEntrepreneurs are notnotparalyzed by theparalyzed by theprospect of failure.prospect of failure.

FailureFailure a natural part of the creativea natural part of the creativeprocess.process.

Successful entrepreneurs learn to failSuccessful entrepreneurs learn to fail

intelligentlyintelligently..

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Avoiding the Pitfalls ofAvoiding the Pitfalls ofSmall Business FailureSmall Business Failure

Know your business in depthKnow your business in depth

Develop a solid business planDevelop a solid business plan

Manage financial resourcesManage financial resources Understand financial statementsUnderstand financial statements

Learn to manage people effectivelyLearn to manage people effectively

Set your business apart from theS

et your business apart from thecompetitioncompetition

Maintain a positive attitudeMaintain a positive attitude

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ConclusionConclusion

Entrepreneurs:Entrepreneurs:

AreAre anan importantimportant partpart of of thethe freefree enterpriseenterprise

systemsystem

AreAre aa diversediverse andand talentedtalented groupgroup ofof peoplepeople

RepresentRepresent aa crosscross--sectionsection ofof societysociety asas aa wholewhole

AreAre ableable toto enhanceenhance thethe profitabilityprofitability ofof their theirbusinessesbusinesses throughthrough acquiringacquiring additionaladditional

knowledgeknowledge andand experienceexperience

Documents

C I Foundation of Entrepreneurship