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WHO IS AN ENTREPRENEUR
An entrepreneuris a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome.
CONCEPTUAL MODEI OF ENTREPRENEURSHIP
ENTREPRENEURSHIP
THE PERSON
THEORGANIZATION
THE ENVIRONMENT
THEORGANIZATION
THE ANALYTICAL FRAMEWORK OF ENTREPRENEURSHIP
The person: Personality , Skills ,Experience, Motives and
Psychological Preferences. The Task: Perceiving
opportunity, marshalling resources, providing leadership.
The Environment: Availability of Resources, infrastructure, competitive pressures, social values, rules and regulations, state of technology, etc
The Organization: structure, policies, rules, culture, human resources systems, communication systems.
SCHUMPETER’S VIEWS ON ENTERPRENEURSHIP
Creative and innovative activity.
Distinction between an innovator and an inventor.
Both wide and narrow.
Entrepreneur is a large scale businessman who creates something new.
WALKER’S VIEWS ON ENTREPRENEURSHIP
Organizer and coordinator.
Different degrees of organizational skill and coordinating capacity.
True entrepreneurs are limited.
DRUCKER’S VIEWS ON ENTREPRENEURSHIP
Entrepreneur is one who always searches for change, responds to it and exploits it as an opportunity.
Purposeful and systematic innovation.
Behavior rather than personality trait.
ENTREPRENEURSHIP
Entrepreneurship
Mainstream Economic
Factors Land
Labor
Capital
Entrepreneurship
Enterprise
An enterprise may be defined as an undertaking or adventure involving uncertainty and risk and requiring innovation and also to the ability to think out and start new business.
Your own new enterprise serves your interest in significant ways
Salary.
Security
Assets builder
Perks.
Independence
Fulfillment
Entrepreneurs...Traits
Self-confident and optimistic
Able to take calculated risk
Respond positively to changes
Flexible and able to adapt
Knowledgeable of markets
Able to get along well with others
Independent minded
Entrepreneurs...Traits II
Energetic and diligent
Creative, need to achieve
Dynamic Leader
Responsive to suggestions
Take initiatives
Resourceful and persevering
Perceptive with foresight
Entrepreneurship
Joseph Schumpeter...20th century talks about “creative destruction” whereby established ways of doing things are destroyed by the creation of new and better ways of getting things done
Described it as a process and entrepreneurs as innovators who use process to shatter the status quo through new methods...
Entrepreneurship
Is a dynamic process of creating incremental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time and career commitment of providing value for some product or service
The entrepreneur must somehow infuse value to the product or service...
The Creative Process
Idea Germination
Preparation
Incubation
Illumination
Verification
The difference between invention and innovation is:
Invention - is the creation of new products, processes, and technologies not previously known to exist.
Innovation - is the transformation of creative ideas into useful applications by combining resources in new or unusual ways to provide value to society for or improved products, technology, or services.
Organizing entrepreneurship: Does the entrepreneur need a firm?
Entrepreneurship as management : firm is the assets the entrepreneur arranges (not owns).
Entrepreneurship as imagination, creativity : firm can contract for entrepreneurship.
Entrepreneurship as innovation : entrepreneurship is sui generis, independent of the firm.
Entrepreneurship as alertness or discovery : entrepreneur owns no capital (could be an employee or independent contractor).
Entrepreneurship as charismatic leadership : firm is the entrepreneur plus the employees who follow him.
Advantages of entrepreneurship
Enormous personal financial gain
Self-employment, offering more job satisfaction and flexibility of the work force
Employment for others, often in better jobs
Development of more industries, especially in rural areas or regions disadvantaged by economic changes, for example due to globalization effects
Advantages…
Encouragement of the processing of local materials into finished goods for domestic consumption as well as for export
Income generation and increased economic growth
Healthy competition thus encourages higher quality products
Advantages…
More goods and services available
Development of new markets
Promotion of the use of modern technology in small-scale manufacturing to enhance higher productivity
Advantages…
Encouragement of more researches/ studies and development of modern machines and equipment for domestic consumption
Freedom from the dependency on the jobs offered by others
The ability to have great accomplishments
Serious tax advantages