Traditional vs. Entrepreneurial Career Paths

High School

University

Big Company

Retire

High School

University

Practical Experience

Management Training

Well Managed, High Growth Firm

Startup Venture

Growth/ Another Startup?

Venture Capital or Bank Loan

Never really retire

WHAT IS ECONOMIC WHAT IS ECONOMIC GROWTH?GROWTH?

ECONOMIC GROWTH ECONOMIC GROWTH MEANS UPWARD MEANS UPWARD CHANGE WHEREBY PER CHANGE WHEREBY PER CAPITA INCOME CAPITA INCOME INCREASES OVER A INCREASES OVER A LONG PERIOD OF TIME.LONG PERIOD OF TIME.

Economic growth is effect, Economic growth is effect, entrepreneur is the cause. entrepreneur is the cause. Entrepreneurs explore opportunities, Entrepreneurs explore opportunities, convert ideas into viable business convert ideas into viable business proposition and provide new proposition and provide new products and services to the society products and services to the society by bringing together and combining by bringing together and combining various factors of production. They various factors of production. They change life style of the people.change life style of the people.

WHAT CAUSES ECONOMIC WHAT CAUSES ECONOMIC GROWTH?GROWTH?

ENTREPRENEURSHIPENTREPRENEURSHIPEntrepreneurship is a Entrepreneurship is a

purposeful activity of an purposeful activity of an individual or a group of individual or a group of associated individuals, associated individuals, undertaken to initiate, maintain undertaken to initiate, maintain or aggrandise profit by or aggrandise profit by production or distribution of production or distribution of economic goodseconomic goods..

ENTREPRENEURSHIP

Entrepreneurship is the attempt to create value through recognition of business opportunity, the management of risk appropriate to opportunity and through the communicative and management skills to mobilise human, financial and material resources necessary to bring a project to fruition.

ENTREPRENEURSHIP

Entrepreneurship is the ability to create and build a vision from practically nothing. It is a dynamic process of creating incremental wealth.

““Who” is the Who” is the Entrepreneur?Entrepreneur?

Characteristics and Characteristics and Types, Nature Types, Nature

versus Nurtureversus Nurture

ENTREPRENEUR““It is not the critic who counts, nor the observer who watches It is not the critic who counts, nor the observer who watches from a safe distance. from a safe distance. Wealth is created only by doers in the Wealth is created only by doers in the arena who are marred with dirt, dust, blood, and sweat.arena who are marred with dirt, dust, blood, and sweat. These are producers who strike out on their own, who know These are producers who strike out on their own, who know high highs and low lows, great devotions, and who high highs and low lows, great devotions, and who overextend themselves for worthwhile causes. overextend themselves for worthwhile causes. Without Without exceptions, they fail more than they succeed and appreciate exceptions, they fail more than they succeed and appreciate this reality even before venturing out on their own. But when this reality even before venturing out on their own. But when these producers of wealth fail, they at least fail with style these producers of wealth fail, they at least fail with style and grace, and their gut soon recognizes that failure is only a and grace, and their gut soon recognizes that failure is only a resting place, not a place in which to spend a lifetime.resting place, not a place in which to spend a lifetime. Their Their places will never be with those nameless souls who know places will never be with those nameless souls who know neither victory nor defeat, who receive weekly paychecks neither victory nor defeat, who receive weekly paychecks regardless of their week’s performance, who are hired hands regardless of their week’s performance, who are hired hands in the labour in someone else’s garden. These doers are in the labour in someone else’s garden. These doers are producers and no matter what their lot is at any given producers and no matter what their lot is at any given moment, they will never take a place beside the takers, for moment, they will never take a place beside the takers, for theirs is a unique place, alone, under the sun. They are theirs is a unique place, alone, under the sun. They are

entrepreneurs!”entrepreneurs!” JOSEPH R MANCUSOJOSEPH R MANCUSO

EntrepreneurialEntrepreneurial IndividualIndividual

Has concept, vision, dreamHas concept, vision, dream Adapts concept to reflect realities in Adapts concept to reflect realities in

environment, scans environment environment, scans environment Assesses risks versus rewardsAssesses risks versus rewards Mobilizes resourcesMobilizes resources Able to convert dream into products and Able to convert dream into products and

people within an organizational contextpeople within an organizational context Able to champion the concept to a wide Able to champion the concept to a wide

range of publics and partnersrange of publics and partners Persevere in overcoming obstaclesPersevere in overcoming obstacles Optimizes profitsOptimizes profits

Who is an Who is an entrepreneurentrepreneur

An entrepreneur is a person An entrepreneur is a person who takes risk of setting up who takes risk of setting up

his/her own venture for his/her own venture for perceived rewards.perceived rewards.

He is a person who initiates He is a person who initiates the idea, formulates a plan, the idea, formulates a plan, organizes resources and puts organizes resources and puts the plan into action to achieve the plan into action to achieve his goal. his goal.

Essential qualities of an Essential qualities of an entrepreneursentrepreneurs

Need for achievement: Need for achievement: Strong desire Strong desire to be a winnerto be a winner

Perseverance: Perseverance: Quality to stick to it.Quality to stick to it.Moderate risk taker: Moderate risk taker: Prefer a middle Prefer a middle

of the road strategy when they analyze a of the road strategy when they analyze a risk problem risk problem

Ability to find and explore Ability to find and explore opportunityopportunity: Alert to opportunities and : Alert to opportunities and seize and convert them to their advantagesseize and convert them to their advantages

Analytical ability: Analytical ability: Unaffected by Unaffected by personal likes and dislikes while personal likes and dislikes while approaching problemsapproaching problems

Using feedback: Using feedback: Consider it important Consider it important to know how they are doing, when they to know how they are doing, when they work on the goal or a task.work on the goal or a task.

Facing uncertainty: Facing uncertainty: Welcome Welcome tackling an unfamiliar but interesting tackling an unfamiliar but interesting situationsituation

Independence: Independence: Have a dislike for Have a dislike for working for other working for other

Flexibilities: Flexibilities: Flexible in their decisionsFlexible in their decisionsPlannerPlanner: Thinks ahead, plan for future : Thinks ahead, plan for future

and then work to make it come true.and then work to make it come true.

Interpersonal skillsInterpersonal skills: They are : They are comfortable while dealing with people at comfortable while dealing with people at all levelall level

Motivator: Motivator: Can influence othersCan influence othersStress takers: Stress takers: They are capable of They are capable of

working for long hours and tackling working for long hours and tackling different problems at the same timedifferent problems at the same time

Positive self concepts: Positive self concepts: They are They are aware of themselvesaware of themselves

Orientation to future: Orientation to future: They have They have high level of future orientation. They do high level of future orientation. They do not allow the past to obsess them. not allow the past to obsess them.

The entrepreneur’s dream is almost The entrepreneur’s dream is almost a kind of madness, and it is almost a kind of madness, and it is almost as isolating. When you see as isolating. When you see something new, your vision usually something new, your vision usually isn’t shared by others. The isn’t shared by others. The difference between a crazy person difference between a crazy person and the successful entrepreneur is and the successful entrepreneur is that the latter can convince others to that the latter can convince others to share the vision. That force of will is share the vision. That force of will is fundamental to entrepreneurship.fundamental to entrepreneurship.

The Entrepreneur’s Dream

Categories of Categories of EntrepreneursEntrepreneurs

CraftsmenCraftsmen– Narrow in education/trainingNarrow in education/training

OpportunistsOpportunists– Breadth in education/training, wide Breadth in education/training, wide

experiencesexperiences Technical entrepreneurTechnical entrepreneur

– Come up with own inventions and Come up with own inventions and product modifications, work experience product modifications, work experience in technology environment, more in technology environment, more formal technical educationformal technical education

– Make greater use of teamsMake greater use of teams

Categories of Categories of EntrepreneursEntrepreneurs

1. INNOVATORS2. IMITATORS3. FABIANS4. DRONES

Entrepreneurial Entrepreneurial CultureCulture

Entrepreneurial Culture Entrepreneurial Culture Implies A Set Of Shared Implies A Set Of Shared Values, Norms And Traits Values, Norms And Traits That Are Conducive To The That Are Conducive To The Growth Of EntrepreneurshipGrowth Of Entrepreneurship

Factors Shaping Factors Shaping Entrepreneurial ResponseEntrepreneurial Response

i.i. Socio-Cultural Values, Religious Socio-Cultural Values, Religious InfluencesInfluences

ii.ii. Socio-Political Structure and Socio-Political Structure and ConditionCondition

iii.iii. Economic Infrastructure and social Economic Infrastructure and social Overheads; Communication, Overheads; Communication, Education, Credit etc.Education, Credit etc.

iv.iv. National Goals and governmental National Goals and governmental policiespolicies

v.v. Demonstration Effects, Contacts and Demonstration Effects, Contacts and reference Groupsreference Groups

Entrepreneurial Personality - Entrepreneurial Personality - PsychologicalPsychological

1. 1. Motivation – driven by range of factorsMotivation – driven by range of factors- Necessity (survival)Necessity (survival)-- Opportunity (proactivity)Opportunity (proactivity)- Dissatisfaction (can’t stand job)Dissatisfaction (can’t stand job)- Curiosity (What if…?)Curiosity (What if…?)- Material gain (We could make a killing…)Material gain (We could make a killing…)

Achievement oriented more than anything Achievement oriented more than anything elseelse

Driven by the task, challenge, opportunityDriven by the task, challenge, opportunity Money as a by-product, but scorecardMoney as a by-product, but scorecard

2. 2. Strong internal locus of control – Strong internal locus of control – change agentschange agents

Believe they can change their Believe they can change their environmentsenvironments

Entrepreneurial Personality - Entrepreneurial Personality - PsychologicalPsychological

3. Calculated risk-takers (financial, career, 3. Calculated risk-takers (financial, career, family & social, psychic)family & social, psychic)– Attempt to estimate likelihood and Attempt to estimate likelihood and

magnitude of key risk factors and manage magnitude of key risk factors and manage or mitigate them through good planning or or mitigate them through good planning or decisionsdecisions

4. High tolerance of ambiguity4. High tolerance of ambiguity– Process can be loose, messy, shift Process can be loose, messy, shift

directionsdirections 5. Prize their independence – self-5. Prize their independence – self-

motivated, self-reliant, prefer autonomy, motivated, self-reliant, prefer autonomy, have perseverancehave perseverance

Situation-Based Situation-Based CharacteristicsCharacteristics

Willingness and ability to assume Willingness and ability to assume and manage risks and manage risks – more critical with new-to-the-more critical with new-to-the-

world productsworld products Political skills important in large Political skills important in large

corporate settingscorporate settings Adaptability and tenacity are Adaptability and tenacity are

bigger factors in turbulent bigger factors in turbulent environmentsenvironments

Dark Side TraitsDark Side TraitsExcessive need for controlExcessive need for control

– Tendency to micromanageTendency to micromanageSuspicious – others will steal Suspicious – others will steal

their ideatheir ideaImpatienceImpatienceNeed for applauseNeed for applauseDefensiveDefensiveExternalize internal problemsExternalize internal problems

Entrepreneurial Entrepreneurial PotentialPotential

All of us have All of us have entrepreneurial entrepreneurial potential. potential. Degree might Degree might differ. It is just a differ. It is just a matter of matter of developing that developing that potential.potential.

The ProcessThe Process No individual has all the personal No individual has all the personal

attributes and managerial skills attributes and managerial skills neededneeded

Know what’s missing: personal Know what’s missing: personal attributes or skillsattributes or skills

Learn how to compensate for what is Learn how to compensate for what is missing missing

Knowing how to compensate can be Knowing how to compensate can be as valuable as already having the skillas valuable as already having the skill