Entrepreneurship 1 Class

8/2/2019 Entrepreneurship 1 Class

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Entrepreneurship


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Entrepreneurship: What is It?

Who or what is entrepreneurial? People?

Businesses?

Industries?

Entire societies? What makes it entrepreneurial?

Special traits?

New/innovative ideas, products, & services?

High growth activities? Exploitation of opportunity and/or people?

Creation of new markets, new economic sectors?


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What is Entrepreneurship?

Not Just Small Companies Not Just Start-Ups

Not the Unscrupulous Promoters

Not Just For-Profit Firms

Not Just Non-Government

Certainly not many dot.coms

What is it to you as a student?


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If Entrepreneurship is the Answer,Then what are other questions?

What it isnt?

Why is it important?

What role does it play in society? What is its role internationally?

How is being an entrepreneur different

from being a manager?


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Entrepreneurship:

Traditional Definitions Risk Taker

Founder Innovator

Capitalist

Scoundrel Born not Learned


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Views of Entrepreneurship

Francis A. Walker (1876)

...the new captains of industry as the principalsagents of production and industrial process.

Joseph Schumpter (1934)

...the entrepreneur is the man who gets newthings done.


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Another View

Peter F. Drucker (1964)

...maximization of opportunities is a

meaningful, indeed a precise, definition of the

entrepreneurial job. It implies that effectivenessrather than efficiency is essential in business.The pertinent question is not how to do thingsright but how to find the right things to do, andto concentrate resources and efforts on them.


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More Views of Entrepreneurship

William Baumol (1968)He is the individual who exercises what in thebusiness literature is called leadership

Albert Shapero (1975)...a kind of behavior that includes: 1) initiativetaking, 2) the organizing or reorganizing of social /economic mechanisms to turn resources and

situations to practical account, 3) the acceptanceof risk of failure. A major resource utilized by theentrepreneur is himself.


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Perhaps the Best Working Definition

The pursuit of

opportunity beyond the

resources you currentlycontrol


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About Entrepreneurs

Innovative

Creative Excellence

Egos


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The entrepreneurs personality:

Cooperative, a team player; Strong desire to work hard;

High in desire to learn new & different

things; Able to listen to others;

competitive;

risk taking.


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The Personal Achiever

High in need to achieve

Have tremendous energy

Take initiative Strong commitment to their organization

Believe they control their lives

Wear many hats Try to be good at lots of things


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The Real Manager

Like to take charge

Are competitive

Positively disposed to those with authority

Enjoy power Usually come from larger firms to

entrepreneurial firm

effective marketers

The use logic and persuasion to sell

Strength is in managing the high growth firm


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The Expert Idea Generator

Invents new products

Find new niches

Develop new processes Drawn to the world of ideas

Take calculated risks

Can be idealistic They think their way through situations.


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Factors in entrepreneurial success:

Achievement Oriented Personality Entrepreneurial Attitudes

Belief in Self and Ability

Social Context

Intention to Start a Venture

Opportunity Recognition

Controlling Resources

Timing


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Why Entrepreneurship Now?

Technological Change

Economic Change

Social Change

Psychological Change


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The Present Explosion

Need for Flexibility Creating Economic Value

Key to Economic Development

Matches Risks and Rewards

Creation of Wealth

Creation of Jobs


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Two Types of Entrepreneurs

Necessity

Opportunistic


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Market Replication vs. Market Expansion

Market Replication Customers know product or service well

Lots of competition

Using established technology or procedures

Market Expansion, Creation

Customers unfamiliar with product or service

No competition

New technology or procedures


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How Entrepreneurs Make Decisions

Do things make basic sense?

Follow your gut

Getting Advice Other Choices

Decision Aids

The things you learn in Graduate School


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Know What Your Goals Are

Financial

Social

Personal Political

Shift with Life Cycle

Of Firm Of Entrepreneur


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Being an Entrepreneur Ugly Reality

Failure?

Risk?

Missing an opportunity?

Not honoring your values and ethics?

Not delivering value?


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Being an Entrepreneur-The Good

What are the good parts?

In control of your own destiny

Exciting to build a business

Contributing to the economy

Financial reward ... maybe

(Notice that this is the last)

C l M d l f E hi


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Conceptual Model of Entrepreneurship

The organization Entrepreneurship

The person Entrepreneur

The Environment

The task

E i l


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Entrepreneurial process

1. Identify and evaluate the opportunity

It is difficult and an important task

Opportunity can be identified looking at the

unsatisfied needs, asking customers, businessassociates such as channel members.

Evaluation of opportunity

a. Creation and length of opportunityb. Real and perceived value of opportunity

c. Opportunity versus personal skills and goals


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2. Develop a business plan

An effective business plan is required toexploit business opportunity. It shouldcover various aspects like production,

marketing, finance etc.

3. Resources required

a. Existing resourcesb. Required resources

c. Distinguish between critical resources

and helpful ones.


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4. Manage the enterpriseEntrepreneur needs to employ resources

through implementation of business plan.

a. Management styleb. Identification of problems and potential

problems

c. Implementation of control system.


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A final set of questions:

Are there national differences inentrepreneurial activity?

Is entrepreneurial activity related to

national economic growth? Why are some countries more

entrepreneurial than others?

What can be done to enhanceentrepreneurial activity?

Documents

Entrepreneurship 1 Class