EntrepreneurshipPresenter:Syed Tariq ijaz kaka

khelMBA (Human Resource Management)

What is Entrepreneurship ?

• Entrepreneurship is the process of creating something new value by devoting necessary time and effort assuming the accompanying financial, physical, and social risk and uncertainties and receiving the resulting rewards of monitory and personal satisfaction.

Who is Entrepreneur?

An individual who takes initiative to bundle resources in innovative ways and

is willing to bear the risk .

The definition of entrepreneur stresses four basic aspects

Entrepreneurship involves the creation process Entrepreneurship requires the devotion of necessary

time and effort Definition involves rewards of being an entrepreneur

Assuming the necessary risk and uncertainty.

Phases of Entrepreneurial process

Identification and evaluation of opportunity

Development of business plan Determination of required resources Management of resulting enterprise

Identify and evaluate opportunity

Opportunity assessment Creation and length of opportunity

Real and perceived value of opportunity Risk and return of opportunity

Opportunity versus personal skills and goals

Development business plan

Title page Table of content

Executive summery Major section

Description of business Description of industry

Technology plan Marketing plan Financial plan

Resources required

Determine resources needed Determine existing resources Identify resources gaps and

available suppliers Develop access to needed resources

Manage the Enterprise

Develop management style Identify problems and potential

problems Implement control system

Entrepreneurial process

The process of creating something new with value by devoting the necessary time and effort, assuming the accompanying risks

and receiving resulting rewards.

Phases of Entrepreneurial process

Identification and evaluation of opportunity

Development of business plan Determination of required resources Management of resulting enterprise

Identify and evaluate opportunity

Opportunity assessment Creation and length of opportunity

Real and perceived value of opportunity Risk and return of opportunity

Opportunity versus personal skills and goals

Development business plan

Title page Table of content

Executive summery Major section

Description of business Description of industry

Technology plan Marketing plan Financial plan

Resources required

Determine resources needed Determine existing resources Identify resources gaps and

available suppliers Develop access to needed resources

Manage the Enterprise

Develop management style Identify problems and potential

problems Implement control system

Why become entrepreneur?

Entrepreneurs are their own bosses. They make

the decisions. They decide whathours to work, as well as what to pay

and whetherto take vacations.

2. Entrepreneurship offers a greater possibility ofachieving significant financial rewards than workingfor someone else.

3. It provides the ability to be involved in the totaloperation of the business, from concept to designand creation, from sales to business operationsand customer response.

4. It offers the prestige of being the person incharge.

. Freedom of Speech.If I ask you if you have freedom of speech I am sure you will come up with a resounding YES! If you are working a 9-5 job I can assure you this is not true, you have no freedom of

speech!When working a 9-5 job you can’t just talk to your boss anyhow because talking to your boss anyhow can lead to you being fired (Go call your boss a jerk if you don’t believe this!) but as an entrepreneur it doesn’t matter if you are talking to the CEO of one big company or a 12-year-old boy you still have right to the same words, you are simply not afraid of anybody.

How entrepreneur thinks

Effectuation Cognitive ability

Learning from failure

1. Causal process

A process that starts with a desired outcome and focuses on the means

to generate that outcome

Example of causal

Imagine a chef assigned the task of cooking dinner there are tow ways the task can be done

The host pick out a menu in advance. All the chef need is to list the ingredients needed , shop for them and then actually

cook meal.It begins with a given menu and focusing on selecting

effective ways to prepare meal.

2. Effectuation process

A process that starts with what one has (who they are , what they know and whom they know) and selects

among possible outcome

Example of effectuation

In this case the host ask the chef to look through the cupboard for possible ingredients and then

cook meal. Here the chef has to imagine possible menu based on the given ingredients , select the

menu and prepare meal.It begins with given ingredients and focuses on preparing one of many possible desirable meals

with them

Entrepreneur mind set

Involve the ability to rapidly sense, act, and mobilize, even under

uncertain conditions

Cognitive adaptability

Describe the extent to which entrepreneur are flexible, self regulating, and engaged in the process of generating multiple decision framework focused on

sensing and processing changes in their environment and acting on

them

Learning from failure

Entrepreneur who have more experience will possess the knowledge to perform more

effectively the roles and tasks necessary for success

Chapter 1(Entrepreneurship and the Entrepreneurial Mindset)

NATURE AND DEVELOPMENT OF ENTREPRENEURSHIP

Entrepreneurial action - Behavior in response to a judgmental decision under uncertainty about a possible opportunity for profit.

HOW ENTREPRENEURS THINK

Causal process– Starts with a desired outcome.– Focuses on the means to generate that outcome.

Effectuation process– Starts with what one has (who they are, what they

know, and whom they know).– Selects among possible outcomes.

Entrepreneurial mind-set involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions.

Cognitive adaptability describes the extent to which entrepreneurs are:

– Dynamic, flexible, self-regulating and engaged in the process of generating multiple decision frameworks focused on sensing and processing changes in their environments and then acting on them.

Entrepreneurs who are able to increase cognitive adaptability have an improved ability to adapt to new situations, be creative, and communicate one’s reasoning behind a particular response.

HOW ENTREPRENEURS THINK

Entrepreneurs who are able to increase cognitive adaptability have an improved ability to:

Adapt to new situations. Be creative. Communicate one’s reasoning behind a particular response.

Learn from business failure

Deal with loss

Achieve emotional recovery

These can allow the entrepreneur to be motivated to try again and improve the next time they start a new venture.

HOW ENTREPRENEURS THINK

Uncertainty, changing conditions, and insufficient experience can contribute to failure among entrepreneurial firms.

An entrepreneur’s motivation is not simply from personal profit but from:

Loyalty to a product. Loyalty to a market and customers. Personal growth. The need to prove oneself.

ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT

Bring about innovations that improve society:

– Ordinary - New products with little technological change.

– Technological – New products with significant technological advancement.

– Breakthrough – New products with some technological change.