Entrepreneurship

Course Instructor:
Engr. Asnaf Aziz

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 Entrepreneurship
and
Entrepreneurial Mind-Set

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Learning Objectives:
 To introduce the concept of entrepreneurship and explain the process of
entrepreneurial action.
 To describe how structural similarities enable entrepreneurs to make creative
mental leaps.
 To highlight bricolage as a source of entrepreneurs’ resourcefulness.
 To introduce effectuation as a way expert entrepreneurs sometimes think.
 To develop the notion that entrepreneurs cognitively adapt.
 To introduce sustainable entrepreneurship as a means of sustaining the
natural environment and communities and developing gains for others.

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Entrepreneurship
 Entrepreneurship is the ability and readiness to develop,
organize and run a business enterprise, along with dealing
with any of its uncertainties in order to make a profit.

 Entrepreneurship plays an important role in the creation and

growth of businesses, as well as in the growth and prosperity
of regions and nations.

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Entrepreneurship

 An Entrepreneur is a person who prefer to be an employer

rather then to be employee

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Entrepreneurship

 Not all entrepreneurs are successful; there are definite

characteristics that make entrepreneurship successful. A few
of them are:
 Ability to take a risk.
 Innovation
 Visionary and Leadership quality
 Flexible
 Know the Product that you are about to launch
 Ability to deal with failure

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What kind of capability do they have?

Allan Sugar Sam Walton

(electronics Retailer
company Amstard) Chain Walmart and
Bill Gates
Sams club

Henry Ford

Anita Roddick Mian Amir Punjab

Body Shop Mark Zuckerberg
Group of
(cosmetics Colleges and Media
company) 1-7
 Entrepreneurial Opportunities
“Those Situations in which new goods, services, raw materials,
and organizing methods can be introduced and sold at greater
than their cost of production.”
 For example, an entrepreneurial opportunity could stem from
introducing an existing technological product used in one market to
create a new market
 Alternatively, a entrepreneurial opportunity could be creating a new
technological product for an existing market or creating both a new
product/service and a new market

 Requires an enterprising individual or a group of enterprising

individuals to recognize, evaluate, and exploit these situations
as possible opportunities

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Entrepreneur
 Entrepreneur: An individual who takes initiative to bundle
resources in innovative ways and is willing to bear the risk
and/or uncertainty to act
 Entrepreneurs act on what they believe is an opportunity.
Because opportunities exist in high uncertainty,
entrepreneurs must use their judgment about whether or not
to act

 However, doubt can undermine entrepreneurial action.

Therefore, a key to understanding entrepreneurial action is
being able to do SWOT analysis for maximum profits

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Entrepreneurial Action
 Entrepreneurship requires action— entrepreneurial action
through the creation of new products/processes and/or the
entry into new markets, which may occur through a newly
created organization or within an established organization.

 Being an entrepreneur today:

 Involves creation process.
 Requires devotion of time and effort.
 Requires assumption of necessary risks.

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Entrepreneur Vs Businessman
 It is a common assumption that businessman and
entrepreneur are the same, but both words refer to a
different individual possessing a distinct approach to
business.
 A businessman follows a set path engraved by some other
person with an unoriginal idea, where as an entrepreneur
thinks and believes in making his own path with new ideas.

 However, between businessman and entrepreneur, there is a

thin line difference businessman is a market player, where
as, the entrepreneur is a market leader.

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How Entrepreneurs think?
Entrepreneurs think differently from non entrepreneurs.
Entrepreneurs must often make decisions in highly uncertain
environments where the stakes are high, time pressures are
immense, and there is considerable emotional investment.

Given the nature of an entrepreneur’s decision-making

environment, he or she must sometimes
1. Think structurally
2. Engage in bricolage
3. Effectuate
4. Cognitively adapt.

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Think structurally

Knowledge about existing markets to a new technology that could lead to

products/services that satisfy that market.

Knowledge about a technology to a new market that could benefit from its
introduction

Making these connections between a new product and a target market where
it can be introduced is aided by structural thinking

Superficial similarities
 Basic elements of the technology resemble the basic elements of the
market

Structural similarities
 Underlying mechanisms of the technology resemble the underlying
mechanisms of the market
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Think structurally

Superficial similarities
 Basic elements of the technology resemble the basic elements of the
market

Basic elements of a technology (e.g., who develops the technology, the

context where it is developed, its parts and components, the inputs it
uses, the materials/people it works with in the lab, and the output it
produces)

Resemble the basic elements of a market (e.g., the people in the market,
the materials, and tools they use)

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Think structurally

Superficial similarities
 Basic elements of the technology resemble the basic elements of the
market

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Think structurally

Superficial similarities
 Basic elements of the technology resemble the basic elements of the
market

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Think structurally

Superficial similarities
 Basic elements of the technology resemble the basic elements of the
market

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Think structurally

Superficial similarities
 Basic elements of the technology resemble the basic elements of the
market

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Think structurally

Superficial similarities
 Basic elements of the technology resemble the basic elements of the
market

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Think structurally

Structural similarities
 Underlying mechanisms of the technology resemble the underlying
mechanisms of the market

 (structural relationships between different

components/elements of technology)

 Underlying mechanism in market => Demand in market (the reasons

why people in the market are not completely satisfied with current
means of meeting their needs).

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Engage in bricolage
⚫ Entrepreneur normally comes with limited resources

⚫ So bricolage is the term used to apply those limited resources for

getting solution to the problems

⚫ In bricolage the entrepreneur use the existing resources for the new
developments where the in-hand resources were initially not meant to
be used

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Engage in bricolage

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Engage in bricolage

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Engage in bricolage

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