ENTREPRENEURIAL

ERA
HAFIZ AMMAR ZAFAR
ENTREPRENEURSHIP
▪ Entrepreneurship is a process of creating and implementing new
opportunities in an uncertain or complex environment (Neck and Greene,
2011).

• General perception is entrepreneurship is refers to small business

• It is not true in all cases

SMALL SCALE BUSIESS
▪ 3 to 5 employees up to 40 or 50

▪ Different in different countries

▪ European union 200 employees

▪ USA 150 employees

EVOLUTION OF ENTREPRENEURSHIP
▪ First time used 1890s

▪ An economist Schumpeter.

▪ Schumpeter was an economist and his work was related to Economic

Growth, Development and more importantly on Economic stability.

▪ Adam smith also studied the model of Schumpeter and got convinced that
there are some particular types of small scale organizations who play key
role on Economic Growth and Economic development .
EVOLUTION OF ENTREPRENEURSHIP
▪ Schumpeter was the first who investigate the movement of small scale
organizations.

▪ The people who worked on entrepreneurship all are the Economists

▪ That’s why the work on entrepreneurship are attached with Economy

▪ But formally it was started and documented in 1905-06

▪ And slowly it was criticized, endorsed and developed in next 50years

CRITICISM
▪ Some people tell that Entrepreneurs are the Gamblers

▪ Some tell that entrepreneurs are the creative destructor

▪ Bill gates was also a creative destructor

FORMULATE
▪ After 1950 when 2nd world war was ended then reshaping of the world was
started

▪ Entrepreneurship was formally started after 1950

▪ Started from japan

▪ Japanese was the one who laid down their weapons

▪ Their social structure are very strong in the whole world

▪ And it has effected on every moment of their life, their management style,
leadership style etc much different from the other world
FORMULATE
▪ Sense of belongingness subordination

▪ Behavioral sciences

▪ According to experts, entrepreneur is one who is more resilient e.g. he has

the power to bounce back.

▪ He is not afraid of failures

▪ Commitment with work is very high

▪ Now Entrepreneurship is on the basis of personnel characteristics

▪ Before 1950 entrepreneurship was attached with economic activities

ENTREPRENEURIAL PERSONALITY
▪ Original thinkers

▪ Risk takers

▪ Take responsibility for own actions

▪ Tolerance of Ambiguity

▪ Feel competent and capable

▪ Set high goals and enjoy working toward them

ENTREPRENEURIAL PERSONALITY
▪ Future Orientation

▪ Achievement More than Money

▪ Self-employed parents

▪ Firstborns

▪ Between 30-50 years’ old

▪ Well educated – 80% have college degree and 1/3 have a graduate level
degree
WHAT IS BEHIND ENTREPRENEURSHIP
▪ Heroism of Entrepreneurs
▪ Entrepreneurial Education
▪ Independent lifestyle
▪ Demographic and Economic Factors
▪ Popularity of Service sector
▪ Technological advancements
▪ E-Commerce
▪ Global opportunities
ADVANTAGES OF ENTREPRENEURSHIP
▪ You are the Boss
▪ Freedom to create your own world and destiny
▪ Opportunity to differentiate
▪ Earn Bucks
▪ Need to get along roughs and toughs with dedication
▪ Generally, it improves economy
▪ Raises productivity
▪ Creates jobs for others
ADVANTAGES OF A SMALL BUSINESS
▪ Greater Opportunity to get rich.

▪ Feel more important

▪ Feel more secure

▪ Comfort Level
DISADVANTAGES OF A SMALL BUSINESS
▪ Health Issues
▪ Long work hours
▪ Lower guaranteed pay
▪ Fewer benefits
▪ Expected to have many skills
▪ Too much cohesion
▪ Hard to move to a big company
▪ Large fluctuations in income possible
SUCCESSFUL ENTREPRENEURS
▪ Creative and Innovative

▪ Position themselves in shifting or new markets

▪ Create new products

▪ Create new processes

▪ Create new delivery system

UNSUCCESSFUL ENTREPRENEURS
▪ Poor Managers

▪ Low work ethic

▪ Inefficient

▪ Failure to plan and prepare

▪ Poor money managers

CULTURAL DIVERSITY
▪ Young Entrepreneurs

▪ Part Time Entrepreneurs

▪ Minority Entrepreneurs

▪ Immigrant Entrepreneurs

▪ Home Based Entrepreneurs

FAMILY BUSINESSES
Involves two or more family members with financial control of the company

COPRENEURS
▪ Couples working together as co-owners of their businesses
GAZELLES
▪ Are the small companies that are growing at 20% or more per year with
at least $100,000 in annual sales; they create 70% of net new jobs in the
economy.
ENTREPRENEURS VS INTRAPRENEURS
▪ Entrepreneurs see opportunities and take the initiative to mobilize
resources to make new goods and services.

▪ Intrapreneurs also notice opportunities and take initiative to mobilize

resources, however they work in large companies and contribute to the
innovation of the firm.

▪ Intrapreneurs often become entrepreneurs.

MYTHS OF ENTREPRENEURSHIP
▪ Entrepreneurs are born and not made
▪ Entrepreneurs are doers and not thinkers
▪ Entrepreneurs are academic and social misfits
▪ Entrepreneurs must fit the profile
▪ All entrepreneurs need is money
▪ All entrepreneurs need is luck
▪ Entrepreneurship is unstructured
▪ Most entrepreneurial initiatives fail
▪ Entrepreneurs are Risk takers….the gambler