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Before discussing entrepreneurship lets see how academicians define "entrepreneur" (ahn¶tra pra nur) a French origin word . The basic dictionary definition of an entrepreneur is a person who organizes and manages any enterprise, esp. a business, usually with considerable initiative and risk" ³Entrepreneurs are risk takers, willing to roll the dice with their money or reputation on the line in support of an idea.They willingly assume responsibility for the success or failure of a venture.´ While studying the phenomenon of Entrepreneurship different researchers and scholars has described it differently according to there knowledge and understandings. 1. Transformation of demand into supply for profits. ( Smith 1776) 2. Bringing together factors of production (Say, 1803) 3. Founding a private enterprise (Mill 1848) 4. Creation of organizations (Gartner,1888) 5. Ownership (Hawley,1892) 6. Responsible decision making (Knight,1921) 7. Carrying out new combinations: later on termed innovation through the process of µcreative destruction¶ i.e. old being washed away by the new. (Schumpeter, 1934) 8. Bearing Uncertainty (Knight,1921 Cantillon 1755) 9. Exploration of opportunities- being an arbitrageur and an equilibrating agent. (Kirzner, 1973) Exploiting the opportunities that changes in technology, consumer preferences, social norms, etc. and Undertaking innovation and bearing risk.

Entrepreneur Traits: Here are some of traits you might be interested in:
y y y y y y y y y y y y y y

Self confident and optimistic Able to take calculated risk Respond positively to changes Flexible and able to adapt knowledge of Markets Able to get along well with others Independent minded Energetic and Diligent Creative, need to Achieve targets Dynamic leader Responsive to suggestions Take initiatives Resourceful and persevering Perceptive with foresight

Entrepreneurship is a dynamic process of creating incremental wealth. This wealth is created in terms of equity, time and career commitment of providing value for some products or services. the entrepreneur must infuse value to the product or service.

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One can only gain from it. Turning that idea into a reality and a business can be certainly a challenge. a unique idea for a product or service that has never been introduced in the market. If a certain company has shown interest. You are in charge of every aspect of the product. is a business-minded person that can use existing products and services and customize them according to the specific needs of target market of his business. meanwhile. the inventor can then personally contact that company and set up a meeting. There are some licensed ideas that lasted for many years with the same company while others can be short-lived. An entrepreneur is in control of all his ideas and the way in which he brings those ideas to life and markets them. An entrepreneur. the idea will then be under license to that company. There is not a single company or person that can have all the ideas. The trend for many companies have been to look for licensed product ideas from inventors that are not employed by their company. Page 2 . The entrepreneur will put his own brand onto the product or service and make it uniquely his own. your ideas could be of use to consumers in the commercial market. Coming up with an idea or inventing is a limitless activity. Innovator Invention: "a creation of new products. Companies would be willing to buy that idea and make it their own for reproduction. You can then look for a company that will be interested in your idea and will greatly benefit from it. an idea that could be the next big thing. Licensing product ideas just deal with the numbers. There is little risk in the licensing of an idea. When you come up with novel idea. Being an inventor. For the first time entrepreneur. surrenders much of the control of the idea when it is under license to a company. a simple idea might be a good way to start because this would not cost that much money to create. Being an inventor takes a lot of creativity and innovation to be able to come up with an idea that no one has thought of yet. The inventor can just a collect a royalty from that idea every quarter of the year. There are financial risks involved in venturing into a business.Entrepreneur vs. technology or services" An entrepreneur and an inventor both have their own financial rewards. marketing to distribution. Running your own business requires complete control. processes and technologies not previously known to exist" Innovation: " is the transformation of creative ideas into useful applications by combining resources in new or unusual ways to provide value to society for or improved products. from production. however. Being an entrepreneur can also be very lucrative. An inventor can decide to market his own idea if he has the resources to do so. There is no big investment required in being an inventor. Ideas can be licensed or be rented by many companies. protection for the idea can then be filed in the right government agency. If the inventor feels that the relationship with the company is comfortable enough and the product idea will satisfy a need that has been identified in the market. An inventor.

You have to weigh all the advantages and disadvantages before you decide on the path to take. This is influenced by the technology available and the operations structure within the organization. and the like are converted by a firm into outputs of goods. marketable. whereas entrepreneur will gather resources. materials. choices should be made to minimize the process operations cost.It is really up to you if you will consider being an inventor or an entrepreneur. services. Product/Service ² refers to the output of the enterprise.'' a. There are phases to be followed in the process selection. Major technological choice ² Does technology exist to produce the product? b. Minor technological choice ² What transformation processes will be used? c. The Stages in the Entrepreneurial Cycle 1. markets. ideas. Specific component choice ² What type of equipment (and degree of automation) should be used? d. It is a strategic task involving marketing. Research ² generate the product/service idea b. an enterprise justifies its existence by converting resources into desired outputs. and compatible with organizational strategy Page 3 . and operations. and other things desired by those who provide the inputs. Entrepreneurs are not equal to inventors because inventor might only create a new product. Process flow choice ² How should the product or service flow through the operation system? The final process-selection step determines how materials and products will move through the system. Processes involved to determine the product or service to be produced are: a. 2. Selection ² choose those that are technologically feasible. government support. 3. From the viewpoint of society. employment. In each phase. Resources ² this refers to a new or reserve source of supply of something. What is important is that you will be able to convert your idea into something useful and at the same time reap financial rewards for it. Resource inputs of labor. stimulating experiences. organize talent and provide leadership to make it a commercial success. Process ² determines how the product or service will be produced. The phases in process selection are closely interrelated. capital. finance.

relationship and cost. Step 3 This step helps you to think through how you need to structure your activities to provide what the customer needs. or an idea that is offered by one party in exchange for something ² money. votes. you get Page 4 . timeliness. Entrepreneurial Cycle Click here to download a diagram of the The entrepreneurial cycle. (54k) Step 1 This step helps you to find the overlap between what you can do and like to do. It helps you to ensure that what you will be paid will cover your costs adequately and provide you with enough income to keep the business going. and the like. and what your potential customers need and want. If you know what your customers are looking for in terms of quality.c. when the customer needs it and in the way that the customer would like it done. patronage. It also helps you to test how these overlap with God¶s will for your life. and more importantly the buying behaviours of your potential customers. Product ² it may be a tangible object. Design ² develop design specifications for the product or service d. When you have found this overlap you have your first business idea! Step 2 This step helps you to explore your own buying behaviours. a service. you can make sure that you provide something that will be bought. moral support. Step 4 This step helps you to work out whether you can make a workable business out of this idea. In this part of the diagram.

If you cannot. Attracting and serving your customers. Pinchot¶s Famous 10 Questions Here are the ten common questions that you have to answer to insure the level of support and tendencies towards the intrapreneurs. Putting your plans into action. Does your company encourage self-appointed intrapreneurs? Does your company provide ways for intrapreneurs to stay with their enterprises? Are people permitted to do the job in their own way. Step 5 If you think you can make a profit. and you can return to step 1 and move on to your next business idea. or are they free to use the resources of other divisions and outside vendors if they choose? Page 5 . then you have only lost money on paper.a chance to adjust your ideas and see whether you are able to make a profit. even when that may take years and several false starts? Are people in your company more concerned with new ideas or with defending their turf? How easy is it to form functionally complete. Stewarding your money and resources prayerfully so that you can begin to repay your loan and continue round the inner cycle with your successful new business. you are ready to move into the inner cycle and put your ideas into practice: y y y y Seeking the loan that you need. or are they constantly stopping to explain their actions and ask for permission? Has your company evolved quick and informal ways to access the resources to try new ideas? Has your company developed ways to manage many small and experimental products and businesses? Is your system set up to encourage risk±taking and to tolerate mistakes? Can your company decide to try something and stick with the experiment long enough to see if it will work. autonomous teams in your corporate environment? Do intrapreneurs in your company face monopolies.

2. Existing Companies± with the help of an established formal methods potential entrepreneurs and intrapreneurs can evaluate competitive products & services on the market which may result in new and more market appealing products and services. brainstorming and problem inventory analysis . response to government regulations can come in the form of new product ideas. A moderator leads a group of people through an open. Care needs to be taken to ensure that the new idea or the needs represents a large enough market to support a new venture. in-depth discussion rather than simply asking questions to solicit participant response. Focus Groups ± these are the groups of individuals providing information in a structural format. A formal and well-equipped research and development department enables the entrepreneur to conceive and develop successful new product ideas. Such groups form comments in open-end in-depth discussions for a new product area that can result in market success. coming up with an idea as the basis for a new venture can still be a difficult problem. 5. the focus group is an excellent source for initially screening ideas and concept. Consumers± the potential consumer should be the final focal point of ideas for the entrepreneurs. 2. and secondly. free wheeling of idea. The entrepreneur can use several methods to help generate and test new ideas including focus groups. the patent office files contain numerous product possibilities that can assist entrepreneurs in obtaining specific product information.Sources of new ideas Entrepreneurs frequently use the following sources of ideas: 1. they also help in marketing the offerings so developed. high quantity of ideas. The attention to inputs from potential consumers can take the form of informally monitoring potential ideas or needs or formally arranging for consumers to have an opportunity to express their concerns. Methods of Generating New Ideas for Entrepreneurs Even with a wide variety of sources available. It is based on the fact that people can be stimulated to greater creativity by meeting with others and participating in organized group experiences. 3. Not only do the channel members help in finding out unmet or partially met demands leading to new products and services. Distribution channels± members of the distribution channels are familiar with the needs of the market and hence can prove to be excellent sources of new ideas. combination and improvements Page 6 . The characteristics of this method are keeping criticism away. The following are some of the key methods to help generate end test new ideas: 1. Government± it can be a source of new product ideas in two ways firstly. Brainstorming ± it is a group method for obtaining new ideas and solutions. In addition to generating new ideas. 4. Research & development± Entrepreneur¶s own R&D is the largest source of new idea.

Co-locating drives effective exchange. Page 7 . in order for the innovation process to flourish. problems and obstacles. Innovation needs a system. but it never shows up on a balance sheet. Some are formal. mistrust and prejudice. and some are informal. race. Passion. New ideas are born through questions. However. in addition to talent and skill. Unfortunately. Informal channels are untidy and inefficient. The process of innovation is indebted to the trouble that comes about when we are surrounded by that which is not solved. is a valuable company asset. taking place outside established channels. Innovation starts when people convert problems to ideas. Innovation leaders need to take the pain with the passion and learn to manage both effectively. culture. Passion is the fuel. yet innovation is always associated with them. The entrepreneur is not limited by only the three methods presented in this article Principles of Innovation There are five principles that give life to the process of innovation: 1. The differences that normally divide people ² such as language. It also increases the possibility for greater exchange of information. Therefore. differences can be leveraged to enhance and sustain the innovation process. pain is part of the process. and pain is the hidden ingredient.of ideas. stimulation of creative thinking in one another and critique of ideas during their formative stage. Such type of session should be fun with no scope for domination and inhibition. 2. Brainstorming has a greater probability of success when the effort focuses on specific product or market area. there seems to be some universal law that says when pursuing a passion or following a dream. passion makes them go. Ideas do not propel themselves. Passion is what transforms other resources into profits. suspicion. Co-location refers to physical proximity between people. cross-fertilization of ideas. 5. it needs a climate that encourages inquiry and welcomes problems. not smooth and not simple. It is a key for building the trust that is essential to the innovation process. designed by the leadership. instead of generating new ideas. When differences are used constructively and people move beyond fear. gender and thinking and problem solving styles ² can be a boon to innovation. All organizations have innovation systems. 3. 3. 4. the consumers are provided with list of problems and then asked to have discussion over it and it ultimately results in an entirely new product idea. Differences should be leveraged. Problem inventory analysis± it is a method for obtaining new ideas and solutions by focusing on problems. This analysis uses individuals in a manner that is analogous to focus groups to generate new product areas.