ENTREPRENEURIAL MIND
opportunities and challenges.
ENCOMPASSES THE FOLLOWING:
● The entrepreneurial process
● Creativity and innovation
● Innovation
● The opportunity
● Ideas, Opportunities, and Innovation
● Screening Opportunities
● Packaging up Opportunities: The
Business Plan
● Resource Requirements
● The Entrepreneurial Team
● Social Entrepreneurship
● Family Business
● Entrepreneurial Strategy
● Entrepreneurial Finance
WHAT IS ENTREPRENEURSHIP?
- Entrepreneurship is the act of being an
entrepreneur, who starts any economic
activity for being self-employed
- Entrepreneurship is the “process of the
entrepreneur”. It is an attempt to create
value through recognition of business
opportunity. It is basically
communicative and management
functions to mobilize financial and
material resources.
ENTREPRENEURSHIP
- Entrepreneurships has become
increasingly important for businesses of
all sizes around the world
- It opens new opportunities and
possibilities for the businesses to create
value for themselves and for the society
at large.
- Despite its popularity, studies suggest
that the scope of entrepreneurship
remains unknown, and therefore the
prospects entrepreneurial activities
remains not fully realized.
- This chapter highlights some aspects
concerning the concept of entrepreneur,
entrepreneurship, entrepreneurial
process and finally the entrepreneurship
- Entrepreneurs have always been present,
however their behavioural patterns were
different in different periods of time.
- The word entrepreneur was derived
from the French word “entreprendre”,
which means “to undertake” (Kuratko,
2016).
- The usage of the term entrepreneur can
be traced from 1755, wherein an
entrepreneur was described to “buy the
country produce from those who bring it
or to order it to be brought on their
account. They pay a certain price to
resell wholesale or retail at an uncertain
price” (Cantillon, 1931, p51; Hamilton
& Harper, 1994)
- Entrepreneur from the very beginning,
was principally an independent
speculator of the commodity (Hamilton
& Harper, 1994)
An economic development can merge due to
several reasons, which includes:
a. The launch of new source of
procurement for raw materials or
materials
b. The introduction of a new production
mechanism
c. The introduction of a new quality of
product
d. The opening of new market
e. The re-organisation of a business
The management of all these aspects are carried
by an enterprise, and the people whose functions
are to carry out these activities are called
entrepreneurs (Bull & Willard, 1993)
DEFINITION OF AN ENTREPRENEUR
- To date, several definition have been
penned to describe an entrepreneur. And
some of them are mentioned herwith:
- Entrepreneur is someone who manages
all the necessary resources to produce
and market a product which responds to
 the market scarcity (Leibenstein 1968;
Bull & Williard, 1993)
- “Entrepreneurs are individuals who
recognize opportunities where others see
chaos contradiction, and confusion.
They are aggressive catalysts for change
within the marketplace” Kuratko (2016,
p.3)
- “Entrepreneur is the person who carries
out new combinations, causing
discontinuity. The role is completed
when the function is completed. The
person may be an employee with an
existing organization or may start a new
venture. An investor per se only risks
capital for a return.” Bull & Willard
(1993, p.186)
INTRODUCTION TO
ENTREPRENEURSHIP
● In contemporary markets, entrepreneur
act as:
● innovators or developers who identify
and capture opportunities
● transform the opportunities into
merchandisable concepts
● create value through multiple
stakeholders and resources
● take risks whilst seeking rewards for
their ventures and efforts (Kuratko,
2016)
CHARACTERISTICS OF AN
ENTREPRENEUR
- The main characteristics of the
entrepreneur are due to their
sociological and psychological factors.
Some of those characteristics are
mentioned below:
- Entrepreneur are vision-oriented people
- Entrepreneurs have a high need in
achievement
- Entrepreneurs do not rely on fate or
luck, however they try to control their
own lives.
- Entrepreneurs undertake moderate risks,
which is why they look for high earning
on their investments
- Entrepreneurs have the abilities to deal
with several ambiguous situations in
their ventures. They face these
ambiguous situations and circumstances
regularly because they do certain jobs
and tasks which are entirely new by
nature.
- Entrepreneurs have the tendency to be
productive and efficient with in a given
period of time. However, at times, they
might be seen as inflexible indiviuals in
team-work.
TRAITS OF AN ENTREPRENEUR
Some of the common traits of entrepreneurs are:
● Risk takers
● Flexible
● Knowledgeable
● Independent
● Energetic
● Creative
● Dynamic leader
● Responsive to suggestions or criticisms
● Resourceful
● Initiators
● Persistent
ENTREPRENEURIAL PROCESS
The process of entrepreneurship can be observed
through the six-stage process:
● Identify an opportunity
● Persuade others
● Establish a vision
● Create new venture, product or market
● Gather resources
● Change/adapt with time
ENTREPRENEURSHIP OPPORTUNITIES
Entrepreneurship offers several opportunities
and some of those opportunities are:
a. expansion of entrepreneurial activities
through the advent of the internet and
 the explosion of e-commerce on a global
scale.
b. Integration in social and political fabrics
in several emerging economies.
c. increasing economic situations in
middle income house-holds in several
economies.
d. increase in cross-border engagements
and market entry mechanisms such as
strategic alliances, subsidiaries, joint
ventures etc.
e. evolving trends in channel structures
among the developed world.
f. increased engagements in global
markets concerning social responsibility
and ethics (Ramachandran & Gokila,
2012).
ENTREPRENEURSHIP OPPORTUNITIES
Entrepreneurship offers several opportunities
and some of those opportunities are:
a. expansion of entrepreneurial activities
through the advent of the internet and
the explosion of e-commerce on a global
scale.
b. Integration in social and political fabrics
in several emerging economies.
c. increasing economic situations in
middle income house-holds in several
economies.
d. increase in cross-border engagements
and market entry mechanisms such as
strategic alliances, subsidiaries, joint
ventures etc.
e. evolving trends in channel structures
among the developed world.
f. increased engagements in global
markets concerning social responsibility
and ethics (Ramachandran & Gokila,
2012).
ENTREPRENEURSHIP AVENUES
Contemporary markets offers several avenues
for entrepreneurial activities:
- Firstly, entrepreneurs can seek
information to understand the balance of
trade relationships between the exports
in potential markets and the
merchandising imports.
- Secondly, entrepreneurs can conduct
extensive research to understand the
political aspects of the global economy
to seek other outlines for strategic and
operational aspects concerning barriers
to enter a market.
- Thirdly, entrepreneurs can understand
the developments of any domestic
market of a country and comprehend
how these nations protect their industry
by establishing tariffs, quotas, boycotts,
non- tariff, monetary and market barriers
(Ramachandran & Gokila, 2012).
ENTREPRENEURSHIP CHALLENGES
Although entrepreneurship activities are
beneficial, however they come with certain
challenges. Some of those challenges are
mentioned herewith:
● Knowledge gap between the developed,
emerging, frontier and under developed
markets for conducting business
● Differences in accounting systems in
several countries
● Variable rates of return
● Non-convertibility of the currencies
● Communication gaps
● Language barriers
● Political unrest and legal concerns
● Cultural differences
● Discrepancies in the use of technology
● Complexity in the markets
● Supply chains concerns
● Lack of specific infrastructure in some
countries or regions
● Financial markets and their volatility
ENTREPRENEURIAL PLANNING PART 1:
ENTREPRENEURIAL PLAN
COMMUNICATION PRINCIPLES
- As Hindle and Mainprize (2006) note,
business plan writers must strive to
 communicate their expectations about
the nature of an uncertain future.
However, the liabilities of newness
make communicating the expected
future of new opportunities difficult
(more so than for existing
organizations).
FIVE COMMUNICATIONS
PRINCIPLES:
EXPECTATIONS
- Translation of your vision of the venture
and how it will perform into a format
compatible with the expectations of the
readers
COMMUNICATION THAT
- you have identified and understood the
key success factors and risks
- the projected market is large and you
expect good market penetration
- you have a strategy for
commercialization, profitability, and
market domination
- you can establish and protect a
proprietary and competitive position
MILESTONES
- Anchoring key events in the plan with
specific financial and quantitative values
COMMUNICATE THAT
- your major plan objectives are in the
form of financial targets
- you have addressed the dual need for
planning and flexibility
- you understand the hazards of
neglecting linkages between certain
events
- you understand the importance of
quantitative values (rather than just
chronological dates)
OPPORTUNITIES
- Nothing lasts forever—things can
change to impact the opportunity: tastes,
preferences, technological innovation,
competitive landscape
- Communicate these four aspects to
distinguish the business concept,
distinctive competencies, and
sustainable advantages:
- the new combination upon which
venture is built
- the magnitude of the opportunity or
market size
- market growth trends
- venture’s value from the market (% of
market share proposed or market share
value in dollars)
CONTEXT
- Describing context within which new
opportunity is intended to function
(internal and external environment)
COMMUNICATE
- how the context will help or hinder the
proposal
- how the context may change and affect
the organization and the range of
flexibility or response that is built into
the venture
- what management can or will do in the
event the context turns unfavorable
- what management can do to affect the
context in a positive way
ENTREPRENEURIAL MODEL
- A brief and clear statement of how an
idea actually becomes a business that
creates value
COMMUNICATE
- Who pays, how much, and how often?
- The activities the company must
perform to produce its product, deliver it
to its customers, and earn revenue
- And be able to defend assertions that the
venture is attractive
- and sustainable and has a competitive
edge
ENTREPRENEURIAL PLANNING: 2 ● Scenario integration
ENTREPRENEURIAL PLAN
● Claming an impossible lead or a
CREDIBILITY PRINCIPLES
prorietory market position is naïve
● Entrepreneurial plan writers must strive
to project credibility (Hindle & ● Opportunity building is like chess:
Mainprize, 2006), so there must be a
match between what the ● Anticipate several moves in advance
entrepreneurship team (resource
seekers) needs and what the resource ● View the future as a movie vs. snapshot
providers expect based on their criteria.
● A take it or leave it approach (i.e. FINANCIAL LINK
financial forecasts set in concrete) by
the entrepreneurship team has a high ● Key assumptions related to market size,
likelihood of failure in terms of securing penetration rates, and timing issues of
resources. market context outlined in the
● Hindle and Mainprize (2006) outline entrepreneurial plan should link directly
five principles to help entrepreneurs to the financial statements.
project credibility:
● Without the right team, nothing else ● Income and cash flow statement must be
matters. preceded by operational statements
● Communicate setting forth the primary planning
● What do they know? assumptions about market sizes, sales,
● Who do they know? productivity, and basis for the revenue
● How well are they known? estimate.

ELABORATION THE DEAL

● Break down individual tasks into their ● If the main purpose is to enact a harvest,
sub-parts so each step maximizes the then the entrepreneurial plan must create
upside and minimizes the downside: a value-adding deal structure to attract
investors.
● Sub-strategies
● Common things, viability, profit
● (1) market penetration, (2) market potential, downside risk, likely
development, and (3) product life-cycle time, potential areas for
development dispute or improvement

● Ad-hoc programs ENTREPRENEURIAL PLANNING: PART 3

● Administrative tasks, unplanned GENERAL ENTREPRENEURIAL PLAN
projects, meetings and catch-ups GUIDELINES
Many entrepreneurs must have a plan to achieve
● Specific tactical action plans
their goals.
● Your roadmap/strategies The following are some basic guidelines for
entrepreneurial plan
development. ● Be specific. An entrepreneurial plan is
simply not of value if it uses vague
● A standard format helps the reader
references to high demand, carefully set
understand that the entrepreneur has
prices, and another weak phrasing.
thought everything through and that the
● It must show hard numbers (properly
returns justify the risk.
referenced, of course), actual prices,
● Binding the document ensures that
and real data acquired through proper
readers can easily go through it without
research. This is the only way to ensure
it falling apart.
your plan is considered credible.
● Be 100% certain that…everything is
completely integrated: the written part
ENTREPRENEURIAL
must say exactly the same thing as the
PROCESSES
financial part
● all financial statements are completely
Objectives
linked and valid (make sure all
● balance sheets validly balance)
● Identify exciting entrepreneurial
● the document is well-formatted (layout opportunities
makes the document easy to read and
● Evaluate exciting entrepreneurial
comprehend—including all diagrams,
opportunitie
charts, statements, and other
● Model the entrepreneurial process for
additions)
the exciting entrepreneurial
● everything is correct (there are NO
opportunities
spelling, grammar, sentence structure,
● Create entrepreneurial planning
● referencing, or calculation errors)
documents
● the document is easy to read and
comprehend because it is organized well KEY ELEMENTS
with no unnecessary repetition
● all the necessary information is included
to enable readers to understand ● Opportunity
everything in your document. ● Market
● the terms you use in your plan must be ● Entrepreneur / Team
clear; ● Resources
● if you use a percentage figure, you
indicate to what it refers, THE ENTREPRENEURIAL PROCESS:
● otherwise, the figure is completely PART 1
useless to a reader. IDENTIFY, ANALYZE, AND PLAN THE
● if your plan includes an international OPPORTUNITY
element, which currencies the costs,
revenues, prices, or other values ● Opportunity Recognition is the active,
● Credibility is both established and cognitive process (or processes) through
maintained which individuals conclude that they
● If a statement is included that presents have identified the potential to create
something as a fact when this fact something new that has the potential to
● is not generally known, always indicate generate economic value and that is not
the source. Unsupported statements currently being exploited or developed
damage credibility and is viewed as desirable in the society
in which it occurs.
 ● Because opportunity recognition is a
cognitive process, people can learn to be
more effective at recognizing
opportunities by changing the way
they think about opportunities and how to
recognize them.
The opportunity is a chance to satisfy the needs
and desires of a certain group of people while
generating returns that enable you to continue to
operate and to build your organization over time.
Key Questions
● What is a need that is not being met?
● What are the conditions that have
created an opportunity for my idea?
● Why do people want and need
something new at this point in time?
● What are the factors that have opened up
the opportunity?
● Will the opportunity be enduring, or is it
a window that is open today but likely to
close tomorrow?
● If you perceive an unmet need, can you
deliver what the customer wants while
generating durable margins and profits?
● How can I take on this venture while
supporting the Sustainable Development
Goals?
● Opportunity are present as the result of
forces such as shifting demographics,
changes in knowledge and
understanding due to scientific
advances, a rebalancing or imbalance of
political winds, or changing attitudes
and norms that give rise to new needs.
● When you combine enhanced public
focus on health and wellness, advanced
water treatment methods, clean
combustion technologies, renewable
“clean” energy sources, conversion of
used packaging into new asset streams,
benign chemical compounds for
industrial processes, and local and
sustainability has grown organic food;
IDENTIFY, ANALYZE, AND PLAN THE
MARKET
● New ventures offer solutions to people’s
problems.
● This concept requires you to not only
examine the item or service description
but also further understand the group of
people whose unmet needs you are
meeting (often called market analysis).
● What is the solution for which you want
someone to pay?
● Is it a service or product, or some
combination?
● To whom are you selling it? Is the buyer
the actual user? Who makes the
purchase decision?
● What is the customer’s problem and
how does your service or product
address it?
Note:
The buyer is buying a package of attributes that
might include cutting-edge technology, lower
operating costs, and perhaps the satisfaction of
being part of a solution to health environmental,
and energy security problems.
THE ENTREPRENEURIAL PROCESS:
PART 2
IDENTIFY, ANALYZE, AND PLAN THE
ENTREPRENEUR &
ENTREPRENEURIAL TEAM
● start something to find out whether they
can convert that opportunity into an
ongoing source of fulfillment and
potential financial gain. That means that,
ideally, the entrepreneur’s life
experience, education, skills, work
 exposure, and network of contacts align
well with the opportunity.
● A good entrepreneurial plan, an
interesting product idea, and a
promising opportunity are all positive,
but in the end it is the ability of the
entrepreneur
to attract a team, get a product out, and
provide it to customers is the thing
that counts.
● an individual who initially drives the
process through his or her
ability to mobilize resources and
sometimes through sheer force of
will, hard work, and determination to
succeed.
● In challenging times it is the
entrepreneur’s vision and leadership
abilities that can carry the day.
● The entrepreneur’s skills, education,
capabilities, and weaknesses
must be augmented and complemented
by the competencies of the
team members they bring to the project.
● Does the team as a unit have the
background, skills, and
understanding of the opportunity to
overcome obstacles?
● Can the team act as a collaborative unit
with strong decision-making
ability under fluid conditions?
● Can the team deal with conflict and
disagreement as a normal and
healthy aspect of working through
complex decisions under
ambiguity?
IDENTIFY, ANALYZE, AND PLAN
THE RESOURCES
● innovative and entrepreneurial ventures
combine specific resources such as
THE OVERALL PROCESS
capital, talent and know-how (e.g.,
accountants, lawyers), equipment, and
production facilities. Breaking down an
opportunity’s required resources into
components can clarify what is needed
and when it is needed.
● Although resource needs change during
the early growth
stages of an opportunity, at each stage
the entrepreneur should be clear about
the priority resources that enable or
inhibit moving to the next stage of
growth.
● Capital. What financial resources, in
what form (e.g., equity, debt, family
loans, angel capital, venture capital), are
needed at the first stage? This requires
an understanding of cash flow needs,
break even time frames, and other
details. Even non-profits need to make
money to stay afloat.
Back-of-the-envelope estimates must be
converted to pro forma income
statements to understand
financial needs.
● Know-how. Record keeping and
accounting and legal process and advice
are essential resources that must be
considered at the start of every venture.
Access to experts is important,
especially in the early stages of making
an opportunity happen. New
opportunities require legal
incorporation, financial
record keeping, and rudimentary
systems and resources to provide for
these expenses need to be considered.
● Facilities, equipment, and transport.
Does the venture need office space,
production facilities, special equipment,
or transportation? At the early stage of
analysis, ownership of these resources
does not need to be determined. The
resource requirement, however, must be
identified.
● The process of entrepreneurship melds
these pieces together in processes that
unfold over weeks and months, and
eventually years if the business is
successful. Breaking down the process
 into categories and components helps
you understand the pieces and how they
fit together.
● The opportunity can be optimally
explored with the team and resources
that are identified and mobilized.
● The resources must be brought to bear to
launch the opportunity with an entry
strategy that delivers the value-driven
concept in a way that solves customers’
problems.