Topic 1

Richard Steve Jobs Sergey Brin Sam Walton

Branson
Getty Images Getty Images Getty Images Getty Images

Jeff Bezos J.K. Rowling Mark Zuckerberg Warrent Buffet

Getty Images Getty Images Getty Images Getty Images

YOU!!!!

Jack Ma Oprah Winfrey Jerry Yang

2
Entrepreneurship

• The process of
starting and
running one’s
own business

3
 Entrepreneur – Origin of the term

ENTREPRENDRE
(19TH C. FRENCH WORD):

means ‘somebody who undertakes’.

4
Entrepreneur

• An entrepreneur is an individual who

undertakes the risk associated with
creating, organizing, and owning a
business

5
Steps in the Entrepreneurial Process

1. Discovery
2. Concept
Development
3. Resourcing
4. Actualization
5. Harvesting

6
Steps in the Entrepreneurial Process

1. Discovery: The stage in which the

entrepreneur generates ideas,
recognizes opportunities, and studies
the market

Innovation

Opportunity

7
Discovery

Consider consumer
Consider your needs and wants
hobbies or skills

Conduct Surveys and

questionnaires – test the Study demographics
8
market
Steps in the Entrepreneurial Process

2. Concept Development:
– Develop a business plan: a
detailed proposal describing
the business idea

Code of ethics
Executive summary

Mission Statement

9
Concept Development

– Choose business location

– Will a patent or trademark be required?

10
Steps in the Entrepreneurial Process

3. Resourcing: The stage in which the

entrepreneur identifies and acquires
the financial, human, and capital
resources needed for the venture
startup, etc

11 Start-up resources
Resourcing

Apply for loans,

grants and
assistance

Identify potential
investors

Hire
employees
12
Steps in the Entrepreneurial Process

4. Actualization: The stage in which

the entrepreneur operates the
business and utilizes resources to
achieve its goals/objectives.

@# Grand Opening #@

Day-to-Day Operations

13
Steps in the Entrepreneurial Process

5. Harvesting: The stage in which the

entrepreneur decides on venture’s
future growth, development, or
demise
What is your 5-year or 10-year plan?

Consider adding locations or providing different

products/services

Will you go public?

14
Check for Understanding

15
You are collecting, reviewing, and interpreting
surveys you distributed last week about your new
business idea. What stage of the entrepreneurial
process are you in?

A. Actualization
B. Concept Development
C. Discovery
D. Harvesting

16
You are currently seeking people and companies
to invest in your business venture. What stage of
the entrepreneurial process are you in?

A. Actualization
B. Concept Development
C. Discovery
D. Resourcing

17
What is an example of an activity for a business
person who is entering the harvesting stage of
entrepreneurship?

A. Considering opening a second store

B. Gathering market research data about the
product
C. Having a grand opening for the business
D. Seeking financial assistance from the Small
Business Administration

18
Preparing a business plan for a new business,
renting a building for the new store, and
copyrighting the website for the new business are
all classified as which stage of the entrepreneurial
process?

A. Actualization
B. Concept Development
C. Discovery
D. Resourcing

19
Offering shares of stock to public investors and
planning goals for the business during the next
five years are examples of activities in which stage
of the entrepreneurial process?

A. Actualization
B. Concept Development
C. Harvesting
D. Resourcing

20
Having a large grand opening sale or a summer
clearance sale are examples of which stage of the
entrepreneurial process?

A. Actualization
B. Concept Development
C. Harvesting
D. Resourcing

21
To be continue…

22
The Benefits of Entrepreneurship:
– Opportunity to create your own destiny
• Owning a business provides an entrepreneurs the
independence and the opportunity to achieve what is
important to them.
• Entrepreneurs want to decide what they want in their
lives, and they use their businesses to make their desire
a reality (come true).

– Opportunity to make a Difference

• More and more entrepreneurs are starting businesses
because they see this as an opportunity to make a
difference in a route or way that is personally important
to them.
23
The Benefits of Entrepreneurship:
– Opportunity to reach your full potential.
• Many people find their work not challenging and not
exciting.
• For entrepreneurs there is little difference between
work and play.
• Entrepreneurs see their business as a vehicle of self
expression of personal desire and eventual self
actualization of their personal goals – the pinnacle of
their career success.

– Opportunity to reap extraordinary profits.

• The profit earned by an entrepreneur are an important
motivation and indication factor for further increased
performance. Thus these could spur them to greater
achievement and success.
24
The Benefits of Entrepreneurship:

– Societal Responsibility and Recognition.

• Small business owners are among the most admired,
respected and trusted individuals of society.
• Customers have shown their trust and faithfulness over
their years for their business.
• Help to contribute employment, business opportunity
in a particular locality or area.

25
The Benefits of Entrepreneurship:

• Opportunity to engage in work of their choice

– Small business owners tend to engage in business that
gives them personal satisfaction.
– Though they may work long hours and engage in very
industrious work that is beneficial to their organization and
themselves.
– Most of all the work they engage in helps to benefits the
community, society and the nation.

26
The Drawbacks of Entrepreneurship:

– Uncertainty of Income
• Opening and a running a business provides no
guarantee that an entrepreneur will earn enough
money and survive.
• Engaging in the wrong business and not able gain an
advantage in the short run and eventually in the long
run can be disastrous.
• Great effort and proper and effective management
need to used in beginning to ensure the organization
success.

27
The Drawbacks of Entrepreneurship:

• Risk of losing your entire Investment

– Small business have a high failure rate.
– Though is successful initially it faces financial difficulty within
the next five years.
– Entrepreneurs must be prepared to face the consequence of
failure.
– Entrepreneurs must have acute sense of observation and be
able to detect the early signs of failure.
– If a business fails the entrepreneur must have a contingency
plan to overcome a bankruptcy or personal failure.

28
The Drawbacks of Entrepreneurship:

– Long Hours and Hard Work

• Entrepreneurs tend to be generally workaholic, and
under tremendous pressure to produce the result they
expect.
• Entrepreneurs seldom find time to be away from the
business but tend to pour all their effort and resources
to achieve their personal entrepreneurial objective.
• Some even go to extent of making big sacrifice and
deprive themselves of a personal life, wife and children
and social and family associates.

29
The Drawbacks of Entrepreneurship:

– Lower Quality of Life until the business get

established.
• In order for the business to be successful the
entrepreneur must engage himself to produce the kind
of result he expects.
• He cannot rest on his laurels (take it easy) until and
certain the business has stabilized and established.

30
The Drawbacks of Entrepreneurship:

– High level of stress

• Starting the business can be very rewarding experience,
but it can be stressful.
• An entrepreneur have left the comfort and security of
secured job to venture into their own business.
• Failure can bring about tremendous personal failure, and
in turn creates intense levels of anxiety and stress.
• Financial burden may increase and the entrepreneur may
face difficulty sustaining the business or may decide to
call it for day and wind up the business for good.

31
The Drawbacks of Entrepreneurship:

– Complete Responsibility
• Must be prepared to make decision that are
unfavorable (swallow the bitter pill).
• Must make decision in areas that the entrepreneur is
not familiar at all.
• Fear of making decision that can have a devastating
effect on the business and its people.
• Tremendous pressure to perform as the entrepreneur is
too deeply engaged in the business

32
The Drawbacks of Entrepreneurship:

– Discouragement
• To undertake a business requires a lot of dedication,
discipline and tenacity.
• During running the business they will face many
difficulties, obstacles which may difficult to overcome.
• Further difficulties, discouragement and disillusionment
are common emotions.
• Successful entrepreneurs escape through rough times or
difficult times through sheer hard work, self confidence
and full of optimisms.

33
 The Cultural Diversity of Entrepreneurship

• Young entrepreneurs
• Women entrepreneurs
• Minority-owned enterprises

• Immigrant entrepreneurs

• Part-time entrepreneurs

34
 The Cultural Diversity of Entrepreneurship

• Home-based businesses
• Family businesses
• Copreneurs
• Corporate castoffs/dropouts

35
Any Question?