Entrepreneurship

LEARNING OBJECTIVES
1. Define entrepreneurship.
2. Discuss characteristics and types of
entrepreneurs.
3. Discuss the applicability of entrepreneurship
principles in the profession of pharmacy.
4. Given an “opportunity concept,” apply the
process of entrepreneurship to evaluate,
pursue, execute, and harvest the venture
WHAT IS ENTREPRENEURSHIP
One commonly used definition is “the process
by which individuals pursue opportunities
without regard to resources they currently
control.”
A process means that is cam be repeated
analyzed and improved
WHO IS AN ENTREPRENEUR?
 Some of the common characteristics of
entrepreneurs include:
1. A high level of achievement motivation
2. An internal locus of control
3. A tolerance for ambiguity.
4. They are not necessarily experts in all areas
of business
5. They are very good at establishing networks
of people who can help them in areas that
are not their strengths
Types of Entrepreneurs
Personal Achievers
1. Need for feedback

2. Need for achievement

3. Strong commitment

4. Internal locus of control

Expert Idea Generators

5. Build venture around new products

6. Involved with high-tech companies

7. Desire to innovate

8. Intelligence as source of competitive advantage

 Super Sales People
1. Capacity to understand others, empathize
2. Belief that social processes are important
3. Good at external relationship building
4. Belief in sales force
Real Managers
5. Desire to take charge, compete, be decisive,
stand out
6. Desire to be corporate leader, desire for
power
7. Positive attitude towards authority
THE ENTREPRENEURIAL PROCESS
 Learning entrepreneurship is important
because it provides a structured approach
that can be repeated, analyzed, and improved
on.
Identifying an Opportunity
 Ideas can come in many different forms and
from many different places
 Entrepreneurs often generate and maintain

an opportunity register
 The entrepreneur must be disciplined in the

selection of opportunities to pursue because

resources likely will be limited and pursuit of
an opportunity requires focus, perseverance,
and dedication.
  Identify an opportunity
1. Changing demographics
2. Emergence of new market segments
3. Process needs New technologies
4. Incongruities Regulatory change
5. Social change
Developing the Concept
 Determining which idea to pursue and how to
execute the opportunity are key decisions for
the entrepreneur to make. To guide these
decisions, the entrepreneur often will perform
a feasibility analysis
 Extensive research is performed on the

product/service, industry, market,

organizational feasibility, and financial
feasibility of the opportunity.
  Develop the Concept
1. New products
2. New services
3. New processes
4. New markets
5. New organizational structure/forms
6. New technologies
7. New sales / distribution channels
Determining the Required Resources
 Entrepreneurs typically will not have all the
resources needed to pursue the identified
opportunity
 This step in the process, which can be a part of the

feasibility analysis, will help to identify what

resources are needed and help to determine if the
entrepreneur can obtain those needed resources
 Identify the extent to which financial resources need

to be acquired and at what stage in the business-

development timeline they are needed
 In entrepreneurship compares equity to manure The

more manure is piled up, the more it smells, but the

more it is spread around (on a field), the more it
helps things to grow.
  Determine the required resources
1. Skilled employees
2. General management expertise
3. Marketing and sales expertise
4. Technical expertise
5. Financing
6. Distribution channels
7. Sources of supply
8. Production facilities
9. Licenses, patents, and legal protection
Acquiring the Necessary Resources
 Once the entrepreneurial idea and venture have
been well defined and researched through the
feasibility analysis, resources are acquired to
pursue the idea
 To help get others to invest, the entrepreneur

will have to put some of his or her own money

into the development
 Grants and small-business loans are used often,

but grants can take longer to acquire than other

methods.
 “sweat equity” (time put into developing the

business without receiving payment for the time

put in) required
 Acquire the necessary resources
1. Debt
2. Equity
3. Leveraging
4. Outsourcing
5. Leasing
6. Contract labor
7. Temporary staff
8. Supplier financing
9. Joint ventures
10. Partnerships
11. Barter
12. Gifts
Implement and Manage
 Decision-making abilities and experience are
two of the most important attributes for
success in this process.
 Degrees , training and during work

experience are ways of gaining of these skills

 Training for entrepreneurship the

BEL( Bernelli Entrepreneurial Learning)

Method identifies five stages of development
and provides initially for exposure and
hands-on experience.
 The key to implementing and managing the
opportunity will center on cash flow.
 First, acquiring capital to get the business
started and then, once the business is started,
balancing the expenditure of money with the
need to obtain more to keep the business
going.
 Businesses often fail because they do not have
enough cash when they start.
 It is recommended that a business have
enough cash to support it for 3 years when it
is started. However, this is often difficult to
obtain. Additionally it is typical for the
business to pursue rounds of funding.
  Implement and manage
1. Implementation of concept
2. Monitoring of performance
3. Payback of resource providers
4. Reinvestment
5. Expansion
6. Achievement of performance goals
Harvest the Venture
 How the entrepreneur will reap the rewards
of the endeavor
1. selling the business to someone else,
2. passing the business on to someone in the
family,
3. licensing the rights of the intellectual
property developed in the business
copyrights , trademarks and patents
4. going public with the business
5. shutting the business down.
 To maximize the reward of the opportunity, it
is important to develop the exit strategy or
list of potential exit strategies early on in the
concept-development process
Copyright protection is the easiest and least costly to
acquire. However, it also generally provides the least
amount of protection. This protection does not protect
the ideas, processes, or methods of the intellectual
property. It only protects the form, or original work,
which is the end result of the ideas, processes or
methods.
Trademarks are used to protect names, brands, logos,
and other marketing devices that are distinctive.
Trademarks are somewhat more expensive. It is also
possible to do a trademark search on your own on the
Internet It is also possible to pay attorneys
Patents offer the highest level of protection. They take
the most time and money to acquire, usually taking at
least 2 years and $4,000 to file. It is generally necessary
to hire intellectual property attorneys to assist with the
filing and defense of the patent. Patents protect the
idea, method, and design of products and businesses
INCUBATORS
 Incubators bring all or many of the necessary
areas together (e.g., accounting, business
plan development, legal, capital acquisition,
etc.) to help entrepreneurs bring their ideas
to market
 Incubators usually take significant equity of

the business to get started

 entrepreneur must assess how much is really

needed and how much the incubator is going

to contribute before signing on
TIMING AND COMPETITION
 Timing is everything
 First-movers, the first person to bring a

concept to market, can have what is called

first-mover advantage, allowing them to gain
the rewards of early entry into a market. At
other times, the second person into the
market can gain the advantage because the
first mover has had to go to all the effort to
train and educate the market about the
concept.
SELLING THE CONCEPT
 The entrepreneur must be able to quickly
communicate the value proposition
associated with the product, service, or
business.
 In entrepreneurship circles, this is referred to

as the elevator pitch. the ability to pitch the

concept to a potential investor in the amount
of time it takes to get on an elevator and then
get off
1. Describe the importance of networking for
entrepreneurs, and identify methods of
networking in the profession, community, and
business world.
2. What, in your opinion, is the most difficult step in
the process of entrepreneurship? Describe and
explain why?
3. Describe an approach to financing an
entrepreneurial venture. Include a discussion of
the pros and cons of debt acquisition, using
personal and “friends and family” funds, and
venture capital.

4. After identifying an opportunity, develop a 30-

second elevator pitch that clearly communicates
the value of the concept
Quizze
1. What are three common characteristics of
entrepreneurs?
2. What are the four types of entrepreneur
personalities, which one do you most identify
with, and what leads you to identify yourself
with this characterization?