Department of Mechanical Engineering

Business Development &

Entrepreneurship
Instructor
Engr. Waheed Gul
MSc. Mechanical Engineering (Dynamics & Control)
PhD (Automation & Control) in progress
Cell # +923008363243,+923481359349
Email: waheedciel@gmail.com
 The Individual Entrepreneur
Department of Mechanical Engineering

Learning Objectives
 1. To identify some key entrepreneurial feelings and motivations.

 2. To identify key elements in an entrepreneur’s background.

 3. To discuss the importance of role models and support systems.

 4. To identify the similarities and differences between male and female

entrepreneurs.

 5. Minority Entrepreneurship
 Entrepreneurial feelings
Department of Mechanical Engineering

 There is no "true entrepreneurial profile"- entrepreneurs come from many

educational backgrounds, family situations, and work experiences.
 A potential entrepreneur may presently be a nurse, secretary, assembly line
worker, sales person, mechanic, home maker, manager or engineer.
A potential entrepreneur can be male or female and of any race or nationality.
1. Locus of Control:
• One concern people have when forming is whether they will be able to
sustain the drive and energy required to form something new and to manage
the new enterprise and make it grow.
• While research results are inconsistent, internal control seems to be a
characteristic of entrepreneurs.
• Internal beliefs appear to differentiate entrepreneurs from the general
public, but not from managers.
• Managers and entrepreneurs both have an internality tendency
 Entrepreneurial feelings
Department of Mechanical Engineering

2. Feelings about Independence and Need for Achievement:

• The entrepreneur also has the need for independence, to do things in his or
her own way and time.
• Another controversial characteristic is the entrepreneur’s need for
achievement.
• McClelland specified three attributes as characteristics of entrepreneurs:
1. Individual responsibility for solving problems and setting and achieving
goals.
2. Moderate risk taking as a function of skill.
3. Knowledge of results of decision/task accomplishment.

• McClelland concluded that a high need for achievement leads individuals to

engage in entrepreneurial behaviour, although other studies have been
inconsistent.

​
 Entrepreneurial feelings
Department of Mechanical Engineering

3. Risk Taking

• Risk taking seems a part of the entrepreneurial process.

• However, it has not yet been empirically established whether risk-taking is a

distinguishing characteristics of entrepreneurs.

​
 Entrepreneurial Background and
Characteristics
Department of Mechanical Engineering

1. Childhood Family Environment

Having a father who is self-employed provides a strong inspiration in the example

of independence and flexibility of self-employment.
This feeling of independence is often further enforced by an entrepreneurial
mother.
The overall parental ​relationship may be the most important aspect of the
childhood environment in establishing the desirability of entrepreneurial
activity.
Parents of entrepreneurs need to be supportive and encourage independence,
achievement, and responsibility.
This supportive relationship appears to be most important for females. Female
entrepreneurs tend to grow up in middle- to upper-class environments,
where families are child-centered, and are similar to their fathers in
personality.
 Entrepreneurial Background and
Characteristics
Department of Mechanical Engineering

2. Education:
Education appears important in the upbringing of the entrepreneur, in the
level of education obtained and in playing a major role in coping with
problems.

Although formal education is not necessary for starting a new business, it

does provide a good background.

In education, female entrepreneurs previously experienced some

disadvantage, with few having degrees in engineering, science, or math.

The ability to deal with people and communicate clearly in written and
spoken work is also important.
 Entrepreneurial Background and
Characteristics
Department of Mechanical Engineering

3. Personal Values:
Studies have failed to indicate that entrepreneurs can be differentiated on
personal valued from managers, unsuccessful entrepreneurs, or the
general public.
A successful entrepreneur is frequently characterized as a winner.
4. Age: Entrepreneurial age is the age of the entrepreneur reflected in
the experience. Entrepreneurial experience is one of the best predictors
of success.
In chronological age, most entrepreneurs start their careers between ages
22 and 55.
Earlier starts in an entrepreneurial career seem to be better than later ones.
Generally, male entrepreneurs start their first venture in their early 30s,
while women tend to do so in their middle 30s.
 Entrepreneurial Background and
Characteristics
Department of Mechanical Engineering

5. Work History:
Dissatisfaction with one’s job often motivates the launching of a new
venture.
Previous technical and industry experience is also important once the
decision to start a business is made.
Experience in the following areas is particularly important: financing;
product or service development; manufacturing; development of
distribution channels; and preparation of a marketing plan.
As the venture becomes established, managerial experience and skills
become more important.
Entrepreneurial experience becomes increasingly important as the
complexity of the venture increases.
 Entrepreneurial Background and
Characteristics
Department of Mechanical Engineering

6. Motivation:

While motivations may vary, the reason cited most often for becoming an
entrepreneur independence-not wants to work for anyone else.

Other motivating factors differ between male and female entrepreneurs.

Money is the second reason for men’s starting a venture.

Job satisfaction, achievement, opportunity, and money are the second order
reasons for women.
 Role Models and Support Systems
Department of Mechanical Engineering

One of the most important factors influencing entrepreneurs in their career

choice is role models. Role models can be parents, relatives, or
successful entrepreneurs in the community.

It is important that an entrepreneur establish connections to support

resources early in the venture formation process.

An informal network for moral and professional support benefits the

entrepreneur.
 Role Models and Support Systems
Department of Mechanical Engineering

1. Moral-Support Network
It is important for the entrepreneur to establish a moral support network of
family and friends. Most entrepreneurs indicate that their spouses are
their biggest supporters. Friends can provide advice that is more honest
than that received from others, plus encouragement, understanding, and
assistance. Relatives can also be sources of moral support, particularly if
they are also entrepreneurs.
2. Professional-Support Network
The mentor is a coach, sounding board, and advocate. The individual selected
needs to be an expert in the field. An entrepreneur can initiate the "mentor-
finding process" by identifying and contacting a number of experts.
 Male versus Female Entrepreneur
Department of Mechanical Engineering

Women are now starting new ventures at three times the rate of men.
Women form over 70 percent of all new businesses. Women now own
over 8.5 million small businesses, an increase of over 45 percent since
1990.

In some respects female entrepreneurs possess very different motivations,

business skills, and occupational backgrounds.

Factors in the start-up process for male and female entrepreneurs are
different, especially in such areas as support systems, sources of funds,
and problems.
 Male versus Female Entrepreneur
Department of Mechanical Engineering

Both generally have a strong interest and experience in the area of their
venture. For men, the transition to a new venture is easier when the
venture is an outgrowth of a present job. Women often leave a previous
occupation with a high level of frustration and enthusiasm for the new
venture rather than experience.

1. Start-Up Financing: Males often have investors, bank loans, or personal

loans in addition to personal funds as sources of start-up capital. Women
usually rely solely on personal assets or savings. Obtaining financing and
lines of credit are major problems for women.
 Male versus Female Entrepreneur
Department of Mechanical Engineering

2. Occupations:
Both groups tend to have experience in the field of their ventures. Men more
often have experience in manufacturing, finance, or technical areas. Most
women usually have administrative experience, often in service-related
fields.
3. Personality: Both men and women tend to be energetic, goal-oriented, and
independent. Men are often more confident and less flexible and tolerant
than women.
4. Backgrounds: The backgrounds of male and female entrepreneurs tend to
be similar. Women are little older when they embark on their careers.
Men often have studied in technical- or business-related areas, while
women tend to have liberal arts education.
 Male versus Female Entrepreneur
Department of Mechanical Engineering

5. Support Groups:
Men usually list outside advisors as most important supporters, with spouse
being second. Women list their spouse first, close friends second, and
business associates third. Women usually rely more heavily on a variety of
sources for support and information than men.
6. Nature of the Venture:
Women are more likely to start a business in a service-related area. Men are
more likely to enter manufacturing, construction, or high-technology
fields.
 Minority Entrepreneurship
Department of Mechanical Engineering

It is difficult to research race and ethnicity as entrepreneurial factors as the

differences in behaviour of various groups must be understood in the
context of the environment and economic opportunities available.
In terms of ownership, one study found:
• The lowest participation rate is for blacks.
• The second highest but fastest growing rate is for Hispanics.
• The highest rate is for Asians.
Studies have also found differences in education, age, family background, and
age when starting the venture.
Black businesses tend to be smaller and less profitable, but there are no
differences in survival rates between black- and white-owned businesses.
Studies have also found differences between ethnic groups in benefiting from
community resources.
Entrepreneurship has increased among Asians, African Americans, Hispanics,
and Native Americans.
 Case Study / Research Papers
20 % Marks
Department of Mechanical Engineering

1. Modeling of Digital Entrepreneurship Structure for the

Development of Pakistan economy

2. Modeling of Entrepreneurship education & Training in Pakistan /

Entrepreneurship education and training needs to be developed in
Pakistan

3. The Social, Physiological and economic dimensions of entrepreneurship in

Pakistan
4. The Current status and Future development of entrepreneurship in Pakistan
Department of Mechanical Engineering
Quiz .1
Q. Explain the difference among Entrepreneurship, Entrepreneur
and Entrapreneur

Assignment Submission
date: 1/4/2019
Department of Mechanical Engineering