Myths of E.

ship
 1 .Entrepreneurs are doers not thinkers.

• Although it is true entrepreneurs tend toward

action, they are also thinkers. Indeed they are
often very methodical people who plan their
moves carefully.
• 4.Entrepreneurs are academic and social
misfits.
• The belief that entrepreneurs are academically
and socially ineffective is as a of some business
owners having started successful entreprise
after dropping out of school or quitting a job.
This has been blown out of proportion in an
attempt to “profile” the typical entrepreneur.
• Historically, educational and social
organizations did not recognize the
entrepreneur. They abandoned him or her as a
misfit in a world of corporate giants. Today the
entrepreneur is considered a hero socially,
economically and no longer misfit.
• 5: Entrepreneurs must fit the profile .many books
and articles have presented checklists of
characteristics of the successful entrepreneur.
• These lists were neither validated nor complete; they
were based on case studies and on research findings
among achievement ~ oriented people . Today we
realize that a standard entrepreneurial profile is hard
to compile. The environment, the venture itself and
the entrepreneur have interactive effects which
results in many different types of profiles.
• 6: All entrepreneurs need money.
• Its true that a venture needs capital to survive, it is also true
a large number of business failures occur because of a lack
of adequate financing, yet money is not the only balwark
against failure. Failure due to lack of proper financing often is
indicator of other problems such as: managerial
incompetence, lack of financial understanding, poor planning
and the like. Many successful entrepreneurs have overcome
the lack of money while establishing their venture. To those
entrepreneurs, money is a source but not an end in itself.
• 7: All entrepreneurs need is luck.
• Being “the right place at the right time” is always an
advantage. But luck happens when preparation meets
opportunity is an equally appropriate advantage.
Prepared entrepreneurs who seize the opportunity
when it arises often seem “lucky” they are in fact
simply better prepared to deal with situations and
turn them into successes. What appears to be luck
really is preparation, determination , desire,
knowledge and innovativeness.
• 8: Ignorance is bliss for entrepreneurs.
• The myth that for much planning and
evaluation lead to constant problems that
over analysis leads to paralysis~ does not hold
up in today’s competitive markets which
demands detailed planning and preparation.
• 9: Entrepreneurs must fail.
• Its true that many entrepreneurs suffer a
number of failures before they are successful.
They follow the adage “ if at first you don’t
succeed, try, try again”. In fact failure can
teach many lessons to those willing to learn
and often leads to future successes.
• 10: Entrepreneurs are extremely risky takers
[Gamblers]. The public’s perception of the risky,
most entrepreneurs assume is distorted.
Although it may appear that an entrepreneur is
“gambling ” on a wild chance, the fact is that
the entrepreneur is usually working on a
moderate or calculated risk
• DEADLY MISTAKES OF ENTREPRENEURS .
• 1. Managerial mistakes whereby they don’t delegate or plan.
• 2.Lack of experience in a certain business line.
• 3.Poor financial control.
• 4.Weak marketing effort.
• 5.Failure to develop a strategic plan.
• 6.Uncontrolled growth.
• 7.Incorrect inventory control.
• 8.Poor location.
• 9.Inability to make the entrepreneurial transition.
THE ENTREPRENEURIAL PROCESS.
1.Aquiring motivation.
This means what influences a potential entrepreneur
to venture into business, this include culture,
family, peer, education and support form lenders.
2.Identifying, Evaluating the opportunity.
This is evaluating whether the idea is viable. The
factors to consider include return on investment,
market size, profit margins, capital requirements,
competition and breakeven period.
3. Developing a business plan.
The idea identified is put down on a paper
where it is described in form of a business
plan. A business plan can be given to financials
for funding purposes. Parts of a business plan
include ~ description plan, management and
operational plan and financial plan.
4. Identifying resources
The resources include human, financial and materials
resources. Identify resource gaps and available
suppliers and develop access to needed resources.
5. Manage the enterprise
• This is by developing management style, understand
key variables for success, identify problems and
potential, implement control systems and then
develop growth strategies.
 Asssignment.
• 1. explain the myths that are associated with
E. ship
• 2,differanciate between an entrepreneurship
and an entrepreneur