Module 8

▸ entreppreneurial Management
Unit 1
Origin and Nature of Entrepreneurship
Module 8
▸
Determinants of
SUCCESFUL
ENTREPRENEURS
 MODULE OBJECTIVES:
After this module, learners should be able to:

· Define entrepreneur and Entrepreneurship

· Understand why people become entrepreneurs
· Identify the characteristics of successful entrepreneurs
· Know the qualities of successful entrepreneurs
· Describe the skills needed to have as entrepreneurs
· Discuss the benefits of becoming successful entrepreneurs
▸ · Risks of entrepreneurship
Introduction
▸ Success people inspire other people to become successful. Those
hopefuls believe that becoming an entrepreneur will allow them to
network other people who have already built their great businesses.
They think that they have enough potential to find the next profitable
idea and change the life of millions.
▸ With respect to determining the factors contributing to the success of
entrepreneurs, many studies have concentrated on the psychological
and behavioral traits of entrepreneurs, the managerial skills and
training of entrepreneurs, and the external environment. However, no
consensus has been reached as to the level of importance of those
factors in entrepreneurs’ success
Content

ENTREPRENEUR - is a person who organizes a

venture to benefit from an opportunity, rather than
working as an employee. Entrepreneurs play a key
role in an economy. These are the people who have
the skills and initiative necessary to anticipate
current and future needs and bring good new ideas
to market. He is the person who creates a new
enterprise and embraces every challenge to its
development and operation.
 ENTREPRENEURSHIP

▸ ENTREPRENEURSHIP - is defined as an
act of starting and running your own business
or a tendency to be creative and wish to work
for yourself in your own venture. It is a
process of creating a new enterprise and
bearing any of its risk, with the view of
making the profit.
Reasons Why People Become Entrepreneurs

To many, becoming an entrepreneur might

seem like a scary and high risk- taking
journey but to some, this unpredictable
adventure seems like the perfect path that
their life should take and just because:
Reasons Why People Become Entrepreneurs

1. They admire other Entrepreneurs – These hopefuls

believe that becoming an entrepreneur will allow them to
network with people who have already built great businesses.
They think they have enough potential to find the next
profitable idea and change the lives of millions.
2. They don’t want to have a boss – Some people struggle
with some respecting authority. They don’t like the reality of
having people in superior positions managing their work and
looking over their shoulder. Even though they don’t like
authority figures they believe that becoming their own boss is
the only way that they can do work effectively and happily.
 Reasons Why People Become Entrepreneurs
▸ 3. Can’t handle 9 to 5 Job – The repetitive and routine nature of working
9 to 5 doesn’t feed their burning passion for creativity and passion, They
feel like they are simply doing what society expects of them instead of
making a difference in the world. It’s through starting their own business
that they get to freely express their creative ideas and fulfill their dreams.
▸ 4. They like risks – Building a successful business take a lot of risk, and
entrepreneurs love risks. They live for excitement and adventure,
brainstorming new ideas and gambling their chance of succeeding in their
target market gives them goose bumps. They look to manage projects with
high stakes because they have enough confidence to execute them.
 Reasons Why People Become Entrepreneurs
▸ 5. They just have no other choice – Some
people become entrepreneur because they
see it as a mandatory journey to take. Their
prior experience in the job market or
achievements in education makes them
realize that working to others is no longer a
life suited for them’
 Characteristics of Successful Entrepreneurs

▸ To be a successful entrepreneur he must have the following

characteristics:
▸ 1.Risk –Taker
▸ 2.Flexibility

▸ 3.Self – Confidence
▸ 4.Tenacity
▸ 5.Passion
▸ 6.Professionalism
▸ 7.Integrity
▸ 8.Self - motivation
 Qualities of Successful Entrepreneurs
▸ Successful business people have many traits in common with one
another. They are:
▸ 1.Disciplined – These individuals are focused on making their
business work, and eliminate any hindrances or distractions to their
goals. They are disciplined enough to take steps every day toward the
achievement of their objectives.
▸ 2.Confidence – Entrepreneurs do not ask questions about whether
they can succeed or whether they are worthy of success. They are
confident that their business will succeed. They exude confidence on
everything they do.
Qualities of Successful Entrepreneurs

▸ 3.Open Minded – Entrepreneurs realize that every

event and situation is a business opportunity. Ideas
are constantly being generated about workflows and
efficiency, people skills and potential new businesses.
▸ 4.Self- starter –Entrepreneurs know that something
needs to be done, they should start it themselves.
They set the parameters and make sure that projects
follow that path. They are proactive, not waiting for
someone to give them permission.
Qualities of Successful Entrepreneurs

▸ 5.Competitive – Many companies are formed

because an entrepreneur knows that they can do a job
better than the other. They need to win at the sports
they play and need to win at the businesses that they
create.
▸ 6.Creativity – Being able to make connections
between seemingly unrelated events or situations that
often come with solutions which are the synthesis of
other items. They will repurpose the product to
market them to new industries.
Qualities of Successful Entrepreneurs

▸ 7.Determination – They are not thwarted by

defeats. They look defeat as an opportunity to
success. They are determined to make all of their
endeavors succeed, so will try and try again until it
does.
▸ 8. Strong work ethic – Will often be the first
person to arrive at the office and the last one to
leave. Their mind is constantly on their work,
whether they are in or out of workplace.
Skills Entrepreneurs Must Have

▸ 1.Management skills
▸ 2.Network skills
▸ 3.Financial Management skills
▸ 4.Social Skills
Benefits of Becoming Successful Entrepreneurs

▸ Entrepreneurs are the only people who will work

80 hours a week to avoid working 40 hours a week.
While this maybe tongue - in –cheek, it is true that
entrepreneurs have built a reputation for breaking out
of the mold and hardworking hard to live a certain kind
of life.
▸ That is because, for many ambitious professionals, the
benefits of entrepreneurs are incredibly rewarding.
Benefits of Becoming Successful Entrepreneurs

▸ 1.A flexible schedule – So many people begrudge the office routine that
is called the 9 to 5 grind. As an entrepreneur, you have the opportunity
to break out of the cycle and create your own schedule. This scheduling
power isn’t just feeling, it also may be healthier as well.
▸ 2.Autonomy – Reports on the multiple studies that have demonstrated
the link between autonomy and job satisfaction. It turns out that
employees who have more control over the work tend to be more
engaged and less emotionally exhausted.
▸ 3.Creating a career that aligns with your values – It is intensely
gratifying experience. Someone who believes in respecting the
environment, for instance would probably find a career in renewable
energy incredibly fulfilling.
Benefits of Becoming Successful Entrepreneurs

▸ 4.Meeting like – minded people - By becoming an entrepreneur, you

will join a group of ambitious and helpful people who believe in
bettering themselves and the world. There are plenty of opportunities to
connect with mentors, brainstorm with fellow professionals, and reach
out for help during tough times. No one succeeds alone, but with a
supportive network of like-minded people entrepreneurs don’t need to.
▸ 5.Constant growth and development - Starting a company forces you
to constantly improve your skillset, from marketing to closing deals for
creating excel reports. There is always more to learn and apply to your
business, which can prevent complacency and encourage constant
professional growth.
Benefits of Becoming Successful Entrepreneurs

▸ 6.Unexpected and thrilling experience – Not

knowing exactly how the day is going to play
out when you wake up is exciting especially
when compared to the predictable and
monotonous schedule of a traditional office
job.
Benefits of Becoming Successful Entrepreneurs

▸ 7.Choosing who to work with – Entrepreneurs

can choose which clients to work with, employees
to hire and partnership to pursue. If having to
control over business relationships appeals to you,
the entrepreneurs life maybe perfect to you.
▸ 8.Greater self – confidence – Nothing boosts your
confidence more than batting self- doubt and
coming out on top. Many entrepreneurs become
more confident in their self- sufficiency as time
goes on and they see what they are truly capable of.
Benefits of Becoming Successful Entrepreneurs
▸ 9.Leadership experience – Self-discipline, communication
skill, passion, optimism, patience and unrelenting work ethic.
Building a company from the ground up hones these leadership
traits which mean that you can transform into an inspiring leader
both professionally and personally.
▸ 10.The best “Offices” – Digital nomads are becoming
increasingly common. These types of entrepreneurship often
combine fun travel with online business, and work from cafes,
hotels, and co-working spaces in the coolest cities around the
globe which can make for some neat offices.
RISK OF AN ENTREPRENEURSHIP:
▸ 1.Financial Risk - An entrepreneur will need funds to launch a
business either in the form of loans from investors, their own
savings or funds from family. Any new business should have a
financial plan within the overall business plan showing income
projections, how much cash will be required to break – even and the
expected return to investors in the first five – year timeframe.
▸ 2.Strategic Risk – An impressive business plan will appeal to
investors. However, we live in the dynamic and fast –faced world
where strategies can become outdated quickly. Changes in the
market or the business environment can mean that a chosen strategy
is the wrong one and the company might struggle to reach its
benchmark.
RISK OF AN ENTREPRENEURSHIP:

▸ 3.Technology Risk – New technologies are constantly

emerging, particularly in the era of the fourth industrial
revolution. Some of these changes are “paradigm shifts” or
“disruptive” technologies. To be competitive, a new company
may have to invest heavily in new systems and processes,
which could affect drastically the bottom line.
▸ 4.Market Risk – Many factors can affect the market for a
product or service. The ups and downs of the economy and
the new market trends pose a risk to new businesses, and a
certain product might be popular one year but not the next.
RISK OF AN ENTREPRENEURSHIP:
▸ 5.Competitive Risks – An entrepreneurial must always be
aware of its competitors. If there are no competitors at all, this
could indicate that there is no demand for a product. If there
are a few large competitors, the market might be saturated or
the company might struggle to compete.
▸ 6.Environmental, Political and Economic Risk – Some
things cannot be controlled by a good business plan or the right
insurance. Earthquakes, tornados, hurricanes, wars and
recession are all risks that a companies and new entrepreneurs
may face. A market for under develop country, can be unstable
and unsafe, or logistic rates or tariffs might make trade difficult
depending on the political climate in time.
ACTIVITY # 1

▸ Answer the following questions.

▸ 1.What are the characteristics and Skills do you
have that would be helpful to become a successful
entrepreneur.
▸ 20 words each