UNDERSTANDING ENTREPRENEURSHIP

The Entrepreneur entreprende. manages and assumes the risks of a business or enterprise Richard Cantillion ± an entrepreneur is someone who takes the risk of running an enterprise by paying a certain price for securing and using resources to make a product and reselling the product for an uncertain price. . which means ± µto undertake¶ Webster dictionary ± one who organizes.

an innovator playing the role of a dynamic businessman adding material growth to economic development Timmons .Entrepreneurship is the process of creating or seizing an opportunity and pursuing it regardless of the resources currently controlled .Joseph Schumpeter .

Reasons for Growth of Entrepreneurship ‡ ‡ ‡ ‡ ‡ ‡ ‡ Industry Structure New technologies Deregulation and privatization Formation of new business communities Increasing demand for variety Government incentives and subsidies Increasing flow of information .

‡ ‡ ‡ ‡ ‡ ‡ ‡ Easier access to resources Entrepreneurial education Return on innovation Entrepreneur as a Hero Self-employment is highly valued Rising dissatisfaction at job Acceptance of ex-entrepreneurs in the job market .

Impact of Entrepreneurial Firms ‡ ‡ ‡ ‡ Job Creation Economic growth New Technology Serving small markets .

Why Start a Business? ‡ ‡ ‡ ‡ Control The idea Flexibility Money .

Pros & ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Cons You are alone All decisions are yours All losses are yours Work may not be satisfying You will need to put in long hours Lack of success will effect self esteem Exiting the business is difficult Pressures will affect social and family life ‡ You are the boss ‡ All profits are yours ‡ There will be great variety in roles and tasks ‡ Increases self confidence ‡ Work can be very satisfying ‡ Success will give you immense satisfaction .

opportunity obsession.Entrepreneurial Characteristics Timmons: 1. 2. ambiguity and uncertainty. 5. motivation to excel . tolerance of risk. commitment and determination. creativity. 4. and 6. self-reliance and ability to adapt. 3. leadership.

previous employment in a firm with more than 100 people. being an offspring of self-employed parents. being the oldest child in the family 6.Bianchi 1. 2. 4. being a college graduate . being an immigrant or a child of immigrants. 3. 5. being fired from more than one job.

Selling. and Motivation through Influence and Persuasion ‡ Oral and Written Communication ‡ Basics of Start-Up Finance.Entrepreneurial Skills ‡ ‡ ‡ ‡ ‡ Creativity and Opportunity Evaluation Real-time Strategy and Decision Making Comfort with Change and Chaos Teamwork Evangelism. Accounting and Law . Negotiation.

Entrepreneurial Attitudes ‡ ‡ ‡ ‡ ‡ ‡ ‡ Comfortable with lifestyle changes Willingness to break / bend / stretch laws Patience to start small Prepared to make enemies Comfort with confrontations Dealing with failure Willingness to learn .

2. Mature 1. 3.Types of Entrepreneurs 1. Early starters 2. Experienced 3. 4. 1st generation entrepreneurs From Business families Minority entrepreneurs Women Entrepreneurs .

Portfolio . Serial 3.1. Novice 2.

Reasons for Entrepreneurial Failure ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Lack of experienced management Few trained or experienced manpower Poor financial management Rapid growth Lack of business linkages Weak marketing efforts Lack of information Incorrect pricing Improper inventory control Short term outlook .