Entrepreneurship

Brandon Ashe
MGT201
 What is Entrepreneurship?

 Entrepreneurship is the act of starting and

running your own business or a tendency to
be creative and wish to work for yourself in
your own ventures.
 Individuals that run their own business or
have the tendency to be creative are known
as entrepreneurs. There are different types of
entrepreneurs which are classic
entrepreneurs, multipreneurs, and
intrapreneurs.
 Classic Entrepreneurs
 Classic Entrepreneurs are known as the risk takers of entrepreneurship, they start their own
businesses off the innovative ideas that they have. Some classic entrepreneurs are called
micropreneurs; they are called micropreneurs because that start small and plan to stay small.
 Micropreneurs mostly start their business for their own personal satisfaction; they are not
interested in the growth of their business and the idea of them staying small is very
important.
 Macropreneurs would also be considered a classic entrepreneur. Macropreneurs are similar
to micropreneurs, but the only difference is that macropreneurs starts their business off
small and have plans to grow it.
 Multipreneurs/Intrapreneurs
 The next category of entrepreneurs is multipreneurs; these entrepreneurs start a
serious of companies, not just one company. Multipreneurs love the challenge of
starting a business and watching it grow.
 Intrapreneurs are people who do not own their own companies, but they input their
creativity, vision, and take on the risks within a large corporation. Intrapreneurs
love that they have the freedom to nurture their ideas, create new products, and they
still have the corporation that they work for to give them salaries.
 Why Become an Entrepreneur?
 According to some CEOs the main reason to become an entrepreneur is the
challenge they have of building the business. It is also believed that individuals
become entrepreneurs because they have the desire to control their own destiny.
Some other reasons to become an entrepreneur included financial independence,
and they do not enjoy working for someone else.
 Some people become entrepreneurs because they want to create the lifestyle they
want to live, and the personal satisfaction with their own work. Most entrepreneurs
believe that going into business for themselves was worth it and would do it again.
 Entrepreneurs Personality Traits
 Entrepreneurs are known to have several traits which includes ambitious,
independent, self confident, risk takers, visionary, creative, energetic, passionate,
and committed. Most entrepreneurs combine many of the of these traits.
 A person may have all the traits of an entrepreneur, but they may not have the
business skill to run a company to be successful. Entrepreneurs not only need to
have these traits, but they also need the technical knowledge to make their ideas
come to life.
 Entrepreneur Managerial Ability
 Entrepreneurs not only need to have technical knowledge, but they also need to have the
managerial ability to organize a company, develop strategies, obtain financing, and supervise the
day-to-day activities. Some entrepreneurs believe that they can learn good interpersonal and
communication skills to help deal with employees, customers, and other business associates.
 For an entrepreneur to be successful, I believe that they should included certain managerial
skills. Some of the skills includes time management, business planning, rational decision
making, employee management, and communication skills.
 Entrepreneurs should also have leadership qualities; entrepreneur needs to make sure that their
team can work together so that they can achieve the goal .
 Starting Entrepreneurship
 There are many steps in starting your own business; the first step in starting
entrepreneurship is deciding if you have all the personal traits that will make you a
successful entrepreneur. During this first step you must also determine what type
of business that would be the best fit for you.
 Next the entrepreneur will find ideas for their business; most entrepreneurs find the
idea for their business while working in a similar industry. When some
entrepreneurs find their business idea , it is usually in the same industry in which
they were working in before starting their business.
 Checklist for Starting Business
 Identify your reasons
 Self-analysis
 Personal skills and experience
 Finding a niche
 Conduct market research
 Plan your start-up: write a business plan
 Finances: how to fund your business
 Starting Entrepreneurship cont.
 When starting a business, the entrepreneur must decide if it will be a sole proprietorship,
partnership, corporation, or limited liability company. Each one of these business types
have their advantages and disadvantages, so this means that the entrepreneur will have to
research each type of business to pick the one that would be best for their business.
 The next step would be for the entrepreneur to put their business plane together. This
maybe one of the most important steps in starting your business. The business plan assists
in getting financing and is also a critical determinant if the business will be successful or
not. Taking the time to produce a good business plan will benefit you new business.
 The business plan includes a general description of the company, the owners'
qualifications, the description of the product or services, analysis of the market of the
business, sales and distribution channels and a financial plan.
 How to Finance Your Business
 There are two ways an entrepreneur could get financing for the start of their
business and that is by debt and equity. Debt is funds there were borrowed that
must be paid back with interest. Equity are funds that were raised by selling stock
of the business.
 When an entrepreneur receives equity fund; in exchange for the equity funds, the
person providing the funds receive a share of the profits from the business.
 Equity funds provide 65-75 percent of the beginning funds for businesses; this is
because lenders limit debt financing to a quarter of the total needs .
 Finance cont.
 Another way to finance the business is by bootstrapping, which means that you
would use your own resources to fund the business. Angel investors are a form of
equity funds. Angel investors are individual investors or groups of experienced
investors who provide financing for start up business.
 Angel investors use their own money when providing funding for start up
businesses, and they invest early in a company’s development. Angel investors also
want to see and idea that they understand and believe will be successful.
 Entrepreneurs could receive venture capital from investment firms that finance
small, high growth companies. They would receive an ownership interest and a
voice in management when they invest their funds.
 WORKS CITED
 Bright, D. S., Cortes, A. H., Hartmann, E., Parboteeah, K. P., Pierce, J. L., Reece,
M., Shah, A., Terjesen, S., Weiss, J., White, M. A., Gardner, D. G., Lambert, J.,
Leduc, L. M., Leopold, J., Muldoon, J., & O'Rourke, J. S. (2019). Principles of
Management. OpenStax, Rice University.