Professional Documents
Culture Documents
Chapter 01 Introduction
Chapter 01 Introduction
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What is “entrepreneurship”?
Why be an entrepreneur? Why not?
Are you interested to learn
entrepreneurship? Why?
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COURSE OBJECTIVE
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Introduction
WHO IS AN ENTREPRENEUR?
What are the profiles of Entrepreneurs?
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WHO IS AN ENTREPRENEUR?
Entrepreneur is a person who owns, organizes,
manages and runs an enterprise assuming the risk of a
business or enterprise or, Entrepreneurs are action-
oriented, highly motivated individuals who take risks
to achieve goals.
Entrepreneur is a person who has the ability to see
and evaluate business opportunities to gather the
necessary resources to take advantage of them, and to
initiate appropriate action to ensure success.
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Cont…
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CONT…
Definition: Entrepreneur
An individual who bears the risk of operating business in the face
of uncertainty about the future conditions
Definition:Entrepreneurship
It is a philosophy or process through which an entrepreneur seeks
innovation and employment.
Standard definition
Entrepreneurship is the process of creating something different with
value by devoting (giving) the necessary time and effort, assuming
the accompanying financial, social risks and receiving the resulting
rewards of monetary and personal satisfaction and independence.
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Cont…
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Forms of Entrepreneurship
Entrepreneurship can take three different forms
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ENTREPRENEURS VS. INTRAPRENEURS
Entrepreneurs are people that notice
opportunities and take the initiative to mobilize
resources to make new goods and services.
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ENTREPRENEURIAL SKILLS
Communication Skills
Writing, Speaking & Listening
Human Relations Skills
Math Skills
Problem Solving & Decision Making Skills
Technical Skills
Basic Business Skills
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ADVANTAGES OF ENTREPRENEURSHIP
To an Individual
(a) Provides Self Employment for the entrepreneur
(b) Entrepreneur can provide employment for near
& dear one
(c) Entrepreneurship often provides an employment
and livelihood for next generations
(d) Freedom to use own ideas – Innovation and
creativity
(e) Unlimited income / higher retained income
(f) Independence
(g) Satisfaction 14
CONT…
To the nation
(a) Provides larger employment
(b) Results in wider distribution of wealth
(c) Mobilizes local resources, skills and savings
(d) Accelerates the speed of economic development
(e) Stimulates innovation & efficiency
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WAGE EMPLOYMENT VS. ENTREPRENEURSHIP
Wage Employment Entrepreneurship
Work for Others Own Boss
Follow Instructions Make own plans
Routine Job Creative activity
Earning is fixed, never Can be negative sometimes,
negative generally surplus
Does not create wealth Creates Wealth, contributes
Can choose from- to GDP
Government service Can choose from-
Public Sector Industry
Private Sector Trade or Service Enterprise
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ENTREPRENEURIAL PROCESS
Commitment and
Determination
Motivation to
Excel Leadership
Attitudes and
Behaviors of
Entrepreneurs
Creativity, Self-
Opportunity
Reliance, and
Obsession
Adaptability
Tolerance of Risk,
Ambiguity, and
Uncertainty
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ENTREPRENEURIAL COMPETENCES
A competence refers to the underlying characterstics
of a person which results in effective/superior
performances in a job.
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Entrepreneurial Competencies
(Werotaw B., 2010)
Opportunity Seeking and Initiative: successful
entrepreneurs have the following characteristics
They do things before asked or forced to by
events
• They act to extend the business into new areas,
products or services
• They seize unusual opportunities to start a new
business, obtain financing, equipment, land work
space or assistance
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CONT…
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CONT…
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CONT…
Effectiveness+Efficiency+Quality+good time
management = Success 24
CONT…
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Cont…
Persuasion and Networking: The behavioral
indicators are:
• Uses deliberate strategies to influence or persuade
others
• Uses key people as agents to accomplish own
objectives
• Acts to develop and maintain business contracts
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CONT…
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ENTREPRENEURIAL DECISION PROCESS
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CONT…
Push Factors- the factors that force him
Job Dissatisfaction
Relocation
Joblessness
Lay off
Retirement
Boredom- This is applicable to many ladies from well to do
families. With their army of servants to take care of home,
they find an opportunity to keep the boredom away and
start ventures
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OUTCOMES OF ENTREPRENEURSHIP
Economic growth
New industry formation
Job creation
Assignment One:
What is franchise & franchisee in business? [max 1page]
Discuss the role of entrepreneurship in the economy of a
country. [max 2page]
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FACTORS INFLUENCING ENTREPRENEURSHIP
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PUTTING FAILURE INTO PERSPECTIVE
Failure is a natural part of the creative process.
Failures are simply stepping stones along the path to
success.
The “secret” to success is the ability to fail
intelligently, learning why you failed so that you
can avoid making the same mistake again.
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Current Entrepreneurial Trends
One way to identify business opportunities is to
study current trends that provide opportunities for
entrepreneurs.
social entrepreneurship
Internet businesses
focus on technology
service businesses
outsourcing and
home-based businesses strategic alliances
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ENTREPRENEURIAL FACTS
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