INTRODUCTION TO ENTREPRENEURSHIPENTREPRENEUR & ENTREPRENEURSHIP

Wage Employment or Entrepreneurship ?Entrepreneurship as a career in your own business [YOB] rather than wage employment [JOB]. You will be your own boss.

Wage Employment Vs Entrepreneurship

Wage EmploymentEntrepreneurshipWork for OthersOwn BossFollow InstructionsMake own plansRoutine JobCreative activityEarning is fixed, nevernegativeCan be negative sometimes,generally surplusDoes not create wealthCreates Wealth, contributes toGDPCan choose from- Government service; Public Sector ; Private SectorCan choose from-Industry ;Trade or Service Enterprise

DEFINITION :ENTREPRENEURSan individual who actively form/lead their own business & nurture them for growth & prosperity(UiTm Entrepreneurship Group:2004)is a person with a high need for achievement He is energetic and a moderate risk taker. (David McClleland :1961) are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services. (Schumpeter :1934)is a person who starts an enterprise. He searches for change and responds to it Entrepreneurs do not necessarily make right decisions, they make their decisions right

What Is an Entrepreneur?One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.(Zimmemer:2008) Chapter 1: Entrepreneurship*

Chapter 1: Entrepreneurship

Characteristics of EntrepreneursDesire for responsibilityPreference for moderate risk risk eliminatorsConfidence in their ability to succeedDesire for immediate feedbackHigh level of energyFuture orientation serial entrepreneursSkilled at organizingValue achievement over moneyChapter 1: Entrepreneurship*

Chapter 1: Entrepreneurship

Entrepreneurship A process of creating & expanding businesses that collectively form a force for national development & societal prosperity

also a process of creating something new & assuming the risk & reward.

Benefits/Advantages of EntrepreneurshipThe opportunity to:Create your own destinyMake a differenceReach your full potentialReap impressive profitsContribute to society and to be recognized for your effortsDo what you enjoy and to have fun at it *

Drawbacks(Disadvantages) of EntrepreneurshipUncertainty of incomeRisk of losing your entire investmentLong hours and hard workLower quality of life until the business gets established.High levels of stress Complete responsibilityDiscouragement

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The Cultural Diversity of EntrepreneurshipYoung entrepreneursWomen entrepreneursMinority-owned enterprises Immigrant entrepreneurs Part-time entrepreneurs Home-based businessesFamily businessesCopreneurial businessCorporate castoffs Corporate dropouts

Chapter 1: Entrepreneurship*

Chapter 1: Entrepreneurship

Ten Deadly Mistakes of EntrepreneurshipManagement mistakesLack of experiencePoor financial controlWeak marketing effortsFailure to develop a strategic plan Uncontrolled growthPoor locationImproper inventory controlIncorrect pricingInability to make the entrepreneurial transition

Chapter 1: Entrepreneurship*

Chapter 1: Entrepreneurship

Avoiding the Pitfalls of Small Business FailureKnow your business in depthDevelop a solid business planManage financial resourcesUnderstand financial statementsLearn to manage people effectivelyKeep in tune with yourselfChapter 1: Entrepreneurship*

Chapter 1: Entrepreneurship

Difference Between Entrepreneur & Entrepreneurship

EntrepreneurEntrepreneurshipare tangible peopleis an abstractionis a personis a processthe key individual central to entrepreneurship who makes things happenoutcome of complex socio-economic, psychological and other factorsis the actoris the actAn entrepreneur is the catalyst who brings about this changeEntrepreneurship is the most effective way of bridging the gap between science and the market place by creating new enterprises