ENTERPRENEURSHIP

In this topic we will discuss the following

• Introduction to entrepreneurship

• Characteristics of entrepreneur

• Entrepreneurial process

• Entrepreneurship model

Introduction to entrepreneurship

This is the era of the entrepreneur! Through the

world, growing numbers of people are realizing their

dreams of owning and operating their own business.

Entrepreneurship is thriving. The past two decades

have seen record numbers of entrepreneurs launching

new businesses and each year.

What is Entrepreneurship?

The capacity and willingness  to develop,  organize  and 

manage a business venture along  with  any  of  its risks

 in order to  make  a profit.  The  most  obvious  example 

of entrepreneurship is the starting of new businesses.

In economics,  entrepreneurship  combined  with land, 

labor, natural resources and capital can produce profit.

What is an entrepreneur?An entrepreneur is someone that creates a new

business. This can carry a high risk because it

requires money to set up a new business without

knowing if it will give a return on investment.

An entrepreneur: Sees an opportunity. Makes a plan.

Starts the business. Manages the business. Receives

the profits.

Characteristics of entrepreneur• Desire for responsibility• Preference for moderate risk (risk eliminators)• Confidence in their ability to succeed• Desire for immediate feedback• High level of energy• Future orientation (serial entrepreneurs)• Skill in organization• Value of achievement over money• High degree of commitment• Willingness to accept risk, work hard and take action• Flexibility

The Benefits of EntrepreneurshipThe primary benefits entrepreneurs enjoy include the opportunity to:• Create their own destiny• Make a difference• Reach their full potential• Generate impressive profits• Contribute  to  society  and  be  recognized  for  their efforts

• Do what they enjoy and have fun at it!

The Potential Drawbacks of Entrepreneurship

With these potential rewards, Entrepreneurship also presents risk and uncertainty.Entrepreneurs may experience:• Uncertainty of income –”The entrepreneur is the last one to

be paid.”• Risk of losing their entire investment• Long hours and hard work• Lower quality of life until the business gets established• High levels of stress• Complete responsibility• Discouragement

Trends of the EntrepreneurshipThe rapid increase in entrepreneurs has been a result of:• Considering entrepreneurs as heroes• Entrepreneurial education• Demographic and economic factors• Shift to a service economy• Technological advancements• Independent lifestyles• Commerce and the Internet• Additional international opportunities

Growth of entrepreneurshipEntrepreneurs are found in virtually every walk of life including:• Young Entrepreneurs• Women Entrepreneurs• Minority Enterprises• Immigrant Entrepreneurs• Part-time Entrepreneurs• Home-Based Businesses• Family Businesses• Co-preneurs• Corporate Castoffs• Corporate Dropouts

Why entrepreneur Fail?1. Management mistakes2. Lack of experience3. Poor financial control4. Weak marketing efforts5. Failure to develop a strategic plan6. Uncontrolled growth7. Poor location8. Improper inventory control9. Incorrect pricing10. Inability to make the “entrepreneurial transition”

How to Avoid the Pitfalls?These same studies have indicated that entrepreneurs can increase their changes for success if they:• Know their business in depth.• Develop a solid business plan in writing.• Manage financial resources.• Understand financial statements.• Learn to manage people effectively.• Keep in tune with who they are.

Introduction to entrepreneurship

Characteristics of entrepreneur

Entrepreneurial process

Entrepreneurship model

Entrepreneurial process

The process of starting a new venture is

embodied in the entrepreneurial process, which

involves more than just problem solving in a

typical management position. An entrepreneur

must find, evaluate, and develop an opportunity

by overcoming the forces that resist the creation

of something new.

The Entrepreneurial Process

The Entrepreneurial Process Consists of 4 Steps

Step 1: Deciding to become an entrepreneur.

Step 2: Developing successful business ideas.

Step 3: Moving from an idea to an enterprise.

Step 4: Managing and growing the enterprise.1-15

Introduction to entrepreneurship

Characteristics of entrepreneur

Entrepreneurial process

Entrepreneurship model

Entrepreneurship modelEntrepreneurship is not something special that a few people are born with.  Entrepreneurship  is  a way of thinking that can be nurtured. So the question is;

 “ An entrepreneur is born or made”

The  ACRO  model  was  introduced  to  focus  on  the attitudes,  skills  and  behaviors  needed  to  enable young people  to meet  the needs of business  in  the 21st century

ACRO

Is the abbreviation of;

• Attitude

• Creativity

• Relationship

• Organization

Attitude.If you want to succeed at anything in life, having the right attitude is vital. This dimension is about understanding yourself, your motivations and how to achieve your goals.

• Self knowledge, belief and confidence• Motivation• Aspiration• Determination• Competitiveness

Creativity.

You don’t need to be a genius to be creative. It is

about the ability to generate fresh ideas, solve

problems and spot new opportunities

• Problem solving

• Lateral thinking / ideas generation

• Spotting and creating opportunities

• Innovation

Relationship.It’s all about people, the ability to communicate effectively, expressing your own views and ideas, appreciating others’ viewpoint and working co-operatively

• Working with others• Managing difficult situations• Negotiation, persuasion and influence• Presentation• Communication

Organization.Making informed decisions and fulfilling your objectives by planning and managing situations, resources and risk

• Planning• Managing resources• Decision making• Research and understanding the environment• Managing risk• Vision and goal setting