• The word Entrepreneur originates from the French Word, Entreprendre, which mean “to undertake” in the business context it means to start a business

ENTREPRENEURIAL MINDS & PERSONALITY

• Innovative • Creative • Risk takers• Pioneers Change

• Entrepreneurs have a sense of excellence: they think they are special and unique

• Entrepreneur is a strong motivation for personal achievement

Joseph A. Schumpeter

• Father of modern entrepreneurship is the Austrian born “Joseph A. Schumpeter” 1934

• Austrian economist Joseph Schumpeter’s placed an emphasis on innovation such as

• New product• New production methods• New market• New forms of organization • The core of Schumpeter’s definition of

entrepreneurship is innovation

Different forms of innovations• A new good or a new quality of a good• A new method of production not previously

tested• Opening of a new market, that is, a market

that a firm has not previously entered• A new source of supply of raw materials• The carrying out of new organization

DIFFERENT VIEWS

• William Baumol’s description of an entrepreneur— an individual who exercises what in the business literature is called leadership

• Al Shapero:- entrepreneurial behavior as the kind of behavior that includes

• (1) Taking initiative, • (2) Organizing or reorganizing of social• (3) The acceptance of risk & failure

Kirzner’s view on entrepreneurship

• Schumpeter’s entrepreneur creates opportunities through innovation

• Kirzner’s entrepreneur sees opportunities because he or she possesses unique information or knowledge

• Kirzner’s entrepreneur seeks to market• Schumpeter’s entrepreneur creates new markets

WHY IS ENTREPRENEURSHIP IMPORTANT?

• Entrepreneurship is important to economic wealth creation at the national and individual levels

• Entrepreneurship significantly impacts our own lives

• A vital source of new job creation and a source of a vast majority of new technology and products

• Entrepreneurship also plays a key role in providing effective and innovative solutions to environmental & social problems.

THE SEARCH OF OPPORTUNITY

There are basically three ways to recognize an

opportunity

1. An active & systematic search of the external

environment

2. Unexpected discovery

3. It is the creation of the entrepreneur.

Characteristics commonly found in successful entrepreneurs

(1) Cooperativeness and a strong team player,

(2) Strong desire to work hard,

(3) Strong desire to learn new and different things,

(4) Ability to listen to others and network,

(5) Not competitive, but visionary and goal setting,

(6) Strong self-efficacy,

(7) Coach or a trainer,

(8) Not any more risk-prone than other professionals.

Strong Entrepreneurial Personal Characteristics and Behavior

Entrepreneurs Types• The first is the achievement entrepreneur–Associated with being high in the

achievement

– They are leaders with a strong sense of personal responsibility

• Sales man entrepreneur• Typically using soft sales approach– Spending time in selling and letting some

one else manage the business

• Third• The technology entrepreneur– These entrepreneur often invent new products or

services, new niches, or develop new processes for existing product

• Fourth • ALL three are facing the fourth, The manager, who

like and tries to take charge.

• They are usually positively willing to take authority, such as board of directors and external investors

Picking the Right Business

You should ask yourself the following five questions

1. What is something that I do well that I like to do?

2. Is there a market for this business?3. Can I afford to start this business?4. What will distinguish my business? 5. Can I make a profit?

Making decision

• It consists of two steps:

1. Looking at how much you have to invest2. Conducting market research

Choosing Great Names& Locations

• What’s in a Name?

• Naming your business should be enjoyable

• What if you pick the wrong name?

• What if the name you pick has already been

taken?

How do you pick a name?

• The first is to pick a name that says exactly what your

business is.

• The second method of business-name creation is to pick

a name that is totally unique and has nothing to do with

your business at all

• The last method for creating a winning business name is

to hire someone to name it for you.

Trademark Concerns

• A trademark is a distinctive word, phrase, or logo that is used to identify a business

• Important to do a trademark search to see if the name already has been trademarked

Locations

• The things you want to consider when looking at a location are:

– Population– Traffic– Competition– Signs– History– Rent

Locations & Legal Considerations

• There are several different things to consider:-• Zoning

Cities usually zone buildings & areas into residential, commercial,industrial, and mixed-use areas

Other legal issues• Some municipalities limit the number of certain types of

business, such as cafes or fast food franchises,to certain areas.

• Home office restrictions– Contact your city to find out what sort of

occupational license & other licenses you may need.