Week2 Entrepreneurship Introduction ELIB 203. Key decisions relate to: Entrepreneurship 1-...

Week2Week2

EntrepreneurshipEntrepreneurshipIntroductionIntroduction

ELIB 203ELIB 203

Key decisions relate to:

EntrepreneurshipEntrepreneurship

1- Entrepreneurship- Introduction

2- The Entrepreneurs- Who they are? - Characteristics/traits

3- Mega Entrepreneurs

4- Defining The Entrepreneur- Advantage & Disadvantage – Types

5- Entrepreneurial Mindset- Activity1

1- Entrepreneurship1- Entrepreneurship

It is a socio-economic phenomenon.

Nature of Entrepreneurship

Engine of economic growth

Creator of wealth and employment.


What You Know about

Entrepreneurship


It is a creative and innovative human act.

What is Entrepreneurship?

Peter Drucker

Ability to create and build a vision from practically nothing.–

Vision requires willingness to take

calculated risks.

It is a discipline, hence it can be learned –

Entrepreneurship is a phenomenon which involve two critical elements – sensing & exploiting an opportunity

Entrepreneurship

The ability to sense an opportunity is the result of entrepreneurial traits

The ability to exploit the opportunity is the result of the entrepreneur management skills

Definition

Entrepreneurs are:

Who they are?Who they are?

2-The Entrepreneurs

• Making, selling or trading things or services

• Sole proprietors (part of a small group)

• Involved in “business”

• Those who discover market needs and launch new firms to meet those needs

Entrepreneurs are very much interested in:

Who they are?Who they are?

The Entrepreneurs

• Success

• Profit

• Wealth creation

• Leaving their mark on society

The EntrepreneurThe Entrepreneur

Definition

An entrepreneur is defined as an individual who sees an opportunity that others do not and marshals the resources to exploit it.

“Creation of Value” is the OUTCOME of entrepreneurial activity.

An entrepreneur is someone who introduces a new product or a process; identifies new market or a resource of supply or creates a new type of organization.

An entrepreneur raise the necessary capital, creates the new venture and assumes the control and risk of operation

Characteristics/traits Characteristics/traits

Entrepreneurs are individuals who:

The Entrepreneurs

• Have a need to achieve

• Are willing to take risks

• Have internal locus of control

• Have a passion for the business

• Have active/vivid imagination

oRecognize business opportunities

oSee consequencesoSee the complete picture and many alternatives


• Understand customer behaviour

The Entrepreneurs

• Are natural leaders:oThey have what it takes to get people to believe in them

• Powerful communicators

oThey demand and get loyalty from their staff

oMore powerful oral/personal rather than written

oUse simple and direct language

oOften use of analogyoCan present complex ideas simply

• Entrepreneurs are individuals who:

The Entrepreneurs


oAre better talkers than listeners

oAre not easily distracted

oAre exceptionally competitive

oMost academic research shows that entrepreneurs are abnormally (sometimes excessively) competitive people

oEntrepreneurs set unnecessarily (as seen by outsiders) tough targets for themselves

oSometimes they may even compete with themselves

And entrepreneurs also…


•Are impatient, quick to buck the system, do it first, apologise later

•Believe that success is the result of their own efforts, hence, luck, chance or fate has nothing to do with it

•Believe; “The harder I work, The luckier I get”

•Rebellious against rules, authority and the “establishment”

•May have tunnel vision

• Thrive on the thrill of victory

• Love to “sell” and are super sales people

The Entrepreneurs

“The greatest difficulty in the world is not

for people to accept new ideas, but to

make them forget about old ideas.”

-- John Maynard Keynes, Economist

3-Mega Entrepreneurs 3-Mega Entrepreneurs

W. K. Kelloggb. 1860

W. K. Kelloggb. 1860

Kellogg's accidental discovery, promoted with savvy marketing, transformed the way Americans eat breakfast.

Kellogg grasped the idea that kids influence buying decisions—galvanizing the brand's success

Sam Waltonb. 1918

Sam Waltonb. 1918

The man who built the world's largest retailer on low prices: Wal-Mart.

Bought direct from manufacturers and made his stores as efficient as possible, sending the savings back to consumers

Muhammad Yunus b. 1940

Muhammad Yunus b. 1940

2006 Nobel Peace Prize winner, founded a banking system 30 years ago to lend small amounts of money to the rural poor in Bangladeshi villages

Martha Stewartb. 1941

Martha Stewartb. 1941

Started a catering business out of her Westport (Conn.) home in 1976.

Went on to expand into retail, publishing, television, and merchandising.

Richard Bransonb. 1950

Richard Bransonb. 1950

Richard Branson turned, Virgin, the mail-order record shop he opened in 1970 into a label he sold 22 years later for nearly $1 billion.

Brand includes mobile-phone service, bridal gowns, credit cards, and life insurance. Virgin Group encompasses 200 companies in More than 30 countries.

Oprah Winfreyb. 1954

Oprah Winfreyb. 1954

Oprah Winfrey turned her name into one of the most successful and respected brands in the world.

Leveraged that fame into other interests: magazines, Web sites, film and television production and Social Entrepreneurship.

Bill Gatesb. 1955

Bill Gatesb. 1955

By linking his Microsoft software to IBM's first PCs, he dominated the industry.

He developed a two-prong strategy of expanding the market while maintaining a strong hold on competitors

Steve Jobsb. 1955

Steve Jobsb. 1955

The Apple co-founder combined simplicity with innovation to emerge from the Internet boom as one of the lone tech companies that can butt heads with Microsoft

Jeff Bezosb. 1964

Jeff Bezosb. 1964

Founded Amazon.com, in 1994

Bezos pioneered techniques that have become staples of online sales.

Michael Dellb. 1965

Michael Dellb. 1965

Created a new model for PC sales.

Cutting out the retail middleman and custom-building computers to suit buyers' needs put Dell at the front of the class of PC makers.

Chad Hurley, 29; Steve Chen, 28 & Jawed Karim, 27

Chad Hurley, 29; Steve Chen, 28 & Jawed Karim, 27

Founders of YouTube.

Broadcasts 100 million short videos daily on myriad subjects.

Sold to Google

Pierre Omidyarb. 1967

Pierre Omidyarb. 1967

Founder of EBay, which made the promise of the Internet a reality by connecting far-flung customers with the goods they wanted to buy.

Mega – Entrepreneurs Mega – Entrepreneurs

• Microsoft - Bill Gates & Paul Allen• Apple Computer - Steve Jobs & Steve Wozniak• Dell Computer - Michael Dell• Federal Express – Fred Smith• Oracle – Larry Ellison• Amazon.com – Jeff Bezos• Nike – Phil Knight• Yahoo – David Filo & Jerry Yang• Cisco – Len Bosack, Sandra Lerner & Kirk

Lougheed• Google.com – Larry Page & Sergey Brin

Who Started in Their 20sWho Started in Their 20s

Mega – Entrepreneurs Mega – Entrepreneurs

• Dallah alBaraka - Saleh Kamel

• Fitaihi Group - Ahmad Hasan Fataihi

• AlAhli Bank - Bin Mafhfooz

• Alrajhi -Alrajhi Bank

• Al Baik - Rami Abughazala

• Lomar - Loai Nasesm

• U turn - Abdulla Mandowi

in Saudi Arabiain Saudi Arabia

Saudi Entrepreneurs..

4- Defining The EntrepreneurFrom our perspective:

Any individual that sees and acts upon an opportunity

This includes introducing a new product or service, identifying new markets, or putting a twist on an existing product, process or service

Also, includes the raising of capital, taking the risk and controlling the new venture

Embodies creativity, aggressiveness, and determination

By assembling various resources, he takes risks and creates a venture from an idea, hobby, or simply a dream.

MotivesMotives

•Independence

Advantage

•Challenge

The Entrepreneur

•Potential financial rewards

•Skills development

•Satisfying a way of life

•More personal contacts with people

•Enjoyment

knowing the downsideknowing the downside

• Limited financial rewards

Disadvantage

• Risk (failure)

The Entrepreneur

• Stress

• Need for many abilities

• People conflict

• Time demand

TypesTypesThe Entrepreneur

The Innovator

Wheeler DealersStrivers

Visionaries

-Generally dissatisfied with current situation.

-Never satisfied with their own achievements

-Fiercely competitive – always trying to win

- Most dispassionate/ calculating type.

- Looks for opportunity to act.

-“Take-over” is their game.

-look for a “better fit”.

-A mismatch between the way something is currently

being done and how it could be done.

-A poorly satisfied demand.

-A recognition of an incipient user demand resulting from the creative application of new technology, so they discover the “opportunity”.

5- Entrepreneurial Mindset

TEST

THE ENTREPRENEURIAL QUIZ THE ENTREPRENEURIAL QUIZ

Personality Characteristic ChecklistPersonality Characteristic Checklist

Born or Made?Born or Made?

Say the answer is, “YES,” then once we identify the main characteristics we can simply say, if we have them, fine, no others need to apply.

We could start spotting talent in kindergarten and stream them.

We could discourage people without talent from entrepreneurship

Is inborn talent an absolute requirement?

YES

Entrepreneurial Mindset

Say the answer is, “NO”, one does not have to be born with talent, it can be learned,” then schools could teach anyone

Born or Made?Born or Made?

NO

It would become a “profession” like law or medicine and government “incubators” would be successes

Companies could establish “nurseries” for them

The answer lies somewhere in-between.

Talent plus education seems to be the way.

Entrepreneurial Mindset

Entrepreneurs Are Made and Not Born

Entrepreneurs Are Made and Not Born

“The entrepreneurial mystique? It’s not magic, it’s

not mysterious and it has nothing to do with the genes. It is a discipline. And like any discipline, it can be learned.”

…Peter Drucker

The Entrepreneurs

Entrepreneurship

Sensing an Opportunity

Exploiting the Opportunity

Entrepreneurial Traits

Management Skills

Culture

Positive/Negative

Environment

Education

Experience

Family Background

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