Professional Documents
Culture Documents
Entrepreneur
Someone who seeks to capitalize on new and profitable endeavors or business; usually with considerable initiative and risk. A person who operates a new enterprise or venture and assumes some accountability for the inherent risks
Entrepreneur
One who organizes and manages any enterprise especially a business, usually with considerable initiative and risk
Source : Random house
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 necessary resources to capitalize them
Source : Zimmerer & Scarborough
Entrepreneur
According to John Thompson, entrepreneur is a person who habitually creates and innovates to build something of recognized value around perceived opportunities.
Entrepreneur
Key words: 'Entrepreneur' can be an individual entrepreneur, but also an entrepreneurial team or even entrepreneurial organization 'A person' emphasizes a personality rather than a system
Entrepreneur
Key words: 'Habitually' just cannot stop being an entrepreneur 'Creates' starts from scratch and brings into being something that was not there before
Entrepreneur
Key words: 'Innovates' able to overcome obstacles that would stop most people; turns problems and risks into opportunities; delivers - sees ideas through to final application 'Builds something' describes the output of the creation and innovation process
Entrepreneur
Key words: 'Of recognized value' encompasses economic, commercial, social, or aesthetic value 'Perceived opportunities' spotting the opportunity to exploit an idea that may or may not be original to the entrepreneur; seeing something other miss or only see in retrospect
Entrepreneurship
Gartner (1985) states: "Entrepreneurship is the creation of new organizations".
Entrepreneurship
First and foremost a mindset. It is the art of finding profitable solutions to problems .
Source: Colin Turner . Available on Internet< http://www.1000ventures.com/business_guide/crosscuttings/entrepreneurship.html>
The result of a disciplined, systematic process of applying creativity and innovation to the needs an opportunities in the market place.
Characteristics of entrepreneurship The entrepreneur has an enthusiastic vision, the driving force of an enterprise.
Characteristics of entrepreneurship The overall blueprint to realize the vision is clear, however details may be incomplete, flexible, and evolving.
Characteristics of entrepreneurship
An entrepreneur is usually a positive thinker and a decision maker.
Characteristics of entrepreneurship The entrepreneur takes the initial responsibility to cause a vision to become a success
Characteristics of entrepreneurship
Risks;
Entrepreneurs take prudent risks. They assess costs, market/customer needs and persuade others to join and help.
Characteristics of entrepreneurship With persistence and determination, the entrepreneur develops strategies to change the vision into reality.
Characteristics of entrepreneurship
The entrepreneur promotes the vision with enthusiastic passion.
Characteristics of entrepreneurship
The entrepreneur's vision is usually supported by an interlocked collection of specific ideas not available to the marketplace.
Entrepreneurship
Entrepreneurship is.. willingly working together, risking, creating, implementing, driving and following through an innovative idea that seeks to maximize value from opportunity without constraint to existing models, structure or resources.
Contributions of Entrepreneurs
Develop new markets.
Entrepreneurs are resourceful and creative They can create customers or buyers.
Contributions of Entrepreneurs
Discover new sources of materials.
Entrepreneurs are the organizers and coordinators of the major factors of production, such as land labor and capital. They properly mix these factors of production to create goods and service.
Contributions of Entrepreneurs
Introduce new technologies, new industries and new products.
Aside from being innovators and reasonable risk-takers, entrepreneurs take advantage of business opportunities, and transform these into profits.
Contributions of Entrepreneurs
Create employment
Advantages of Entrepreneurship
Enormous personal financial gain Self-employment, offering more job satisfaction and flexibility of the work force Development of more industries, especially in rural areas or regions disadvantaged by economic changes, for example due to globalisation effects
Advantages of Entrepreneurship
Encouragement of the processing of local materials into finished goods for domestic consumption as well as for export Income generation and increased economic growth Healthy competition thus encourages higher quality products
Advantages of Entrepreneurship
Promotion of the use of modern technology in small-scale manufacturing to enhance higher productivity Employment for others, often in better jobs
Advantages of Entrepreneurship
Encouragement of more researches/ studies and development of modern machines and equipment for domestic consumption
Development of entrepreneurial qualities and attitudes among potential entrepreneurs to bring about significant changes in the rural areas
Advantages of Entrepreneurship
Freedom from the dependency on the jobs offered by others
Reduction of the informal economy Emigration of talent may be stopped by a better domestic entrepreneurship climate
business and try to determine the barriers they overcame in being successful????
cannot be taught.
Drawbacks of Entrepreneurship
Uncertainty of income Must be comfortable with risk and uncertainty Must make a bewildering number of decisions Need many different skills and talents May face tough times, stress and discouragement Must be comfortable with hard work and working long hours Must be comfortable with the potential for failure
Seeks independence and self-control Aggressively pursues goals; pushes self and others Focused and consistent Independent thinking and quick thinking Objective and impartial Pursues simple, practical solutions Comfortable (but not careless) with risk-taking Exhibits clear opinions and values; has high expectations Aggressive and often a pioneer Positive, optimistic and confident
To be successful managers must be: Technically knowledgeable about the firms products and services A good communicator to everyone, especially those who work for the firm Able to motivate people effectively
Accepts responsibility and power as a challenge Acts as a catalyst for change Creative thinker Proactive rather than reactive
An Entrepreneur Must Possess Excellent Management Skills: These skills and principles of management should help to:
Make decision-making easier Improve the quality of decisions Reduce the time necessary to make decisions Improve the frequency of good decisions Improve efficiency and effectiveness
A venture is most prone to failure during its first three years of operation - the so-called 'valley of death'. A key to getting through these early years is to avoid the obvious mistakes
Source:'Devising Venture Strategies' by Invest-Tech Ltd.)
Independently owned, operated, and financed Less than 100 employees Does not emphasize new or innovative practices
Innovative practices Goals are profitability and growth Seeks out new opportunities Willingness to take risks
Joseph A. Schumpter Creative Destruction Entrepreneurs are a force for change and make existing products obsolete.
Test of Feasibility
Prove feasibility Prepare for implementation Gather resources
New Venture
Common (Ten Deadly) Mistakes of Entrepreneurship 1. Management incompetence 2. Lack of experience 3. Poor financial control 4. Failure to develop a strategic plan 5. Uncontrolled growth
What mistakes are you likely to make? Can you think of any mistakes other than those above?
The Five Critical Success Factors for New Ventures (by Peter Drucker)
Building an top management team long before the new venture actually needs one and long before it can actually afford one A decision by the founding entrepreneur in respect of his or her own role, area of work, and relationship
Source: Peter Drucker
e a te n u tr 7%
a m e n u tr %
Behaviour of Entrepreneurs
Entrepreneurs display many behaviours. Theses behaviours determines if the entrepreneurs is successful or not.
Let us look at the good, the bad and the ugly behaviours that Entrepreneurs
Good behaviours
Creativity Business knowledge Critical thinking Integrity Self discipline and perseverance Thriving on uncertainty and chaos
Bad behaviours
Greed Dishonesty and lack of ethics Poor judgment Not detailed-Oriented
Ugly behaviours
People who will do anything to even if it means lying, cheating and stealing.succeed
Entrepreneurial Opportunities
You don't get investment for just an idea
Entrepreneurs are people that exploit ideas by matching them to market needs, designing a business model that makes the idea profitable.
Entrepreneurial Opportunities
Joseph Schumpter stated that entrepreneurs create value by: exploiting an invention or untried technology for producing a new product or an old product in a new way, or by opening a new source of supply of materials, or a new outlet for products, or by reorganizing an industry. Example 3M US : Brands
Entrepreneurial Opportunities
Joseph Schumpter stated that entrepreneurship placed an emphasis on innovations such as: New products New production methods New markets New forms of organizations
doesn't want or need. A few employees spinoff with the technology and cash from the corporation to commercialize it.
problem. Realizing that their solution has other applications, they seek funding and market it.
The part-timer
You start something small while keeping your day job. You have a few excited customers that you use to help figure out the future of your business. You grow to the point where you are stressed out from working two jobs. You work out a plan, and transition fulltime to the new venture.
The hobby
A guy has a hobby and becomes very good at it, and people start asking him to make them things. He launches a business around it.
Television.
(Television) wont be able to hold onto any market it captures after the first six months. People will soon get tired of staring at a plywood box every night. Darryl F. Zanuck.
Computers.
Despite the trend to compactness and lower costs, it is unlikely everyone will have his own computer any time soon. Reporter Stanley Penn, The Wall Street Journal, 1966. I think there is a world market for maybe five computers. Thomas Watson is reported to make this stupid statement in 1943. At the time he was the Chairman of IBM.
Telephone
The telephone, a group of British experts clucked, may be appropriate for our American cousins, but not here, because we have an adequate supply of messenger boys. Western union wasnt impressed either. It declined to buy the patent on Alexander Bells 1876 invention, saying the public could not be trusted to master such complicated equipment.
THE END
Questions Any one ?
Agribusiness opportunities
According to IICA (2006) agriculture is changing form the traditional agrarian primary crop production to value added production. This is driven by tremendous levels of investments in different sub sectors such as:
Agribusiness opportunities
The Bakeries industry. Feed milling, edible oils and flour processing . The Food and Beverage industry
Action Exercises: Here are two things you can do immediately to put these tactics into action:
Find a need and fill it. Look around you and search for needs that people have for products or services that are not being met. One small idea is enough to start you on the way to business success. Find a problem and solve it. Look around you for problems that you or other people have that are not yet being solved. Look for solutions that nobody has thought of and give them a try. One good solution could change the direction of your life.