WOLKITE UNIVERSITY

• CET
DEPARTMENT OF HYDRAULIC AND WATER RESOURCES
ENGINEERING

Entrepreneurship for Engineers IEng5222

5th year HWRE (2015E.C.)

By: Eyasu Tafese.

 Entrepreneurship for
Engineers
Course Title: Entrepreneurship for Engineers
Course Objectives & Competences to be acquired
The course is intended to equip the student with
 Entrepreneurial skills
 Market evaluation
Ability to identify small industry and product market.
Pre-requisites : Senior Standing Semester 10
Status of Course: Compulsory

1
 CHAPTER ON E
ENTREPRENEURSHIP A N D FREE BU S IN E S S
ENTERPRISE

⚫ Contents
Definition of Entrepreneur, Entrepreneurship and
Enterprise. Difference between entrepreneur and
entrepreneurship.
Characteristics of an entrepreneur.
Entrepreneur vs. manager relationship
Entrepreneurship vs. Intrapreneurship .
Levels of Entrepreneurial
Development.
Role of entrepreneurship in economic
development. Creativity, Innovation and
Entrepreneurship.
2
The Desire to take up Entrepreneurship as a Career
 1. Entrepreneur, Entrepreneurship and
Enterprise.

1. Entrepreneurship Enterprise
⚫
Entrepreneur
 Is a vision of individual who assumes significant personal and financial
risk to start or expand a business.
An entrepreneur can be described as someone who
• Creates a new business in the face of risk and uncertainty for the purpose of
achieving a profit and growth by identifying opportunities and assembling
the necessary resources to capitalize on them.

• Establish and manage their own business.

• Shifts a resources from areas of low productivity and yield to areas of

higher productivity and yield.

• Organizes and operates business ventures, and assumes the risk for the
business ventures.

• Identifies new products/services or opportunities, 3

 1. Entrepreneur, Entrepreneurship and
Enterprise.

1. Entrepreneurship Enterprise
⚫
Entrepreneur
• Organizes and controls resources to ensure a profit for the business.

• Has the ability and insight to market, produce and finance a service or
product.

•Has financial means or can obtain financing to support the business and are
willing to take calculated risks.

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 Entrepreneur, Entrepreneurship and
Enterprise.

1. Entrepreneurship Enterprise
E⚫ntrepreneu
Essential
r Characteristics of an Entrepreneur
• Confident
• Feel a Sense of Ownership
• Able to Communicate
• Passionate about Learning
• Team Player
• System-Oriented
• Dedicated
• Optimistic
• Leader by Example
• Not Afraid of Risk or Success
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 Entrepreneur, Entrepreneurship and
Enterprise.

1. Entrepreneurship Enterprise
Entrepreneur
• Anyone ,regardless of age, race, gender, color, national
origin, or any other characteristic – can become an
entrepreneur.
.

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 Entrepreneur, Entrepreneurship and
Enterprise.

Entrepreneur 2. Entrepreneurship Enterprise

Costs for Being an entrepreneur

 Works long Class Sessions
 Always concerned about the business
 Needs high energy
 Sacrifices other important aspects of life
 Limited social life
 Not much time with family and friends
 Financial investment

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 Entrepreneur, Entrepreneurship and
Enterprise.

Entrepreneur 2.
Enterprise Entrepreneurship
• Entrepreneurship can be described as a process of action an entrepreneur
undertakes to establish his/ her enterprise. or
• It is the process involved in creating and starting an enterprise.
• It is the ability to create and build something from practically not
existed.
• That is, “entering new or established markets with new or existing
goods and services.”
• Entrepreneurship is characterized by the utilization of a
given opportunity through creativity and innovation.
• Entrepreneurship is a dynamic process of vision, change, and
creation.
• Entrereneurship is the process of creating an opportunity and
pursuing it regardless of the resources currently controlled.

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 Entrepreneur, Entrepreneurship and
Enterprise.

1. 2. Enterprise
Entrepreneur Entrepreneurship
Benefits of Entrepreneurship

The opportunity to:

• Create your own destiny
• Make a difference
• Reach your full potential
• Gain impressive profits
• Contribute to society and to be recognized for your efforts
• Do what you enjoy and to have fun at it

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 Entrepreneur, Entrepreneurship and
Enterprise.

Entrepreneur 2. Entrepreneurship Enterprise

 Some  Some
• Will need to put in long hours
•advantages
You are your own boss disadvantages
• Have to keep up with
• Enjoy the profits from your efforts government rules and
• Sense of superiority in your regulations
business • May have to mark hard
• Flexibility in your work schedule decisions (hiring, firing, etc.)
• Need money to start
• Uncertainty of income
• Risk of losing your entire
investment
• Hard work for long hours
• Lower quality of life until
the business gets established
• High levels of stress
• Complete responsibility 11
 Entrepreneur, Entrepreneurship and
Enterprise.

Entrepreneur 2. Entrepreneurship Enterprise

Ten Deadly Mistakes of Entrepreneurship

1. Management mistakes
2. Lack of experience
3. Poor financial control
4. Weak marketing efforts
5. Failure to develop a strategic plan
6. Uncontrolled growth
7. Poor location
8. Improper inventory control
9. Incorrect pricing
10. Inability to make the “entrepreneurial transition”

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 Entrepreneur, Entrepreneurship and
Enterprise.

Entrepreneur Entrepreneurship 3.Enterpris

e
Enterprise :-

Is the business organization that is formed by the entrepreneur

which provides goods and services, creates jobs, contributes to national
income, exports and overall economic development.

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 Relationship of Entrepreneurship, entrepreneur
and enterprise
• Entrepreneurship is a process (action) and an
entrepreneur is a person (actor) and enterprise is a
business organization.

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 2. Entrepreneur Vs
Intrapreneur
• Entrepreneur is used to describe men and women
who establish and manage their own business.
• Intrapreneur is used to describe an entrepreneur
who does not own his own business but uses his business
and entrepreneurial skills in an existing business or
organization.
• Intrapreneurship is also known as
corporate entrepreneurship or corporate
venturing.
• An intrapreneur thinks like an entrepreneur
seeking out
opportunities, which benefit the corporation.

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 3. Entrepreneur Vs
intraprener
Entrepreneur Intraprenuer

Entrepreneur is employer 1. Intraprener is employee

Independent in operation 2. Depends on the organization
to implement his ideas.

Bears all the risk involved 3. Does not bear all the risk.
in enterprise.

Exhibits higher need 4. May not have high

for achievement. need achievement

Profit is the reward. 5. Attractive salary, promotion &

incentives are the reward.

May not have formal 6. Should have some

qualification. professional or technical
qualification.
Do not have any boundary for 7. He has to operate within
operations. the organisational policies.

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  Reasons for rise of Intrapreneurship
 A rapidly growing number of new and
sophisticated competitors,
 A sense of disbelief in the traditional methods of
corporate management,
 An exodus of some of the best and brightest people
who are leaving corporations to become small-
business entrepreneurs,
 International competition,
 Downsizing of major corporations, and an overall desire
to improve efficiency and productivity.

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 4. Entrepreneur vs.
m anager
 An entrepreneur starts a venture then a manager takes over to
organize and co-ordinate continuous production.
 An entrepreneur is the starter of the enterprise, and the manager is
the controller and cooperator of a day-to-day activities.

 An entrepreneur is being enterprising as long as he starts something

new, then the routine day-to-day management of the business is
passed on to the manager

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 4. Entrepreneur vs. manager relationship

Entrepreneur Manager

• Is involved with the start-up • Runs the business over a long period
of time

An entrepreneur assumes • A manager does not have to bear

financial, and material risks

risks
• Initiates change • Manages by the resources
he currently possesses

• Is his own boss • Follows rules & procedures

• Gets uncertain reward • Gets fixed rewards and salary

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 5. Levels of Entrepreneurial
Development
Level
Two
Level Level
O ne
Three

Level
s
Level Level
Five Four

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 Levels of Entrepreneurial
Development
Level
Two
Level Level
O ne  The Self-Employed
three Mindset/mentalities
 They want more
autonomy.
Level  They want to do things
s their own way.
 And they usually begin by
creating a situation where
Level Level
Four O ne they do the same type of
work they did while being
an employee, but they
figure out how to do it by
themselves and for
themselves.

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 Levels of Entrepreneurial
Development
Level
Two
Level Level
O ne  The Managerial
Three
Perspective

 Those with a managerial

Level outlook are often in a great
s position to succeed as
entrepreneurs, expect for two
big misconceptions that lead
Level Level
five four
to massive problems.

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 Levels of Entrepreneurial
Development
Level
Two
Level Level
O ne
three

 The Attitude of
Owner/Leader
Level
s  This kind of entrepreneur
has created an organization
Level Level
that is more self-sufficient
five four and self- sustaining, and by
doing so has created more
wealth, personal freedom,
and free time.

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 Levels of Entrepreneurial
Development
Level
Two
Level Level
O ne
three

The Entrepreneurial
Investor
Level  a business that generates
s profits, the entrepreneur who
has succeeded this far can
begin to accept another
Level
Level exciting challenge, that of
four
five managing money so that
it works to produce more
money.

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 Levels of Entrepreneurial
Development
Level
Two
Level Level
O ne
Three

The True Entrepreneur

 Having learned new things
Level every step of the way and
s evolved through various
stages of entrepreneurial
Level
accomplishment and insight,
Five Level it is possible to reach the
Four
ultimate goal and realize
one’s dreams in a really life-
changing way.

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 Levels of Entrepreneurial
Development
Level
Two
Level Level
O ne The true entrepreneur
Three
experiences a paradigm shift
that involves a four-step
process of changed thinking:
Level
Idealization
s 1.

2. Visualization
Level 3. Verbalization
Five Level
Four 4. Materialization

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6. Role of entrepreneurship in economic development.

 The following are some of the roles of

entrepreneurship in economic development.
• Increasing the per capita income of the people of
the country.
• Initiating and creating change in the structure of
business in the society. Further growth and increased
output).
• Generation of innovation that leads to the creation of
new
products and services.

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• Improvisation and modification on existing product to
better suit market and customers’ needs.
• Creation of self employment and to cut back the
dependency of potential employment of new workers in
government sectors.
• Streamline of the private sector and encourage the
inclusion of new technology that is less labor dependent.
• Increase in the national outputs which in turn lead to
greater and stronger economic growth.
• Laying the seed bed for creating new entrepreneurs
in various new technologies.
• Acting as a catalyst to nurture intrapreneurs in a
business organization.

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 Social Entrepreneur.
⚫A social entrepreneur is someone who
recognizes a social problem and uses
entrepreneurial principles to organize,
create, and manage a venture to make
social change.
⚫ A social entrepreneur assesses success in
terms of social impact.

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7.The Relationship between Creativity, Innovation
and
Entrepreneurship
1. Creativity is
 The ability to develop new ideas and to discover new
ways of looking at problems and opportunities.

Process:
Existing ideas  Recombination  New ideas.

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 2. Innovation
isis the ability to apply creative solutions to those problems
and opportunities in order to enhance people’s lives or
to enrich society.
 A process of intentional change made to create value
by meeting opportunity and seeking advantage.
 Innovations are new ways to achieve tasks.
 Types of innovations
include: Mechanical— tractors,
cars. Water quality water,
Chemical—pesticides.
Biological—seed varieties.
Managerial— extra pay for
work, overtime.
It is useful to distinguish between process innovations
and product innovation.

Process:-
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 3. Entrepreneurship
Inisturn, entrepreneurship is the result of a disciplined, systematic
process of applying creativity and innovation to needs and opportunities
in the marketplace.
applying creativity and innovation to solve problems and to exploit
opportunities that people face every day.

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33
The Entrepreneurial
Process
⚫The entrepreneurial process has
four distinct phases that include;
 Identify and evaluate the opportunity
 Develop a business plan
 Determine the resources required
 Manage the enterprise
 Building a creativity
⚫ Phase1. Preparation
⚫ Phase 2: Incubation process
⚫ Phase 3: idea generation
or experience,
⚫ Phase 4: Evaluation and
implementation, e.g.
prototypes

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 The Creative
Process
Preparation Investigation Transformation

Incubation Illumination Verificatio

n

Implementation

35 Chapter 2:
 The Creative
Process
Preparation Investigation Transformation

Incubation Illumination Verificatio

n

Implementation

37
Preparatio
n⚫Get your mind ready for creative
thinking.
◦ Adopt the attitude of a lifelong student.
◦ Read … a lot…and not just in your field
of expertise.
◦ Clip articles of interest to you and file
them.
◦ Take time to discuss your ideas with
other people.

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Preparation
 Getyour mind ready for creative
thinking.
◦ Join professional or trade associations and
attend their meetings.
◦ Study other countries and their cultures and
travel.
◦ Develop your listening skills.
◦ Eliminate creative distractions.

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 The Creative
Process
Preparation Investigation Transformation

Incubation Illumination Verificatio

n

Implementation

40
 The Creative
Process
Preparation Investigation Transformation

Incubation Illumination Verificatio

n

Implementation

41
Transformation
Involves viewing both the similarities
and the differences among the
information collected.
 Two types of thinking required:
◦ Convergent – the ability to see the similarities
and the connections among various and often
diverse data and events.
◦ Divergent – the ability to see the differences
among various data and events.

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Transformation
How can you transform information
into purposeful ideas?
◦ Grasp the “big picture” by looking for patterns
that emerge.
◦ Rearrange the elements of the situation.
◦ Use synaptic, taking two seeming nonsensical
ideas and combining them.
◦ Remember that several approaches can be
successful. If one fails, jump to
another.

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 The Creative Process

Preparation Investigation Transformation

Incubation Illumination Verificatio

n

Implementation

44
Incubation
Allow your subconscious to reflect on the
information collected.
◦ Walk away from the situation.
◦ Take the time to daydream.
◦ Relax – and play – regularly.
◦ Dream about the problem or opportunity.
◦ Work on it in a different environment.

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 The Creative
Process
Preparation Investigation Transformation

Incubation Illumination Verificatio

n

Implementation

46
 The Creative Process

Preparation Investigation Transformation

Incubation Illumination Verification

Implementation

47
 Verification
 Validate the idea as accurate and useful.
◦ Is it really a better solution?
◦ Will it work?
◦ Is there a need for it?
◦ If so, what is the best application of this idea in the
marketplace?
◦ Does this product or service fit into our
core competencies?
◦ How much will it cost to produce or to
provide?
◦ Can we sell it at a reasonable price?

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 The Creative
Process
Preparation Investigation Transformation

Incubation Illumination Verificatio

n

Implementation

49
  Techniques for Improving the
Creative Process
 Brainstorming
◦ Goal is to create a large quantity of novel and
imaginative ideas.

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Brainstorming
Guidelines
 Keep the group small – ―Two pizza rule.‖
 Make the group as diverse as possible.
 Company rank is irrelevant.
 Have a well-defined problem, but don’t reveal
it ahead of time.
 Limit the session to 40 to 60 minutes.
 Take a field trip.
 Appoint a recorder.

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Barriers to Creativity
Searching for the one
―right‖ answer
Focusing on ―being
logical‖ Blindly following
the rules Fearing looking
foolish Fearing mistakes
and failure
Believing that ―I’m not
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 Quiz 1

1 Give brief description about Entrepreneur,

Entrepreneurship and Enterprise.
2 Discuss about difference between entrepreneur
and entrepreneurship.
3 List characteristics of an entrepreneur.
4 Discuss about Creativity, Innovation and
Entrepreneurship
5 List and discuss Levels of Entrepreneurial
Development