CHAPTER ONE
Entrepreneurs And Entrepreneurship
what is entrepreneur?
-action-oriented,
-highly motivated individuals
-who take risks to achieve goals
-have the ability to see and evaluate business
opportunities
.
ability to gather the necessary resources to take
advantage of them
thinker and the doer.
sees an opportunity for a new product or service,
a new approach anew policy, or a new way of
solving a historic problem
Entrepreneurial Traits and Competences
Need for achievement- childhood exp., born
Self- Determination- reject influence of chance
Desire for Independence- wish for autonomy
Innovation- assess mkt dd & innovate to meet dd
Willingness to Take Risks-invest money, assume
financial risk, leave secured jobs
Factors Starting a Business
Desire for Independence
Desire to Exploit an Opportunity
Turning a Hobby or Work Experience into a
Business
Financial Incentive
Redundancy
Unemployment (or threat of)
Disagreement With Previous Employer:
4. Importance of Entrepreneurship
- country’s economic development and
technological advancement
- new jobs are generated by small business
- low-paying service
- foster innovation
- government’s income from tax is increased
- import substitution
- exportable products are produced
CHAPTER TWO
Entrepreneurship and Innovation
Creativity:
The ability to bring something new.
It is ability not activity of bringing something new
Innovation: is the process of doing new things.
is the transformation of creative ideas into useful
applications, and creativity is a prerequisite to
innovation.
2.2. The Creative Process
1. Germination-seeding Stage of a new idea
2. Preparation-conscious search for knowledge
3. Incubation- subconscious assimilation of infn.
4. Illumination-Recognition of idea as feasible
5. Verification- Application or test to prove ideas has
value
Conditions Required for Success in Innovation
1. executive leadership position to support strategic
decisions that encourage creativity
2. operational leader to carry out the essential tasks
3. A clear need for the application by sufficient
potential consumers
4. The realization of the product, process, or service
as a useful innovation providing value to society.
5. Good cooperation among the crucial player
6. Availability of resources
7. Cooperation and support from external sources
2.5. Windows and Corridors
A window
is a time horizon during which opportunities exist
before something else happened to eliminate
them.
The corridor
is opportunities evolve from entrepreneurs being
positioned in similar work or having had experience
2.6. Success Factors for Entr.
The Entrepreneurial Team
Venture Products and Services
Marketing and Timing
Business ideology
Chapter Three
Creating and Developing the Business
• Sources of new ideas
1 internal source :
-salesmen
-production personnel
-marketing executives
2 external source:
-customers - competitors
-middlemen - private research
organizations
-inventor - trade
Methods of generating new ideas
Involve everyone in the search for
Ideas
Involve Customers in Your Process
Seek Ideas from New Customer Groups
Involve Suppliers in Product
Ideation
Developing and using a business plan
1.Information needs
Executive Summary: overview of
business
Marketing Strategy: mtds to reach
target mkt
Financial Information: income &
expense
Operational Information: steps in
production
Writing the business plan
A business plan is a comprehensive set of
guidelines for a new venture
also called a feasibility plan that encompasses
the full range of business planning activities
describe where you are, where you want to go,
and how you propose to go there.
Importance of the Business plan
help the owner/manager crystallize
and focus his ideas
help the owner/manager set
objectives
benchmark against which to monitor
performance
attract any external finance needed
emphasizes the strengths and
recognizes the weaknesses of the
proposed venture
Using and implementing business plan
When
-At the start up of a new business
-Business Purchase
-Ongoing
-Major decisions
Who
Managers
Owners
Lenders
Why
-Assessing the feasibility and viability of the
business or project
-Setting objectives and budgets
-Calculating how much money is needed
The Format of a Business Plan
1)Executive Summary
2)Company Description
Promoters, shareholders and Board
Advisors
Products and services
Long Term Aim of Business
Objectives
S.W.O.T. Analysis
3 Market Analysis
Target market
Total market valuation
Targeted share
Market trends
Profile of competitors
Competitive advantage
Benefits to clients
4 Marketing/Sales Strategy
Income sources
Marketing strategy
Pricing
Advertising and Promotion
Sales Strategy
5 Research & Development
- Patents, copyrights and brands -
Product/Service Development -
R&D
6 Staffing and Operations
Management Organization Charts
Staffing
Training Plans
Operations
7 Financial Projections
Key Assumptions
Profit and Loss Accounts
Balance Sheets
Cash flow Projections
8 Sales channel
9 Funding Requirements
10 Appendices
Chapter four
Legal issues for entrepreneurs
- Any business in country is regulated by law
- needs to be aware of rules that affect it.
Intellectual property
- Includes patents, trademarks, copyrights, and
trade secrets represent important assets of
entrepreneur
- refers to products that come from the
creative mind
- Any Innovation, Commercial or Artistic, or
any Unique Name, Symbol, Logo etc
There are four ways to protect these assets:
1. Patents on Inventions
2. Trademarks on Branding Devices
3. Copyrights on Music, Videos,
Patterns, Forms of Expression
4.Trade Secrets for Methods
/Formulas with Economic Value
1 Patents
-A contract between government &
inventor in exchange for disclosure
of invention to make, use & sell it
alone for certain period of time
Utility Patents:
Protect Processes, Machines, etc
Design Patents
designs for Articles of
Manufacture
2 Copyright Laws
- protects the form of
expression of a creator
against copying
- protects works of authorship,
such as writings, dramatic,
music, and works of art
- To stop others from printing,
copying, or publishing
3 Trade Secrets
- Trade secrets are information that
companies keep secret to give them
an advantage over their
competitors
4 Trademark Laws
- protect words, names, symbols,
sounds, or colors that distinguish
goods and services
- A great trademark can help with
the sales of goods and services
Product Safety & Liability
must not Breach Legal Specifications of a Product
must follow the Prescribed Specification
Product Liability Claims Types:
1. Negligence: in Production & Marketing Process
2. Warranty: Exaggerating the Benefits
3. Strict Liability: Defective Products for Sale
4. Misrepresentation: material facts on Labels
Business Insurance
- is the transfer of risk from the
business owner to an insurance provider
- It is a contract (policy) in which an
individual or entity receives financial
protection against losses from an
insurance company.
- It is a cover against any unexpected
risk
Buying Insurance
Price
Coverage Offered
Specialization of the Company
Reputation of the Insurance Company
