What is Entrepreneurship?

•The process of designing, launching and running a

new business.
• The capacity and willingness to develop, organize
and manage a business venture along with any of its
risks in order to make profit.
• Entrepreneurship: It is a philosophy or
process through which an entrepreneur
seeks innovation and employment.

Entrepreneur Entrepreneurship Enterprise

Person Process or Philosophy Object

Entre – enter Pre – before Neur – Nerve

Centre
Entrepreneurship can be described as a creative
and innovative response to the environment.
 Why
e n e u rsh ip?
E n t re pr
• Being your Own Boss
– Self-management is the motivation that drives many
entrepreneurs.
• Financial Success
– Entrepreneurs are wealth creators.
• Job Security
– Over the past ten years, large companies have
eliminated more jobs than they have created.
• Quality of Life
– Starting a business gives the founder some choice
over when, where, and how to work.
 n e u r s h i
r e
E n tre p
p
“Is the process of creating
something different with value
by devoting the necessary time
and effort, assuming the
accompanying financial, psychic,
social risks and receiving the
resulting rewards of monetary
and personal satisfaction and
independence”
 The Nature and Development
of Entrepreneurship
Entrepreneur stems from
French Verb Entreprendre
means between – taker or go between

New Definition involves four

aspects:
• The creation process
• The devotion of time and efforts
• The assumption of risks
• Rewards of independence, satisfaction, money.
 d i v i d u a l
To a n I n
• Self Employment
• Employment for near & dear
• Prolonged career for next generations
• Freedom to use own ideas - Innovation
and creativity
• Unlimited income / higher retained income
• Independence
• Satisfaction
 e N a t i o n
To t h
• Provides larger employment
• Results in wider distribution of wealth
• Mobilizes local resources, skills and
savings
• Accelerates the pace of economic
development
• Stimulates innovation & efficiency
 Factors favouring
Entrepreneurship
• Growth of education- science, technology
& management
• Developed infrastructure facilities
• Financial assistance
• Training facilities
• Protective and promotional policies
• Globalization
Think of numerous other factors?
 Who is an Entrepreneur?

An individual who undertakes the

risk associated with creating,
organizing,
and owning a business.

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• Who is an Entrepreneur?
• • An entrepreneur is someone who envisions, creates and
evangelizes an idea that they are absolutely crazy about.

• Someone who looks at life differently. An entrepreneur doesn’t

see the normal obstacles that life puts in our way and shy
away like most of us do. Entrepreneurs think the word “no”
means “to find a better way”. Entrepreneurs are continually
learning growing and reaching higher
• An entrepreneur is a person who seeks a profitable
opportunity and takes the necessary risks to set up and
operate a business.
• Differ from many small-business owners in their strong
desire to make their business grow.
• Differ from managers through their overriding
responsibility to use the resources of the organization to
accomplish their goals.
• Willing to take risks.
 Skills Needed by Successful
Entrepreneurs

•Communication skills
•Human relations skills
•Math skills
•Problem-solving & Decision-making skills
•Technical skills
•Basic Business skills

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 o rie s o f
Categ
r e n e u r s
Entrep

• Classic Entrepreneurs
• Serial Entrepreneurs
• Social Entrepreneurs
 What makes a
Successful
Entrepreneur?
• The urge for achievement
• Determination to win
• Win-Win Personality
• Willingness to take moderate risks
• Ability to identify & explore
opportunities
• Analytical ability to take strategic
decisions
• Perseverance
• Flexibility
• Capacity to plan and organize
• Preparedness to undergo physical and
emotional stress
• Positive self concept
• Future orientation: Vision
• Ethics and Values :Mission
 n b e a n
Wh o c a
r e ne u r ?
Ent r e p
• Who can take moderate risks
• Who has ability to work hard
• Who can capitalize on opportunities
• Who has some financial strength
• Who feels the need for achievement
• Who has desire for responsibility
• Who has perception of probability of success
• Who gets stimulation by feedback
• Who possess skills in organizing
• Who can be male or female
• Who may not have previous experience
 t e r i s t i c s
Ch a r a c
o f an
p r e n e u r
• En t r e
Mental ability • Motivator
• Clear objectives • Self-confident
• Business secrecy • Long term
• H.R. ability involvement
• Communication ability • High energy level
• Technical knowledge • Problem solver
• Achievement-oriented • Initiator
• Perseverance • Goal setter
• Ethical • Risk taker
 e nt s o f
Key e l e m
p r en e u r
e nt r e
• Innovation
• Vision
• Ethics & Values
• Organizing Skills
• Risk taking
• Need for Achievement
Study the Profile of a Successful Entrepreneur and
identify six key elements in order of priority
 Entrepreneur’s Background
and Characteristics
• Family environment
• Education
• Age
• Physical attributes
• Marital status
• Working history
• Family contacts
• Professional contacts
• Personal values
• Lifestyle
 t e ri st i c s o f
C h ar a c
e n e u r s
Entrepr
 ne u r i a l
Entrepre
e ri st i c s
Charact
• Vision - entrepreneurs begin with an overall idea for how to make their
business idea a success
• High Energy Level - a willingness to work hard
• Need to Achieve - entrepreneurs work hard because they want to excel
• Self-Confidence - fearlessness in the face of difficult odds
• Tolerance for Failure - entrepreneurs are not easily discouraged
• Creativity - entrepreneurs devise innovative ways to overcome difficult
problems and situations
• Tolerance for Ambiguity - entrepreneurs take in stride uncertainties.
• Internal Locus of Control - entrepreneurs believe they can control their
own fate
 Entrepreneurship
Entrepreneurship
vs.
Entrepreneur
• The process ofEntrepreneurs
starting • An entrepreneur is an
and running one’s own individual who undertakes
business the risk associated with
• This involves a creating, organizing, and
considerable amount of owning a business.
risk.

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 y P e o ple
Wh
Become
pre n e u rs
Entre
 p s o f th e
5 S te
en e u r i a l
Entre p r
P r o c e s s
• 1. Discovery
• 2. Concept Development
• 3. Resourcing
• 4. Actualization
• 5. Harvesting

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 i s c o v er y
Step 1 : D
• The stage in which the entrepreneur generates
ideas, recognizes opportunities, and studies the
market.

• Entrepreneurs consider the following:

• Hobbies or Skills
• Consumer Needs and Wants
• Conduct Surveys and Questionnaires
• Study Demographics

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 C o n ce p t
Step 2 :
l o p m e n t
De v e

• Entrepreneurs prepare the following in

this step:
• Develop a Business Plan
– A detailed proposal describing the business idea
• Choose Location for the Business
– Is the business online or does it have a physical location for
customers to visit to purchase products, services or
combinations.
• Decide if the idea will need a Patent or Trademark
– Patent –
– Trademark -

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 S te p 3 :
s o u r c i n g
R e
• The stage in which the entrepreneur identifies and
acquires the financial, human, and capital
resources needed for the venture startup, etc.

• Entrepreneurs contemplate the following:

• Identify Potential Investors
• Apply for loans, grants and financial assistance
• Hire employees

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 S te p 4 :
a l i z a ti o n
A ctu
• The stage in which the entrepreneur operates the
business and utilizes resources to achieve its
goals / objectives

• Entrepreneurs prepare for the following:

• Grand Opening of the Business
• Day to Day Operations of the Business

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 S tep 5 :
e s ti n g
Harv
• The stage in which the entrepreneur decides on
venture’s future growth, development, or demise.

• Entrepreneurs consider the following:

• Future Plans for the Business:
– Expansion to additional locations
– Company to change structure

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 iro nm e n t
The Env
for
e u rs h ip
Entrepren
 l i z a t i o n
Gl o b a

The rapid globalization of business has created many

opportunities for entrepreneurs
 c a t i on / I T /
Edu
g r a p h i c &
Demo s
i c T r e n d
E c o nom
Education
• One hundred U.S. colleges and universities offer entrepreneurship majors.
• Universities are helping students launch businesses.
• Many programs teach entrepreneurship to young people.
Information Technology
• Technology has given entrepreneurs tools that help them compete.
• Entrepreneurs have used information technology to revolutionize industries.
Demographic and Economic Trends
• Aging of U.S. population.
• Emergence of Hispanics as nation’s largest ethnic group.
• Growth of two-income families.
 t i n g a
Star
i n e s s
B us
• 1. Develop a Business Plan
• 2. Acquire Finances
• 3. Meet Legal Requirements

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 S ta rti n g A
V e n tu re
New
• Selecting a Business Idea
– Find something you love to do and are good at doing

– Can your idea satisfy a need in the marketplace?

• Entrepreneurs must be sure that the idea they

choose has interest in the marketplace

Business Plan
 C r e a t i ng a
e ss P l a n
Busin
• 58% of the most recent Inc. CEOs did not create a formal written plan.
• But business plans do help entrepreneurs prepare enough resources
and stay focused on key objectives.
 i nanc i ng
Finding F
• Debt Financing
– Credit Cards
– Family and Friends
– Bank Loans (SBA backed)

• Equity Financing
– Venture Capitalists
– Angel Investors