Course Outline

1) Entrepreneurship: an evolving concept

2) Understanding strategic issues in business plan development
3) Understanding strategic issues in business plan development
4) Understanding the entrepreneurial perspective in individuals
5) Entrepreneurial perspective in organizations – corporate
entrepreneurship
6) Social entrepreneurship and the ethical challenges of
entrepreneurship
7) Innovation: the creative pursuit of ideas
8) Pathways to entrepreneurial ventures
Course Outline (Cont…)
9) Legal challenges for entrepreneurial ventures
10) Sources of capital for entrepreneurial ventures
11) Assessment of entrepreneurial plan
12) Marketing challenges for entrepreneurial ventures
13) Financial preparation for entrepreneurial ventures
14) Developing an effective business plan
15) Strategic entrepreneurial growth
16) Valuation of entrepreneurial ventures
17) Harvesting the entrepreneurial venture
Recommended/Reference Books
 Donald F. Koratko, Entrepreneurship – Theory Process
Practice, 8th Ed., Cengage Learning, 2013
 Kawasaki, Guy “The Art of the Start 2: The Time-tested,
Battle-hardened Guide for Anyone Starting Anything”, 2014
 R. Eric, “The LEAN Startup: How Today’s Entrepreneurs Use
Continuous Innovation to Create Radically Successful
Businesses” , 2011
 Spence, John “Awesomely Simple: Essential Business
Strategies for Turning Ideas Into Action”, 2009
 What is an Entrepreneur?
 A person who start and operates a business taking on financial
risk to do so.
 An entrepreneur is one who organizes a new business in the
hopes of making a profit.
 A person who organizes and manages any businesses, usually
with considerable initiative and risk.
 A person who sets up a business or businesses, taking on
financial risks in the hope of profit
 Difference between
Engineering and
Entreprenuership
Engineering Entrepreneurship

A technical professional Entrepreneurial/ business

/engineering skills
management skills

He must be able to integrate So entrepreneur is a person who

business management skills with start and operates a business by
engineering/technical skills using engineering skills with
business management/
entrepreneurial skills.

6
Entrepreneurial/ business management
skills
 New or revised product/ service idea
 Managing business portfolio
 Financial Plan
 Marketing plan
 Advertising, sales
 Distribution channels management
 Leadership skills
 Organizing and Managing People
 Employees compensation and reward
system
 Risk Management
7
Quality management
Entrepreneur and
Entrepreneurship
Entrepreneur Entrepreneurship
Organizer Organization
Decision maker Decision Making
Innovator Innovation
Motivator Motivation
Creator Creation
Leader Leadership
Manager Management
Planner Planning
Communicator Communication
Administrator Administration
Why Study
Entrepreneurship?
 Scientists and engineers who want to lead companies need
to know how to back up ideas with business management/
entrepreneurial skills.
 You will learn the complex business processes involved in
commercialization.
 You learn how to make trade-offs among features, benefits,
price, markets, and business operations.
 You learn how to adapt to uncertainty and change.
 You learn techniques for managing people
Characteristics of
Entrepreneurs
 Desire for responsibility
 Willingness to accept risk
 Confidence in their ability to succeed
 High level of energy
 Future orientation
 Skilled at organizing
 Flexibility
Advantages of Entrepreneurship
(Cont…)
To an Individual
Provides self-employment
Provide employment for others
Provides livelihood for next generations as well
Unlimited income
Independence
Satisfaction
Advantages of Entrepreneurship
To Nation
Provide employment for others and become the source
of employment
Results in wider distribution of wealth
Mobilize local resources like skills and savings
Accelerates the pace of economic development
Stimulate innovation and efficiency
Expectations from an Entrepreneur
An entrepreneur should
 be willing and able to convert a new idea or invention into a
success innovation
 be able to develop new markets of customers and buyers

 discover new sources of materials

 mobilize capital resources (land, machines, buildings,

money, humans)
 introduce new technologies, products and services
13
Distinction between An Entrepreneur
and A Manager
Entrepreneur Manager
An entrepreneur start a business A manager provides his services

An entrepreneur’s objective is to where a manager implements the

establish, innovate and expand a entrepreneur’s plans and ideas
business
An entrepreneur is faced with more A manger confined to a limited
income uncertainties as his income is income with a fix increment percent
contingent on the performance of the after a specified time period
firm
An entrepreneur deals with faults and A manager makes every effort to
failures as a part of learning avoid mistakes
experience
An entrepreneur is the owner of the A manager tried to share risk and
organization and he bears all the uncertainties in all over the
risk and uncertainties organization
An entrepreneur could be a
manager but a manager
cannot be an entrepreneur
Rewards of Being an Entrepreneur
 High degree of independence— freedom from
constraints
 Get to use a variety of skills and talents

 Freedom to make decisions

 Accountable to only yourself

 Opportunity to tackle challenges

 Feeling of achievement and pride

 Potential for greater financial rewards

Deadly Mistakes of
Entrepreneurship
 Management incompetence
 Lack of experience
 Poor financial control
 Failure to develop a strategic plan
 Uncontrolled growth
 Poor location
 Improper inventory control
 Incorrect pricing
 Inability to make the “entrepreneurial transition”
Benefits of Small Business
Ownership
 Create your own destiny
 Make a difference
 Reach your full potential
 Reap unlimited profits
 Contribute to society and be recognized for your
efforts
 Do what you enjoy and have fun at it
Drawbacks of Small Business
Ownership
 Uncertainty of income
 Risk of losing your entire investment
 Long hours and hard work
 Lower quality of life until the business gets
established
 High levels of stress
 Complete responsibility
 Discouragement
Common Myths About Entrepreneurs
Myth 1: Entrepreneurs Are Born Not Made
– This myth is based on the mistaken belief that some
people are genetically predisposed to be entrepreneurs.

– The consensus of many studies is that no one is “born” to

be an entrepreneur; everyone has the potential to become
one.

– Whether someone does or doesn’t become an

entrepreneur, is a function of the environment, life
experiences, and personal choices.
Common Myths About Entrepreneurs
(Cont…)
Myth 2: Entrepreneurs Are Gamblers
– Most entrepreneurs are moderate risk takers.
– The idea that entrepreneurs are gamblers originates from
two sources:
• Entrepreneurs typically have jobs that are less structured, and so
they face a more uncertain set of possibilities than people in
traditional jobs.
• Many entrepreneurs have a strong need to achieve and set
challenging goals, a behavior that is often equated with risk taking.
Common Myths About Entrepreneurs
(Cont…)

Myth 3: Entrepreneurs Are Motivated Primarily by

Money.
– While it is naïve to think that entrepreneurs don’t seek
financial rewards, money is rarely the reason entrepreneurs
start new firms.
– In fact, some entrepreneurs warn that the pursuit of money
can be distracting.
Common Myths About Entrepreneurs
(Cont…)
Myth 4: Entrepreneurs Should Be Young and Energetic.
– The most active age for business ownership is 35 to 45
years old.
– While it is important to be energetic, investors often cite
the strength of the entrepreneur as their most important
criteria in making investment decisions.
• What makes an entrepreneur “strong” in the eyes of an investor is
experience, maturity, a solid reputation, and a track record of
success.
• These criteria favor older rather than younger entrepreneurs.
Economic Impact of Entrepreneurial Firms
 Innovation
– Is the process of creating something new, which is
central to the entrepreneurial process.
– Small firms are twice as innovative per employee as
large firms.

 Job Creation
– In the past two decades, economic activity has moved in
the direction of smaller entrepreneurial firms, which
may be due to their unique ability to innovate and focus
on specialized tasks.
The Entrepreneurial Process
The entrepreneurial process consists of four steps
Step 1: Deciding to become an entrepreneur.
Step 2: Developing successful business ideas.
Step 3: Moving from an idea to an entrepreneurial firm.
Step 4: Managing and growing the entrepreneurial firm.
 Any Question
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