Entreprenuership Lec1

INTRODUCTION TO
ENTREPRENEURSHIP
By
Dr. Nakato Ruth
What is entrepreneurship?
• One commonly used definition is “the process by which individuals
pursue opportunities without regard to resources they currently
control.”
• Entrepreneurship: The process of recognizing an opportunity, testing
it in the market, and gathering resources necessary to go into
business.
• A process means that is can be repeated analyzed and improved
What is entrepreneurship?
• Entrepreneurship is the process by which individuals pursue

opportunities without regard to the resources they currently control.
• The essence of entrepreneurial behavior is identifying opportunities

and putting useful ideas into practice.
• The set of tasks called for by this behavior can be accomplished by
either an individual or a group and typically requires creativity, drive,
and a willingness to take risks.
Origin of the Word “Entrepreneur”
• The word was originally used to describe people who“take on the

risk” between buyers and sellers or“undertake” a task such as starting
a new venture
Difference Between an Inventor and an Entrepreneur
• An inventor creates something new.

• An entrepreneur puts together all the resources needed—the money,
the people, the strategy, and the risk bearing ability to transform the
invention into a viable business.
Entrepreneurs V. Intrapreneurs
• Entrepreneurs are people that notice opportunities and take the
initiative to mobilize resources to make new goods and services.
• Intrapreneurs also notice opportunities and take initiative to mobilize
resources, however they work in large companies and contribute to
the innovation of the firm.
• Intrapreneurs often become entrepreneurs.

Entrepreneurs Add Value to Scarce Resources
• All resources (land, labor wood, coal,oil, etc.) that cost money are
“scarce.”
• Entrepreneurs add value to scarce resources by shifting them from
areas of lower to higher productivity.
Why Be an Entrepreneur?
• Control over Compensation; Salary, Wage, Dividend &Commission

• Control over time
• Fulfillment
• Creation / Ownership
• Control over Working Conditions
costs and Benefits of Entrepreneurship
Costs Benefits
Business failure Independence

• Obstacles • Satisfaction
• Loneliness • Financial Reward
• Financial Insecurity • Self-Esteem
• Long Hours/Hard Work • Contribution to Society
Sources of Opportunity
• Use new technology to produce a new product.

• Use an existing technology to produce anew product.
• Use an existing technology to produce anold product in a new way.
• Find a new source of (cheaper) resources.
• Develop a new market for an existing product.
5 Roots of Opportunity
• 1.Problems
• 2.Changes
• 3.Inventions
• 4.Competition
• 5.Technological advances
• Where others see problems, entrepreneurs recognize opportunities.
What is an Entrepreneur?
An individual who undertakes the

risk associated with creating, organizing,
and owning a business.
12
Personal Characteristics of
Successful Entrepreneurs
•Persistent •Goal-oriented
•Creative •Independent
•Responsible •Self-confident
•Inquisitive •Risk taker
13
Skills Needed by Successful
Entrepreneurs
•Communication skills
•Human relations skills
•Math skills
•Problem-solving & Decision-making skills
•Technical skills
•Basic Business skills
14
Entrepreneurship and the
Entrepreneurial Process
Understand entrepreneurship
and the entrepreneurial process.
15
Entrepreneurship vs. Entrepreneurs
Entrepreneurship Entrepreneur
• The process of starting • An entrepreneur is an
and running one’s own individual who
business undertakes the risk
• This involves a associated with
considerable amount creating, organizing,
of risk. and owning a
business.
16
5 Steps of the
Entrepreneurial Process
• 1. Discovery
• 2. Concept Development
• 3. Resourcing
• 4. Actualization
• 5. Harvesting
17
Step 1: Discovery
•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
18
Step 2: Concept Development
•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 -
19
Step 3: Resourcing
•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
20
Step 4: Actualization
•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
21
Step 5: Harvesting
•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
22
Thank you

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INTRODUCTION TO

• Entrepreneurship is the process by which individuals pursue

• The essence of entrepreneurial behavior is identifying opportunities

• The word was originally used to describe people who“take on the

• An inventor creates something new.

• Intrapreneurs often become entrepreneurs.

• Control over Compensation; Salary, Wage, Dividend &Commission

Business failure Independence

• Use new technology to produce a new product.

An individual who undertakes the

•Entrepreneurs consider the following:

•Entrepreneurs contemplate the following:

•Entrepreneurs prepare for the following:

•Entrepreneurs consider the following:

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