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Entrepreneurship

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Nijaz N
Nijaz N

Entrepreneurship involves identifying opportunities, organizing resources, and taking on risks to start a business venture. An entrepreneur is someone who starts a business by taking on financial, time, and career risks. Key elements of entrepreneurship include the entrepreneur themselves, recognizing opportunities, acquiring resources, organizing the business, and operating within an environment. Entrepreneurs can be innovators who introduce new products/services, or imitators who copy existing ideas. Successful entrepreneurs generally have traits like passion, vision, optimism, flexibility, and a strong work ethic.

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ENTREPRENEURSHIP Prepared By: Nijaz N
ENTREPRENEURSHIP • French Word : Entreprenedre – an undertaker .It also means a person who takes risks to build new enterprise. • A purposeful activity to initiate and develop a profit oriented business. • Is a process of identifying and starting a business venture, sourcing and organizing the required resources and taking both the risks and rewards associated with the venture. • As a career in your own business rather than wage employment [JOB]
Robert Ronstadt ‘s definition for ENTREPRENEURSHIP • Entrepreneurship is the dynamic process of creating incremental wealth. • This wealth is created by individuals who assume the major risks in terms of equity, time and/or career commitment of providing value for some product or service. • The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources.
ENTREPRENEURSHIP by various thinkers • Entrepreneur –Non-insurable Risk Bearer Richard Cantillon • Person with a High need for Achievement David McClleland • Imitates Technologies Developed by Others Kilby • Takes Initiative, Accepts Risk and Has an Internal Locus of controlAlbert Shaperohas • ‘Alertness’ to New Opporunities Kirzner
What is Entrepreneurship ? Entrepreneurship Value Creation Opportunity Identification Resource Organization
What is resources? • Resource is a person, an asset, material or capital that can be used to create value. Types of Resources Physical Resources Reputational Resources Organizational Resources Financial Resources Human Resources & Capabilities Technological Resources & Capabilities
Types of Resources Physical Resources • Tangible in nature, such as machines, buildings. • These are either man- made or natural • 2 types of Natural Resources • a) Biotic :- Which are obtained from biosphere such as forests, animals, birds etc. • b) Abiotic :- Which are non-living in nature such as land, water, air minerals (gold, iron ,copper) Reputational Resources • Derived from the public perception of your venture that gets recognized by things such as brand, person behind business & values of an entrepreneur. Organizational Resources • Approach towards planning, organizing, controlling, and directing business affairs. • Refers to company’s reporting systems, hierarchy, information flow, decision making etc.
Types of Resources Financial Resources • Refers to the abilities of a business to generate internal funds and external capital. • Human Resources & Capabilities • The knowledge, experience, exposure, trust and talents available within a firm are vital resources for creation of value and competitive advantage. Technological Resources & Capabilities • These are processes and systems to physically transform resources into products & services
Who is an Entrepreneur? • Richard Cantillon (1725): “ An entrepreneur is a person who undertakes to do a job ”. • Adam Smith : “An entrepreneur is a person who acts as agent in transforming demand into supply.” • Jean Babtiste : “An entrepreneur is a person who shifts resources from an area of low productivity to high productivity.” • An entrepreneur is a person who starts an enterprise. He searches for change and responds to it. • The economists view him as a fourth factor of production along with land ,labour and capital.
Who is an Entrepreneur? • Peter Drucker (1964): An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource. • Kilby (1971): Emphasizes the role of an imitator entrepreneur who does not innovate but imitates technologies innovated by others. Are very important in developing economies. • Albert Shapero (1975 ): Entrepreneurs take initiative, accept risk of failure and have an internal locus of control.
Entrepreneur? • Own Boss • Make own plans • Creative activity • Can be negative sometimes, • Generally surplus • Creates Wealth, contributes to • Can choose from- – Industry – Trade or – Service Enterprise
The Key Elements of Entrepreneur The Entrepreneur Opportunity Resources Organization Recognizes Evaluates Exploits Builds Manages Attracts Combines Focus Configuration Fit Environment Environment Environment
The Entrepreneur • Need at least one motivated person. • Factors influencing entrepreneurs to be exploited :  Active Search for Opportunities  Entrepreneurial Alertness : As a propensity to notice & be sensitive to information about objects, incidents and patterns of behavior.  Prior Knowledge : People tend to notice information that is related to information they already know.  Social Networks :Connection to social relationship Opportunity • A situation in which a new product, service or process can be introduced and sold at greater than its cost of production. • Market Pulled Opportunities : Identify the needs, interests & Problems. • Market Pushed Opportunities : Identify resources that are not optimally used, and then seek a better use or combination of these in a specific market. The Key Elements of Entrepreneur
Resources • Is any thing or quality that is useful. Organization • Can focus on start-up, franchisee, joint ventures, business acquisition. Environment • Entrepreneurs operate in an environment that can be more or less rich in opportunities and where several conditions influence the pursuit of these opportunities. • Two levels of environment • Community Level : Entrepreneurs trying to create business ventures in a population with high density will find more opportunities for acquiring effective knowledge and creating extensive social networks. • Societal Level : Two aspects shape the norms (1) Cultural norms & Values; (2) Government activities & policies. The Key Elements of Entrepreneur
Types of Entrepreneurs Innovating Entrepreneur • Who introduces new goods, inaugurates new method of production, discovers new market & reorganizes the enterprise Imitative Entrepreneur • Characterized by readiness to adopt successful innovations inaugurated by successful innovating entrepreneur. Fabian Entrepreneur • Are characterized by very great caution and skepticism in experimenting any change in their enterprise. Drone Entrepreneur • Are characterized by refusal to adopt opportunities to make changes in production formulae even at the cost of severely reduced returns.
Types of Entrepreneurs Nascent Entrepreneur • Is an individual who is in the process of starting a new business. Novice Entrepreneur • Is an individual who has no prior business ownership experience as a business founder, inheritor of a business or a purchaser of a business. Habitual Entrepreneur • Is an individual who has prior business ownership experience. Serial Entrepreneur • Is an individual who has sold or closed an original business, established another new business, sold or closed that business & continuous this cycle Portfolio Entrepreneur • Is an individual who retains an original business and builds a portfolio of additional businesses through inheriting, establishing or purchasing them.
Traits of an Entrepreneur • Visionary & Dreamer • Optimistic • Passionate • Flexible and able to adapt • Good networker & relation builder • Good Communicator • Able to get along well with others • Energetic, Sharp and intelligent • Self-Confident & Self –Disciplined • Resourceful • Decision- Maker • Impatient • Goal-Oriented • Achievement –Oriented • Has a foresight • Responsive to criticism • Takes initiatives. • Responsible • Opportunist • Efficient • Dynamic Leader • Eager to learn • Good Executor
Traits of an Entrepreneur (D’s & F’s) • Dream • Determined • Details • Dollar (Rupee, in our case) • Decision • Doer ("when you want something done get a doer") • Distribute • Destiny • Devotion • Dedication • Founder • Faith • Focused • Frugal (Avoiding waste) • Fast • Fun • Flexible • Forever Improving
Entrepreneur Traits Entrepreneurship Risk Taking Need for Achievement Locus of Control
Entrepreneur Traits Need for Achievement 1. Intense desire for & focus on significant accomplishment and mastering of skills. 2. Include patient, persistent and repeated efforts to accomplish something difficult. 3. Prefer to work hard on a problem rather than leave it to chance or fate Risk Taking 1. Inbuilt imperative for an entrepreneur. 2. 3 types a) Risk that can measured statistically, b) Risk that cannot be measured statistically, & c) Risk that cannot be predicted statistically. Locus of Control 1. Internal locus of control believe and have a faith that they able to control life events and the future depends upon their own efforts. 2. External locus of control believe that happenings in their life are the outcome of external factors, such as chance, people luck or fate. They have a firm belief that it is outside forces govern and affect their ability to achieve predetermined goals.

More Related Content

Entrepreneurship

  • 2. ENTREPRENEURSHIP • French Word : Entreprenedre – an undertaker .It also means a person who takes risks to build new enterprise. • A purposeful activity to initiate and develop a profit oriented business. • Is a process of identifying and starting a business venture, sourcing and organizing the required resources and taking both the risks and rewards associated with the venture. • As a career in your own business rather than wage employment [JOB]
  • 3. Robert Ronstadt ‘s definition for ENTREPRENEURSHIP • Entrepreneurship is the dynamic process of creating incremental wealth. • This wealth is created by individuals who assume the major risks in terms of equity, time and/or career commitment of providing value for some product or service. • The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources.
  • 4. ENTREPRENEURSHIP by various thinkers • Entrepreneur –Non-insurable Risk Bearer Richard Cantillon • Person with a High need for Achievement David McClleland • Imitates Technologies Developed by Others Kilby • Takes Initiative, Accepts Risk and Has an Internal Locus of controlAlbert Shaperohas • ‘Alertness’ to New Opporunities Kirzner
  • 5. What is Entrepreneurship ? Entrepreneurship Value Creation Opportunity Identification Resource Organization
  • 6. What is resources? • Resource is a person, an asset, material or capital that can be used to create value. Types of Resources Physical Resources Reputational Resources Organizational Resources Financial Resources Human Resources & Capabilities Technological Resources & Capabilities
  • 7. Types of Resources Physical Resources • Tangible in nature, such as machines, buildings. • These are either man- made or natural • 2 types of Natural Resources • a) Biotic :- Which are obtained from biosphere such as forests, animals, birds etc. • b) Abiotic :- Which are non-living in nature such as land, water, air minerals (gold, iron ,copper) Reputational Resources • Derived from the public perception of your venture that gets recognized by things such as brand, person behind business & values of an entrepreneur. Organizational Resources • Approach towards planning, organizing, controlling, and directing business affairs. • Refers to company’s reporting systems, hierarchy, information flow, decision making etc.
  • 8. Types of Resources Financial Resources • Refers to the abilities of a business to generate internal funds and external capital. • Human Resources & Capabilities • The knowledge, experience, exposure, trust and talents available within a firm are vital resources for creation of value and competitive advantage. Technological Resources & Capabilities • These are processes and systems to physically transform resources into products & services
  • 9. Who is an Entrepreneur? • Richard Cantillon (1725): “ An entrepreneur is a person who undertakes to do a job ”. • Adam Smith : “An entrepreneur is a person who acts as agent in transforming demand into supply.” • Jean Babtiste : “An entrepreneur is a person who shifts resources from an area of low productivity to high productivity.” • An entrepreneur is a person who starts an enterprise. He searches for change and responds to it. • The economists view him as a fourth factor of production along with land ,labour and capital.
  • 10. Who is an Entrepreneur? • Peter Drucker (1964): An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource. • Kilby (1971): Emphasizes the role of an imitator entrepreneur who does not innovate but imitates technologies innovated by others. Are very important in developing economies. • Albert Shapero (1975 ): Entrepreneurs take initiative, accept risk of failure and have an internal locus of control.
  • 11. Entrepreneur? • Own Boss • Make own plans • Creative activity • Can be negative sometimes, • Generally surplus • Creates Wealth, contributes to • Can choose from- – Industry – Trade or – Service Enterprise
  • 12. The Key Elements of Entrepreneur The Entrepreneur Opportunity Resources Organization Recognizes Evaluates Exploits Builds Manages Attracts Combines Focus Configuration Fit Environment Environment Environment
  • 13. The Entrepreneur • Need at least one motivated person. • Factors influencing entrepreneurs to be exploited :  Active Search for Opportunities  Entrepreneurial Alertness : As a propensity to notice & be sensitive to information about objects, incidents and patterns of behavior.  Prior Knowledge : People tend to notice information that is related to information they already know.  Social Networks :Connection to social relationship Opportunity • A situation in which a new product, service or process can be introduced and sold at greater than its cost of production. • Market Pulled Opportunities : Identify the needs, interests & Problems. • Market Pushed Opportunities : Identify resources that are not optimally used, and then seek a better use or combination of these in a specific market. The Key Elements of Entrepreneur
  • 14. Resources • Is any thing or quality that is useful. Organization • Can focus on start-up, franchisee, joint ventures, business acquisition. Environment • Entrepreneurs operate in an environment that can be more or less rich in opportunities and where several conditions influence the pursuit of these opportunities. • Two levels of environment • Community Level : Entrepreneurs trying to create business ventures in a population with high density will find more opportunities for acquiring effective knowledge and creating extensive social networks. • Societal Level : Two aspects shape the norms (1) Cultural norms & Values; (2) Government activities & policies. The Key Elements of Entrepreneur
  • 15. Types of Entrepreneurs Innovating Entrepreneur • Who introduces new goods, inaugurates new method of production, discovers new market & reorganizes the enterprise Imitative Entrepreneur • Characterized by readiness to adopt successful innovations inaugurated by successful innovating entrepreneur. Fabian Entrepreneur • Are characterized by very great caution and skepticism in experimenting any change in their enterprise. Drone Entrepreneur • Are characterized by refusal to adopt opportunities to make changes in production formulae even at the cost of severely reduced returns.
  • 16. Types of Entrepreneurs Nascent Entrepreneur • Is an individual who is in the process of starting a new business. Novice Entrepreneur • Is an individual who has no prior business ownership experience as a business founder, inheritor of a business or a purchaser of a business. Habitual Entrepreneur • Is an individual who has prior business ownership experience. Serial Entrepreneur • Is an individual who has sold or closed an original business, established another new business, sold or closed that business & continuous this cycle Portfolio Entrepreneur • Is an individual who retains an original business and builds a portfolio of additional businesses through inheriting, establishing or purchasing them.
  • 17. Traits of an Entrepreneur • Visionary & Dreamer • Optimistic • Passionate • Flexible and able to adapt • Good networker & relation builder • Good Communicator • Able to get along well with others • Energetic, Sharp and intelligent • Self-Confident & Self –Disciplined • Resourceful • Decision- Maker • Impatient • Goal-Oriented • Achievement –Oriented • Has a foresight • Responsive to criticism • Takes initiatives. • Responsible • Opportunist • Efficient • Dynamic Leader • Eager to learn • Good Executor
  • 18. Traits of an Entrepreneur (D’s & F’s) • Dream • Determined • Details • Dollar (Rupee, in our case) • Decision • Doer ("when you want something done get a doer") • Distribute • Destiny • Devotion • Dedication • Founder • Faith • Focused • Frugal (Avoiding waste) • Fast • Fun • Flexible • Forever Improving
  • 19. Entrepreneur Traits Entrepreneurship Risk Taking Need for Achievement Locus of Control
  • 20. Entrepreneur Traits Need for Achievement 1. Intense desire for & focus on significant accomplishment and mastering of skills. 2. Include patient, persistent and repeated efforts to accomplish something difficult. 3. Prefer to work hard on a problem rather than leave it to chance or fate Risk Taking 1. Inbuilt imperative for an entrepreneur. 2. 3 types a) Risk that can measured statistically, b) Risk that cannot be measured statistically, & c) Risk that cannot be predicted statistically. Locus of Control 1. Internal locus of control believe and have a faith that they able to control life events and the future depends upon their own efforts. 2. External locus of control believe that happenings in their life are the outcome of external factors, such as chance, people luck or fate. They have a firm belief that it is outside forces govern and affect their ability to achieve predetermined goals.