Entrepreneurship Chapter 1: Introduction and Concepts

Entrepreneurship is a dynamic process undertaken by an entrepreneur to create incremental value by discovering investment opportunities, organizing an enterprise, undertaking risk and there by contributing to economic growth. = Definition 1 Entrepreneurship is the art of turning an idea into a business. = Definition 2 Entrepreneurship is the process of creating something different with value by devoting the necessary time and effort, to get some economic benefit. = Definition 3 From the above definition we can see that entrepreneurship is the function of seeing investment opportunity with managerial functions. = Definition 4

Entrepreneurship = The tendency of a person to organize the business of his own and to run it profitably, using all the qualities of leadership, decisions making and managerial quality. Entrepreneur = A person who organizes and operates a business, taking on greater than normal financial risks in order to do so. Intrapreneur = An employee of a company who is given the freedom and financial support to create new products, services, systems, etc., and does this within the company rather than leaving to start their own business. Role within the economy = The contribution of entrepreneurship to economic growth and development.

Entrepreneurship is an emerging multi-disciplinary course in the field of management. = Statement 1 Entrepreneurship is the tendency of a person to organize the business of his own and to run it profitably, using all the qualities of leadership, decisions making, and managerial quality. = Statement 2 Entrepreneurship is the function of seeing investment opportunity with managerial functions. = Statement 3 Entrepreneurial creativity and innovation = Implication 4

<p>Private Entrepreneur = Individuals or groups operating independently Corporate Employees Entrepreneur = Leaders who can also be Intrapreneurs Social Entrepreneur = Activists working for social benefits through innovation and risk taking Intrapreneur = Employees working within large companies and contributing to innovation</p> Signup and view all the answers

<p>Innovation = Introduction of new products, creation of new markets, application of new production processes Vision = Identifying emerging opportunities Risk taking = Assuming different types of risks such as financial, psychological, and social Organizing = Coordinating resources and creating enterprise</p> Signup and view all the answers

<p>Ancient period = Management of large commercial projects 17th Century = Contractual agreements with the government for stipulated products or services 18th Century = Development of the theory of entrepreneurs as risk takers 20th Century = Establishment of entrepreneurs as innovators</p> Signup and view all the answers

<p>Improving per capita income/wealth generation = Increasing individual income and overall wealth in a population Generating employment opportunities = Creating jobs for individuals within a society Balancing regional development = Ensuring equal economic growth across different regions Maximizing investors’ return = Optimizing financial gains for investment stakeholders</p> Signup and view all the answers

<p>The young professional = Individuals at an early stage of their career The inventor = Individuals with creative ideas or innovative solutions The excluded (e.g., Displaced communities and ethnic and religious minorities) = Marginalized groups facing social or economic challenges Information-seeking = Desire to seek and acquire knowledge pertinent to entrepreneurial pursuits</p> Signup and view all the answers

<p>Opportunity-seeking = Actively searching for potential business prospects Persevering undeterred by uncertainties, risks, obstacles, etc. = Persisting despite challenges and setbacks Demanding for Efficiency and Quality Information-seeking = Seeking high standards and thorough understanding in business operations Goal Setting = Establishing clear objectives and targets for business endeavors</p> Signup and view all the answers

<p>General management skills = Skills required to organize physical and financial resources for a venture People management skills = Skills necessary to properly direct and motivate individuals within an organization Strategy Skills = Ability to understand how a business fits within its market place and deliver value to customers Marketing Skills = Ability to understand customer needs and attraction to firm’s offerings</p> Signup and view all the answers

<p>Communication Skills = An ability to use spoken and written language to express ideas and inform others. Leadership Skills = An ability to inspire people to work in a specific way and to undertake the tasks that are necessary for the success of the venture. Motivation Skills = An ability to enthuse people and get them to give their full commitment to the tasks in hand. Being able to motivate demands an understanding of what drives people and what they expect from their jobs. Delegation Skills = An ability to allocate tasks to different people. Effective delegation involves more than instructing. It demands a full understanding of the skills that people possess how they use them and how they might be developed to fulfill future needs.</p> Signup and view all the answers

<p>Identifying and evaluating business opportunity = New business opportunity may be the result of technological change, market shift, government regulation, or computation. Each opportunity must be carefully screened and evaluated, whether the sources are from customers, business association and or technical people as we are making decision on our time, money, and energy. Developing a business plan = A business plan is a document the entrepreneur prepares before going to the implementation stage. It details every aspect of the business the entrepreneur aspires to establish: description of the business and the marketing, financial, organizational and operational plans necessary for the foundation of the venture. A good business plan is important in developing opportunity and also important in determining the resource required, obtaining those resources and successfully managing the resulting venture. Determining the Resources required = The resource needed for the opportunity must also be assessed. The process started with an appraisal of the entrepreneur’s present resources. Care must be taken not to underestimate the amount and variety of resources needed. An entrepreneur should strive to maintain as large an ownership position as possible, particularly in the start up financing stage. As the business develops, more funds will probably be needed to finance the growth of the venture, requiring more ownership to relinquish. Managing the enterprise = After resources are acquired the entrepreneur must employ them trough implementation of business plan prepared in phase two of the process. These involve implementing a management style and structure, as well as determining the key variable for success. A control system must be identified so that any problem areas can be carefully monitored.</p> Signup and view all the answers

<p>Freedom to work and independence = Entrepreneur is driven by freedom to work independently. Satisfaction of being own boss = Entrepreneur seeks satisfaction in being their own boss. Power to do things as he/she likes = Entrepreneur desires power to do things as they like. Retirement assurance = Entrepreneur seeks retirement assurance through entrepreneurship.</p> Signup and view all the answers

<p>To the Nation = Responsibility includes tax compliance, following rules and regulations, and adding to national wealth. To the Society = Responsibility includes contributing to enterprise survival, growth, profit, company image, and providing employment. To their Business Associates = Responsibility includes using resources properly and fairly, providing employment, minimizing toxic levels, ensuring performance, profit or dividend, future certainty, and fair knowledge of company.</p> Signup and view all the answers

<p>Creativity = The ability to think of new ideas or identify new ways of looking at a problem or opportunities. Innovation = The process by which new ideas are put into practice or implemented at individual or group level; applying creative solutions to problems and opportunities in order to enhance people's lives or enrich society.</p> Signup and view all the answers

<p>Both make decisions = Both are visionary = Both are accountable for their actions = Both work under constraint =</p> Signup and view all the answers