Entrepreneurship Lecture Notes

Entrepreneurship - Lecture Notes

• Entrepreneurship: The activity of starting a business, taking financial risks to make a profit. It's a proactive process of developing a business venture.
• Essential Steps:
  • Seeking market opportunities
  • Establishing and running a business
  • Monitoring operations, assessing risks and rewards
• Relevance:
  • Generates more jobs, increasing national income
  • Fosters economic activity across various sectors.
• Economic Activities:
  • Production: Manufacturing products from raw materials
  • Consumption: Using or utilizing the product
  • Distribution: Supplying products to stores/consumers
  • Exchange: Fair trading among producers/manufacturers
• Products: Anything offered to a market, satisfying needs and wants. Provides utility for individuals.
• Entrepreneurship Improves:
  • People's living standards
  • Economic power distribution, creating equality
  • Local wealth, balancing regional development.
  • Reducing social/political conflicts
  • Promoting economic independence and capital formation
• Entrepreneur Traits:
  • Unique, innate ability and extraordinary dedication.
  • Establishing and managing a business
  • Acknowledging risks and reaping rewards
• Levels of Entrepreneurial Development:
  • Self-employed: Comfortable working independently with flexible schedules.
  • Manager: Takes the lead, develops positions matching business needs.
  • Leader: Supervises workers effectively, focuses on strategic goals.
  • Investor: Seeks opportunities for business growth.
• Key Concepts:
  • Customer: Essential for business existence
  • Supply and Demand: High demand, low supply = high prices; low demand, high supply = low prices.
  • Competition: Rivals offering the best price/quality/service.
  • Sales: Total revenue a business receives from selling goods/services
  • Profit: Revenue exceeding expenses, costs, taxes.
  • Return on Investment (ROI): Evaluates investment efficiency.
• Costs:
  • Fixed Costs: Costs consistent regardless of quantity. -Examples: rent, equipment, salaries
  • Variable Costs: Costs that change. -Examples: water, electric bills, internet, etc.
• Entrepreneur Types:
  • Technopreneurs: Use technology in business models
  • Social Entrepreneurs: Address social problems profitably
  • Intrapreneurs: Develop new ideas within established companies.
  • Extrapreneurs: Act as innovation champions between companies.
• Entrepreneurial Thinking Process:
  • Idealization: Defining the dream and desired environment.
  • Visualization: Creating plans for making the dream a reality
  • Verbalization: Sharing ideas; vision is already emerging
  • Materialization: Vision becomes reality
• Goods and Services:
  • Goods: Manufactured items
  • Services: Actions done for payment