Entrepreneurship I PDF

ENTERPRENEURSHIP I ENTERPRENEURSHIP The first appearance of the concept of entrepreneurship dates back to 18th century simply means “a person starts a private business” Afterwards it was describe the desire to start and run a buisness The process of creating something creative or in...

ENTERPRENEURSHIP I ENTERPRENEURSHIP The first appearance of the concept of entrepreneurship dates back to 18th century simply means “a person starts a private business” Afterwards it was describe the desire to start and run a buisness The process of creating something creative or innovative that has a value and represents a risky opportunity by properly exploiting available resources in a manner that maintains its sustainability in order to achieve long term material & moral gains for an existing or new organization (Hala Enaba, 2017) ENTERPRENEURSHIP The sudden success of some companies e.g Facebook,Instagram&TikTok…etc made many think that success is immediate ant entrepreneurship is easy Actually the opposite is the true it’s a long and difficult journey that requires a lot of learning and seriousness COMPONENTS OF THE PROCESS OF ENTREPRENEURSHIP: 1. The creative process 2. Dedication 3. “The more creative the more gain” 4. Taking risks 5. Strategic plan 6. Managing & leadership Monitoring&evaluation The idea for a mobile phone has been an opportunity since the invention of the phones , but it was Motorola that transformed this opportunity into product that has entered all our lives Pioneering ideas usually address problems for customers IMPORTANCE 1.Development of individual skills 2.National economy 3.Fundamental motivation to change culture of society 1.DEVELOPMENT OF INDIVIDUAL SKILLS 1.Independence 2.Opportunities for excellence 3.Profit 4.Confidence & respect in their community 5.Creating other job opportunities 2.NATIONAL ECONOMY 1.Creating wealth 2.Creating new economic activities 3.Improving national income 4.Activation of production 5.Competition with foreign buisness 3.FUNDAMENTAL MOTIVATION TO CHANGE CULTURE OF SOCIETY 1.Creation of jobs 2.Self-employment 3.Reducing level of poverty 4.Improving living conditions TYPES OF ENTERPRISES: 1.Industrial 2.Commercial 3.Service 4.Electronic MISCONCEPTIONS ABOUT SMALL ENTERPRISES AMONG EGYPTIAN YOUTH 1.Technical expertise is the first requirement for the success of a small enterprise 2.The small size is an obstacle for creativity 3.In ability to carry out marketing due to lack of financial resources 4.No marketing plan is needed in a start of any business 5.Women are less capable to manage small buisness ENTERPRENEUR Anyone who can take the risk of venturing with a new idea if there is a great opportunity to make profits with no guarantee that the enterprise will succeed Simply a person that finance, plan, supervise in order to gain profit and financial independence A person who starts with almost nothing, establishes an enterprise and manages it professionally, and takes the risks aiming at making profit & growth  Factor Small enterpriser Entrepreneur Idea of enterprise: Regular or duplicate “copy and rip” New and original Added value: Simple Very high Risk: Low Very high Realised income: Reasonable A wealth Effect of good or services on humanity: Minor Major Ongoing income that satisfy owner and Wealth enterprise aims to generate: Great and lasting wealth is better than job Made during lifetime of owner, takes a Made by entrepreneur and requires short The speed of making wealth: long time time (5-10 years) Creativity and innovation: Not found Very high Competitive advantage: Simple Very high Example: Restaurants, clothing factory Facebook, Google Number of jobs created: Relatively small Exceeds thousands Impact on national economy: Minimal Huge Image of owner: Ordinary person Hero  Entrepreneur Manager Technician Description: Creates work Manages work Does the work himself Source of happiness: Control& Leadership Order& Organization Work Type of enterprise: Dream, lives in future System, lives in past Work, lives in present Action with mystery: Deals better with it Deals cautiously Hates uncertainty Organize alternatives created by Type of his work: Creates alternatives entrepreneur One way to do work Role: Always thinks Always organizes Always works Has a dream Grumbles Examines No creation without him No enterprise without him Work not done without him Creates harmony out of chaos Organizes interrelated jobs One job at time Thinking: Thinks to create&imagine Thinks in solving problems Thinking is waste of time Events: Considers them opportunities Considers them problems Does not trust workmates Controlling: Controls people&events Controls the system Controls work CHARACTERISTICS & SPECIAL TRAITS OF THE ENTREPRENEUR 1.Technical competence 2.Mental ability 3.Human relations CHARACTERISTICS & SPECIAL TRAITS OF THE ENTREPRENEUR 4.High achiever A.Persistence B.Avoiding doing what is below standards C.Gathering & understanding information D.Concerned about future CHARACTERISTICS & SPECIAL TRAITS OF THE ENTREPRENEUR 5.Independence 6.Curiosity 7.Risk taking CHARACTERISTICS & SPECIAL TRAITS OF THE ENTREPRENEUR 8.Persistence 9.Non-conformism 10.Self actualization(Maslow identifies a group of characteristics that distinguish those who achieve self actualization) 10.SELF ACTUALIZATION CHARACTERISTICS A.Perceive reality efficiently B.Problem centered(not sel centered) C.Highly creative D.Concerned with welfare of humanity E.Democratic attitude F.Strong moral / ethical standards. 11.CREATIVITY (A)Originality (B)Intellectual fluency (C)Flexibility (D)Sensitivity to problems (E)Maintaining direction CHARACTERISTICS & SPECIAL TRAITS OF THE ENTREPRENEUR 12.Making use of the experience of others ENTERPRENEURSHIP II WHAT IS THE BENEFITS OF AN ENTERPRISE FOR THE ENTERPRENEUR 1. Independence 2. Financial gains 3. Community service 4. Job security 5. Family employment 6. Solving challenges COMMON PROBLEMS OF AN ENTERPRISE 1. Sales fluctuation 2. Competition 3. Increased responsibilities 4. Financial losses 5. Relation with employees 6. Laws & regulations 7. Risk of failure IMPORTANT METHODS TO START UP AN ENTREPRENEURSHIP 1.Joining business incubator 2.Acquiring a franchise 3.Purchase an existing enterprise 4.International business 5.E- business 1.JOINING BUSINESS INCUBATOR Business incubator provides appropriately equipped production & administration units for a rental value ( 3 years) “incubation period” Types of business incubators: 1. General non-technology 2. Technology based 3. International business 4. Internet incubators 2.ACQUIRING A FRANCHISE Benefits 1. Right to use famous trade mark 2. Benefit of the success of the trademark 3. Extensive training 4. Technical support 5. Marketing 3.PURCHASE AN EXISTING ENTERPRISE Advantages Disadvantages Saving time,money,effort. Inconvenience of location. Minimizing risks. Aging of equipments and products. Wining enterprise at reasonable price. Overpriced purchase. Advantage of good reputation. Bad reputation. 5.E- BUSINESS Benefits of electronic business: 1.Large market 2.Lower cost 3.Fewer requirement 4.Less time GENERATING THE ENTREPRENEURIAL IDEA CRITERIA TO MAKE A NEW IDEA 1.Market factors 2.Competitive advantage 3.Economic viability 4.Enthusiasm & persistance 5.Possibility of turning into business model SOURCES OF IDEAS 1.Idea close to hands 2.Listen to people 3.An item needs to be fulfilled MECHANISM FOR CRYSTALLIZING IDEAS TECNIQUES TO DEVELOP THE ABILITY TO GENERATE CREATIVE IDEAS 1.Mind mapping 2.Brainstorming 3.Six thinking hats ticnique 4.Canvas business model 1.MIND MAPPING https://www.academia.ed u/42863502/The_Mind_M ap_Book_Tony_Buzan 2. BRAIN STORMING 3.SIX THINKING HATS TECHNIQUE 4.CANVAS BUSINESS MODEL STRATEGIC PLAN STRATEGIC PLAN Official written document to clarify the details of the proposed enterprise and a roadmap to show his/her way BENEFITS OF A PLAN 1.Clear future vision 2.Generating consumer driven ideas 3.Specific 4.Focusing on achieving results 5.Responsibility for the management CONTENTS OF A PLAN 1.Summary 2.General description 3.Marketing 4.Research 5.Manufacturing 6.Management CONTENTS OF A PLAN 7.Risk degrees & types 8.Planning and forecasting 9.Mission A.Enterprise name B.Enterprise slogan C.Written mission 10.Appendices ENTERPRENEURSHIP III ESTABLISHMENT AND PREPARATION ESTABLISHMENT DECISIONS 1.Regulatory laws :it is important for the entrepreneur to be fully aware of the laws related to the field of business e.g investment law, income tax law, value added tax law…etc 2.Documents for startup a business: A.Required documents e.g IDs,contract,electricity bill…etc B.Issued documents e.g TAX ID,import license, bank form….etc ESTABLISHMENT DECISIONS 3.Procedures provided for enterprise establishment: A.Getting TAX ID B.Registration with chamber of commerce C.Getting import license D.Importation procedures ESTABLISHMENT DECISIONS 4. Decisions needed for aquining resources: A. Fund raising B. Finding a venue C. Hiring necessary workforce D. Providing operation requirements E. Going online DECISIONS FOR LAUNCH 1. Preparing for the venue. 2. Interior design 3. Prelaunch testing 4. Organizing launch event PROFESSIONAL MANAGEMENT PROFESSIONAL MANAGEMENT 1.Planning the work A.Being aware of the chances B.Setting goals C.Impact of the surrounding environment D.Internal potential E.Alternative plans F.Setting a budget PROFESSIONAL MANAGEMENT 2.Organizing the relation between personnel A.Job description B.Departmentalization C.Delegation of authority PROFESSIONAL MANAGEMENT 3.Leadership and directing 4.Control WHAT TO KNOW ABOUT MARKETING? 1. What is marketing ? 2. What is Market? 3. Who is the customer? 4. Marketing ethos 1. WHAT IS MARKETING ? Marketing is not just a job but a whole philosophy which leads a product to meet the desires of clients. The Marketing package contains 4 Ps 1. Product 2. Places 3. Promotion 4. Pricing 3.WHO IS THE CUSTOMER? 1.Who is likely to buy product? 2.Who are the competitors? 3.How big is the market? 4. MARKETING ETHOS For the owner of the enterprise to succeed and avoid any negative aspects he must be convinced of the importance of marketing,adopting a marketing philosophy means a guide for him to achieve his/her goal and finally set a profit. PHASES OF AN ENTERPRISE 1.Experimentation 2.Launching 3.Slow down 4.Maturity 5.Decline period HOW TO MOVE FROM AN ENTREPRENEUR TO PROFESSIONAL MANAGER Success and growth depend on the ability of the owner to successfully manage the transition which mainly depends on malleability of the entrepreneur in changing his management style from concentrating on innovation,creativity & risk taking to planning & organization. CHARACTERISTICS THAT MUST BE AVOIDED TO BE A PROFESSIONAL MANAGER 1.Preferring to have control over all decisions 2.Relying on one or two individuals 3.Not interested in training his employees 4.Operating in routine like atmosphere