Entrepreneurship and Enterprise.pptx

. • Entrepreneurship and Enterprise development. Chapter one Introduction to Entrepreneurship Chapter objectives After completing this chapter, you should be able to describe ;  Entrepreneurship, Entrepreneur and Intrapreneur.  Role within the economy  Entrepreneurial creativity and innovatio...

. • Entrepreneurship and Enterprise development. Chapter one Introduction to Entrepreneurship Chapter objectives After completing this chapter, you should be able to describe ;  Entrepreneurship, Entrepreneur and Intrapreneur.  Role within the economy  Entrepreneurial creativity and innovation Introduction cont…  Entrepreneurship is an emerging multi-disciplinary course in the field of management.  Is the tendency of person to organize the business of his own and to run it profitably, using all the qualities of leadership, decisions making and managerial quality etc. Definition of Entrepreneurship Like many other field entrepreneurship also has no a single definition as different authors defined it from different perspectives among these; 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. Cont… Entrepreneurship is the art of turning an idea into a business. Entrepreneurship is the process of creating something different with value by devoting the necessary time and effort, to get some economic benefit. From the above definition we can see that entrepreneurship is the function of seeing investment opportunity with managerial functions. ..\..\link\entre.pptx Types of entrepreneurship Private Entrepreneur- and groups  corporate Employees Entrepreneur – leaders ** can be Intrapreneurs.  Social Entrepreneur- activists and considered as Entrepreneurship , Entrepreneur and Intrapreneur • Entrepreneurship is a mindset and practice of looking and acting upon opportunities for economic and or social benefits through innovation and risk taking. • Entrepreneur is any person that continuously seeks and acts upon opportunities for economic and or social gains through applying the principle of creative problem solving. • Intrapreneurs also notice opportunities and take initiative to mobilize resources, however they work in large companies and contribute to the innovation of the firm. 7 The main elements of entrepreneurships are • Innovation: It includes introduction of new products, creation of new markets, application of new process of production, discovery of new and better sources of raw materials and developing a new and better form of industrial organization. • Vision (Identifying emerging opportunities) • Risk taking (Assuming different types of risks; financial, psychological, social) ..\..\link\risk.pptx • Organizing (Coordinating resources and creating enterprise) , ..\..\link\techni.pptx • Optimism - Entrepreneurs are dreamers and believe their ideas are possible, even when they seem unattainable. HISTORICAL ORIGIN OF ENTREPRENEURSHIP  During the ancient period the word entrepreneur was used to refer to a person managing large commercial projects through the resources provided to him.  In the 17th Century a person who has signed a contractual agreement with the government to provide stipulated products or to perform service was considered as entrepreneur.  In this case the contract price is fixed so any resulting profit or loss reflects the effort of the entrepreneur.  In the 18th Century the first theory of entrepreneur has been developed by Richard Cantillon. He said that an entrepreneur is a risk taker. Cont.. In the late 19th and early 20th Century an entrepreneur was viewed from economic perspectives. The entrepreneur organizes and operates an enterprise for personal gain. In the middle of the 20th Century the view of an entrepreneur as an innovator was established. “The function of the entrepreneur is to reform or revolutionize the pattern of production by exploiting an invention or more generally untried technological possibility for producing new commodities or producing an old one in a new way or opening a new outlet for products by reorganizing a new industry.” From the historical development it is possible to understand the fact that the perception of the word entrepreneur was evolved from managing commercial project to the application of innovation (creativity) in the business idea. The roles of entrepreneurship in the economy Entrepreneurs improves per capita income/wealth generation They generates employment opportunities They inspire others towards entrepreneurship They help to balance regional development They enhance the number of enterprise They provide diversity in firms They ensures economic independence They combine economic factors They provide market efficiency They accept risk on behalf of other people They maximize investors’ return Who Becomes an Entrepreneur? Anyone with the following characteristics can be an entrepreneur. The young professional The inventor The excluded e.g., Displaced communities and ethnic and religious minorities Qualities of an entrepreneur 1)Opportunity-seeking 2)Persevering undeterred by uncertainties, risks, obstacles, etc. 3) Risk Taking- taking calculated risk. 4) Demanding for Efficiency and Quality Information-seeking 5)Goal Setting 6)Planning: 7)Persuasion and Networking Persuasion is a way of convincing someone to get something or make a decision in your favor. 8.Building Self-confidence 9)Listening to Others: 10.Demonstrating Leadership Entrepreneurial Skills A skill is simply knowledge which is demonstrated by action. It is an ability to perform in a certain way. An entrepreneur is someone who has a good business idea and can turn that idea into reality. Turning an idea into reality calls upon two sorts of skills, these are: I.General management skills and II.People management skills Con.t I)General Management Skills: These are skills required to organize the physical and financial resources needed to run the venture. Some of the most important general management business skills are: • Strategy Skills – An ability to consider the business as a whole, to understand how it fits within its market place, how it can organize itself to deliver value to its customers, and the ways in which it does this better than its competitors. • Planning Skills – An ability to consider what the future might offer, how it will impact on the business and what needs to be done to prepare for it now. Marketing Skills – An ability to see past the firm’s offerings and their features, to be able to see how they satisfy the customer’s needs and why the customer finds them attractive. Financial Skills – An ability to manage money; to be able to keep track of expenditure and to monitor cash-flow, but also an ability to assess investments in terms of their potential and their risks. Project Management Skills – An ability to organize projects, to set specific objectives, to set schedules and to ensure that the necessary resources are in the right plat of the right time. Time Management Skills – An ability to use time productively, to be able to priorities important jobs and to get things done to schedule. II)People Management Skills Businesses are made by people. A business can only be successful if the people who make it up are properly directed and are committed to make an effort on its behalf. An entrepreneurial venture also needs the support of people from outside the organization such as customers, suppliers and investors. 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 fulfil future needs. Negotiation Skills – An ability to understand what is wanted from a saturations, what is motivating others in that situation and recognize the possibilities of maximizing the outcomes for all parties. The Process of Entrepreneurship The decision about whether to start a new business is best considered in light of an understanding of the entrepreneurial process. 1. 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 2. Develop 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. 3. 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. 4. 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. Why do People Want to Become Entrepreneurs?.. ..\..\link\why u start new b.pptx • Entrepreneur is the one who translates an idea into a feasible business and value, so people want to an entrepreneur by one of the following specific ambitions .  Freedom to work and independence.  Satisfaction of being own boss.  Power to do things as he, she/you likes.  Retirement assurance.  Respect of family and friends.  Challenge: To take risk. People like to take risks to test themselves and to get the happiness after surpassing those risks. Key to Become an Entrepreneur • • • • • • • • Knowledge Manage your time Network Passion Find a mentor Think big Do your research Value existing and potential customers 18 Responsibility of Entrepreneurs To the Nation Tax timely  Follow rules and regulation Adding to the national wealth To the Society To the Enterprise survival and growth profit company image To their Business Associates Using resources properly fairly Employment Minimizing toxic levels performance profit or dividend future certainty fair knowledge of company Creativity vs. Innovation Creativity is the ability to think a new idea. (This includes the ability to rethink an old idea like, to think of a new application for an existing technology). Creativity is the ability to come up with new ideas and to identify new and different ways of looking at a problem and opportunities. • The reason for creativity is;  Need to solve problem  Need to communicate ideas and value  Need for novel, varied and complete inspiration Conti… Innovation is the process by which the new idea is put into practice or implementation of the new ideas at individual or group level. Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance people's lives or to enrich society. So therefore Entrepreneurship = creativity + innovation, with full understanding the environment Entrepreneurs Vs Managers An entrepreneur is different from a manger. But it doesn’t mean that they are entirely different from each other. That means they also have their own intersection points. Similarities  Both make decisions  Both are visionary  Both are accountable for their actions  Both work under constraint  Both perform management functions You should consider the ff in your life • • • • Care more than others think wise. Risk more than others think safe. Dream more than others think practical. Expect more than others think possible it is all about individuals who can see the future with out having nothing on hand today!