L1_Introduction.pptx

T R O D U C T I O N T O IN T R E P R E N E U RS H EN IP WHAT IS ENTREPRENEURSHI P? ‘Entreprendre’ = French = “to do something” or “to undertake” WHAT IS ENTREPRENEURSHI P? entrepreneurship is the science of converting processed ideas into a remarkable bu...

T R O D U C T I O N T O IN T R E P R E N E U RS H EN IP WHAT IS ENTREPRENEURSHI P? ‘Entreprendre’ = French = “to do something” or “to undertake” WHAT IS ENTREPRENEURSHI P? entrepreneurship is the science of converting processed ideas into a remarkable business venture. It Refers to the economic activity of a person who starts, manages and ENTREPRENEURSHIPS PLAYS A VERY IMPORTANT ROLE IN THE ECONOMIC GROWTH OF A ✔IT CREATES COUNTRY. OPPORTUNITIES ✔NEW PRODUCTS, AND TECHNOLOGIES AND........ALSO ✔ESTABLISHES INDUSTRIAL LINKAGES ✔IMPROVE FOREIGN EXCHANGE RATES ✔SUPPLY THE ECONOMY WITH GOODS AND SERVICES THAT ANSWER THE CUSTOMERS' NEEDS AND WANTS. WHO IS A BUSINESSMAN? WHO IS AN ENTREPRENEUR? is an individual who operates is an individual who has an or starts a business with the exclusive idea to initiate and same old business idea. establish a new venture and bring chooses to do business that a change in the world. is high in demand or give him An entrepreneur is highly creative maximum profits in return. and innovative, takes a risk and endures the unpredictability of business. WHY BE AN ENTREPRENEUR? The biggest reward of becoming an entrepreneur is the personal satisfaction that comes from having the freedom to make your own business decisions and then act on them.  SOME MODERN DEFINITIONS SCOTT SHANE (CASE WESTERN) – “ENTREPRENEURSHIP IS AN ACTIVITY THAT INVOLVES THE DISCOVERY, EVALUATION AND EXPLOITATION OF OPPORTUNITIES TO INTRODUCE NEW GOODS AND SERVICES, WAYS OF ORGANIZING, MARKETS, PROCESSES, AND NEW MATERIALS THROUGH ORGANIZING EFFORTS THAT PREVIOUSLY HAD NOT EXISTED.”  SOME MODERN DEFINITIONS HOWARD STEVENSON (HARVARD) – “.. THE PURSUIT OF OPPORTUNITY WITHOUT REGARD TO RESOURCES CURRENTLY CONTROLLED.” W. Gibb Dyer, Jr. (BYU) – “The founding of new businesses is the essence of entrepreneurial activity.”  SOME MODERN DEFINITIONS RICHARD CANTILLON (1697- 1734) ⮚ THE ENTREPRENEUR IS A SPECIALIST IN TAKING ON RISK. ⮚ He “insures” workers by buying their products (or labor services) for resale before consumers have indicated how much they are willing to pay.  SOME MODERN DEFINITIONS FRANK KNIGHT (1885-1972) ENTREPRENEUR HAS A TWO-FOLD FUNCTION: 1. EXERCISING RESPONSIBLE CONTROL (DIRECTING THE WORK OF OTHERS). 2. SECURING THE OWNERS OF PRODUCTIVE SERVICES AGAINST UNCERTAINTY AND FLUCTUATIONS IN THEIR INCOMES  SOME MODERN DEFINITIONS FRANK KNIGHT (1885-1972) “ENTREPRENEURS DISTINGUISHED BETWEEN RISK, WHICH IS INSURABLE, AND UNCERTAINTY, WHICH IS NOT. UNCERTAINTY INCLUDES THINGS LIKE CHANGES AFFECTING THE MARKETING OF CONSUMER PRODUCTS (E.G., FASHION TRENDS)  SOME MODERN DEFINITIONS JOSEPH SCHUMPETER (1883-1950) IMPLEMENTS CHANGE (‘CREATIVE “ENTREPRENEURS DESTRUCTION’) WITHIN MARKETS THROUGH THE CARRYING OUT OF NEW COMBINATIONS”.  SOME MODERN DEFINITIONS JOSEPH SCHUMPETER (1883- 1950) “THE ENTREPRENEURIAL FUNCTION “DOES NOT ESSENTIALLY CONSIST IN EITHER INVENTING ANYTHING OR OTHERWISE CREATING THE CONDITIONS WHICH THE ENTERPRISE EXPLOITS. IT CONSISTS IN GETTING THINGS DONE.”  SOME MODERN DEFINITIONS ISRAEL KIRZNER ⮚ THE ENTREPRENEUR IS AN ARBITRAGEUR. ⮚ HE OR SHE DISCOVERS PREVIOUSLY UNKNOWN MARKET OPPORTUNITIES. ⮚ KEY CHARACTERISTIC IS ENTREPRENEURIAL “ALERTNESS”  SOME MODERN DEFINITIONS E.E HAGEN THE ENTREPRENEUR IS AN ECONOMIC MAN, WHO TRIES TO MAXIMIZE HIS PROFITS BY INNOVATIONS. GALBRAITH ‘People are poor because they prefer in that way’. An entrepreneur must accept the challenge and should be willing hard to achieve something.