Lesson 01: Introduction to Entrepreneurship in Tourism & Hospitality PDF

INTRODUCTION TO ENTREPRENEURSHIP LESSON #01 THC 10 – Entrepreneurship in Tourism and Hospitality LEARNING OBJECTIVES: At the end of the lesson, you should able to: discuss the concept of entrepreneurship and its evolution; discuss the relationship between motivation...

INTRODUCTION TO ENTREPRENEURSHIP LESSON #01 THC 10 – Entrepreneurship in Tourism and Hospitality LEARNING OBJECTIVES: At the end of the lesson, you should able to: discuss the concept of entrepreneurship and its evolution; discuss the relationship between motivation and entrepreneurship; identify the key factors affecting entrepreneurial viability; distinguish the myths, legends among entrepreneurs; and identify the challenges facing entrepreneurs. What is ENTREPRENEURSHIP? Entrepreneurship is the art of starting a business, basically a start-up company offering creative product, process or service. Is the act of creating a business or businesses while building and scaling it to generate profit? Basically it gear someone towards self-employment. Ages of Business Failures Generally pertains to engaging in small and medium-sized businesses. In the modern world, entrepreneurship definition is all about transforming the world by solving big problems. Like initiating social change, creating an innovative product, or presenting a new life changing solution. Ages of Business Failures Age of Business Failure Rate Cumulative (Years) (%) (%) Under 1 27.6 27.6 1-2 13.8 41.4 2-3 11.2 52.6 3-4 10.1 62.7 4-5 6.4 69.1 5-10 9.3 78.4 10-20 8.7 87.1 Over 20 12.9 100 Causes of Business Failures Causes % Neglect 3.0 Fraud 1.1 Lack of Technical Expertise 8.5 Lack of Management Expertise 17.4 Lack of Experience 21.2 Incompetence 44.9 Disaster and other reason 3.9 100.0  CONCEPT OF ENTREPRENEURSHIP the term ENTREPRENEURSHIP Entrepreneurship started in France after the French revolution. It was the start of Capitalism and end of Feudalism. The word entrepreneur was coined by Jean Baptiste Say, a renowned French economist. The word entrepreneur originated from the French word entreprende, which means, “To undertake”. It as an individual who shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.  WHO ARE THE ENTREPRENEURS Who are the ENTREPRENEURS? An entrepreneur is a creator or a designer who designs new ideas and business processes according to the market requirements and his/her own passion. To be a successful entrepreneur, it is very important to have managerial skill and strong team building abilities. Leadership attributes are a sign of successful entrepreneurs. Some political economists regard leadership, management ability, and team building skills to be the essential qualities of an entrepreneur. Who are the ENTREPRENEURS? Entrepreneurs take and accept risks Entrepreneurs own ventures Entrepreneurs establish new ventures and develop existing ones Who are the ENTREPRENEURS? Entrepreneurs identify opportunities in the market Entrepreneurs apply their expertise Entrepreneurs process market information Who are the ENTREPRENEURS? Entrepreneurs bring innovation Entrepreneurs maximize investment returns Entrepreneurship provide Leadership  EVOLUTION OF ENTREPRENEURS Renaissance Tradesmen The majority of wealth in the hands of the ruling class, owning one’s own business was a rare sight. The old- world entrepreneurs mostly consisted of merchants and craftsmen. Plenty of merchants created their own business, but a lot of the time the business and connections were handed down generation to generation. Skilled craftsmanship was another family affair, but anyone with the right connections that was lucky enough to land an apprenticeship and succeed at it we’re able to climb the economic ladder a little higher. Colonial Expansion Industrial Revolution 20th Century Information Age WHY MOTIVATION IS REQUIRED? MOTIVATION The term motivation has been derived from the word ‘motive’ which is nothing but what prompts any person to act in a particular manner. Motives are the definition of a person’s goals, dreams and needs. They direct human behaviour to towards achieving their goal. why MOTIVATION is required? Tough Unfavourable Competition Environment Why MOTIVATION is an important factor for Entrepreneurs To create public To enhance creativity Demand & increase productivity what MOTIVATES an ENTREPRENEUR 6C’s that motivate ENTREPRENEURS CHANGE CHALLENGE CREATIVITY CONTROL CURIOSITY CASH What makes the successful ENTREPRENEUR Entrepreneurs are in Good Physical Health Entrepreneurs have Superior Conceptual Abilities Entrepreneurs have the broad thinking of the generalist Entrepreneurs have high self-confidence Entrepreneurs have strong personal drive Entrepreneurs need to control and direct Entrepreneurs have moderate interpersonal skill Entrepreneurs are moderate risk takers Entrepreneurs have a realistic outlook Entrepreneurs have a high degree for emotional stability Entrepreneurs have a low need-level for status. the MYTHS, FEARS, and EXCUSES OF PEOPLE who are not ENTREPRENEURS ❖ Entrepreneurs are born ❖ Entrepreneurs are super human ❖ Entrepreneurs are inventors ❖ Entrepreneurs inherit business traits ❖ Entrepreneurs possess a definite characteristic profile ❖ The gender-difference myths (Men are better entrepreneurs) ❖ Entrepreneurs are academic and social misfits ❖ Entrepreneurs are gamblers and risk takers ❖ Luck and money are the only things needed to become entrepreneurs ❖ Entrepreneurs experience a lot of failures the ADVANTAGES of becoming an ENTREPRENEUR ❖Have the opportunity to create your own destiny ❖Have the opportunity to be financially well-off ❖Have the opportunity of knowing yourself better ❖Have the opportunity to excel, be recognized and contribute to society why do PEOPLE become an ENTREPRENEUR? ❖ To change the world ❖ They don’t want a boss ❖ They want flexible hours ❖ They’re the risk-takers ❖ They don’t fit into corporate environment ❖ They’re curious ❖ They’re ambitious ❖ They’re can’t get a job  “If you don’t build your DREAM someone will hire you to help BUILD THEIRS.” - Tony Gaskins