Post on 16-Dec-2015
transcript
What is Entrepreneurship ?
• Entrepreneurship is the process of creating something new value by devoting necessary time and effort assuming the accompanying financial, physical, and social risk and uncertainties and receiving the resulting rewards of monitory and personal satisfaction.
Who is Entrepreneur?
An individual who takes initiative to bundle resources in innovative ways and
is willing to bear the risk .
The definition of entrepreneur stresses four basic aspects
Entrepreneurship involves the creation process Entrepreneurship requires the devotion of necessary
time and effort Definition involves rewards of being an entrepreneur
Assuming the necessary risk and uncertainty.
Phases of Entrepreneurial process
Identification and evaluation of opportunity
Development of business plan Determination of required resources Management of resulting enterprise
Identify and evaluate opportunity
Opportunity assessment Creation and length of opportunity
Real and perceived value of opportunity Risk and return of opportunity
Opportunity versus personal skills and goals
Development business plan
Title page Table of content
Executive summery Major section
Description of business Description of industry
Technology plan Marketing plan Financial plan
Resources required
Determine resources needed Determine existing resources Identify resources gaps and
available suppliers Develop access to needed resources
Manage the Enterprise
Develop management style Identify problems and potential
problems Implement control system
Entrepreneurial process
The process of creating something new with value by devoting the necessary time and effort, assuming the accompanying risks
and receiving resulting rewards.
Phases of Entrepreneurial process
Identification and evaluation of opportunity
Development of business plan Determination of required resources Management of resulting enterprise
Identify and evaluate opportunity
Opportunity assessment Creation and length of opportunity
Real and perceived value of opportunity Risk and return of opportunity
Opportunity versus personal skills and goals
Development business plan
Title page Table of content
Executive summery Major section
Description of business Description of industry
Technology plan Marketing plan Financial plan
Resources required
Determine resources needed Determine existing resources Identify resources gaps and
available suppliers Develop access to needed resources
Manage the Enterprise
Develop management style Identify problems and potential
problems Implement control system
Why become entrepreneur?
Entrepreneurs are their own bosses. They make
the decisions. They decide whathours to work, as well as what to pay
and whetherto take vacations.
2. Entrepreneurship offers a greater possibility ofachieving significant financial rewards than workingfor someone else.
3. It provides the ability to be involved in the totaloperation of the business, from concept to designand creation, from sales to business operationsand customer response.
. Freedom of Speech.If I ask you if you have freedom of speech I am sure you will come up with a resounding YES! If you are working a 9-5 job I can assure you this is not true, you have no freedom of
speech!When working a 9-5 job you can’t just talk to your boss anyhow because talking to your boss anyhow can lead to you being fired (Go call your boss a jerk if you don’t believe this!) but as an entrepreneur it doesn’t matter if you are talking to the CEO of one big company or a 12-year-old boy you still have right to the same words, you are simply not afraid of anybody.
1. Causal process
A process that starts with a desired outcome and focuses on the means
to generate that outcome
Example of causal
Imagine a chef assigned the task of cooking dinner there are tow ways the task can be done
The host pick out a menu in advance. All the chef need is to list the ingredients needed , shop for them and then actually
cook meal.It begins with a given menu and focusing on selecting
effective ways to prepare meal.
2. Effectuation process
A process that starts with what one has (who they are , what they know and whom they know) and selects
among possible outcome
Example of effectuation
In this case the host ask the chef to look through the cupboard for possible ingredients and then
cook meal. Here the chef has to imagine possible menu based on the given ingredients , select the
menu and prepare meal.It begins with given ingredients and focuses on preparing one of many possible desirable meals
with them
Entrepreneur mind set
Involve the ability to rapidly sense, act, and mobilize, even under
uncertain conditions
Cognitive adaptability
Describe the extent to which entrepreneur are flexible, self regulating, and engaged in the process of generating multiple decision framework focused on
sensing and processing changes in their environment and acting on
them
Learning from failure
Entrepreneur who have more experience will possess the knowledge to perform more
effectively the roles and tasks necessary for success
Chapter 1(Entrepreneurship and the Entrepreneurial Mindset)
NATURE AND DEVELOPMENT OF ENTREPRENEURSHIP
Entrepreneurial action - Behavior in response to a judgmental decision under uncertainty about a possible opportunity for profit.
HOW ENTREPRENEURS THINK
Causal process– Starts with a desired outcome.– Focuses on the means to generate that outcome.
Effectuation process– Starts with what one has (who they are, what they
know, and whom they know).– Selects among possible outcomes.
Entrepreneurial mind-set involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions.
Cognitive adaptability describes the extent to which entrepreneurs are:
– Dynamic, flexible, self-regulating and engaged in the process of generating multiple decision frameworks focused on sensing and processing changes in their environments and then acting on them.
Entrepreneurs who are able to increase cognitive adaptability have an improved ability to adapt to new situations, be creative, and communicate one’s reasoning behind a particular response.
HOW ENTREPRENEURS THINK
Entrepreneurs who are able to increase cognitive adaptability have an improved ability to:
Adapt to new situations. Be creative. Communicate one’s reasoning behind a particular response.
Learn from business failure
Deal with loss
Achieve emotional recovery
These can allow the entrepreneur to be motivated to try again and improve the next time they start a new venture.
HOW ENTREPRENEURS THINK
Uncertainty, changing conditions, and insufficient experience can contribute to failure among entrepreneurial firms.
An entrepreneur’s motivation is not simply from personal profit but from:
Loyalty to a product. Loyalty to a market and customers. Personal growth. The need to prove oneself.