Chapter One The Foundations of Entrepreneurship

Entrepreneurs are simply those who understand that there is a little difference

between obstacle and opportunity and are able to turn both to their advantages.- Niccolo

MachiavelliEntrepreneurs are the new rock stars.-Cindy

Boyd.

What is an Entrepreneur

EntrepreneurOne who creates a new business in the face

of risk and uncertainty for the purpose of achieving profit and growth by identifying

significant opportunities and assembling the necessary resources to capitalize on them.

Entrepreneurial Profile

1. Desire for responsibility.2. Preference for moderate risk.3. Confidence in their ability to succeed.4. Desire for immediate feedback5. High level of energy6. Future orientation.7. Skill at organizing.8. Value of achievement over money.

Entrepreneurial Characteristics

1. High degree of commitment.2. Tolerance for ambiguity3. Flexibility

Type of Entrepreneurs1. Opportunity entrepreneursWho start businesses because they spot an opportunity in the marketplace.2. Necessity entrepreneursWho start businesses because they cannot find work any other way.3. Serial entrepreneursWho repeatedly start businesses and grow them to a sustainable size before striking out again.

The benefits of Entrepreneurship1.Opportunity to create your own destiny.2. Opportunity to make a difference.3. Opportunity to reach your full potential. 4. Opportunity to reap impressive profits.Opportunity to contribute to society and be recognized for your efforts.5. Opportunity to do what you enjoy and fun at it.

The potential drawbacks of Entrepreneurship.

1. Uncertainty of income.2. Risk of losing your entire investment.3. Long hours and hard work.4. Lower quality of life until the business

gets established.5. High levels of stress.6. Complete responsibility.7. Discouragement.

The forces that are driving the growth of Entrepreneurship.

1. Entrepreneurs as heroes.2. Entrepreneurial education.3. Demographic and economy factors.4. Shift to a service economy.5. Technological advancements.6. Independent lifestyle.7. E-commerce and World Wide Web.WWW. The vast

network that link computers around the globe via the Internet and opens up oceans of information to its users and is a major business opportunity for entrepreneurs.

8. International opportunities.

The Cultural Diversity of Entrepreneurship.

1. Young Entrepreneurs.2. Women Entrepreneurs.3. Minority Enterprises.4. Immigrant Entrepreneurs.5. Part time Entrepreneurs6. Home-based Businesses.7. Family Business8. ‘Copreneurs’-are entrepreneurial couples who work together as

co-owners of their businesses.9. Corporate Castoffs.10. Corporate Dropouts.11. Social Entrepreneurs.12. Retiring baby boomers.

Putting failure into perspectiveEntrepreneurs recognize that failure is natural part of the creative process. Successful entrepreneurs have the attitude that failures are simply stepping stones along the path to success, and they refuse to be paralyzed by a fear of failure.

How to avoid the pitfalls1. Know your business in depth.2. Develop a solid business plan.3. Manage financial resources.4. Understand financial statements.5. Learn to manage people effectively.6. Set your business apart from the

competition.7. Maintain a positive attitude ‘can do

attitude’