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Who is an Entrepreneur? Ship-

process, prise- organ An Entrepreneur is a person who

organizes and manages a businessundertaking, assuming the risk forthe sake of profit. Any person whostarts and operates a business is anentrepreneur.

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Entrepreneur:

Factors of Production

New Venture

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Eras ofEntrepreneur

Earliest period

Middle ages

17th century

18th century

19th

and 20th

century

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17th Century

Undertakers

Contracters

Eg. Soliders of fortune

Adventurers

Builders

Merchants Funeral directors

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18th Century

Richargs Cotillion

Entrepreneur Governments

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19th and 20th Century

Entrepreneur Manager

Planning

Controlling

Analysing interpreting

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Present Situation

Economist

Psychologist

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definitions

Knight 1921

Profits from bearing uncertainty and risk

Schumpeter 1934

carrying out of new combinations of firmorganization- new products, services, sources of

raw material

Cole 1959purposeful activity to initiate and develop a

profit oriented business

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Casson 1982 Decision and judgements about the co-

ordination of scarce resources

Gartner 1985 Creation of new organization

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Types of Entrepreneur

Necessity Entrepreneur

Work for invention only when there is a need.

Opportunistic Entrepreneur

look for oppor. Whether there is a need

of invention or not.

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Inventor and innovator

Inventor = person creates new thing

Innovator=brings something new in

business

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Dimensions of Entrepreneur

New Venture Creation

Resource- based theory

Intelligence Verses Business Success

Barriers to Entry

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Characteristics of Entrepreneur

Risk Taker

Businesses face risk. Entrepreneurs minimize risk through research,planning, and skill development.

limit to ever-expanding entrepreneurship

Perceptive

Entrepreneurs view problems as opportunities and challenges.

Curious

Entrepreneurs like to know how things work. They take the time andinitiative to pursue the unknown.

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Imaginative

Entrepreneurs are creative. They imagine solutions to problemsthat encourage them to create new products and generateideas.

Persistent

True entrepreneurs face bureaucracy, make mistakes, receivecriticism, and deal with money, family, or stress problems. Butthey still stick to their dreams of seeing the venture succeed.

Goal-settingEntrepreneurs are motivated by the excitement of staring a newbusiness. Once achieved, they seek out new goals or venturesto try.

Hardworking

Entrepreneurs need a great deal of energy to see a venture startand succeed. Yet they are not deterred by the long hours toachieve their goal.

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Self-confident

Entrepreneurs believe in themselves. Their self-confidence takescare of any doubts they may have.

Flexible

Entrepreneurs must be flexible in order to adapt to changing trends,

markets, technologies, rules, and economic environments.

Independent

An entrepreneurs desire for control and the ability to makedecisions often makes it difficult for them to work in a controlledenvironment.

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A skill is the ability to do something specific or to translate

knowledge into action.

Research Skills

Entrepreneurs need to identify what they need to know and use

research techniques to obtain it.

Gathering Information

Reliable and relevant sources of information may include

books

periodicals indexes and databases

the Internet

consul tants

professionals schoo ls

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Using Information

After information is acquired, it needs to be sorted into relevantdata that answers the entrepreneurs initial questions. Thesequestions may lead the entrepreneur to look at new ventures.

Management Skills

Management skills for entrepreneurs involve planning,

organizing, directing, and controlling. These are then appliedtowards their personal, financial, and material goals.

Planning

Entrepreneurs develop financial, production, and marketingplans that comprise the overall business plan.

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Organizing

Organizing the venture is vital. The key to this is time-management.

Directing

Entrepreneurs learn how to motivate their staff by

encouraging initiative and self-direction. This inspires asense of shared responsibilities to grow the business.

Controlling

Entrepreneurs need to develop budgets and keep accuratebookkeeping and accounting records.

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Entrepreneurial Skills

Relationship Skills

Running a business means building good relationships with staff,suppliers, and customers.

Staff Relationships

Employees need to feel that they are treated fairly, are rewarded fortheir efforts, and have their needs met.

Supplier Relationships

Communication is the most important relationship skill required to dealwith suppliers. They act as sources of information for the new business.Suppliers also require feedback to know how to improve their service.

Customer Relationships

In an entrepreneurial business, the customer is the boss and the keyto the business success. Therefore, the entrepreneur and his or herstaff must develop a positive relationship with the customer.

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An entrepreneur must develop a good business plan that

is feasible, marketable, and profitable. Key points are below.

Feasibility

Finances list the amount required

in a budget including the sourceof capital (bank, credit union, and so on)

Location explain the location outlining

the details (address, rent, taxes, and so on)

Licences and permits list the licences or

permits and state how to obtain them

Suppliers make a list of everything

required including the name of the

suppliers and their prices and terms

Staff describe staffing needs and ways to meet them

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Marketability

Entrepreneurs need to ask themselves the following questions about theirproduct, service, or charity:

Does your target market want this product? Prove it.

What is you competition? How much of the market do they ownalready? How will you take it away from them?

Are you competitively priced?

Is this a short-term venture? How long will it last?

What do you offer that no other product, service, or charity offers?Why would a customer pay money for what you provide?

Profitability

To expect a profit, an entrepreneur must ensure that revenue exceeds allcosts. Listing expected revenue and expenses can help to achieve this.