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Entrepreneurship
Lecture - 1
Basics of Entrepreneurship
Entrepreneur?Who is an
The difference between an Employee and an Entrepreneur?
Let’s Explore…
– Why do people become Entrepreneurs?– Should you become an Entrepreneur?– Common Traits of Successful Entrepreneurs
REAL entrepreneurs base their direction on purposeful innovation in response to consumer demand and not on the
desire to make a quick buck
Explore Yourself…
• Do you want to be master of your own financial destiny?• Are you willing to invest your time and efforts to create something
extraordinary?• Are you prepared, if needed, to lower your standard of living until your
business becomes profitable?• Have your ever been involved in a business before?• Do you have the ability to conceptualize the whole of a business – and
connect the dots?
Let’s Dig it Down Further…
• Are you imaginative, inventive and resourceful?• Do you constantly re evaluate and adjust your goals?• Can you sell your ideas to others?• Are you a person who never gives up?• Are you always looking for better ways of doing things?• Can you recognize, admit to, and learn from your mistakes?• Are you good at making decisions?• Do you have a purpose, focus & direction in your life?• Do you have the courage to try new things or go against the grain and be
different from other people without worrying too much about what they think?
• Do you like make things happen instead of waiting for things to happen?• Does pressure feed you rather than get to you?• Do you look forward to a good Challenge?
The Meaning of Life
• Each person is questioned by Life; and he can only answer to life by answering for his own life
• We should all have a meaningful purpose in our lives which can help us to set our short-term objectives and long term goals
What is Entrepreneurship?
• Entrepreneurship is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities.
Reasons for growth of Entrepreneurship
• Industry structure• New Technologies• Deregulation and privatization• Formation of new business communities• Increased demand for variety• Services sector• Govt. incentives and subsidies• Easier access to resources• Entrepreneurial education• Return on innovation• Entrepreneur as an hero• Self-employment is highly valued• Rising dissatisfaction at job• Acceptance of ex-entrepreneurs in the job market
Impact of Entrepreneurial Firms
• Job creation• Economic growth• New technology• Serving big & small markets
Entrepreneurial Attributes
Personality Traits of an Entrepreneur
• Risk Takers• Optimistic• Self Driven• Creative• Social Networkers• Active• Adaptable• Competitive• Curious• Decisive• Determined• Disciplined
• Energetic• Enthusiastic• Focused• Friendly• Hardworking• Imaginative• Independent• Passionate• Patient• Perceptive• Objective
Attitude & Determination
• It is possible to start from scratch and acquire a colossal fortune through hard work and determination?
• Everyone in the world has at least one talent, one passion, one hobby that can become profitable if used correctly
• Three factors that determine our attitude– Environment– Experience– Education
• Life is ten percent what happens to us and ninety percent how we react to it
Entrepreneurial skills• Creativity and Opportunity Evaluation• Real-time Strategy and Decision Making• Comfort with Change and Chaos• Teamwork• Evangelism, Selling, Negotiation, and Motivation through Influence and
Persuasion• Oral and Written Communication• Basics of Start-Up Finance, Accounting and Law
Entrepreneurial Attitudes• Comfortable with lifestyle changes• Willingness to break / bend / stretch laws• Patience to start small• Prepared to make enemies• Comfort with confrontations• Dealing with failure• Willingness to learn
Pros & Cons• You are the boss• All profits are yours• There will be great variety
in roles and tasks• Increases self confidence• Work can be very satisfying• Success will give you
immense satisfaction
• You are alone• All decisions are yours• All losses are yours• Work may not be satisfying• You will need to put in long
hours• Lack of success will effect
self esteem• Exiting the business is
difficult• Pressures will affect social
and family life
What is Holding us Back?
• Unwillingness to Take Risks• Lack of Planning and Preparation• Lack of Priorities• Looking for Shortcuts• Selfishness and Greed• Lack of Conviction• Rationalizing• Not Learning from Past Mistakes• Inability to recognize Opportunity• Inability to Use Talent• Lack of Discipline• Poor Self Esteem• Lack Of Knowledge• Lack Of Purpose• Lack of Courage• Remember - Courage unused diminishes, Commitment unexercised,
wanes. Love unshared, dissipates
Entrepreneurial Failure
• Lack of experienced management• Few trained or experienced manpower• Poor financial management• Rapid growth• Lack of business linkages• Weak marketing efforts• Lack of information• Incorrect pricing• Improper inventory control• Short term outlook
Entrepreneurship – Rational Fears
• I want safety, I’m risk averse– Uncertainty about next pay-check– What safety does corporate life provide?– What are the essential traits needed in the personality?
• How do I get the magic idea – When do I stop theorizing and get on with the implementation
• What will my parents say, how do I go against what people generally do– If many are doing it, then surely it is more difficult to get profits, and
go to the top.
• Can I develop the heart for entrepreneurship, how long should I try, what are the exit options– How do I jump of the cliff
Ten Ways to Spark Your Entrepreneurial Spirit
1. Read about great new businesses.
2. Join a community business organization.
3. Find a mentor.4. Be Critical5. Leave your job (or get laid
off).6. Discover an industry.
7. Hang around a business school.
8. Spend time with an entrepreneur.
9. Do a feasibility study.
10. Do something … anything.
Business is an Adventure
A business makes a profit when money from sales is more than money spent paying the bills. Business is very unpredictable – entrepreneurs never know ahead of time how people are going to react to any of their decisions. That’s what makes entrepreneurship such an adventure.
Entrepreneurs see OpportunitiesWhere Others see Problems
But… If You Fail To Plan,You Plan To Fail!