Chapter 1 - Introduction To Entrepreneurship 6x5j71

INTRODUCTION TO ENTREPRENEURSHIP “ENTREPRENEUR & ENTREPRENEURSHIP”

Wage Employment or Entrepreneurship ? • Entrepreneurship as a career in your own business [YOB] rather than wage employment [JOB]. • You will be your own boss.

Wage Employment Vs Entrepreneurship Wage Employment

Entrepreneurship

Work for Others

Own Boss

Follow Instructions

Make own plans

Routine Job

Creative activity

Earning is fixed, never negative

Can be negative sometimes, generally surplus

Does not create wealth

Creates Wealth, contributes to GDP

Can choose fromGovernment service; Public Sector ; Private Sector

Can choose fromIndustry ;Trade or Service Enterprise

DEFINITION :ENTREPRENEURS • an individual who actively form/lead their own business & nurture them for growth & prosperity (UiTm Entrepreneurship Group:2004)

• is a person with a high need for achievement He is energetic and a moderate risk taker. (David McClleland :1961)

• are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services. (Schumpeter :1934)

• is a person who starts an enterprise. He searches for change and responds to it • Entrepreneurs do not necessarily make right decisions, they make their decisions right

What Is an Entrepreneur? One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them. (Zimmemer:2008)

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Characteristics of Entrepreneurs • Desire for responsibility • Preference for moderate risk – risk eliminators • Confidence in their ability to succeed • Desire for immediate • High level of energy • Future orientation – serial entrepreneurs • Skilled at organizing • Value achievement over money

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Entrepreneurship • A process of creating & expanding businesses that collectively form a force for national development & societal prosperity • also a process of creating something new & assuming the risk & reward.

Benefits/Advantages of Entrepreneurship The opportunity to: • Create your own destiny • Make a difference • Reach your full potential • Reap impressive profits • Contribute to society and to be recognized for your efforts • Do what you enjoy and to have fun at it 8

Drawbacks(Disadvantages) of Entrepreneurship • • • • • • •

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Uncertainty of income Risk of losing your entire investment Long hours and hard work Lower quality of life until the business gets established. High levels of stress Complete responsibility Discouragement

The Cultural Diversity of Entrepreneurship • • • • • • • • • •

Young entrepreneurs Women entrepreneurs Minority-owned enterprises Immigrant entrepreneurs Part-time entrepreneurs Home-based businesses Family businesses Copreneurial business Corporate castoffs Corporate dropouts

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Ten Deadly Mistakes of Entrepreneurship 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Management mistakes Lack of experience Poor financial control Weak marketing efforts Failure to develop a strategic plan Uncontrolled growth Poor location Improper inventory control Incorrect pricing Inability to make the “entrepreneurial transition”

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Avoiding the Pitfalls of Small Business Failure • • • • • •

Know your business in depth Develop a solid business plan Manage financial resources Understand financial statements Learn to manage people effectively Keep in tune with yourself

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Difference Between Entrepreneur & Entrepreneurship Entrepreneur

Entrepreneurship

are tangible people

is an abstraction

is a person

is a process

the key individual central to outcome of complex socioentrepreneurship who economic, psychological makes things happen and other factors is the actor

is the act

An entrepreneur is the catalyst who brings about this change

Entrepreneurship is the most effective way of bridging the gap between science and the market place by creating new enterprises