Introduction to Entrepreneurship

Home for Dreamers and Doers……

“ The reasonable man (woman) adapts himself

(herself) to the world. The unreasonable one persists in

trying to adapt the world to himself (herself).

Therefore, all progress depends on unreasonable men

(and women).”

George Bernard Shaw

The Entrepreneurial Environment

•Entrepreneurial activity flourishes where ideas, cash, professional and managerial expertise, and good communications converge

•Entrepreneurship is a craft as well as an art.

• Entrepreneurship is not only about starting companies it’s

about growing and running them

Entrepreneurship

‘Entrepreneurship is the pursuit of opportunity beyond the

resources you currently control.’

Entrepreneurship

•You can do new things

•You can do old things differently

•You can innovate, consolidate, expand BUT …

•The only necessary and sufficient condition for business is

customers

•For entrepreneurs, timing is everything

Is Entrepreneurship the special hot red chilli within this movement?

…or is Entrepreneurship the Black sheep of this Movement?

This is a million dollar question!

Career Option

•Security

•Freedom

Freedom

• Have Anything.

• Do Anything.

• Be Everything you imagined.

• 50% new firms live 18 months.

• One out of Five make it to 10 Years.

Source: Siropolis (1986)

Facts………

Facts……

• 85% restaurants close in 5 Years.

• 50% do not survive the First Year.

Source: Cullen and Dick (1990)

AttitudeOpportunity

Idea Planning

Start - up

Growth

Diversify

ENTREPRENEURIAL JOURNEY

While formal schooling is an important advantage, it is not a guarantee of success nor is its absence a fatal handicap.

Ray Kroc

Creativity as a prerequisite to innovation

• Creativity - is “the ability to bring something new into existence”.

• Innovation - is the process of doing new things.

Creativity, Innovation and Problem Solving

Creativity and Innovation consists of...

• SEEING what everyone else has seen,

• THINKING what no one else has thought of, and

• DOING what no one else has dared!

Entrepreneurship: A Process Approach

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Entrepreneurs…..

• Do things that are not generally done in the ordinary course of business

• Some entrepreneurs become celebrities...others become ridiculed for their failed dreams

• All contribute to the spirit of free enterprise

• Is a dynamic process of creating incremental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time and career commitment of providing value for some product or service.

• The entrepreneur must somehow infuse value to the product or service...

Entrepreneurship…..

Start Take Over a a Family

Business Business

Pursue Social Entrepreneurship by Innovating in Non-profit

The Act Context entrepreneurially Entrepreneurial in a profession.

Career

Act as Entrepreneur

in a larger, Established Work in a

Company Purchase an Fast-Growth Existing

Business Venture

Economics & Entrepreneurship•Richard Cantillon: Entrepreneurs make decisions about resources allocation.

•Adam Smith: Entrepreneurs react to economic change. He described the “enterpriser” as an individual who undertook the formation of an organization for commercial purposes. He mentioned “role of industrialist...,person with unusual foresight who could recognize potential demand for goods and services”

•Jean Baptiste Say: Entrepreneurs had exceptional insight into society’s needs.

•Carl Menger: Entrepreneur as a change agent. Economic change does not arise from circumstances but from an individual’s awareness and understanding of those circumstances

•Joseph Schumpeter: Entrepreneurship as a force of “Creative Destruction”. Described it as a process and entrepreneurs as innovators who use process to shatter the status quo through new methods...

•John Stuart Mill: Necessity of entrepreneurship in private enterprise. He described them as business founder.

Everyone wants to be an entrepreneur…

Beliefs about entrepreneurship:

• Entrepreneurs are INDEPENDENT• Entrepreneurs get RICH • Entrepreneurs have FUN!

• Entrepreneurs are passionate people.

Are my goals well defined?•Personal aspirations•Business sustainability & size•Tolerance of risk

Do I have the right strategy?•Clear definition•Potential for growth•Durability

Can I execute the strategy?•Resources•Organizational infrastructure•The founder’s role

If answer is Yes…If answer is no……

Entrepreneurs Framework

If answer is Yes…

If answer is no……

Review: why be an entrepreneur?

The main reasons

- Independence and freedom- Creativity and self-expression Another important reason - Can’t hold a normal job!

• Many successful entrepreneurs are crazy, weird people

- Passion

Being an entrepreneur is not basically motivated by economics

•Why? •RISK! •I'll repeat:

•risk risk risk risk risk risk•RISK RISK RISK RISK RISK•RISK RISK RISK RISK RISK!

Starting a business is risky

• New ideas are untested. . . That’s why they’re new ideas!

• You throw an idea into the world. . . And see what the world says in response.• There are thousands of variables you can’t control • And you probably don’t have a lot of the

skills you need

Entrepreneurship seeks to understand how opportunities to create something new arise and are discovered or created by specific persons who then use various means to exploit or develop them, thus producing a wide range of effects.

A Definition……

Key Activities……

• Identifying an opportunity

• Exploiting or developing this opportunity

• Running a new business successfully

Entrepreneurs...Traits

• Self-confident and optimistic

• Able to take calculated risk

• Respond positively to changes

• Flexible and able to adapt

• Knowledge of markets

• Able to get along well with others

• Independent minded

• Energetic and meticulous

• Creative, need to achieve

• Dynamic Leader

• Responsive to suggestions

• Take initiatives

• Resourceful and firm

• Perceptive with foresight

Entrepreneurs...Traits

Entrepreneurial success shows no respect for age, background, gender, race or class. It is open to anyone, all you need is a drive and personal ambition and a refusal to listen to those who do not share your vision.

Richard Branson

Venturing into the Unknown

Problem A Problem B Problem C

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How do I optimize knowledge and skills?

How can we use the available resources in optimum manner?

How can I do things differently?What about succession planning?

What is the role of Creativity & Innovation?

Entrepreneurs are risk takers who seize opportunity.

Saturday, April 15, 2023

Welcome to A World of Difference!