Entrepreneurship Development

An Entrepreneur and a different idea can change the world!

Bill Gates • Microsoft• Bill &

Melinda Gates Foundation

Warren Buffett• P & G• Berkshir

e Hathaway

Mark Zuckerberg• Facebo

ok

Steve Jobs• APPLE

Entrepreneurship Development

An Entrepreneur and a different idea can change a Society!

Samson H. Chowdhury• Squar

e Group

Sk. Aziz Uddin• Akij

Group

Latifur Rahman• Trans

com Group

M A Hashem• Parte

x Group

Resourced By: Md. Ateak Ullah MasudMBA (DU), IDCS (Cambridge)

E-Mail: mau_masud@yahoo.com

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DirectorAG Hi-Tech Ltd.

AG Property Developments Ltd.Regent Holdings Development Ltd.

Adjunct Faculty MemberDepartment of MarketingJahangirnagar University

Professional Background in Brief:A decade ago, started career in Housing & Real Estate Sector and later on joined Ahsan group with the vision to emerge as a business conglomerate in Bangladesh with Housing & Real-Estate development, High-Tech, Infrastructural Development, Project Management, and dream to build Social Business and subsequent contribution towards huge employment opportunity and social development. Recently joined Department of Marketing, Jahangirnagar University as an Adjunct Faculty Member.

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Evolution of the concept of EntrepreneurThe word “entrepreneur” has been taken from the French language

where it cradled and originally meant to designate an organizer of

musical or other entertainments.

Oxford English Dictionary (in 1897) also defined an entrepreneur in

similar way as “the director or a manager of public musical institution,

one who ‘gets-up’ entertainment, especially musical performance”.

It was only in the beginning of the 18th century that the word was used to

refer to economic aspects.

Since then the term ‘entrepreneur’ is used in various ways and views,

these views are broadly classified into three groups, namely, risk-

bearer, organizer and innovator.

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Selected Definitions of Entrepreneur

• Oxford Dictionary“Person who starts or organizes a commercial enterprise, especially one involving financial risk.”• J B Say“is a person who shifts economic resources out of an area of lower and into an area of higher productivity and yield.”• Skinner S J & Ivancevich J M“A person who takes risks necessary to organize and manage a business and receives the financial profits and nonmonetary rewards.”• Dictionary of Social Sciences “a person who exercise the functions ofI. Initiating, coordinating, controlling of instituting major changes in an business

enterprise and orII. Bearing those risk of its operation which arise from the dynamic nature of society

and imperfect knowledge of the future and which can not be converted into certain costs through transfer, calculation or elimination.”

• Collins and Moore“a person who organize a business from zero position and develops it or a person who himself/herself invests capital, takes ownership, and strive for its success..”

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Definition of Entrepreneurship

“One who takes risk to form a business through technology

and production methods and effectively organize human

resources and contribute meaningfully to the economic

development of the society.”

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Some Entrepreneurial Terms

Entrepreneur: Person whose goal is to create or capitalize on new economic opportunities through innovation   Entrepreneurship: Process through which entrepreneurs create and grow enterprises  Entrepreneurial Community: Community where significant economic and social entrepreneurial activity exists within an effective system of public and private support  Entrepreneurship Development: Policies and practices (public and private) that foster entrepreneurship

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Inspirational Quotes for Entrepreneurs

“If you are born poor its not your fault. But if you die poor its your fault.”- Bill Gates

“Someone’s sitting in the shade today because someone planted a tree a long ago.” –Warren Buffett

“Coming together is a beginning. Keeping together is progress. Working together is success.” –Henry Ford

"We'll not be job-seekers, we'll be job-givers"..- Muhammad Yunus, Nobel Peace Prize winner and micro finance pioneer”

I wanted to be an editor or a journalist, I wasn't really interested in being an entrepreneur, but I soon found I had to become an entrepreneur in order to keep my magazine going.-Richard Branson, Founder Virgin Group

“Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.” –Steve Jobs, Co-Founder, Chairman and CEO, Apple

“The way to get started is to quit talking and start doing.” –Walt Disney, Co-Founder, Disney

"The biggest risk is not taking any risk. In a world that's changing really quickly, the only strategy that is guaranteed to fail is not taking risks.“- Mark Zuckerberg, CEO, Facebook

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Different Level of Entrepreneurs or Businessman and their Characteristics

Business Tycoon

Business Magnate

Business Personality

Businessman

SME Entrepreneur

Self Actualization

Esteem

Love/Belongings

Safety

Physiological

Levels of Entrepreneurs Maslow's hierarchy of needs

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Different Level of Entrepreneurs and their Characteristics…1

• SME Entrepreneur: to start & run a business or venture -Risk Taker-Optimistic -Dreamer-Organizer-Innovative -Hard working-Patience

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Different Level of Entrepreneurs and their Characteristics…2

• Business Man: to do business expansion or diversification -Self confident -Fast learner -Adaptive -Forecaster

• Business Personality: To lead a business community - Visionary-Focused

-Leadership-Qualitative analyzer

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Different Level of Entrepreneurs and their Characteristics…3

• Business Magnate: To be a business conglomerate - Sensible

-Influencial-Resourceful

• Business tycoon: to be a MNC & business Guru-Generous

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Types of Entrepreneurs

Innovating Entrepreneurs

Imitative Entrepreneurs

Fabian Entrepreneurs

Drone Entrepreneurs

The following are some more types of entrepreneurs listed by some other behavioral

scientist:

Solo Operators:

I. Active Partners

II. Inventors

III. Challenges

IV. Buyers

V. Lifetimers

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Entrepreneurial Process

•Idea to Opportunity

•Opportunity to Business Plan

•Business plan to Funding the venture

•Funding the venture to Launching, Growing, and Ending the new venture.

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Entrepreneur vs. Intrapreneur vs. Manager

Difference Entrepreneur Intrapreneur Manager

Motive The Main Motive of an entrepreneur is to start a venture by setting up an enterprise.

The motive of an Intrapreneur is to assist entrepreneur to start a venture and facilitate the growth.

The main motive of a manager is to render service in an enterprise already set up by an entrepreneur.

Dependency An Entrepreneur is independent in his operations.

But, an intrapreneur is dependent on the enterprise, i.e. the owner

Dependent on reporting superior

Raising of Funds

An Entrepreneur himself raises funds required for the enterprise.

Funds are not usually raised and initiated by the intrapreneur but coordinate the initiative.

Managers are not involved in fund raising.

Risk Entrepreneur bears the risk involved in the business

An intrapreneur does not fully bear the risk involved in the enterprise.

Does not usually bear any direct risk.

Operation An Entrepreneur operates from inside or outside, depends on organizational size/structure.

On the contrary, an intrapreneur operates from within the organization.

Involves in functional operations.

Decision Making

Gross/Major decision maker from inside or outside.

Makes decision based on statistical & Market situation

Implement decision taken by Entrepreneur & Intrapreneur within the organization.

Growth Business Growth Professional Growth Career Growth

Profit & Loss Sharing

Major portion according to Percentage of Ownership.

Only some of profits portion according to agreement/job terms & conditions.

They are usually salaried but in sometime share only profit at a small percentage according to organizational policy.

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Benefits of Entrepreneurship

The opportunity to: Create your own destiny Make a difference Reach your full potential Reap impressive profits Contribute to society & Economic Development To be recognized for your efforts Do what you enjoy and to have fun at it

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Drawbacks of Entrepreneurship

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

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Ten Deadly Mistakes of Entrepreneurship1. Management mistakes2. Lack of experience3. Poor financial control4. Weak marketing efforts5. Failure to develop a strategic plan6. Uncontrolled growth7. Poor location8. Improper inventory control9. Incorrect pricing10. Inability to make the “entrepreneurial transition”

Other Mistakes specially of Bangladeshi Entrepreneurs

11. Over expectation12. Over confidence13. Wrong Intrapreneur selection14. Neglect the Law/Rules15. Wrong selection of venture16. Disregard the commitments to customers or stakeholders.

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