The Philosophy of Entrepreneurship MANGT 100 Week 2 - Section 2 Abdullah Al Shukaili

Entrepreneurship definition No agreed definition for the entrepreneurship concept The complexity of the concept of what exactly constitutes entrepreneurship Different views: is it a behavior to establish new business OR a behavior to expand existing firm

Entrepreneurship definition “ Multifaceted phenomenon” “ Eclectic subject” Theoretical explanation extracted from economic theories, growth models, industrial and management theories

Who is the Entrepreneur? Entrepreneur is someone who :- Takes Initiative Assumes considerable autonomy in the organization and management Share risk Innovative and creative

Who is the Entrepreneur? Based on the literature review:- Individual who establish new business to gain profit and growth The innovative person ( Schumpeter view) Has a venture capital Someone who take initiative … People who have the chance to recognize the opportunity Ability to create and build something from nothing

What is the entrepreneurship? In you opinion, how you can define this concept? Bring some ideas from Omani markets for successful entrepreneurs

Who are the most successful entrepreneur in Oman ?

10 Themes of the Entrepreneur Risk taking Supplies financial capital (Allocate of resources) Innovator Decision maker Leader Manager Owner Organizer Employer Contractor

Goods Vs Services What is the product-based ( goods)? What is the service-based?

Goods Vs Services Goods Service a tangible output of a process that has physical dimensions intangible process that cannot be weighed or measured produced in a facility separate from the customer requires some degree of interaction with the customer for it to be a service

Omani policy definition

Entrepreneurial mindset Entrepreneurial mindset refers to a specific state of mind which orientates human conduct towards entrepreneurial activities and outcomes. Individuals with entrepreneurial mindsets are often drawn to opportunities, innovation and new value creation.

Entrepreneurial mindset

Advantages and disadvantages of self-employment You are your own boss Risk of failure. Most new businesses fail in their first years Your business can be adaptable to what you see that needs to be done Your decisions can be wrong You work hard and enjoy the rewards of your hard work Owning your own business can require a sacrifice of your personal life, you may need to work long, long hours, you may need to work on weekends, … You get to feel the enormous sense of pride and personal satisfaction when your business is successful Your income stream may fluctuate throughout the year You will have the opportunity to lead others Loss social insurance You will get to work closely with your customers. You can develop strong meaningful relationships with your customers or clients. You may have a hard time hiring qualified employees

Think !!! Why Oman government and policy makers need to enhance and support entrepreneurship in the economy?

Why Oman needs entrepreneurship? The public sector can’t offer jobs positions for the increasing growth of young population (1/3 of Omani population are in education institutions) Small business accounts for 16% of Omani GDP ( in future they could have the capacity to create jobs) Tool for job generation Economic diversification Tool for technology advancement and innovation

The context of Oman Oman vision 2020 Omanization (localization) policy Main challenges for Oman economy: depending on oil and gas as the key’s sources for the economic growth and development, The high increase in the population rate, limited economic diversification, dependence more on foreign labor Oman economy will need to create 45,000 new positions each year (IMF, 2013)

The life cycle of enterprises New venture formation ( emergence) Progress and growth ( newness) Transition and change ( Transformation)

Reading Iversen, J., Jørgensen, R., & Malchow-Møller, N. (2008). Defining and measuring entrepreneurship. Foundations and Trends in Entrepreneurship,4(1), 1-63. Cunningham, J. B., & Lischeron, J. (1991). Defining entrepreneurship.Journal of small business management, 29(1), 45-61.

References Kirby, David A .(2003). Entrepreneurship. Mc Graw Hill. ( Ch1) Gartner W & Bellamy M. ( 2008). Enterprise. South Weasten Cengage learning ( ch1)