PERSPECTIVES OF ENTREPRENEURSHIP Study unit 3

INTRODUCTION  Entrepreneurship: collective activities of entrepreneurs, which result in a new business or venture creation, such as self-employment, or the expansion of an existing business by an individual, team of individuals, or an established business by an individual, team of individuals, or an established business;  Entrepreneurship: a way of thinking, reasoning and acting that is opportunity obsessed, holistic in approach, and leadership balanced and that eventually leads to new business ventures.

INTRODUCTION  ability to recognise and exploit business opportunities  creativity, innovation, risk-taking and hard work  correct appropriation of resources  rewarded for their initiatives  ability to generate change through innovation  ability to find new combinations of resources  ability to improve existing operations  ability to lead economic activity at a profit in times of uncertainty  willingness to take calculated business risks  promise of growth, expansion and long-term financial gain

INTRODUCTION  Entrepreneur is a person who is skilled in identifying opportunities for new products or services (or sometimes new methods of production), setting up operations to provide new products, marketing the products and arranging the financing of operations. They may use their own capital, or the funds may be derived from other sources. Entrepreneurs are essentially risk takers who are generally associated with the economic growth of a country. The aim of entrepreneurs is to establish growth and create value for themselves and others, either in creating jobs, financial gain, or both.

DRIVING FORCES OF ENTREPRENEURIAL PROCESS  it is opportunity driven  an entrepreneur that takes the lead and a team of skilled people steer this process  it is economical and creative in using resources  it is important that there is a fit between the entrepreneur, opportunity and resources  the timing of the process is crucial  it is integrated and holistic

ENTREPRENEURIAL TEAM  Entrepreneurs may not always possess the capabilities to implement their business idea(s). They will need a partner or team who is able to help.  Team should have the relevant experience and know-how, motivation to excel, commitment, determination, persistence, adaptability and creativity and should have good communication and leadership abilities.  Team may consist of the co-founders, the management team, employees and/or consultants.

MYTHS ABOUT ENTREPRENEURS  Myth 1: Entrepreneurs are born, not made  Myth 2: Entrepreneurs are doers, not thinkers  Myth 3: Entrepreneurs are always inventors  Myth 4: Entrepreneurs are academic and social misfits  Myth 5: Capital is the most important ingredient for success  Myth 6: Entrepreneurs depend on luck  Myth 7: Entrepreneurs are all the same  Myth 8: Entrepreneurs are young and energetic  Myth 9: Entrepreneurs are gamblers and extreme risk-takers  Myth 10: Entrepreneurs are only motivated by financial rewards

CREATIVITY  Creativity is the generation of new ideas and approaches that result in the improved efficiency or effectiveness of a system.  Entrepreneurial behaviour, on the other hand, involves the ability to identify opportunities based on these new ideas and approaches, and to turn them into an economically viable product, service or venture.  Creativity implies a vision for what is possible, the entrepreneur translates that vision into action.  Creativity phases - Phase 1: Background or knowledge accumulation Phase 2: The incubation process Phase 3: The idea experience Phase 4: Evaluation and implementation

NATURE AND IMPORTANCE OF INTRAPRENEURSHIP  Intrapreneurship is a process whereby an individual or a group of individuals, in association with an existing business, creates a new business or instigates renewal or innovation within the business.  Entrepreneur vs intrapreneur