Entrepreneurship

Lecture - 1 Basics of Entrepreneurship

Entrepr eneur? Who is an

The difference between an Employee and an Entrepreneur?

Let’s Explore… – Why do people become Entrepreneurs? – Should you become an Entrepreneur? – Common Traits of Successful Entrepreneurs

REAL entrepreneurs base their direction on purposeful innovation in response to consumer demand and not on the desire to make a quick buck

Explore Yourself… Do you want to be master of your own financial destiny? Are you willing to invest your time and efforts to create something extraordinary? Are you prepared, if needed, to lower your standard of living until your business becomes profitable? Have your ever been involved in a business before? Do you have the ability to conceptualize the whole of a business – and connect the dots?

Let’s Dig it Down Further… Are you imaginative, inventive and resourceful? Do you constantly re evaluate and adjust your goals? Can you sell your ideas to others? Are you a person who never gives up? Are you always looking for better ways of doing things? Can you recognize, admit to, and learn from your mistakes? Are you good at making decisions? Do you have a purpose, focus & direction in your life? Do you have the courage to try new things or go against the grain and be different from other people without worrying too much about what they think? Do you like make things happen instead of waiting for things to happen? Does pressure feed you rather than get to you? Do you look forward to a good Challenge?

The Meaning of Life Each person is questioned by Life; and he can only answer to life by answering for his own life We should all have a meaningful purpose in our lives which can help us to set our short-term objectives and long term goals

What is Entrepreneurship? Entrepreneurship is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities.

Reasons for growth of Entrepreneurship Industry structure New Technologies Deregulation and privatization Formation of new business communities Increased demand for variety Services sector Govt. incentives and subsidies Easier access to resources Entrepreneurial education Return on innovation Entrepreneur as an hero Self-employment is highly valued Rising dissatisfaction at job Acceptance of ex-entrepreneurs in the job market

Impact of Entrepreneurial Firms Job creation Economic growth New technology Serving big & small markets

Entrepreneurial Attributes

Personality Traits of an Entrepreneur Risk Takers Optimistic Self Driven Creative Social Networkers Active Adaptable Competitive Curious Decisive Determined Disciplined Energetic Enthusiastic Focused Friendly Hardworking Imaginative Independent Passionate Patient Perceptive Objective

Attitude & Determination It is possible to start from scratch and acquire a colossal fortune through hard work and determination? Everyone in the world has at least one talent, one passion, one hobby that can become profitable if used correctly Three factors that determine our attitude – Environment – Experience – Education Life is ten percent what happens to us and ninety percent how we react to it

Entrepreneurial skills Creativity and Opportunity Evaluation Real-time Strategy and Decision Making Comfort with Change and Chaos Teamwork Evangelism, Selling, Negotiation, and Motivation through Influence and Persuasion Oral and Written Communication Basics of Start-Up Finance, Accounting and Law

Entrepreneurial Attitudes Comfortable with lifestyle changes Willingness to break / bend / stretch laws Patience to start small Prepared to make enemies Comfort with confrontations Dealing with failure Willingness to learn

Pros & Cons You are the boss All profits are yours There will be great variety in roles and tasks Increases self confidence Work can be very satisfying Success will give you immense satisfaction You are alone All decisions are yours All losses are yours Work may not be satisfying You will need to put in long hours Lack of success will effect self esteem Exiting the business is difficult Pressures will affect social and family life

What is Holding us Back? Unwillingness to Take Risks Lack of Planning and Preparation Lack of Priorities Looking for Shortcuts Selfishness and Greed Lack of Conviction Rationalizing Not Learning from Past Mistakes Inability to recognize Opportunity Inability to Use Talent Lack of Discipline Poor Self Esteem Lack Of Knowledge Lack Of Purpose Lack of Courage Remember - Courage unused diminishes, Commitment unexercised, wanes. Love unshared, dissipates

Entrepreneurial Failure Lack of experienced management Few trained or experienced manpower Poor financial management Rapid growth Lack of business linkages Weak marketing efforts Lack of information Incorrect pricing Improper inventory control Short term outlook

Entrepreneurship – Rational Fears I want safety, I’m risk averse – Uncertainty about next pay-check – What safety does corporate life provide? – What are the essential traits needed in the personality? How do I get the magic idea – When do I stop theorizing and get on with the implementation What will my parents say, how do I go against what people generally do – If many are doing it, then surely it is more difficult to get profits, and go to the top. Can I develop the heart for entrepreneurship, how long should I try, what are the exit options – How do I jump of the cliff

Ten Ways to Spark Your Entrepreneurial Spirit 1.Read about great new businesses. 2.Join a community business organization. 3.Find a mentor. 4.Be Critical 5.Leave your job (or get laid off). 6.Discover an industry. 7. Hang around a business school. 8. Spend time with an entrepreneur. 9.Do a feasibility study. 10. Do something … anything.

Business is an Adventure A business makes a profit when money from sales is more than money spent paying the bills. Business is very unpredictable – entrepreneurs never know ahead of time how people are going to react to any of their decisions. That’s what makes entrepreneurship such an adventure.

Entrepreneurs see Opportunities Where Others see Problems

But… If You Fail To Plan, You Plan To Fail!