Entrepreneureship Basics for beginners and
- 1. By Kim Weng Michael 31st August 2023
- 2. Who is an Entrepreneur............
- 3. The term 'Entrepreneur' -French word 'Entreprendre’ (meaning to undertake certain activities) 1) Produces a product 2) Sells & market the product 3) Bear overheads like :- *Pays rent of Land and building *wages to labor *interest on capital *later generate profit
- 4. Working Definition An entrepreneur is a person who combines various factors of production, processes raw material, converts the raw material into a finished product and creates utility and sells the produce in the market to earn profit. ENTREPRENEURS ARE MADE AND NOT BORN.
- 6. ENTERPRISE : Entrepreneurial activity, especially when accompanied by initiative and resourcefulness.
- 7. ENTREPRENEURSHIP may defined in various ways, but the four key elements involved in it are: i. Innovation. ii.Risk-taking. iii.Vision. iv.Organizing skill. The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses.
- 8. Types of Participants DOERS : Achievers DREAMERS : Doing something but not their dream project DWADLERS : Undecided DUDS : Abandoned their ideas of being entrepreneur
- 9. Entrepreneurial Characteristics Being an entrepreneur requires specific characteristics and skills that are often achieved through education, hard work, and planning. Risk Taker Businesses face risk. Entrepreneurs minimize risk through research, planning, and skill development. Perceptive Entrepreneurs view problems as opportunities and challenges. Curious Entrepreneurs like to know how things work. They take the time and initiative to pursue the unknown.
- 10. Entrepreneurial Characteristics Imaginative Entrepreneurs are creative. They imagine solutions to problems that encourage them to create new products and generate ideas. Persistent True entrepreneurs face bureaucracy, make mistakes, receive criticism, and deal with money, family, or stress problems. But they still stick to their dreams of seeing the venture succeed. Goal-setting Entrepreneurs are motivated by the excitement of staring a new business. Once achieved, they seek out new goals or ventures to try.
- 11. Entrepreneurial Characteristics Self-confident Entrepreneurs believe in themselves. Their self-confidence takes care of any doubts they may have. Flexible Entrepreneurs must be flexible in order to adapt to changing trends, markets, technologies, rules, and economic environments. Independent An entrepreneur’s desire for control and the ability to make decisions often makes it difficult for them to work in a controlled environment. Hardworking Entrepreneurs need a great deal of energy to see a venture start and succeed. Yet they are not deterred by the long hours to achieve their goal.
- 12. Stages of Entrepreneurship Stage One – The Dreamer. This is where the idea for a business is born. The dream is the culmination of the entrepreneur’s life experiences and passions. Stage Two – The Architect. This stage is where the dream is interpreted into a business model which becomes the blueprint of the venture. The Dreamer typically does not make a good Architect.
- 13. Stage Three – The Builder. This is the stage where the dream can first become reality. The Builder then literally turns the dream into reality. We are now at a critical juncture of the venture. Stage Four – The Cultivator. This is the growth stage. Once the business is launched the Cultivator’s primary role is to guide the business through the various levels of growth.
- 14. Classification of Entrepreneur Innovative entrepreneur : - Such entrepreneurs introduce new goods or new methods of production or discover new markets or reorganize the enterprise. Examples of first movers include innovative companies such as eBay and Coca- Cola. eBay was the first company to take the auction process online, kicking off operations in 1995. Imitative or adoptive entrepreneur :- Such entrepreneurs don’t innovate, they copy technology or technique of others.. Such entrepreneurs are significant for under-developed economies because they put such economies on high rate of economic development`EX: Chinese mobiles.
- 15. Prime mover :- This entrepreneur sets in motion a powerful sequence of development expansion and diversification of business. EX: Ambani Manager :- Such an entrepreneur doesn’t initiate expansion and its content in just staying in business. The artists:- Are highly creative type, very conscious about business. EX: Aamir Khan, Michael Dell (Dell), Deep Kalra (Make my trip) The visionary:- Too focused on dreams with little focused on reality. EX: Jack Welch(GE), Bill Gates (Microsoft), Kishore Biyani(Future Group), Warren Buffet (Berkshire Hathaway), Sam Walton(Wall Mart).
- 17. Benefits of Entrepreneurship to a youth 1. You Become the Architect of Your Own Life Starting a business at a young age offers you the ability to choose your own path, to come to terms with what you’d like to achieve in life and begin working toward those goals. 2. You Dare to be Daring As a young entrepreneur, you have the ability to take the leap of faith and venture into the unknown.
- 18. Benefits of Entrepreneurship to a youth 3. You Work to Fix the Future As a young entrepreneur, you are looking to a build a world that you will be actively living in. 4. You Jump-Start Your Network It is never too early to start building your network. As an entrepreneur, having a solid, constantly-expanding network is essential for your ability to aquire new knowledge and access funding.
- 20. Why Entrepreneurship Fails • Lack of Right Idea. • Unorganized Manpower Resources • poor management and leadership. • Lack of Study of Data (Research) • Not Targeting the Right Market. • poor marketing and sales skills • Poor Financial management
- 21. RIGHT QUESTIONS TO BRAIN STORM ON As A POTENTIAL ENT. • Why do I want to start a business? • Can this business idea make me money now and in the future? • Who is my target audience for my business? • Who are my competitors? • What is your USP (unique selling point)? • How will I market my business? • How will I price my products? • Do I have the funds to start this
- 22. Every Big Enterprises Starts with a small Dream So Keep Dreaming ……………………