User:Mansoor Salihi/Books/Entrepreneurship (By Mia Shahid)

=== Entrepreneurship (By Mia Shahid) === ;CHAPTER 1 What is entrepreneurship? Learning objectives in this chapter Define the Entrepreneurship as social and economic phenomenon and its importance Learn historical perspective of Entrepreneurship Define the entrepreneurial process Define the character and role of the entrepreneur in business in the national and around the world.

What is Entrepreneurship?� Shane (2003) defines Entrepreneurship is an activity that involves the discovery, evaluation and exploitation of opportunities to introduce new goods and services, ways of organizing markets, processes and raw materials through organizing efforts that previously had not existed.

Entrepreneurs V. Intrapreneurs Entrepreneurs are people that notice opportunities and take the initiative to mobilize resources to make new goods and services. Intrapreneurs also notice opportunities and take initiative to mobilize resources, however they work in large companies and contribute to the innovation of the firm.

Intrapreneurs often become entrepreneurs.

What Is an Entrepreneur? One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.

'''Introduction to an Entrepreneur ''' The term 'entrepreneur' is used in various ways and views. Broadly the three main views are: 1. Entrepreneur as a risk bearer 'Richard Cotillion' was the first person who introduced the term 'entrepreneur' and his uniqueness as an agent who buys items of production at certain prices in order to combine then into a product with a view to selling it at uncertain prices in future. Thus, it is a risk bearing activity.

'''2. Entrepreneur as an organizer '''Jean -Baptiste, developed the concept of entrepreneur by associating it with the functions of co-ordination, organization and supervision. According to him an entrepreneur is one who combines the land of one, the labor of another and capital of yet another and thus produces a product. By selling the product in the market ,he pays interest on capital, rent on land and wages to laborers and what remains is his/her profit. Thus, an entrepreneur is an organizer. 3. Entrepreneur as an innovator "Joseph A. Schumpeter" in 1934, assigned a crucial role of 'innovation’ to the entrepreneur. He considered economic development as a dynamic change brought by entrepreneur by instituting new combinations of factors of production, i.e., innovations. The introduction of new combination of according to him may occur in any of the following forms: (a) Introduction of new product in the market. (b) Use of a new production technology (c) Opening of a new market. (d) Discovery of a new source of supply of raw    materials.

'''Who are entrepreneurs?� ''' Common traits Original thinkers Risk takers Take responsibility for own actions Feel competent and capable Set high goals and enjoy working toward them Common traits Self employed parents Firstborns Between 30-50 years old Well educated – 80% have college degree and 1/3 have a graduate level degree '''Key Personal Attributes ''' Entrepreneurs are Made, Not Born! Many of these key attributes are developed early in life, with the family environment playing an important role Entrepreneurs tend to have had self employed parents who tend to support and encourage independence, achievement, and responsibility Firstborns tend to have more entrepreneurial attributes because they receive more attention, have to forge their own way, thus creating higher self-confidence

Entrepreneurial Careers The idea that entrepreneurial success leads to more entrepreneurial activity may explain why many entrepreneurs start multiple companies over the course of their career Corridor Principle- Using one business to start or acquire others and then repeating the process Serial Entrepreneurs- A person who founds and operates multiple companies during one career

Need for Achievement A person’s desire either for excellence or to succeed in competitive situations High achievers take responsibility for attaining their goals, set fairly difficult goals, and want immediate feedback on their performance Success is measured in terms of what of those efforts have accomplished.

Desire for Independence Entrepreneurs often seek independence from others As a result, they generally aren’t motivated to perform well in large, bureaucratic organizations Entrepreneurs have internal drive, are confident in their own abilities, and possess a great deal of self-respect

Self-Confidence Because of the high risks involved in running an entrepreneurial organization, a positive self-confident attitude is essential A successful track record leads to improved self-confidence and self-esteem Self-confidence enables that person to be optimistic (hopeful) in representing the firm to employees and customers alike

Self-Sacrifice Nothing worth having is free Success has a high price, and entrepreneurs have to be willing to sacrifice certain things

Questions To Keep In Mind What are my motivations for owning a business?

Should I start or buy a business?

What and where is the market for what I want to sell?

How much will all this cost me?

Should my company be domestic or global?


 * End of Chapter One


 * CHAPTER 2 Motivations