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Chapter 1 - Introduction To Entrepreneurship

This document provides an introduction to entrepreneurship and entrepreneurs. It defines entrepreneurs as individuals who actively form and lead their own businesses to nurture growth and prosperity. Entrepreneurs take on the risk and reward of starting new enterprises to identify opportunities and assemble resources. Key characteristics of entrepreneurs include a desire for responsibility, risk-taking, confidence, and a focus on achievement over money. The document also discusses the benefits and drawbacks of entrepreneurship and contrasts wage employment with self-employment.

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Jana Arvin
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899 views13 pages

Chapter 1 - Introduction To Entrepreneurship

This document provides an introduction to entrepreneurship and entrepreneurs. It defines entrepreneurs as individuals who actively form and lead their own businesses to nurture growth and prosperity. Entrepreneurs take on the risk and reward of starting new enterprises to identify opportunities and assemble resources. Key characteristics of entrepreneurs include a desire for responsibility, risk-taking, confidence, and a focus on achievement over money. The document also discusses the benefits and drawbacks of entrepreneurship and contrasts wage employment with self-employment.

Uploaded by

Jana Arvin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
  • Introduction to Entrepreneurship: Introduces the concept of entrepreneurship and sets the stage for further exploration of its aspects.
  • Comparison of Wage Employment vs Entrepreneurship: Compares and contrasts various aspects of wage employment and entrepreneurship using a tabular format.
  • Understanding Entrepreneurs: Defines entrepreneurs, explores their characteristics, and their role in innovation and business creation.
  • Benefits and Drawbacks of Entrepreneurship: Outlines the advantages and potential disadvantages faced by entrepreneurs.
  • The Cultural Diversity of Entrepreneurship: Explores how entrepreneurship varies across different cultural and demographic backgrounds.
  • Mistakes and Pitfalls in Entrepreneurship: Lists common errors encountered by entrepreneurs and suggest preventative strategies.
  • Difference Between Entrepreneur & Entrepreneurship: Clarifies the distinction between the concept of 'entrepreneur' as a person and 'entrepreneurship' as a process.

INTRODUCTION TO

ENTREPRENEURSHIP
ENTREPRENEUR &
ENTREPRENEURSHIP

Wage Employment or
Entrepreneurship ?
Entrepreneurship as a career in your own
business [YOB] rather than wage
employment [JOB].
You will be your own boss.

Wage Employment Vs
Entrepreneurship
Wage Employment

Entrepreneurship

Work for Others

Own Boss

Follow Instructions

Make own plans

Routine Job

Creative activity

Earning is fixed, never


negative

Can be negative sometimes,


generally surplus

Does not create wealth

Creates Wealth, contributes to


GDP

Can choose fromGovernment service; Public


Sector ; Private Sector

Can choose fromIndustry ;Trade or Service


Enterprise

DEFINITION :ENTREPRENEURS
an individual who actively form/lead their own
business & nurture them for growth & prosperity
(UiTm Entrepreneurship Group:2004)

is a person with a high need for achievement He is


energetic and a moderate risk taker.
(David McClleland :1961)

are innovators who use a process of shattering the


status quo of the existing products and services, to
set up new products, new services.
(Schumpeter :1934)

is a person who starts an enterprise. He searches for


change and responds to it
Entrepreneurs do not necessarily make right
decisions, they make their decisions right

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.
(Zimmemer:2008)

5
Chapter 1: Entrepreneurship

Characteristics of
Entrepreneurs
Desire for responsibility
Preference for moderate risk risk
eliminators
Confidence in their ability to succeed
Desire for immediate feedback
High level of energy
Future orientation serial entrepreneurs
Skilled at organizing
Value achievement over money

6
Chapter 1: Entrepreneurship

Entrepreneurship
A process of creating & expanding
businesses that collectively form a force for
national development & societal prosperity
also a process of creating something new
& assuming the risk & reward.

Benefits/Advantages of
Entrepreneurship
The opportunity to:
Create your own destiny
Make a difference
Reach your full potential
Reap impressive profits
Contribute to society and to be
recognized for your efforts
Do what you enjoy and to have
fun at it
8

Drawbacks(Disadvantages) of
Entrepreneurship

Uncertainty of income
Risk of losing your entire investment
Long hours and hard work
Lower quality of life until the business gets established.
High levels of stress
Complete responsibility
Discouragement

The Cultural Diversity of


Entrepreneurship

Young entrepreneurs
Women entrepreneurs
Minority-owned enterprises
Immigrant entrepreneurs
Part-time entrepreneurs
Home-based businesses
Family businesses
Copreneurial business
Corporate castoffs
Corporate dropouts

10
Chapter 1: Entrepreneurship

Ten Deadly Mistakes of


Entrepreneurship
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Management mistakes
Lack of experience
Poor financial control
Weak marketing efforts
Failure to develop a strategic plan
Uncontrolled growth
Poor location
Improper inventory control
Incorrect pricing
Inability to make the entrepreneurial
transition

11
Chapter 1: Entrepreneurship

Avoiding the Pitfalls of Small


Business Failure

Know your business in depth


Develop a solid business plan
Manage financial resources
Understand financial statements
Learn to manage people effectively
Keep in tune with yourself

12
Chapter 1: Entrepreneurship

Difference Between Entrepreneur


& Entrepreneurship
Entrepreneur

Entrepreneurship

are tangible people

is an abstraction

is a person

is a process

the key individual central to outcome of complex socioentrepreneurship who


economic, psychological
makes things happen
and other factors
is the actor

is the act

An entrepreneur is the
catalyst who brings about
this change

Entrepreneurship is the
most effective way of
bridging the gap between
science and the market
place by creating new
enterprises

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