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Starting Your Own Business:
The Entrepreneurship
Alternative
Le a rn i n g
G o al s
1 Define the term entrepreneur and 5 Identify personality traits that
distinguish among entrepreneurs, typically characterize successful
small-business owners, and entrepreneurs.
managers.
6 Summarize the process of starting
a new venture.
2 Identify the different types of
entrepreneurs.
7 Explain how organizations
promote intrapreneurship.
3 Explain why people choose to
become entrepreneurs.
4 Discuss factors that support and
expand opportunities for
entrepreneurs.
What is
n e ursh ip?
Entrepre
• An entrepreneur is a person who seeks a profitable
opportunity and takes the necessary risks to set up
and operate a business.
• Differ from many small-business owners in their
strong desire to make their business grow.
• Differ from managers through their overriding
responsibility to use the resources of the
organization to accomplish their goals.
• Willing to take risks.
o rie s o f
Categ
r e n e urs
Entrep
• Classic Entrepreneurs
• Serial Entrepreneurs
• Social Entrepreneurs
y P e o ple
Wh
Become
pre n e urs
Entre
Why
e n e ursh ip?
E n t re pr
• Being your Own Boss
– Self-management is the motivation that drives many
entrepreneurs.
• Financial Success
– Entrepreneurs are wealth creators.
• Job Security
– Over the past ten years, large companies have
eliminated more jobs than they have created.
• Quality of Life
– Starting a business gives the founder some choice
over when, where, and how to work.
iro n m e n t
The Env
fo r
e urs h ip
Entrepren
l i z a t i o n
Gl o b a
The rapid globalization of business has created many
opportunities for entrepreneurs
u c a t i on / I T /
Ed
g r a p h i c &
Demo s
i c Tr e n d
E c onom
Education
• A lot of Pakistani universities offer entrepreneurship majors.
• Universities are helping students launch businesses.
• Many programs teach entrepreneurship to young people.
Information Technology
• Technology has given entrepreneurs tools that help them compete.
• Entrepreneurs have used information technology to revolutionize industries.
Demographic and Economic Trends
• Aging of Pakistani population.
• Emergence of Hispanics as nation’s largest ethnic group.
• Growth of two-income families.
t e ri st i c s o f
C h ar a c
e n e u r s
Entrepr
n e u r i a l
Entrepre
e ri st i c s
Charact
• Vision - entrepreneurs begin with an overall idea for how to make their
business idea a success
• High Energy Level - a willingness to work hard
• Need to Achieve - entrepreneurs work hard because they want to excel
• Self-Confidence - fearlessness in the face of difficult odds
• Tolerance for Failure - entrepreneurs are not easily discouraged
• Creativity - entrepreneurs devise innovative ways to overcome difficult
problems and situations
• Tolerance for Ambiguity - entrepreneurs take in stride uncertainties.
• Internal Locus of Control - entrepreneurs believe they can control their
own fate
n eu ri a l
Entrepre
Quiz
S ta rt i n g A
V e n tu re
New
• Selecting a Business Idea
– Find something you love to do and are good at doing
– Can your idea satisfy a need in the marketplace?
• Entrepreneurs must be sure that the idea they
choose has interest in the marketplace
Business Plan
C re at i ng a
ne ss P l a n
Busi
• 58% of the most recent Inc. CEOs did not create a formal written plan.
• But business plans do help entrepreneurs prepare enough resources
and stay focused on key objectives.
i na nci ng
Finding F
• Debt Financing
– Credit Cards
– Family and Friends
– Bank Loans
• Equity Financing
– Venture Capitalists
– Angel Investors
v e rn m e n t
Go
f o r N e w
Support
Ventures
• Business Incubators is a key way
government supports new ventures
– Clean Energy Incubator (CEI)
• Enterprise Zones
– Encourage entrepreneurship in specific
geographic areas
re ne ursh i p
I nt r ap
• Promoting innovation within organizational
structures
• An idea to promote creativity
• Companies promote in a variety of ways
– Skunkworks
– Pacing Programs
