Business & its Environment

Entrepreneurship

Entrepreneur - Introduction
Originate from French word means to undertake ; it suggest spirit, zeal, ideas, diversity The word apply loosely to describe anyone who runs a business A person who organizes, operates & assume the risk for business venture

Anyone who created their own business

Entrepreneur As owner and Organizer

An entrepreneur is a person who has possession of enterprise or venture & assume significant accountability for the inherent risk & the outcome. He is an ambitious leader who combines land, labor & capital to create & market new goods & services An entrepreneur may perceive that they are among the few to recognize or able to solve a problem

Entrepreneur As identifier of New Market

Entrepreneur tend to identify a market opportunity & exploit it by organizing their resources effectively to accomplish an outcome that changes existing interactions within a given sector. Entrepreneur play a key role in any economy. These are the people who have the skills & initiative necessary to take new ideas to market & make the right decisions to make the idea profitable. The reward for the risks taken is the potential economic profits the entrepreneur could earn.

Entrepreneur As innovator of New Product or Ideas

An individual who, rather than working as an employee, runs a small business & assumes all the risk & reward of a given business venture, idea or good or service offered for sale. The entrepreneur is commonly seen as a business leader & innovator of new ideas & business processes.

Types of Entrepreneur
Classic Entrepreneurs

People who are risk takers and start their own companies based on innovative ideas. Micropreneurs People who start small and plan to stay small. Growth oriented entrepreneurs - People who start small but want their business to grow into major corporations. For example, Amazon.com

Types of Entrepreneur
Multipreneurs

People who start a series of companies.

Entrepreneurs who apply their creativity, vision and risk taking within a large corporation, rather than starting a company of their own.

Intrapreneurs

Entrepreneurship
According to Prof Leff

Entrepreneurship is the capacity for innovation, investment & expansion in new markets, products & techniques i.e. whenever someone takes risks & invests resources to make something new or to design a new way of making something that already exists or to create new markets.

Entrepreneurship
Entrepreneurship is the dynamic process of creating incremental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time and/or commitment of providing value for some product or service. The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing & allocating the necessary skills & resources

Entrepreneurship & Management

Entrepreneurship is not the same thing as management. The first job of the manager is to make a business perform well. The manager takes given resources people, money, machine & material and organizes them into production. In contrast, the first job of the entrepreneur is to bring about change on purpose

Entrepreneurial Traits
Ambitious Independent Self-confident Risk Taking Visionary Creative Energetic Passionate Committed

Entrapreneurship
Corporate entrepreneurship (entrapreneurship) describe the innovation that occurs inside established companies through efforts of creative employees. Specifically the corporate entrepreneur is one who helps a company set a new course and in the process often generates new divisions, subsidiaries or new companies that spin off from the parent companies. The concept is controversial because no one can accurately explain how a manager assumes the risk of new venture while remaining employed in a structured organization.

The Entrepreneurial Process Define

The process of starting a new venture is embodied in the entrepreneurial process, which involves more than just problem solving in a typical management position. The entrepreneur must find, evaluate and develop an opportunity by overcoming the forces that resist the creation of something new.

The process has four distinct phases

Identify and evaluate the opportunity Develop the business plan Determine the resources required Manage the resulting enterprise created

Identify & evaluate the opportunity

Opportunity identification & evaluation is a most difficult task. Most good business opportunities do not suddenly appear but result from an entrepreneur being alert to possibilities or in some cases, by establishing mechanism to identify potential opportunities.

Develop a Business Plan

It is the description of the future direction of the business. A good business plan must be developed in order to exploit the opportunity. A good business plan is not only important in developing the opportunity but is also essential in determining the resources required, obtaining those resources & successfully managing the resulting venture.

Resources Required
The resources needed for the opportunity must also be determined. This process starts with an appraisal of the entrepreneurs present resources. Then, any resources that are critical must be distinguished from those that are just helpful. Care must be taken not to underestimate the amount & variety of resources needed.

Manage the Enterprise

After resources are acquired, the entrepreneur must employ them through implementation of the business plan. Involves implementing a management style & structure, as well as determining the key variables for success. A control system must be identified so that any problem areas can be carefully monitored.

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