Professional Documents
Culture Documents
The Foundations
Foundations of
of
Entrepreneurship
Entrepreneurship
Chapter 1 - A.
Kanneh
Outline
The Entrepreneur
Characteristics of Entrepreneurs
Benefits and Risks of
Entrepreneurship
Forces driving the
Entrepreneurial trend
Deadly Mistakes of
Entrepreneurship
Chapter 1: Entrepreneurship 2
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.
- Initiates process of creative destruction
Chapter 1: Entrepreneurship 3
Characteristics of
Entrepreneurs
1. Desire for personal responsibility/control
2. Preference for moderate risk – risk eliminators
(solid business plans)
3. Confidence in their ability to succeed
4. Desire for immediate feedback
5. High level of energy (long hrs and hard work)
6. Future orientation – serial entrepreneurs
7. Skilled at organizing
8. Value achievement over money
9. High degree of commitment
10. Tolerance for ambiguity/uncertainty, flexibility
Chapter 1: Entrepreneurship 4
Entrepreneurship
Diversity!
Chapter 1: Entrepreneurship 5
Benefits 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
Chapter 1: Entrepreneurship 6
Analysing Risks
High
Potential
Benefits
Chapter 1: Entrepreneurship 7
Which poses the greater
risk?
2 Types of entrepreneurs
Chapter 1: Entrepreneurship 8
Drawbacks/Risks of
Entrepreneurship
1. Uncertainty of income
2. Risk of losing your entire
investment
3. Long hours and hard work
4. Lower quality of life until the
5. business
High gets
levels established
of stress
6. Complete responsibility
7. Discouragement/obstacles
Chapter 1: Entrepreneurship 9
Small Business Owners' Work Week
Numbe r of Hours Worke d pe r We e k
30 to 40 hours
24%
51 to 60 hours
20%
41 to 50 hours
28%
dapted from Dun & Bradstreet 21st Annual Small Business Survey Summary Report, 2002, p. 35.
Chapter 1: Entrepreneurship 10
Feeding the
Entrepreneurial Fire –
Forces driving the
1. trend
Entrepreneurs seen as heroes
2. Entrepreneurial education
3. Demographic and economic factors
4. Shift to a service economy
5. Technological advancements
6. Independent lifestyle (self-sustaining)
7. E-commerce and the World Wide Web
8. International opportunities
Chapter 1: Entrepreneurship 11
Ten Deadly Mistakes of
Entrepreneurship
1. Management mistakes –
leadership, judgement and
knowledge at the top
2. Lack of experience
3. Poor financial control – cash
management
4. Weak marketing efforts
5. Failure to develop a strategic
plan
Chapter 1: Entrepreneurship 12
Ten Deadly Mistakes of
Entrepreneurship
6. Uncontrolled growth
7. Poor location
Chapter 1: Entrepreneurship 14
So far…
The Entrepreneur
Characteristics of Entrepreneurs
Benefits and Risks of Entrepreneurship
Forces driving the Entrepreneurial trend
Deadly Mistakes of Entrepreneurship
Chapter 1: Entrepreneurship 15