session 1_introducing entrepreneurship

Introducing EntrepreneurshipAkshar Nepal

What is Entrepreneurship?

New venture?

Small Business?Risk Taking?

Creativity?Innovation?

Business initiation by youths?

Managing a venture?

Opportunity Seeking?

Creating Something New?A Team pursuing an

objective?

Stevenson and Jarillo ( academicians)– “ the process by which individuals pursue opportunities without regard to resources they currently control.”

Fred Wilson (venture capitalist)– “ the art of turning an idea into a business.”

The essence of entrepreneurial behavior is identifying

opportunities and putting useful ideas into practice.

Corporate Entrepreneurship (Intrapreneurship)•It is the conceptualization of

entrepreneurship at the firm level.•All firms fall along a conceptual

continuum that ranges from highly conservative to highly entrepreneurial.

•The position of a firm on this continuum is referred to as its entrepreneurial intensity.

Corporate EntrepreneurshipEntrepreneurial Firms Conservative Firms

•Proactive•Innovative•Risk taking

•Take a more “wait and see” posture

•Less innovative•Risk averse

Promoting innovation in larger organizations

• By encouraging Intrapreneurial culture

• By encouraging experimentation – trial and error

• By allocating resources for innovation

• By developing multi disciplinary team

• By fostering “entrepreneurial ventures” to be started by the

employees as offshots

• By introducing a reward system within the organization

• Top management commitment

Why become an entrepreneur??

Why become an entrepreneur?

•Desire to be their own boss•Desire to pursue their own

ideas•Financial rewards

Characteristics of successful entrepreneurs

Passion for the

business

Product/ customer

focus

Tenacity despite failure

Execution intelligenc

e

Successful entrepreneur

Common Myth About Entrepreneurs•Myth 1: Entrepreneurs are born, not

made.•Myth 2: Entrepreneurs are gamblers.•Myth 3: Entrepreneurs are motivated

primarily by money.•Myth 4: Entrepreneurs should be young

and energetic.•Myth 5: Entrepreneurs love the spotlight.

Types Of Start-Up Firms•Salary substitute firms:

These are small firms that yield a level of income for their owners that is similar to what they would earn when working for an employer.

•Lifestyle firms: These firms provide their owners the opportunity to pursue a particular lifestyle, and make a living at it.

Types Of Start-Up Firms•Entrepreneurial firms

These firms bring new products and services to the market by creating and seizing opportunities regardless of the resources they currently control.

Importance of Entrepreneurship•Joseph Schumpeter – “Creative

Destruction”▫Entrepreneurs develop new products and

technologies that over time make current products and technologies obsolete.

▫It stimulates economic activity and increases the productivity across society.

Economic Impact of Entrepreneurial Firms•Innovation: the process of creating

something new•Job creation: Movement of economic

activity towards small firms

Impact on Society•The creation of products that help

improve our lives and making living easier.

•But on the flip side, it also creates moral and ethical issues.

Impact on larger firms•Entrepreneurial firms build their entire

business models around producing products and services that help larger firms become more efficient or effective.

•Partnerships with larger firms

The Entrepreneurial ProcessStep I: Deciding to become an entrepreneurStep II: Developing successful business ideasStep III: Moving from an idea to an

entrepreneurial firmStep IV: Managing and growing the

entrepreneurial firm

Developing Successful Business Ideas•Recognizing opportunities and generating

ideas•Feasibility analysis•Writing a business plan•Industry and competitor analysis•Developing an effective business model

Moving from an Idea to an Entrepreneurial Firm•Preparing the proper legal and ethical

foundation•Assessing a venture’s financial strength

and viability•Building a new venture team•Getting financing or funding

Managing and Growing an Entrepreneurial Firm•Marketing issues•Managing and protecting intellectual

property•Growth challenges•Growth strategies