Chapter One

The Foundations of

EntrepreneurshipEntrepreneurs are simply those who

understand that there is a little difference

between obstacle and opportunity and are

able to turn both to their advantages.-

Niccolo Machiavelli

Entrepreneurs are the new rock stars.-

Cindy Boyd.

Chapter One

The Foundations of

EntrepreneurshipEntrepreneurship is more than simply “starting a

business.” The definition of entrepreneurship is a

process through which individuals identify

opportunities, allocate resources, and create

value. This creation of value is often through the

identification of unmet needs or through the

identification of opportunities for change .

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definition/

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Evaluating your entrepreneurial

profile• Profile of an entrepreneur.

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• Success and failure characteristic

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• How to self assess whether you will

succeed.

• Objective guidelines and answer

guidelines.

• Appraising your personal skills.

• Creating an expertise worksheet.

• Consolidating your scores creating a

business charter.

Who is an Entrepreneur

Entrepreneur

One who creates a new business in the face of risk and

uncertainty for the purpose of achieving profit and growth

by identifying significant opportunities and assembling the

necessary resources to capitalize on them.

Entrepreneurial Profile

1. Desire for responsibility.

2. Preference for moderate risk.

3. Confidence in their ability to succeed.

4. Desire for immediate feedback

5. High level of energy

6. Future orientation.

7. Skill at organizing.

8. Value of achievement over money.

Entrepreneurial Characteristics

1. High degree of commitment.

2. Tolerance for ambiguity

3. Flexibility

Type of Entrepreneurs

1. Opportunity entrepreneurs

Who start businesses because they spot an opportunity in

the marketplace.

2. Necessity entrepreneurs

Who start businesses because they cannot find work any

other way.

3. Serial entrepreneurs

Who repeatedly start businesses and grow them to a

sustainable size before striking out again.

The benefits of Entrepreneurship

1.Opportunity to create your own destiny.

2. Opportunity to make a difference.

3. Opportunity to reach your full potential.

4. Opportunity to reap impressive profits.

5. Opportunity to contribute to society and be recognized

for your efforts.

6. Opportunity to do what you enjoy and fun at it.

The potential drawbacks 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 business gets established.

5. High levels of stress.

6. Complete responsibility.

7. Discouragement.

The forces that are driving the growth

of Entrepreneurship.1. Entrepreneurs as heroes.

2. Entrepreneurial education.

3. Demographic and economy factors.

4. Shift to a service economy.

5. Technological advancements.

6. Independent lifestyle.

7. E-commerce and World Wide Web.WWW. The vast network that link computers around the globe via the Internet and opens up oceans of information to its users and is a major business opportunity for entrepreneurs.

8. International opportunities.

The Cultural Diversity of

Entrepreneurship.1. Young Entrepreneurs.

2. Women Entrepreneurs.

3. Minority Enterprises.

4. Immigrant Entrepreneurs.

5. Part time Entrepreneurs

6. Home-based Businesses.

7. Family Business

8. „Copreneurs‟-are entrepreneurial couples who work together as co-owners of their businesses.

9. Corporate Castoffs.

10. Corporate Dropouts.

11. Social Entrepreneurs.

12. Retiring baby boomers.

Putting failure into perspective

Entrepreneurs recognize that failure is natural part of the

creative process. Successful entrepreneurs have the

attitude that failures are simply stepping stones along the

path to success, and they refuse to be paralyzed by a fear of

failure.

How to avoid the pitfalls

1. Know your business in depth.

2. Develop a solid business plan.

3. Manage financial resources.

4. Understand financial statements.

5. Learn to manage people effectively.

6. Set your business apart from the competition.

7. Maintain a positive attitude „can do attitude‟