enterpreneurship .pptx

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This file contains Lectures on Enterpreneurship for students

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Entrepreneurship for Engineers

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Business plan poster Complete business plan Business introduction Products photos Ceo Similar international/national company, introduction, ceo, business volume Major environmental risks Investors Expected revenues for one year, 3 years and over 10 years Initial investment 2 Poster dimensions 6 ft x 4 ft

Quiz 1 Marks 10 time 15 min

What are your career objectives list ten points and how would you like to achieve these3

Weightage

End term =40 % Class project = 15% Quizes = 10% Assignments = 5% Mid term = 20% Class participation = 10%4

Introduction

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Quiz 1 Procurement process of public and private sector organisations Quotations RFP, tendering, comparative statements

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Aim of the Module This course aims at: Enabling the students to understand the fundamental concepts of Entrepreneurship, Learn various techniques and processes of decision making, Be able to generate ideas for businesses Be familiar with business plan and Technicalities involved in opening their own private limited company in Pakistan for a 7 startup business

Learning Outcomes To learn what is entrepreneurship, concepts, definitions and applications in real life. Learn from examples of reasons for failure and successes of individuals and business companies. To be able to make a business plan for a product or service for a startup business To develop the ability to attract an investor angel for sponsoring the newly created enterprise Learn the processes of establishing a private limited company using services of Securities and Exchange Commission of Pakistan 8

Semester project 15% weightageAssignment 1 Project identification, name your company, what are your products /services CEO, Middle level manager, employee Describe duties and responsibilities of all the members towards the project. Ass# 2 Find investor angel +seed money(later Assignment) Ass#3 preparing a business plan9

Subject Focus Points Entrepreneurship the motivations, the risks, rewards, impact Seeing opportunities, identifying profitable opportunities Creating a business plan- its content and importance as a tool Starting a company and the regulatory requirements Raising money to start the business-bootstrapping, enrolling investors to your plan 10 Getting loans- what do banks need

Subject Focus Points Getting loans- what do banks need Selling and getting the first clients What makes my business different than competition? Building a team- getting people to believe in the venture Making mistakes, changing plans, mutilating, adapting to what customers want Cash flows the oxygen of any business Project- creating a business plan and presenting to potential investors/stakeholders11

Few definitions of Entrepreneurship? Organizing a business venture and assuming therisk for it.

An entrepreneur is a person who is willing andable to convert a new idea into a successful

venture. Entrepreneurship is a process of converting a new idea into a successful venture12

Practice of starting new organizations or revitalizing mature organizations Particularly new businesses in response to identified opportunities. Entrepreneurial activities has a vast range It ranges in scale from solo projects to major undertakings creating many job opportunities. Entrepreneur is one who organizes, manages and assumes the risk of a business enterprise.13

What is Entrepreneurship may include?

What Is it in nut shell?The pursuit of opportunity through innovation, creativity and hard work without regard for the resources currently controlled.14

Entrepreneur Founding entrepreneur who identifies the opportunity and moves to exploit it commercially. Often it is the founder (or founding team) who possesses much of the technical and managerial knowledge that make-up the tangible and intangible assets of the firm. In sum, an entrepreneurs expanding knowledge base and absorptive capacity becomes an entrepreneurial firms competitive advantage (Alvarez and Busenitz 2001, p.766). 15

Who Is An Entrepreneur?

A vision-driven individual who assumes significant personal and financial risk to start or expand a business.16

Entrepreneurs: Born or Made? Is there inborn talent required? Assume that the answer is YES: then we can identify the main characteristics if we have them, fine - no others need to apply! we could start spotting talent in kindergarten we could "stream" these people we could discourage people without these talents17

Entrepreneurs: Born or Made? Assume the answer is NO: then schools could teach anyone would be a "profession" like law or medicine companies could establish "nurseries" for them government "incubators" would be successes

The real answer lies somewhere in-between Talent and education is the way18

Who is an Entrepreneur?Situational more than personalityFlexibilityAge Distribution for Starting Company

Ability

20

25

30

35

40

45

Age

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Who is an Entrepreneur?Managers OpportunitiesFuture GoalsChange Status Quo

Possible

Entrepreneur

Satisfied manager

Perceived CapabilityBlockedFrustrated manager Classic bureaucrat

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Burch's Entrep. Personality Traits1.A desire to achieve

Conquer problems, create successful venture Their workload is very hard to match

2.Hard work

3.Nurturing quality 4.Acceptance of responsibility

Morally, legally and mentally accountable Want be rewarded for their efforts21

5.Reward orientation

Burch's Entrep. Personality Traits6.Optimism

Anything is possible Pride in something first class They are wholly "take charge" people

7.Orientation to excellence

8.Organization

9.Profit orientation

Profit primarily a gauge of performance22

Failure? So what! Failure seen differently in America & Europe. In Europe it is a major set-back U.S. expected (required even!) Canada - in between but tending to U.S.

Our System: Many entrepreneurs had been "blue collar" Many come from families of entrepreneurs Many are immigrants or their children But, there are no "rules" that ensure success

Universally, entrepreneurs shake off failure!

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Failure as Learning Process Ignore it, then start again Some find it easy to blame someone else

In public, always optimistic Especially with funders Agonise over what went wrong in private

Willingness to disregard the rules Start from first principles.

Ability to "bend, not break" rules of life24

Classic Entrepreneurship: The Startup Raw startup companyan innovative idea that develops into a high growth company Qualities of a startup company Strong leadership from the main entrepreneur Complementary talents and outstanding teamwork of team members Skill and ingenuity to find and control resources Financial backing to chase opportunity

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Desirable and Acquirable Attitudes and Behaviors Commitment and determination Leadership Opportunity obsession Tolerance of Risk Ambiguity Uncertainty

Creativity, self-reliance, and adaptability Motivation to excel

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The Entrepreneurial Process It is opportunity/market driven It is driven by a lead entrepreneur and an entrepreneurial team It is resource parsimonious(cost conscious) and creative It depends on the fit and balance among these It is integrated and holistic27

The Timmons Model of the Entrepreneurial ProcessCommunicationOpportunity (2)Ambiguity

Business Plan Fits and gapsTeam (3)

Resources (4)External forces

CreativityUncertainty

LeadershipCapital markets

Founder (1)

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Enlightened Serendipity (Chance Fate, destiny) Being in the right place At the right time, Recognizing it, and Acting upon it, APPROPRIATELY and PASSIONATELY!!!29

Entrepreneurs V. Intrapreneurs Entrepreneurs are people that notice opportunities and take the initiative to mobilize resources to make new goods and services. Intrapreneurs also notice opportunities and take initiative to mobilize resources, however they work in large companies and contribute to the innovation of the firm. Intrapreneurs often become entrepreneurs.

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Intrapreneurship Learning organizations encourage intrapreneurship. Organizations want to form: Product Champions: people who take ownership of a product from concept to market.

Skunkworks: a group of intrapreneurs kept separate from the rest of the organization. New Venture Division: allows a division to act as its own smaller company.

Rewards for Innovation: link innovation by workers to valued rewards.

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Small Business Owners Small business owners are people who own a major equity stake in a company with fewer than 500 employees. In 1997 there were 22.56 million small business in the United States. 47% of people are employed by a small business.

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Employee Satisfaction In companies with less than 50 employees, 44% were satisfied. In companies with 50-999 employees, 31% are satisfied. Business with more than 1000, only 28% are satisfied.

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Employee SatisfactionEmployee SatisfactionSatisfaction Percentage50 40 31 30 20 10 0 less than 50 50-999 1000+ Number of Employees 1000+ 28 44 less than 50 50-999

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Advantages of a Small Business Greater Opportunity to get rich through stock options Feel more important Feel more secure Comfort Level

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Disadvantages of a Small BusinessLower guaranteed pay Fewer benefits Expected to have many skills Too much cohesion Hard to move to a big company Large fluc