Entrepreneurship

Who is an entrepreneur?The word entrepreneur is French and

literally translated means between taker or go between.

Entrepreneur is an individual who takes risks and starts something new.

Development of EntrepreneurshipEarliest PeriodMiddle Ages17th Century18th Century19th & 20th CenturiesEntrepreneurship today

Earliest PeriodMarco Polo is an example of earliest

entrepreneur.

He attempted to establish trade routers to the Far East.

As a go between Marco Polo would sign a contract with a money person (capitalist) to sells his good

Middle AgesIn the middle ages the term entrepreneur

was used to describe both an actor and a person who managed large production or construction project.

In such projects the manager did not take any risk but just manage the projects and the resources were usually provided by government.

17th CenturyThe connection of risk with entrepreneur

developed in the 17th century.In this era the entrepreneur was a person

who entered into a contractual arrangement with the government to perform a service or to supply a product.

The price is pre-fixed and any resulting losses were charged to entrepreneur.

One big example of entrepreneurship in this era was John Law who was allowed to establish Royal Bank

18th CenturyIt was the time when entrepreneur was

distinguished from capitalists.This was the era of industrialization and

development of modern technology.The inventors like Thomas Edison was in

need of resources to finance their research work.

In this period the entrepreneurs were capital users only and they were a investment area for capital owners of that time.

19th & 20th CenturiesIn the 19th and 20th centuries entrepreneurs

were mostly viewed from and economic perspective.

In this era the function of entrepreneur was only to introduce innovations in the field of production.

It was the time when entrepreneurship was mixed with the Invention and Innovation.

Entrepreneurship Today

“Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risk and receiving the resulting rewards of monetary and personal satisfaction and independence.”

There are four basic aspects of modern entrepreneurship:

It involve creation process

The creation has to be some value both for entrepreneur and for audience for which it is developed.

It require devotion of time and effort.

It contain some risk

Entrepreneurship Today ( Cont..)

The Entrepreneurial Process

Manage The Enterprise

Resources Required

Develop Business Plan

Identify & Evaluate the Opportunity

Identify & Evaluate the Opportunity

Opportunity Assessment

Creation and Length of Opportunity

Real and Perceived value of opportunity

Risk and Returns of opportunity

Opportunity VS Personal Skills and Goals

Competitive Environment

Business PlanDescription of Business

Description of Industry

Technology Plan

Marketing Plan

Financial Plan

Production Plan

Organization Plan

Operational Plan

Resources RequiredDetermine Resources Needed

Determine Existing Resources

Identify resource gaps and available suppliers

Develop access to needed resources

Manage the EnterpriseDevelop Management Style

Understand Key Variables for Success

Identify problems and Potential Problems

Implement Control System

Develop Growth Strategy

Future of EntrepreneurshipWe are living in the age of entrepreneurship Entrepreneurship is endorsed by educational

institutions, governmental units, society and corporations

Almost all Universities in the world offer different courses in the field of entrepreneurship

These Universities also conduct Research Work in this field

Entrepreneurship in PakistanYouth Loan Scheme by the Government of

Pakistan to provide financial support to young Entrepreneurs

Internship Program is also a tool to Promote Entrepreneurship in Pakistan

Vocational Training Institutes(VTIs) are providing skilled labor and encouraging people to be self dependent