EntrepreneurshipDevelopment

The Evolution of EntrepreneurshipEntrepreneur is derived from the French entreprendre, meaning to undertake.The entrepreneur is one who undertakes to organise, manage, and assume the risks of a business. Although no single definition of entrepreneur exists and no one profile can represent todays entrepreneur, research is providing an increasingly sharper focus on the subject.

An Integrated DefinitionEntrepreneurshipA dynamic process of vision, change, and creation.Requires an application of energy and passion towards the creation and implementation of new ideas and creative solutions.

Essential ingredients include:The willingness to take calculated risksin terms of time, equity, or career.The ability to formulate an effective venture team; the creative skill to marshal needed resources.The fundamental skills of building a solid business plan.The vision to recognise opportunity where others see chaos, contradiction, and confusion.

Entrepreneurs Vs. Small Business OwnersSmall Businesses OwnersManage their businesses by expecting stable sales, profits, and growth.

EntrepreneursFocus their efforts on innovation, profitability and sustainable growth.

The Myths of EntrepreneurshipMyth:The term "myth" is often used colloquially to refer to a false story.A widely held but false belief.An exaggerated conception of a person or thing

The Myths of EntrepreneurshipMyth 1:Entrepreneurs Are Doers, Not ThinkersMyth 2:Entrepreneurs Are Born, Not MadeMyth 3:Entrepreneurs Are Always InventorsMyth 4:Entrepreneurs Are Academic and Social MisfitsMyth 5:Entrepreneurs Must Fit the ProfileMyth 6:All Entrepreneurs Need Is MoneyMyth 7:All Entrepreneurs Need Is LuckMyth 8:Ignorance Is Bliss For EntrepreneursMyth 9:Most entrepreneurial initiatives failMyth 10:Entrepreneurs Are Extreme Risk Takers (Gamblers)

The Myths of EntrepreneurshipMyth 1:Entrepreneurs Are Doers, Not ThinkersEntrepreneurs have a tendency toward action, but they are also thinkers.Emphasis today is on the creation of clear and complete business plans.Myth 2: Entrepreneurs Are Born, Not MadeLike all disciplines, entrepreneurship has models, processes, and case studies that allow the topic to be studied and the traits acquired.Traits include aggressiveness, initiative, drive, a willingness to take risks, analytical ability, and skill in human relations.

The Myths of EntrepreneurshipMyth 3: Entrepreneurs Are Always Inventors Numerous entrepreneurs encompass all sorts of profit-seeking activity. For example, Ray Kroc did not invent the fast-food franchise, but his innovative ideas made McDonalds the largest fast-food enterprise in the world.Myth 4: Entrepreneurs Are Academic and Social Misfits This myth results from people who have started successful enterprises after dropping out of school or quitting a job.Today the entrepreneur is considered a hero: socially, economically, and academically. No longer a misfit, the entrepreneur is now viewed as a professional.

The Myths of EntrepreneurshipMyth 5: Entrepreneurs Must Fit the ProfileMany books and articles have presented checklists of characteristics of the successful entrepreneur. These lists were neither validated nor complete.Today we realise that a standard entrepreneurial profile is hard to compile. The environment, the venture itself, and the entrepreneur have interactive effects, which result in many different types of profiles.

The Myths of EntrepreneurshipMyth 6: All Entrepreneurs Need Is MoneyVenture needs capital to survive.A large number of business failures occur because of lack of adequate financing.Failure due to lack of financing indicates other problems.Managerial incompetenceLack of financial understandingPoor investmentsPoor planning

The Myths of EntrepreneurshipMyth 7: All Entrepreneurs Need Is LuckBeing in the right place at the right time is always an advantage.Luck happens when preparation meets opportunity.What appears to be luck could really be several factors.PreparationDeterminationDesireKnowledgeInnovativeness

The Myths of EntrepreneurshipMyth 8: Ignorance Is Bliss For EntrepreneursEntrepreneurs are assumed to be disorganised and unstructured.The reality is that they are typically well-organised, in order to get done all the duties and responsibilities inherent in building and running a business.Key factors in successful entrepreneurshipIdentifying the strengths and weaknesses of a ventureSetting up clear timetables with contingencies for handling problemsMinimising problems through careful strategy formulationCareful planning is the mark of an accomplished entrepreneur.

(A myth that entrepreneurship is unstructured and chaotic)

The Myths of EntrepreneurshipMyth 9: Most entrepreneurial initiatives failMany entrepreneurs suffer a number of failures before they are successful.In fact, failure can teach many lessons to those willing to learn and often leads to future successes.The Corridor Principle states that with every venture launched, new and unintended opportunities often arise.

Corridor Principle:The corridor principle simply suggests that there are open doors you can only see when you are walking down the corridor.They are not visible from your starting point at the end of the hall.The "Corridor Principle" involves entrepreneurs being able to see venture opportunities not visible to them before entering usiness.

The Myths of EntrepreneurshipMyth 10: Entrepreneurs Are Extreme Risk Takers (Gamblers)Publics perception of the risk assumed by most entrepreneurs is distorted. While it may appear that an entrepreneur is gambling on a wild chance, the fact is that the entrepreneur is usually working on a moderate or calculated risk.

Effects of EntrepreneurshipThe Global Entrepreneurship Monitor (GEM)Provides an annual assessment of the entrepreneurial environment of 42 countries.Latest GEM study: the U.S. outranks the rest of the world in important entrepreneurial support.http://www.gemconsortium.org/

Entrepreneurs lead to growth by:Entering and expanding existing markets.Creating entirely new markets by offering innovative products.Increasing diversity and fostering minority participation in the economy.

Current Trends in Entrepreneurship Research

Major Research Themes:Venture Financing: venture capital and angel capital financing and other financing techniques strengthened in the 1990s.Corporate Entrepreneurship and the need for entrepreneurial cultures has drawn increased attention.Social Entrepreneurship has unprecedented strength within the new generation of entrepreneurs.Entrepreneurial Cognition is providing new insights into the psychological aspects of the entrepreneurial process.Current Trends in Entrepreneurship Research

Current Trends (contd)Major Research Themes (contd):Women and Minority Entrepreneurs appear to face obstacles and difficulties different from those that other entrepreneurs face.The Global Entrepreneurial Movement is increasing. Family Businesses have become a stronger focus of research.Entrepreneurial Education has become one of the hottest topics in business and engineering schools throughout the world.

Key ConceptsEntrepreneurshipA dynamic process of vision, change, and creation requiring an application of energy and passion toward the creation of and implementation of new ideas and creative solutions.

Key ConceptsEntrepreneurAn innovator or developer who recognises and seizes opportunities; converts those opportunities into workable/marketable ideas; adds value through time, effort, money, or skills; and assumes the risks of the competitive marketplace to implement these ideas.

an entrepreneur can exist in an existing large institution or can be an individual starting his or her own new venture single-handedly.

Entrepreneurial Managementthe practice of taking entrepreneurial knowledge and utilising it for increasing the effectiveness of new business venturing as well as small and medium-sized businesses.

Key Concepts

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