Entrepreneurship: MGT 368

Saad Md Maroof Hossain (SDF)

‘’All dreams can come true, if we have the courage to pursue them’’

• He was bankrupt several times.

• He was fired by school newspaper

editor because he lacked imagination

and had no good ideas.

• He became one of the best known

motion picture producers in the

world.

• He became know as one of the

most creative men for the creation of

his fairy tale world.

Why Entrepreneurship

can not be taught …

Passion CourageWork Ethics

3

Passion

• Passion is something that people develop, not something that can be

instilled through a series of lectures.

• It is possible to inspire through lecturing, but if someone Isn’t passionate

about a topic or issue , no amount of convincing or hard facts is going

to change that.

• Passion is what drives an entrepreneur.

‘it’s what makes someone work 20 hour days to ensure a community in Africa gets cleanwater, it’s what inspires an innovator to spend countless of hours developing a newinvention, and it’s what drives scientist to find a cure for cancer. Without passion, there isonly ‘work’ to be done. Without passion, no one asks themselves, “How can I make thisbetter or make a difference”, which is a key question most entrepreneurs start outwith’.

Courage

• If passion is what drives an entrepreneur, courage keeps them going.

• Entrepreneurship is about having guts, and no matter how hard they

try, professors cannot teach that.

• You also can’t teach someone how to know which risks to take, how

to take them, or what will work and what won’t- if you could , everyone

would be rich ! Of course,.

‘Entrepreneurship is not always about risking it all- in fact, being an entrepreneur is verydifferent from gambling. Business gamblers take risks in search of big payouts, whileentrepreneurs take risks to do new things, solve problems, and are motivated by muchmore than the reward of quick, easy money. Professors can teach the skillsnecessary to make large scale decisions- especially financial ones- but passion, courage, andwork ethic are what separate the gamblers from true entrepreneurs’ .

Work Ethics

• Entrepreneurial success depends as much on temperament as on

teaching. Entrepreneurship education can help guide those with the right

spirit, those with passion and courage, but it also takes a strong work

ethic and commitment to succeed .

• You can’t teach someone to work hard unless they want to. It takes a

distinct combination of ambition and drive to be an entrepreneur, and

without the proper work ethic, even the most passionate of entrepreneurs

can fail. Most entrepreneurs fail anyway!

But you can learn…

Things that you should keep in mind while forming your own company

It teaches you possible ways of raising funds

Organizing your financial structure

How to manage growth, the role of venture capitalists

Valuation of companies, acquisitions and building strategies

All in all, it touches on a full range of business topics from strategy, to

finance, accounting, and marketing

It shows you likely problems that entrepreneurs face, and by formulating

your own opinions for case discussions, you can better prepare yourself to

handle tricky issues in the real world

Who is an Entrepreneur ?

The term “entrepreneur” has its origins in the

French verb meaning “entreprendre” which means to undertake.

In the 16th century, the French attributed entrepreneur to the people who organized and led

military expeditions, subsequently all people who were responsible for finding new factors of

production like land were also called “entrepreneurs”

17th century An entrepreneur was referred to a person bearing risks of profit or loss in a fixed

price contract with the government. Richard Cantillon living and writing in this era used the risk

phenomenon to develop one of the earliest theories of the entrepreneur and deservedly earned,

to some people, the title of founder of the term entrepreneur

18th Century.

In this era the person with capital was differentiated from the one who needed capital. Thus the

capitalist was differentiated from the entrepreneur. Entrepreneurs were regarded as capital users

as opposed to capitalists who were seen as capital providers.

19th And 20th Centuries.

The dominant notion of entrepreneurship in this era is creativity and innovation.

‘An Entrepreneur can be defined as a personwith a vision, original ideas, decision makingand daring to try. He acts as a leader, and bossof the show, who decides how business shouldbe done, who coordinates and arranges allfactors of production, who has expertise in thefield, who anticipates the market trends,demand patterns and prices. The entrepreneuris also an inventor who bring in new ideas, newcommodities, new processes and encourageshis team in new activities. An entrepreneur isalso an organizer’.

(Badi & Badi, 2005)

Why become an Entrepreneur ?

Barringer and Ireland (2011)

Be your own boss

Pursue your own ideas

Pursue financial rewards

Achievement motivated

Alert to opportunities

Creative

Energetic

Moderate risk taker

Networker

Lengthy attention span

optimistic

Self-starter

Tenacious

Tolerant of ambiguity

Visionary

Promoter

Persuasive

Resource assembler

Generic traits & characteristics of an Entrepreneur

Myths 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

Entrepreneurial process

Step 1: Deciding to be an Entrepreneur

Step 2: Developing successful business ideas

Step 3 : Convert idea to Entrepreneurial firm

Step 4: Managing and growing the firm