Entrepreneurial Venture and Its Components

This slide discusses what makes an entrepreneurial venture different from regular businesses, and also highlights the components aspiring entrepreneurs need to pursue.

1. Entrepreneurial Venture and its Components IRIOBE OFUNRE [email protected]

2. Introduction There is more emphasis on entrepreneurship and being an entrepreneur. WHY

3. Introduction Cont’d Entrepreneurs Contribute to economic development, Have a creative problem solving skills This innovative way of doing things, makes their operations different from a regular small business

4. Entrepreneurship is the... engine room of economic growth driving force that aides growth and development as well as the restructuring of wealth and economic resources. Catalyst for socio-economic transformation Economic Importance of Entrepreneurship

5. Employment generation Improvement on National income Decentralization economic wealth Reducing unrest and social tension amongst youth Innovations in enterprises Improvement in living standards Economic independence Below are some of the economic importance of entrepreneurship

6. These are forces and pressures in the marketplace which exert influence on entrepreneurship and they can be positive or negative.   Social and societal factors cultural attitude towards risk and failure, access to education, the level of social fragmentation, the flow of information etc. in some societies, women are not allowed to engage in any form of business activity or gain access to education Factors that affect entrepreneurship

7. Technology factors advanced technology Research funding Collaboration between industry and universities Economic factors tax rates, interest rates, income level, standard of living and purchasing powers of the market Factors that affect entrepreneurship

8. Political/regulatory factors These factors have impact on how companies are established, the requirement for registration, and other legal obligations . Other factors considered by H. Kantis (Ed.) in his work on Developing Entrepreneurship, includes Personal factors This refers to socio-demographic profile of the entrepreneur—which are influenced by his or her family, educational and work environments—and his or her entrepreneurial skills (e.g., propensity to assume risk, tolerance for hard work, managerial capacities, and creativity); Factors that affect entrepreneurship

9. Factors that affect entrepreneurship   Networks These are the assistance provided through personal social networks (i.e., friends and family), institutional networks (i.e., business associations, institutions of higher learning and/or development agencies) and commercial networks (i.e., suppliers and customers);  

10. So is there a Difference between Regular Business and Entrepreneurial Venture?

11. Yes! Different scholars have varying opinion regarding the differences however, risk and innovation is a common denominator that differentiates entrepreneurial ventures from small businesses

12. Amount required Speed of Wealth creation Entrepreneurial ventures create substantial wealth more than regular businesses, and they create it faster too. ‘Whatsapp’ messaging service application for instance, started with $8 million and was sold for over for $19 billion in 2014. So what makes the difference?

13. Risk Innovation The risk of an entrepreneurial venture is usually high; this is partly because they go out of their way to make products that did not exist in the market as at that time. For instance, Richard Branson attempted establishing a commercial space shuttle that can take people to space and back. So what makes the difference?

14. What is an Entrepreneurial Venture? Entrepreneurial venture can be defined as an organisation that places innovation and opportunism at its heart in order to produce economic or social value.

15. Please NOTE .... For this discussion , we are not interested in the size or structure of the organisation, but those characteristics that make entrepreneurial ventures unique.

16. Entrepreneurial Ventures Small and Medium Business Big Business

17. The Components of Entrepreneurial Ventures Entrepreneurs are innovation driven, and are always ready to challenge conventional business knowledge. Nevertheless, entrepreneurial ventures are often highly correlated with entrepreneurial characteristics.

18. ABILITY TO ADAPT TO CHANGE They have the ability to identify And create business from the opportunities offered by change, and they benefit from the new openings.

19. INTERNAL LOCUS OF CONTROL They believe that the Future is within Their control, and that they are responsible for their own success.

20. PRODUCT DRIVEN Aside meeting customer needs, entrepreneurial ventures are highly motivated in business because of the uniqueness of their products.

21. OPPORTUNITY-DRIVEN They don’t continue on the same line of business for a long time, they always seek ways to expand their business scope. Google started as a search engine company, but today, they own Youtube , Android OS, web browser etc

22. PROACTIVE Small businesses often times react to market changes where as entrepreneurial ventures learn to follow the trend, and deal with changes or difficulties as it happens or before it happens. Nike, though a sports shoe company, it has anticipated the need for sports shoes and technology to work together. The company introduced Nike + iPod sports kit to measure the distance and speed of a run or a walk.

23. INNOVATION FOCUSED What makes an entrepreneurial firm is not the ability to start a business, but the strength of its innovativeness Blackberry phone and its messaging service changed how we interact and chat on the internet.

24. Calculated Risk-Taker Entrepreneurs are known to be risk takers. Risk is part of every business however, the level of risk taking differs from business to business, and from industry to industry. In the case of entrepreneurial firms, what makes their ‘risks’ noticeable is the fact that they have new ways of doing things, or they are introducing new products. A chance of exposure to loss or injury that might be undertaken after its advantages and disadvantages have been carefully 

25. The value of products and services today is based more and more on creativity – the innovative ways that they take advantage of new material, technologies, and processes. Value Creation The performance of actions that increase the worth of goods , services or even a business . http://www.businessdictionary.com/definition/value-creation.html#ixzz3rAVyEN3b

26. QUESTIONS & ANSWERS