Lecture 1 (1).pptxghjfghhgggnnhhhgffdddd

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1. Introduction to Entrepreneurship

2. Who is an Entrepreneur?

3. Definition of an Entrepreneur O ne who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying significant opportunities and assembling the necessary resources to capitalize on them .

4. Entrepreneurial traits Desire for responsibility. Entrepreneurs feel a deep sense of personal responsibility for the outcome of ventures they start. They prefer to be in control of their resources, and they use those resources to achieve self-determined goals. Deborah Sullivan, a lifelong serial entrepreneur realized at the age of 16 that she did not want to spend her life working for others. “You’re stuck by all of these different rules [when you work for someone else],” she says. “I wanted to create something for myself.” Sullivan has been an entrepreneur since she was 22 years old, when she launched a hair salon and spa in Atlanta, Georgia. In 2012, at the age of 60, Sullivan started Consign Werks , a consignment shop in Greenville, South Carolina, which she says has been the most gratifying of her entrepreneurial ventures perhaps because she knew almost nothing about the business until she spent months researching and learning everything she could about consignment shops.

5. Preference for moderate risk . Entrepreneurs are not wild risk takers but are instead calculated risk takers. Lee Lin, who left his job at a large investment bank to start RentHop , an online service that helps renters find the ideal apartment in New York City, says that entrepreneurs who risk everything typically do not stay in business very long. Lin says that to minimize risk, he manages his company’s finances carefully and focuses on profitable growth opportunities. A study of the founders of the businesses listed as Inc. magazine’s fastest-growing companies found no correlation between risk tolerance and entrepreneurship. The common belief that entrepreneurs prefer taking big risks is a myth. Unlike “high-rolling, riverboat gamblers,” entrepreneurs rarely gamble. Their goals may appear to be high—even impossible—in others’ eyes but entrepreneurs see the situation from a different perspective and believe that their goals are realistic and attainable.

6. Self-reliance: Entrepreneurs must fill multiple roles to make their companies successful, especially in the early days of a start-up. Because their resources usually are limited, they end up performing many jobs themselves, even those they know little about. Yet, entrepreneurs demonstrate a high level of self-reliance and do not shy away from the responsibility for making their businesses succeed. Perhaps that is why many entrepreneurs persist in building businesses even when others ridicule their ideas as follies.

7. Confidence in their ability to succeed . Entrepreneurs typically have an abundance of confidence in their ability to succeed and are confident that they chose the correct career path. Entrepreneurs’ high levels of optimism may explain why some of the most successful entrepreneurs have failed in business—often more than once—before finally succeeding.

8. Determination Some people call this characteristic “grit,” the ability to focus intently on achieving a singular, long-term goal. Studies show that grit is a reliable predictor of achievement and success, whether the goal involves launching a successful business, winning the Scripps National Spelling Bee, or excelling in professional sports.( One recent study concludes that top performance in the National Football League’s Combine, in which players who are entering the league’s draft perform short physical and mental tasks, has no consistent statistical relationship to subsequent performance in the league.) Successful entrepreneurs demonstrate high levels of determination, especially in the face of challenging circumstances.

9. Desire for immediate feedback. Entrepreneurs enjoy the challenge of running a business, and they like to know how they are doing and are constantly looking for feedback. The feedback they receive from their businesses drives them to set higher standards of performance for their companies and themselves High level of energy. Entrepreneurs are more energetic than the average person. That energy may be a critical factor given the incredible effort required to launch a start-up company. Long hours and hard work are the rule rather than the exception, and the pace can be grueling. According to a recent survey by Bank of America, 72 percent of small business owners work more than 40 hours per week. Another recent survey by Sage Software reports that 37 percent of business owners work more hours per week than they did just five years ago. Will Schroter , an entrepreneur who has launched numerous companies, including Go Big Network, an online community for entrepreneurs, says that he works at 1:30 in the morning because he is the founder of a start-up and start-up founders often don’t have time to sleep because their work is never-ending.

10. Future orientation. Entrepreneurs have a well-defined sense of searching for opportunities . They look ahead and are less concerned with what they did yesterday than with what they might do tomorrow. Not satisfied to sit back and revel in their success, real entrepreneurs stay focused on the future. A year after William Roetzheim’s software company, Marotz , landed on Inc. magazine’s list of the 500 fastest-growing companies in the United States, he sold it and launched another company, Cost Xpert Group, which sells a cost estimating tool he had developed at Marotz .

11. Skill at organizing . Building a company “from scratch” is much like piecing together a giant jigsaw puzzle. Entrepreneurs know how to put the right people together to accomplish a task. Effectively combining people and jobs enables entrepreneurs to transform their visions into reality. “Great entrepreneurship is in the execution,” says Eric Paley, an entrepreneur-turned-venture-capitalist

12. Value of achievement over money . One of the most common misconceptions about entrepreneurs is that they are driven wholly by the desire to make money. To the contrary, achievement seems to be entrepreneurs’ primary motivating force; money is simply an added advantage. What drives entrepreneurs goes much deeper than just the desire for wealth. Economist, “Joseph Schumpeter” claimed that entrepreneurs have “the will to conquer, the impulse to fight, to prove oneself superior to others, to succeed for the sake, not of the fruits of success, but of success itself.” Entrepreneurs experience “the joy of creating, of getting things done, or simply of exercising one’s energy and ingenuity.”

13. The Entrepreneurial process Identifying an opportunity:   This aspect is considered as the first step towards the creation and running a successful firm. Entrepreneurs have the ability to identify the opportunities where other people see impossibilities and hurdles. Identification of opportunities at an appropriate time is considered as important criteria for entrepreneurs as it offers the advantages of being the first mover. This offers an opportunity for the business to stay ahead of the others in terms of market credibility, profits and better economies of scale. Entrepreneurs sense these opportunities as they are highly creative and are equally open to new ideas. Besides, managing the seamless operations in their business ventures, they often accept challenges in the road map for success ( Lall & Sahai , 2007).

14. Establishing a vision:   Besides seeking opportunity, an entrepreneur can develop a futuristic vision for the business by establishing the business mission, objectives and the goals of the company. Entrepreneurs can create a vision for the business by visualizing them through their optimism and perseverance. Vision helps the entrepreneurs to steer the company in proper direction and also facilitates them to adapt and navigate through different market conditions prevailing in the markets ( Lall & Sahai , 2007).

15. Persuading others:   Entrepreneurs do not necessarily work in isolation. However, they are often working with other people in their business venture. It becomes highly important for the entrepreneurs to create and develop a foundational team, which consists of founding group members who could work together to accomplish the goals and objectives of the firm. In addition, the entrepreneur can draft a detailed business plan to guide the group members to achieve the goals, objectives, mission and consequently the vision of the company. The participants in these ventures can be investors or stakeholders, and also members who participate in different business functions of the firm, such as finance, marketing, accounting and HRM ( Lall & Sahai , 2007).

16. Gathering resources:   Besides spotting opportunities, establishing vision and persuading other individuals; entrepreneurs require enormous amounts of information and resources to help them achieve their mission. In this phase, the entrepreneurs are driven purely by seeking resources to operationalize their ventures. It becomes very important for the entrepreneurs to spot and acquire genuine resources for developing their structures, information systems, financial strength, operational capacities and human capital. In addition, once the resources are gathered, a proper procurement policy is required for healthy functioning of the entire business operation ( Lall & Sahai , 2007).

17. Gather resources for information:   With an increasing demand to seek real-time information. Entrepreneurs are relying on data, information and knowledge through information systems for managing their business processes. The use of information systems has been hugely beneficial for managing company’s business processes and also the personnel who use them. The use of information systems offers the personnel, suppliers, customers and other participating stakeholders to share appropriate information on real-time basis. This would help the entrepreneurs to understand the condition and situations of their business processes and eventually the position of the business on a daily basis ( Lall & Sahai , 2007).

18. Create new venture:   Once the entrepreneur organizes all the required resources and information required in the above mentioned stages, the next phase for the entrepreneur is to create a new business venture which involves hard work to gather resources and allocate them to respective business functions ( Lall & Sahai , 2007).

19. Change/adapt with time: As change has become inevitable in contemporary business environments, entrepreneurs are required to constantly upgrade their business processes for developing seamless operations. Entrepreneurs are often required to understand their present and their future requirements to provide uninterrupted products/services to their customers/ In addition, entrepreneurs are also required to understand the current and emerging issues of the company, and acquire resources (financial, human capital, machinery, material) accordingly. This requires entrepreneurs to look for emerging technologies and resources for providing seamless flow of products or services and adapt to dynamic business environments accordingly ( Lall & Sahai , 2007).

20. How Entrepreneurs S hould Proceed With a New Venture There are several steps an entrepreneur should keep in mind while starting off a new venture, namely: 1. Strategic Planning: is the first step when one starts with a new venture. You have to collect , screen and analyze information about the current business environment. In Strategic Planning a careful consideration is given to all the factors which may or may not harm the growth of your venture.

21. KNOW YOUR TARGET MARKET: While starting a new venture, one should analyze its target market. The people whom you want to sell your product or service. By doing this you’ll have a clear vision of your prospective customers which in turn will help you to devise marketing campaigns according to your specific target market. DEVISE A BUSINESS PLAN: Business plan for a new venture is also very important. It helps in formulating the vision, mission, marketing and sales projections, financial projections etc. Financial projections are very important as it forecasts how much time your product needs to cover its breakeven costs etc.

22. SWOT analysis is also done at this stage which further analyses your Product’s Strengths, Weaknesses, Opportunities and threats.

23. DETERMINE THE LEGAL STATUS OF YOUR VENTURE. You have to determine the legal status of your venture whether it has a limited liability or un-limited. It is better to employ a lawyer who can give advice on carrying out these sensitive financial matters.   MARKETING AND BRAND AWARENESS CAMPAIGNS A unique and creative logo should be designed in order to stand out from the rest of the business entities. This phase includes making awareness of your target market about your product which can be done by using various marketing channels. Some of them are Social Media, Print Media, Electronic Media, OOH (Out of home) etc. World has become a global village so it’s very easy to reach out to your target market by using all these marketing mediums.  

24. MAINTAIN YOUR FINANCES: Once cash flows start coming you need to have a proper system to record all the transactions. For this you’ll need the services of an accountant to maintain all the inventory sold and inventory in-hand which will forecast your Profits and Losses.   DETERMINE YOUR GOALS: Another important aspect is to forecast your goals that from 10 years where you wants to see your business. This will help in planning and shaping your business according to the emerging needs and requirements.