Types of Entrepreneurs - BTE 5 lesson 2.pptx

Types of entrepreneurs.

1. Types of Entrepreneurs The Classic Entrepreneurs – those who have grown their initially small enterprise into a large enterprise. These are the founders and originators of enterprises who use their entrepreneurial mindset to create not only enterprises but employment as well.

2. The corporate Entrepreneur – These are individuals who do not own the firm they work but use entrepreneurial mindset to increase the profitability productivity and professionalism of the enterprise.

3. The social entrepreneur – These are individuals who use entrepreneurial mindset not only to improve profitability and productivity but also improve social equality and environmental sustainability using enterprise creation for the disadvantaged.

4. Types of entrepreneurs are based on the following: Idealist – these are young entrepreneurs who run moderate ventures and who go into entrepreneurship for a sense of achievement and independence. Swingers – These are young entrepreneurs who aim to make a living from making deals but have no long-term strategic goals. High Flyers – are motivated into entrepreneurship the same way as idealist but these ventures are much larger reflecting success in the marketplace. Workaholics – retired individuals who undertake a venture to keep themselves occupied during their retirement years.

5. What do entrepreneurs do? Build new organization - entrepreneurs perform task of bringing together the different elements of the organizations ( people, property, and resources) Bringing innovations to market – Entrepreneurs do something new or there is no point in them entering a market. Identify market opportunity – Entrepreneurs must constantly scan the business environment for new opportunities. Apply Expertise – It refers to the ability of the entrepreneurs to decide to allocate scarce resources. Provide Leadership – entrepreneurs’ ability to pull people in one direction. Accepts Risk – Entrepreneurs must accept the possibility that ROI ( Return on Investment) maybe less than expected.

6. TYPES OF INNOVATION TYPE DESCRIPTION EXAMPLES 1.Invention Totally new product, service or process. Wright Brother – plane Henry Ford – Cars 2. Extension New use or different application to an already existing concept or a product. Ray Kroc- Mcdonalds 3. Duplication Creative replication of an existing concept. KFC, Jolibee , Mang inasal , JO’s Inato 4. Synthesis Combination of existing concepts and factors into a new formulation Gas turbine engines, Geothermal power plants, Nuclear power plants

7. How entrepreneurs are made? These influence the development of entrepreneurs by which individuals are thought how create a new business of his own 1. Environmental School of Thought

8. 2. Political displacement This type is caused by government regulations and policies that limit or redirect certain industries.

9. 3. Cultural Displacement This type deals with social groups precluded from professional fields. This displacement will help entrepreneurs to look at the ethnicity of certain groups that would help them become entrepreneurs.

10. 4. Economic Displacement This type is concerned with economic variations of recession and depression.

11. The multidimensional process ENVIRONMENT INDIVIDUAL ORGANIZATION

12. Behaviorist School of Thought This refers to a study on how people tend to exhibit characteristics towards achieving a certain goal making him or her an entrepreneur. Need for achievement – this makes people enjoy setting goals and achieving them. Locus of control – particularly those who believe that the most part the future is theirs to control thru their own fate. Risk Taking propensity – basically related to the need for achievement since new venture creation is filled with risk. Innovation – finding a better, faster, maybe cheaper way of making a product or service.

13. Three categories of traits Ability Traits – these are a person’s talents and intelligence which determine how effective people are in achieving goals. Temperament traits – these involves emotional tone and energy levels. Dynamic traits – refers to instincts which set behavior in motion.

14. Advantages of Entrepreneurship Autonomy – Means independence and freedom to do what the entrepreneur wants to his business. Feeling of Challenge and Achievement – The opportunity to develop a concept into a profitable business gives a feeling of satisfaction, confidence and achievement Financial Control – entrepreneurs know that profit resulting from operations depends on his success to generate sales and minimize expenses.

15. Disadvantages of Entrepreneurship Personal Sacrifices – Entrepreneurs do spend time in their business rather than their family for them to get the money they invested in. Burden of Responsibility – Since he is the boss, all of the responsibility are in his hands. If employees, cannot perform their function, the entrepreneurs takes responsibility. Little margin of error – the investment that the entrepreneur gives starts from a “shoe – string” budget, which means to say that a slight mistake can end the business.