TST 3205

TST 3205 Explained

Define: Entrepreneur
Word Origin 13th C. French entreprendre meaning to do something or undertake (Sobel & Jones 2008)

An Entrepreneur is someone who organises a business venture and assumes the risk for it (princeton.edu)

Define: Entrepreneur
An entrepreneur is someone who organizes, manages, and assumes the risks (and rewards) of a business or enterprise (Sobel & Jones 2008)

The Entrepreneurial Spirit

Are entrepreneurs born or made?

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The Entrepreneurial Spirit

Functions of an Entrepreneur

Risk Bearing Function

Innovative Function

Decision Making Function

Organisational Function

Managerial Function

The Entrepreneurial Spirit

1. Do Something!

Many graduates think there is a perfect opportunity out there, and they want to wait for it. The truth of the matter is that even if that opportunity does exist, they wouldn't recognize it by just waiting. The key is to do something, ideally in a field you are interested in, and start to learn. By doing something, you will realize your real interests and uncover the perfect opportunity to pursue. --Chris Hunter, Phusion Projects

2. Learn to Implement

You can be the best big picture thinker in the world, but if you can't implement (or build a team that can), your ideas are worthless. I would tell every graduate to think about how she can begin to implement on the smallest scale possible, validate, then scale. --Kelsey Meyer, Influence & Co.

The Entrepreneurial Spirit

3. Find a Lesson in Every Experience

I'm a firm believer that you can learn from every experience you have-good or bad. Whether you're working for a gigantic corporation in a cubicle or traveling the world as a freelance Web designer, pay attention to what's happening around you and see how it can apply to your own life and career. -Tim Jahn, Matchist

4. Appreciate the Power of Marketing

Peter Drucker said, "Marketing and innovation produce results; all the rest are costs." History is littered with superior products that never made it to mainstream commerce because no one ever knew about them. Marketing is the most important function of business. Never underestimate its importance. -Charles Gaudet, Predictable Profits

The Entrepreneurial Spirit

5. Come up With Unique Ideas

Think long and hard about what makes your idea unique. It doesn't have to be new, but it has to be innovative or have a twist from what is in the market. We live in a world where it is easier than ever to start up, so what makes you so special? --John Meyer, Lemon.ly

6. Interview People Who Have Started Up Before

Take a summer to do informational interviews with anyone you admire. Learn from other people's career paths. Connect with them to develop your network. Ask them if there's anyone else you can connect with to help with your exploratory career journey. We all know what it's like to face big questions like the ones people face after graduating. For that reason, people are willing to help you. --Brett Farmiloe, Digital Marketing Agency

The Entrepreneurial Spirit

7. Take a Corporate Job First

I never planned on starting my own company, but five years in corporate America were enough to make me swear off ever having another boss! But I learned a lot more in those years than I did in college. A traditional job will give you insight into what you don't want your company to become and teach you skills to navigate real-world situations. Think of it as training on someone else's dime! --Brittany Hodak, 'ZinePak

8. Start Up Now

If you're like I was when I graduated, then you're broke, living with your parents, and looking at entry-level positions at best. Couple that with a lack of responsibilities (spouse, kids, mortgage), and you'll realize that now is the perfect time to try your luck at entrepreneurship. The longer you wait and the more comfort and responsibilities you accumulate, the harder it will become. --Nicolas Gremion, Free-eBooks.com

The Entrepreneurial Spirit

9. Be Transparent

Share as much information as possible. No one is going to steal your idea. The feedback you receive is well worth the risk of sharing your idea with others. Be transparent with both your potential clients and employees. Transparency builds trust and loyalty. Don't be afraid to make yourself a little vulnerable. Be real, be yourself, and people will respect and appreciate your approach. -- Mitch Gordon, Go Overseas

10. Dream Big

Dream big and focus. Your company or career can only be as big as you think it can be. People perish for a lack of vision. Have a vision and don't limit it. Never be afraid to go for it! Sometimes the best way into the water is just jumping in. --Adam DeGraide, Astonish

The Entrepreneurial Spirit

11. Don't Try To Be Zuckerberg

I cringe every time I hear a recent graduate say he has the next billion-dollar idea. Maybe he does, but that's not the point. Creating a lifestyle business is just as good and probably easier than having the next billion-dollar idea. Your idea doesn't have to be unique or sexy; you just have to be able to execute and do what you said you would. --Trace Cohen, Launch.it

12. Reach out to Alumni

Reach out to alumni who are entrepreneurs and have started their own businesses. It doesn't matter how big or small their businesses are. Connecting with them will be extremely valuable. They are an instant support system. --Thomas Cullen, LaunchPad Lab

The Entrepreneurial Spirit

13. Solve a Problem

Whatever you decide to do as a business, always start with a problem that a specific category of people have or one that you have experienced. Do not start up because market research states great potential for your industry or because you feel you can do a better job at what others are doing. Go the extra mile in finding out what is troubling people, and then build your product to address that. --Rahul Varshneya, Arkenea

Entrepreneurial Process
Idea Generation
Every new venture begins with an idea. In our context, we take an idea to be a description of a need or problem of some constituency coupled with a concept of a possible solution

Opportunity Evaluation
This is the step where you ask the question of whether there is an opportunity worth investing in. Investment is principally capital, whether from individuals in the company or from outside investors, and the time and energy of a set of people. But you should also consider other assets such as intellectual property, personal relationships, physical property, etc.

Planning
Once you have decided that an opportunity, you need a plan for how to capitalize on that opportunity. A plan begins as a fairly simple set of ideas, and then becomes more complex as the business takes shape. In the planning phase you will need to create two things: strategy and operating plan.

Entrepreneurial Process
Company Formulation / Launch
Once there is a sufficiently compelling opportunity and a plan, the entrepreneurial team will go through the process of choosing the right form of corporate entity and actually creating the venture as a legal entity.

Growth
After launch, the company works toward creating its product or service, generating revenue and moving toward sustainable performance. The emphasis shifts from planning to execution. At this point, you continue to ask questions but spend more of your time carrying out your plans

Although it is natural to think of the early steps as occurring sequentially, they are actually proceeding in parallel. Even as you begin your evaluation, you are forming at least a hypothesis of a business strategy. As you test the hypothesis, you are beginning to execute the first steps of your marketing plan (and possibly also your sales plan).

Entrepreneurial Process
Idea Generation & Opportunity Evaluation = Market Research / Feasibility Study Planning & Company Formation / Launch = Financial Plans / Business plans Growth = Interpreting financial statements / Market Research

The Private Sector Environment

The Private Sector Environment

The External Environment Forces and Institutions outside the entity that may affect performance

General environment- includes the broad conditions that may affect entities Specific environment- includes those constituencies that have a direct and immediate impact on the entitys decisions and actions (a) directly relevant to goal achievement (b) is unique to each situation

The Private Sector Environment

General [PESTI / PESTLE] (Political & Legal, Economic, Sociocultural and Technological)

Competitive / Specific (Buyers [Customers], Suppliers, New Entrants, Rival Firms, Substitutes [Special Interest Groups])

The Effect of the Environment

Environmental Uncertainty The degree of unpredictable change 1. Dynamic Frequent Change 2. Stable Minimal Change

Environmental Complexity 1. The number of components in the environment 2. Amount of information available or required about those components

The Effect of the Environment