Course Title: Entrepreneurship for Engineers

Course Number: EENG 5108

Credits 3 Pre-requisites : Senior Standing Semester 10 Status of Course: Compulsory

Defining The Entrepreneur

From our perspective:

Who is an entrepreneur?

Any individual who sees and acts upon an opportunity This includes introducing a new product or service,
identifying new markets, or putting a twist on an existing product, process or service

Also, includes the raising of capital, taking the risk and

controlling the new venture

Embodies creativity, By

and determination

assembling various resources, s/he takes risks and creates a venture from an idea, hobby, or simply a dream.

WHAT IS AN ENTREPRENEUR?
Formal definition

One who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.

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RELATIONSHIP B/W ENTREPRENEUR,

ENTREPRENEURSHIP AND ENTERPRISE

Enterprise

Business organization that is formed and which provides goods and services, creates jobs, contributes to national income, exports and overall economic development A men or women who establish and manage their own Enterprise.
The process involved in creating and starting an Enterprise

Entrepreneur

Entrepreneurship

CHARACTERISTICS OF ENTREPRENEURS

Desire for responsibility Preference for moderate levels of risk Confidence in their ability to succeed Desire for immediate feedback High level of energy Future orientation Skilled at organizing

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ENTREPRENEURSHIP

One characteristic of entrepreneurs stands out:

Diversity!

Anyone regardless of age, race, gender, color, national origin, or any other characteristic can become an entrepreneur (although not everyone should).

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ENTREPRENEUR VS. MANAGER

An entrepreneur starts a venture then a manager takes over to organize and co-ordinate continuous production
Manager A manager runs the business over a long period of time A manager does not have to bear risks A manager manages by the resources he currently possesses A manager follows rules & procedures A manager gets fixed rewards and salary

Entrepreneur An entrepreneur is involved with the start-up process An entrepreneur assumes financial, material and psychological risks An entrepreneur is driven by perception of opportunity An entrepreneur initiates change An entrepreneur is his own boss An entrepreneur gets uncertain reward

BENEFITS OF ENTREPRENEURSHIP

The opportunity to:

Create Reach Reap

your own destiny

your full potential

impressive profits

Contribute

to society and to be recognized for your efforts

Do

what you enjoy and to have fun at it

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DRAWBACKS OF ENTREPRENEURSHIP

Uncertainty of income Risk of losing your entire investment Long hours and hard work Lower quality of life until the business gets established High levels of stress Complete responsibility

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THE CULTURAL DIVERSITY OF ENTREPRENEURSHIP

Young

entrepreneurs Women entrepreneurs Minority-owned enterprises Part-time entrepreneurs

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TEN DEADLY MISTAKES OF ENTREPRENEURSHIP

1.
2. 3.

Management mistakes
Lack of experience Poor financial control

4.
5.

Weak marketing efforts

Failure to develop a strategic plan

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TEN DEADLY MISTAKES OF ENTREPRENEURSHIP

6. 7. 8. Uncontrolled growth Poor location Improper inventory control

9.

Incorrect pricing

10. Inability to make the entrepreneurial transition

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PUTTING FAILURE INTO PERSPECTIVE

Entrepreneurs are not paralyzed by the prospect of failure.

Failure a natural part of the creative process. Successful entrepreneurs learn to fail intelligently.

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The Entrepreneur
BORN OR MADE?

Who is an entrepreneur?

Is inborn talent an absolute requirement?

YES

Say the answer is, YES, then once we identify the main characteristics we can simply say, if we have them, fine, no others need to apply We could start spotting talent in kindergarten and stream them

The Entrepreneur
BORN OR MADE?

Who is an entrepreneur?

NO

Say the answer is, NO, one does not have to be born with talent, it can be learned, then schools could teach anyone

It would become a profession like engineering or medicine

The answer lies somewhere in-between.

Talent plus education seems to be the way.

ENTREPRENEURS V. INTRAPRENEURS
Entrepreneurs

are people that notice opportunities and take the initiative to mobilize resources to make new goods and services. Intrapreneurs also notice opportunities and take initiative to mobilize resources, however they work in large companies and contribute to the innovation of the firm. Intrapreneurs often become entrepreneurs.

REASONS FOR RISE OF INTRAPRENEURSHIP

a rapidly growing number of new and sophisticated competitors, a sense of distrust in the traditional methods of corporate management, an exodus of some of the best and brightest people who are leaving corporations to become small-business entrepreneurs, international competition, downsizing of major corporations, and an overall desire to improve efficiency and productivity

Entrepreneur 1. 2. Entrepreneur is employer Independent in operation 1. 2.

Intraprenuer Intraprener is employee Depends on the organization implement his ideas. to

3.
4. 5. 6. 7.

Bears all the risk involved in 3. enterprise.

Exhibits higher achievement. Profit is the reward. May not qualification. have need for 4. 5. formal 6.

Does not bear all the risk.

May not have high need achievement Attractive salary, promotion incentives are the reward. &

Should have some professional or technical qualification. He has to operate organisational policies. within the

Do not have any boundary for 7. operations.

ROLE OF ENTREPRENEURSHIP IN ECONOMIC

DEVELOPMENT Increasing the per capita output and income of the people of the country. Initiating and creating change in the structure of business and society. Further growth and increased output arises, thus to enable more wealth to be divided among the various participants (stakeholders). Generation of innovation that leads to the creation of new products and services. Improvisation and modification on existing product to better suit market and customers needs.

Creation of self employment and to cut back the dependency of potential employment of new workers in government sectors. Streamline of the private sector and encourage the inclusion of new technology that is less labor dependent. Increase in the national outputs which in turn lead to greater and stronger economic growth. Laying the seed bed for creating new entrepreneurs in various new technologies Acting as a catalyst to nurture intrapreneurs in a business organization.

CONCLUSION

Entrepreneurs:
Are

an important part of the free enterprise system Are a diverse and talented group of people Represent a cross-section of society as a whole Are able to enhance the profitability of their businesses through acquiring additional knowledge and experience

A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. (Sir Winston Churchill)