Entrepreneurship

Lecture 1
Kapeel Kumar
MBA- Ms in HRM , Institute of business and
Technology.

Evaluation Breakup

Quiz

10

Mid-term 20

Assignments/Mini presentations/homework

Class participation & behavior

Term Project

Final Examination

10

10
35

15

Course Text & References

Lecture Presentation Slides

Our Class discussions

Text book: Decided Letter

Guest speaker presentation

Student presentations

Material from all of the above sources will be included in quizzes,

assignments and exams

Contact

Group on Facebook : Entrepreneurship by Kapeel Kumar

My email address: Kapeel2008@gmail.com
Mobile No : 03013440600 Whatsapp

Group Presentation Guidelines

Each presentation Group can have at most 2 students.

Taking part in presentation will be mandatory for each student

Allowed Time: 15 minutes

Last 5 minutes reserved for Question/Answer session

Total 15 marks assigned to these Student Presentations

One or two presentations will be conducted in each session, starting

from 3rd week

Students can suggest topics and get them approved by the instructor

In case if no group volunteers for presentation on a class day, groups will be

selected in top-down order from attendance sheet.

Topic must be related to the field of Entrepreneurship Model.

Group Presentation Guidelines

Students will be awarded marks for :

a. How clearly and confidently they present & explain their topic
b. How efficiently they utilize allotted time
c. How interesting is the presentation
d. Simply reading out slides text is strongly discouraged
e. Missing presentation delivery date will have serious repercussions
f. Presentation slides should be prepared in MS Power Point

Entrepreneurship
CHAPTER 1

The Entrepreneurial Life

Overview

What is an entrepreneur?
Characteristics of an entrepreneur
Planning to be an entrepreneur
Growth pressures, managing a
family business, and corporate
intrapreneurship

Entrepreneurship

10

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).
Chapter 1: Entrepreneurship

What Is an Entrepreneur?
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.

11

Chapter 1: Entrepreneurship

Benefits of
Entrepreneurship
The opportunity to:
Create your own destiny
Make a difference
Reach your full potential
Reap impressive profits
Contribute to society and to be
recognized for your efforts
Do what you enjoy and to have fun
at it
12

Chapter 1: Entrepreneurship

Who Are Entrepreneurs?

A person who starts and/or operates a

business.

Individuals who discover market needs

and launch new firms to meet those
needs.

Risk takers who provide an impetus

for change, innovation, and
progress.

All active owner-managers (founders

and/or managers
of small businesses).113

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.

Intrapreneurship

Learning organizations encourage

intrapreneurship.
Organizations want to form:

Product Champions: people who take ownership of a

product from concept to market.
Skunkworks: a group of intrapreneurs kept separate
from the rest of the organization.
New Venture Division: allows a division to act as its
own smaller company.
Rewards for Innovation: link innovation by workers
to valued rewards.

1-2

Entrepreneurial Incentives

116

Who are entrepreneurs?

Common traits

Original thinkers
Risk takers
Take responsibility
for own actions
Feel competent
and capable
Set high goals and
enjoy working
toward them

Common traits

Self employed parents

Firstborns
Between 30-50 years
old
Well educated 80%
have college degree
and 1/3 have a
graduate level degree

Why People Become

Entrepreneurs

Reluctant Entrepreneur

A person who becomes an

entrepreneur as a result of some
severe hardship.

Refugee

A person who becomes an

entrepreneur to
escape an undesirable situation.
118

The Many Varieties of

Entrepreneurship
Founder (Pure Entrepreneur)

A person who brings a new firm into existence.

Administrative Entrepreneur
An entrepreneur who overseas the operations of a
ongoing business.
Franchisee
An entrepreneur whose power is limited by the
contractual relationship with a franchising
organization.
Entrepreneurial Team
Two or more people who work together as
entrepreneurs.

119

Artisan Entrepreneurs

Artisan Entrepreneur
A person with primarily technical skills and little
business knowledge who starts a business.
Characteristics:

Technical training

Paternalistic approach

Reluctance to delegate

Few sources of capital

Narrow view of strategy

Personal sales effort

Short planning horizon

120

Opportunistic
Entrepreneurs

Opportunistic Entrepreneur
A person with both sophisticated managerial skills and
technical knowledge who starts a business.
Characteristics:
Broad-based education
Scientific approach to problems
Willing to delegate
Broad view of strategy
Diversified marketing approach
Longer planning horizon
Sophisticated accounting
and financial control

121

Women Entrepreneurs

More Women Entrepreneurs

The number of women-owned firms grew nearly twice

as fast as that of all firms from 1997 to 2006.

Females owned 30% of all businesses as of 2006.

Women are moving into nontraditional industries.

Problems Facing Female Entrepreneurs

Newness of entrepreneurial role

Lack of access to credit

Lack of networking
connections

Discrimination

122

Getting Started

Age and Entrepreneurial Opportunity

Early Career Concerns

Late Career Concerns

1. Getting an education

1. Fulfilling family
responsibilities

2. Gaining work
experience

2. Attaining seniority
in employment

3. Acquiring financial
resources
20

3. Earning investment
in
a retirement program
25

35
Age
123

45

Getting Started (contd)

Taking the Plunge

Precipitating event

Finding Go-To Persons

An event, such as losing a job,

that moves an individual to
become an entrepreneur.

Mentors for advice and counsel

Growing and Managing the Business

124

Drawbacks of
Entrepreneurship

Uncertainty of income
Risk of losing your entire investment
Long hours and hard work

25

Chapter 1: Entrepreneurship

Ten Deadly Mistakes of

Entrepreneurship
1.
2.
3.
4.
5.

Management mistakes
Lack of experience
Poor financial control
Weak marketing efforts
Failure to develop a strategic
plan

Chapter 1: Entrepreneurship

Ten Deadly Mistakes of

Entrepreneurship
6.
7.
8.
9.
10.

Uncontrolled growth
Poor location
Improper inventory control
Incorrect pricing
Inability to make the
entrepreneurial transition

Chapter 1: Entrepreneurship