Recommended Book

Entrepreneurship
By
Robert D Hisrich Michael P. Peters Dean A. Shepherd

Case Study

THINK!!!

It is a kind of behavior that includes: Initiative taking The organizing and reorganizing of social and economic mechanism to turn resources and situation to practical account The acceptance of risk and failure

4-Basic Aspects of being an entrepreneur

Entrepreneurship involves the creation process of value to entrepreneur and the audience 2. Requires the devotion of necessary time and effort 3. Assuming the necessary risk 4. The reward of being an entrepreneur (EURIKA) *** Nearly one million new companies are formed only in US in a year. *** How Japan shrugged off the losses of second world war?
1.

The Entrepreneurial Process

Identification and Evaluation of Opportunities: Opportunity assessment Creation and length of opportunity Real and perceived value of opportunity Risk and return of opportunity Opportunity versus personal goals and skills Competitive environment wrt Pakistan

(Porters Diamond)

The Entrepreneurial Process

Develop Business Plan Title page Table of content Executive summary Major section

Description of business Description of industry Technology plan Marketing plan Financial plan Production plan Organization plan Operational plan Summary bibliography

The Entrepreneurial Process

Resources Required
Determine resources required
Determine existing resources Identify resource gaps and available suppliers

Develop access to needed resources

The Entrepreneurial Process

Manage the Enterprise
Develop management style
Understand key variables for success Identify problems and potential problems Implement control system Develop growth strategy

What steps are necessary for growth strategy?

Desirability of new venture formation?

1.

2. 3. 4. 5.

Culture, subculture, family, teachers, peers Culture: Can you change culture overnight? Being ones own boss, having individual opportunities, being a success & making money. Do you see any significant change in culture during last ten years? Subculture: Pockets of entrepreneurial subcultures Family: Uplifting Teachers: Encouragement, creativity, support Peers: Can discuss ideas, problems and solutions

Possibility of new Venture Formation?

Government, background, marketing, role models and finance 1. Government: Infrastructure 2. Background: Formal education, Previous business experience 3. Marketing: Size, know-how, price, distribution, promotion, Launching (push/pull) 4. Role Models: To see someone else succeed makes it easier to picture yourself engaged in a similar activity 5. Financial Resources: Must be readily available.
1.

Own and financial companies

Types of Start-ups
Lifestyle firm: A small venture that supports the owner

and does not grow. (S. A. Latif & Sons) Foundation Company: Company formed for R&D that does not go public High-potential Ventures: High growth potential and receives great investor interest Gazelles: Very high growth ventures

Role of Entrepreneurship in Economic Development

Product evaluation process
Process of developing & commercializing an innovation)

Iterative Synthesis:
Interaction of knowledge and social needs that start Product

development process

Ordinary Innovations:
New product with little technological change (M Bulb / Tube light)

Technological Innovations
New product with significant technological advancement (ES)

Breakthrough
New product with some technological change (VCR/DVD)

Government as an innovator (Maquiladora) Technology Transfer