workshoponentrepreneurship 111220220641-phpapp01
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Entrepreneurship
Who is an entrepreneur?
• Entrepreneur is the person responsible for setting up a business or an enterprise.
• He takes the initiative, is innovative, and looks for high achievements.
• He is a change agent who puts up new projects that create wealth, open up employment opportunities and leads to the growth of the sector.
• 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.
Workshop on EntrepreneurshipPrepared from the works of good hearted people who ventured to
document their experience and findings
Entrepreneurship
Definitions
• The entrepreneur is an individual who introduces something new in the economy- a new production method, a new product, a new source of raw material, a new market etc.
- Joseph Schumpeter.
• An entrepreneur is the one who always searches for change, responds to it and exploits it as an opportunity. Innovation is a specific tool by which he exploits change as an opportunity, for a business or service.
- Peter Drucker
• A true entrepreneur is the one who is endowed with more than average capacity in the task of organising and coordinating the various other factors of production.
– Francis Walker
Entrepreneurship
Entrepreneurship
Characteristics/Attributes of Entrepreneurs
• Desire for responsibility
• Preference for moderate risk
• Confidence in their ability to succeed
• Desire for immediate feedback
• High level of energy
• Future orientation
• Skilled at organizing
• Value achievement over money
Entrepreneurship
The ‘Type E’ Personality
Common Traits of Entrepreneurs:
• Aggressively pursues goals; pushes self and others
• Seeks autonomy, independence and freedom from boundaries
• Sends consistent messages; very focused
• Acts quickly, often without deliberating
• Keeps distance and maintains objectivity
• Pursues simple, practical solutions
• Willing to take risks; comfortable with uncertainty
• Exhibits clear opinions and values; has high expectations
• Impatient; “just do it” mentality
• Positive, upbeat, optimistic; communicates confidence
Entrepreneurship
What is entrepreneurship?
• It is the propensity of mind to take calculated risks with confidence to achieve a pre determined business or industrial objective
Entrepreneur Entrepreneurship
Person Object
Enterprise
Process of action
Entrepreneurship
Entrepreneurship and developing countries like Sri Lanka
• The potential of economic development remains dormant because of undeveloped or underdeveloped human resources.
• In fact, man is much more crucial to development than any other economic factors. The sufficiency of other resources alone, does not lead us anywhere.
• Resources to be developed may exist in plenty but if development-linked human minds are absent, hardly any economic development will take place.
• While human skills include manufacturing, technical, supervisory, managerial, administrative and entrepreneurial competence, it is the entrepreneurial quality, which is a key ingredient.
• It often sets the limit to the degree of industrial development and the speed with which it can be achieved in a particular country or region.
Entrepreneurship
Barriers to entrepreneurship
• Lack of a viable concept• Lack of market knowledge• Lack of technical skills• Lack of seed capital/resources• Lack of business know how• Lack of sufficient infrastructure• Complacency• Restrictive effects of customs and traditions• Legal constraints• Monopoly• Restrictions due to patents
Entrepreneurship
Intrapreneur
• He is the one who innovates and turns the idea into a profitable reality, within the framework of an organization
• It is necessary that an organization has a conducive environment to encourage intrapreneurs
Characteristics of a conducive intrapreneurial environment are:
• Encouragement to innovation and experimentation• Freely available resources• Measurable rewards• Flexibility to alter plans• Long time horizon to measure success• Top management support
Entrepreneurship
Advantages of Entrepreneurship
Entrepreneurship
To an Individual
• Self Employment
• Employment for near & dear ones
• Prolonged career for next generations
• Freedom to use own ideas - Innovation and creativity
• Unlimited income / higher retained income
• Independence
• Satisfaction
Entrepreneurship
To the Nation
• Provides larger employment
• Results in wider distribution of wealth
• Mobilizes local resources, skills and savings
• Accelerates the pace of economic development
• Reap the benefits of the peace
• Stimulates innovation & efficiency
Entreprenership
Factors favouring Entrepreneurship
• Growth of education- science, technology & management
• Developed infrastructure facilities
• Financial assistance
• Training facilities
• Protective and promotional policies
• Globalization
Entrepreneurship
Entrepreneurship and Economic Development
• Entrepreneurs combine resources, put their time and efforts and produce goods or services
• What they contribute – productivity, output, value addition, income and employment
• Entrepreneurship is a “Low Cost Strategy”. Entrepreneurs perform the crucial role themselves
• The spirit of Entrepreneurship – Drive, achieving higher goals, creativity, innovative attitude.
• A dynamic society emerges and the spirit spreads like a chain reaction.
Entrepreneurship Management
Entrepreneurship and Management Students
• Enterprises in protected economy can be mismanaged
• Enterprises in competitive environment are essentially to be managed
• A Management Graduate is a person trained to manage an enterprise. Naturally, he will deliver the best results
• A Management Graduate should not be just a Job Seeker. He can and should take the role of Job Provider
• Experience confirms that more Management Graduates take Entrepreneurial Role (after some experience) and their income is higher than their colleagues who are in job ( In Sri Lanka the percentage of Management Graduates who venture into business is dismally low. They prefer working for some one, but that trend is changing now. It is good news???)
Entrepreneurship
Entrepreneurial Decision Process
• Pull Factors
– Perception of Advantages
– Spotting an Opportunity
– Government Policies
– Motivation from Biographies or Success Stories
– Influenced by Culture, Community, Family Background, Teachers, Peers, etc.
• Push Factors
– Job Dissatisfaction
– Relocation
– Lay-off
– Retirement
– Boredom
Entrepreneurship Management
Comparison of Traditional Managers, Entrepreneurs and Intrapreneurs
Traditional Managers
Entrepreneurs Intrapreneurs
Primary motives
Perks and promotion
Self-employment, satisfaction and money
Creative freedom and recognition
Time Orientation
Short-term – meeting quotas and budgets; weekly, monthly, quarterly and the annual planning horizon
Short-term –business establishment; Long-term – growth of business
Tend to follow the middle path
Entrepreneurship Management
Traditional Managers
Entrepreneurs Intrapreneurs
Activity Delegates and supervises
Direct involvement
Direct involvement , not merely delegation
Risk Careful Moderate risk taker
Moderate risk taker
Monetary Risk Nil High Nil
Status Concerned about status
Not concerned about status
Not concerned about traditional status
Failure and mistakes
Tries to avoid mistakes
Deals with mistakes and failures
Attempts to hide risky projects from view until ready
Entrepreneurship
Traditional Managers
Entrepreneurs Intrapreneurs
Decisions Like to take their own but unable to disagree with superiors
Follows dream with decisions
Able to get others to agree to help achieve their dreams
Serves who? Others Self and customers
Self, customers, and sponsors
Family history Family members worked for large organizations
Entrepreneurial small-business, professional
Entrepreneurial small-business, professional
Relationship with others
Hierarchy as basic relationship
Transactions and deal-making as basic relationship
Transactions within hierarchy
If you want to be an entrepreneur It is not too late . You can start .
Entrepreneurship
You have one more task !
• This is a presentation done by Maxwell Ranasinghe to Students of the Final Year in the Department of Marketing at the University of Kelaniya.
• Please develop it further with your own insight, knowledge and experience, share with your friends and members of your staff. Send comments to. I used a presentation made by a person called Swarupa to develop and adjust according to our requirements. So I claim no copyright to this.
• The knowledge is universal, we need to share it for the common benefit.
• So act now and send it to many friends as possible AS A CHAIN LETTER.( you may have been part of sending many mythological, time wasting, illogical chain letters but send this, it will at least help another fellow Sri Lankan to be an entrepreneur)
• We, Sri Lankans need a big change in this attitudes more than any other thing.
• Good luck …………
Entrepreneurship Management
Entrepreneurship
Assignment for Students
Choose an entrepreneur as a case study.
Understand his qualities/characteristicsFactors that introduced him to entrepreneurship-push/pullEnvironment conditions (political, social etc)- favorable/unfavourableProcess of starting a business venture; use of innovation and creativityDetails of the enterprise, product/service providedPath to success-overcoming failures, problems faced, major milestones. SWOT of the organization/business in general;
Recommendations if any for the future sustenance and growth