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Entrepreneurship
What is entrepreneurship?
Definition:
Entrepreneurship is the willingness to take risks and develop, organize and manage a
business venture in a competitive global marketplace that is constantly
evolving
...

OR
Entrepreneurship is the development of a business from the ground up — coming up with an
idea and turning it into a profitable business
...


The difference between an Entrepreneur and inventor?
Entrepreneur:
An Entrepreneur is someone who starts up a business and has all the necessary resources to
implement his/her business idea
...


This Is the Difference between 'Invention' and 'Innovation'
Invention is the "creation of a product or introduction of a process for the first time
...

Innovation happens when someone "improves on or makes a significant contribution" to
something that has already been invented
...


Entrepreneurial process:
Framework
Of course, there are many ways to organize the effort of planning, launching and
building a venture
...
We offer the following as a way to break down the basic activities necessary
...
These phases

are summarized in this table, and the Opportunity Evaluation and Planning steps are
expanded in greater detail below
...
Idea Generation: every new venture begins with an idea
...
(A characterization of this phase is still work in process
on this site
...
Opportunity Evaluation: this is the step where you ask the question of whether
there is an opportunity worth investing in
...
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
...
In the planning phase you will
need to create two things: strategy and operating plan
...
Company formation/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
...
At this point, you continue to ask questions but spend more
of your time carrying out your plans
...
Even as you begin your evaluation, you are forming at
least a hypothesis of a business strategy
...
We
separate these ideas for convenience in description but it is worth keeping in mind that

these are ongoing aspects of your management of the business
...

This website is focused on the early phases of new ventures
...
Nor does it cover the phases of growing a
company much beyond its initial launch
...

The focus here is the evaluation and planning phases
...
This table summarizes this framework:
Opportunity evaluation
(investment prospectus)


Need / problem

Company's plan
Strategy

Execution


Market research



Solution



Target customer



Marketing



Competitive position



Business model



Business development



Team



Position



Forecasting



Risk / reward profile



Milestones /
company objectives



Sales planning



R&D management



Operations
management

Operating plan


Company timeline



Staffing plan



People management



Budget





Financing plan

Process and
infrastructure



Budgeting



Financing

To take this analysis one level deeper, we can break down each of these phases as
follows
...
You are actually constructing and then continually
revising an "investment prospectus
...

1
...
Is your proposed solution feasible, both from a market perspective and a
technology perspective?
3
...
Do we have a team that can effectively capitalize of this opportunity?
5
...
This is the first step toward being able
to convince others, whether they be prospective customers, employees, partners or
providers of capital
...
These are described briefly below and in more
depth in the sections devoted to these topics
...
The more you know about them, the better off you are
...

You should investigate any alternatives the customer has for solving or working around
the problem or need that you are targeting
...

Business Model
The business model is your theory about how you will make money
...
If there are any assumptions required for your
theory to be true (such as the existence of complementary product or services, or the
customer's willingness to change business processes) these should also be articulated
...
This is an opportunity to
define, at a fundamental level, what your company will do and what it will not do
...
A compelling vision is necessary to inspire investors, recruit and motivate
employees, and to excite customers and partners
...
This should include:


Key milestones (prototype, product, customer, partnerships,etc
...

These ideas are developed in the Strategy Development section
Operating plan
Your operating plan is where you spell out all of the things that you plan to do and what
they will yield for your business
...
These activities should yield products by a certain
date, possibly partners, customers, etc
...

Your operating plan will be a combination of plans, i
...
, these people working on this
topic for this period of time will produce result X, and forecasts orprojections, i
...

predictions about what results will occur
...
The operating plan is the core of your business, and you should make
it as good as you can - your plans should be as thorough as possible and your forecasts
should be based on the best and most complete evidence you can compile
...
The more detailed and fine grained
analysis you can develop, the more accurate and reliable your plan will be
...

Staffing plan
This is the document where you capture all of the hiring your firm will do (skills,
experience and timing)
...
This is a critical document for managing your business
...

Planning process
Here are a few important principles:


The actual budget, staffing plans, etc
...




Build a plan that captures everything (so that you are not hurt by surprises or
unexpected expenses)



Revenue: detailed bottom up plan, based on best information about customer
groupings, conversion rates, sales activity, …



Expenses: usually people driven – build in realistic hiring timetables, training,
learning curve, benefits, travel, etc
...


The plan becomes more manageable when you break it down into major functional
areas
...



Marketing



Sales



Research and development



Operations



Finance



People management



Processes & infrastructure

You should monitor your budget carefully and continually, and make adjustments as
needed
...

The terms Entrepreneur and the Intrapreneur might seem the same words to hear, but
both the terms have much differences including their spelling and characteristics
...
e
...


An entrepreneur himself
raises funds required for
the enterprise
...


Entrepreneur bears the
risk involved in the
business
...


An entrepreneur operates On the contrary, an
from out side
intraprenuer operates
from within the
organization itself
...


An intrapreneur sets up
his enterprise after
working someone else’s
organization
...


An intrapreneur
establishes his business
after gathering
experiences through
working in the other
organizations
...

What is the Role of an Entrepreneur in Economic Development?
The entrepreneur who is a business leader looks for ideas and puts them into effect in
fostering economic growth and development
...
The entrepreneur acts as a
trigger head to give spark to economic activities by his entrepreneurial decisions
...
The major roles played by an
entrepreneur in the economic development of an economy is discussed in a systematic
and orderly manner as follows
...
They
employ their own as well as borrowed resources for setting up their enterprises
...

(2) Creates Large-Scale Employment Opportunities:
Entrepreneurs provide immediate large-scale employment to the unemployed which is a
chronic problem of underdeveloped nations
...
of more and more units
by entrepreneurs, both on small and large-scale numerous job opportunities are created
for others
...
In this way, entrepreneurs play an effective
role in reducing the problem of unemployment in the country which in turn clears the
path towards economic development of the nation
...
The growth of industries and business in these areas
lead to a large number of public benefits like road transport, health, education,
entertainment, etc
...

(4) Reduces Concentration of Economic Power:
Economic power is the natural outcome of industrial and business activity
...
In order to redress this problem a
large number of entrepreneurs need to be developed, which will help reduce the
concentration of economic power amongst the population
...
Entrepreneurial activities also generate more activities and give a multiplier
effect in the economy
...
They explore and exploit
opportunities,, encourage effective resource mobilisation of capital and skill, bring in
new products and services and develops markets for growth of the economy
...
Increase in gross national product and per capita income of the
people in a country, is a sign of economic growth
...
Entrepreneurs play a key role in increasing the standard of
living of the people by adopting latest innovations in the production of wide variety of
goods and services in large scale that too at a lower cost
...

(7) Promotes Country's Export Trade:
Entrepreneurs help in promoting a country's export-trade, which is an important
ingredient of economic development
...
Hence import substitution and export promotion
ensure economic independence and development
...
When an enterprise is established in accordance with the changing
technology, it induces backward and forward linkages which stimulate the process of
economic development in the country
...
Once an
enterprise is established, the process of industrialization is set in motion
...
This leads to overall development of an
area due to increase in demand and setting up of more and more units
...

Ethics and social responsibilities of an entrepreneur
An entrepreneur is actually running his own business and being a businessman he
has some obligation of a business to meet his economic and legal responsibilities
...

While we are talking about the business ethics, there are three things that need
consideration:
(1)

Avoid breaking criminal law in one’s work related activity

(2)

Avoid action that may result in civil law suits against the company

(3)

Avoid actions that are bad for the company image
...

How entrepreneurs think:
Here are six ways powerful people think differently, and how you can, too
...
Entrepreneurs find their own ways of thinking – and don't need your approval
...
magazine
...

Taking full control of your own destiny and responsibility for the results of decisions will
help you pave a – hopefully profitable – path that's all your own
...
Entrepreneurs challenge the status quo
...
A willingness to
break the rules tends to come with the territory, as researchers at University of
California, Berkeley, and the London School of Economics found recently
...
The key to becoming an entrepreneur
isn't necessarily becoming the next Bill Gates – it's becoming the next you
...
Entrepreneurs see opportunities, not problems
...
And that leads to seeing opportunities
where others might see roadblocks
...
Try taking on new challenges at work, or set aside time to brainstorm solutions to
common problems
...
Entrepreneurs take measured risks
...
They do
have a willingness to take the right kind of risk at the right time, as the UC/LSE study
goes on to suggest
...

5
...

Entrepreneurs put the "cult" in company culture, typically building their companies in
their own image
...
We all know
someone who "lives, eats, sleeps and dreams" their business 24/7—sometimes at great
personal sacrifice
...
Entrepreneurs learn from their failures
...
Rather than become discouraged,
entrepreneurs tend to capitalize on opportunities to acquire new knowledge
...
Some venture capitalists and angel
investors won't fund entrepreneurs who haven't had at least one failed business
...
But if you see yourself in these
characteristics many entrepreneurs share, you might just have what it takes to succeed
...

We think Gateway, or better yet, Facebook, whose Mark Zuckerberg we see on a
stage in front of a giant projection screen before investors and industry insiders
pitching the social media juggernaut’s latest innovation
...
Sure, we know about the primary
standard-bearer Oprah Winfrey, but it still seems the role of entrepreneur has long
been crowded by men
...
Forbes dubbed last year the Year of the Female Entrepreneur
...
And why
not? There are lots of smart, innovative women looking to bring their products or
services to the global marketplace and make a name for themselves
...
But first
it might be a good idea to get into the mind of the female entrepreneur to
understand what sets her apart from and what might actually give her the edge
over her male counterparts
...

Consider the examples I mentioned above, Gateway and Facebook
...
Like Waitt, Mark
Zuckerberg is a college dropout, only he started Facebook in his Harvard dorm
room
...
If
you look at Martha Stewart, she was a model, stock broker, and then a caterer
before she developed the product empire she is known for today
...
However, the age and experience allow women
to develop their business smarts, connections and life experience more so than
men
...

Because the men in these situations tend to be young, it stands to reason that
they tend to borrow the initial investment or utilize angel investors to get the
business off the ground—e
...
Waitt borrowed $10,000 from his grandmother to
start Gateway
...
Consider

Blakely, who was once a ride greeter at Disney World and then a door-to-door fax
machine saleswoman
...
Blakely, like a lot of
women, embraced a more do-it-yourself attitude than men
...

Women are more focused on the greater good
...
This connection to the
community also manifests itself in the products themselves—women want them
to be beneficial to others, to make a difference
...
Her products make a difference in women’s lives,
starting from an aesthetic standpoint, which then can even help build their
confidence, which then pays off in greater productivity and profitability
...

One area where women struggle is they appear to display a greater tendency to be
self-critical than men when faced with failure
...
One
study showed that the brightest 5th grade girls were the most likely to give up when
faced with a challenging task
...
Be kind and
gentle with yourself, especially when you make a mistake
...

Finally, what many people find about women entrepreneurs is that because of
women’s nature, which tends to be more inclusive than men’s, there is a greater
trend towards collaboration in the company
...
This is where
men are more comfortable going it alone, but that may not always work
...
This shows a vulnerability that creates a better, more open working
environment, which can only help make the success that much more rewarding
...
Make this your year!
Domestic entrepreneurship vs
...
There are
new skills to learn and new knowledge to acquire about the country you will be going
into
...
It is important to remember that the way you
operate your business will be determined by culture of the market you are entering, not
yours
...

Rather they should whet your appetite for success
...
Culture defines everything a society does,
from its business practices, to its response to advertising and marketing, to negotiating
sales
...
Understanding these, often sensitive, areas will
mean that you are better prepared when first entering the market
...


Level of Competition
The level of competition you will experience in foreign markets is likely to be more
dynamic and complex than you experience in domestic markets
...
This tool will assess your supplier
power, buyer power, threat of competitor products and the threat of new entrants to the
market
...

It may be difficult to find reliable information and data for some markets, particularly
less-developed economies as their statistical agencies may not be as sophisticated as
developed market economies
...


Politics/Government/Legal Systems
No two countries have the same political and legal systems
...
The key is to understand that once
you are in a foreign market you must abide by the rules and laws of that country, not the
ones in your own market
...


International Law
Countries determine their laws based on the needs of their citizens not the concerns of
foreign companies
...
For example in areas such as intellectual property, although
there are many agreements in place, protecting intellectual property can be time
consuming and costly
...
If your product or
service requires a high degree of technology sophistication to use or implement, then
markets with low levels of technology will not be suitable for your busines
...
This may well have an impact on your ability to get your products to that
market
...


Media
Advertising your product and service will of course be an important component of your
marketing strategy
...
Not everyone is connected to the internet nor is every customer able
to read and write
...
It does mean
that how you advertise and market your products will require an examination of the most
appropriate media for your target market
...
The difference between the entrepreneurial style and the managerial style (administrative domain)
involves five business dimensions
...
Strategic Orientation
...
The entrepreneur’s strategic orientation depends on his or her perception of the opportunity
...
When the use of planning systems is the strategic orientation, the administrative domain is operant
...
Commitment to Opportunity
...
The entrepreneurial domain is pressured by the need for action and has a short time span in terms of
opportunity commitment
...
The administrative domain is not only slow to act on an opportunity, but the commitment is usually for
a longer time span
...
Commitment of Resources
...
An entrepreneur is used to having resources committed at periodic intervals, often based on certain
tasks or objectives being reached
...
In acquiring these resources the entrepreneur is forced to maximize resource use
...
In the administrative domain, the commitment of resources is for the total amount needed
...
Administrative-oriented individuals receive personal rewards by effectively administering the resources
under their control
...
Control of Resources
...
The administrator is rewarded by effective resource administration and has a drive to own or
accumulate as many resources as possible
...
The entrepreneur, under pressure of limited resources, strives to rent resources on an as-needed basis
...
Managerial Structure
...
In the administrative domain, the organizational structure is formalized and hierarchical in nature
...
The entrepreneur employs a flat organizational structure with informal networks
...

Although some may feel that entrepreneurs are less educated than the general
population, research findings indicate that this is clearly not the case
...

Childhood family Environment
The impact of word order and social status has have confliction preserve result
...

Education
Education appears important in the up bringing of an entrepreneur the level of education
obtain in playing the major roll in coping with problems
...

Personal Values
Its very important to entrepreneurs is ethics and the ethical behavior of the
entrepreneur
...

Work History
The past work experience of an individual
...

METHODS OF GENERATING NEW IDEAS
Even with the wide variety of sources available, coming up with an idea to serve as the basis for the new
venture can still be a difficult problem
...


Focus groups
Group of individuals providing information in a structured format is called a focus group
...


Brainstorming

A group method of obtaining new ideas and solutions is called brainstorming
...
Although most of the ideas generated
from the group have no basis for further development, often a good idea emerges
...
However instead of generating new ideas themselves, consumers are provided with a list of
problems in a general product category
...
This method is often effective since it is easier to relate known
products to suggested problems and arrive at a new product idea then to generate an entirely new idea by
itself
...


Brainstorming
The first technique, brainstorming, is probably the most well known and widely used for both creative
problem solving and idea generation
...
All ideas, no
matter how illogical, must be recorded, with participants prohibited from criticizing or evaluating during
the brainstorming session
...


Synectics
Synectics is a creative process that forces individuals to solve problems through one of four analogy
mechanisms: personal, direct, symbolic and fantasy
...


Gordon method
Gordon method is a method of developing new ideas when the individuals are unaware of the problem
...
The
group responds with expressing a number of ideas
...


Free association method
Developing a new idea through a chain of word association is free association method of problem
...
It is technique
that asks questions about objects or ideas in an effort to develop a new idea
...


Heuristics
It is method of developing a new idea through a thought process progression
...


Value analysis
Value analysis is developing a new idea by evaluating the worth of aspects of ideas
...


Matrix charting
Matrix charting is a systematic method of searching for new opportunities by listing important elements for
the product area along two axis of chart and then asking questions regarding each of these elements
...


Parameter analysis
Parameter analysis is developing a new idea by focusing on parameter identification and creative synthesis

Types of innovation:


Break through innovation



Technological innovation



Ordinary innovation



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