Entrepreneurship

Topics: Entrepreneurship, Entrepreneur, Business Pages: 24 (2655 words) Published: April 20, 2015
entrepreneurship

What is entrepreneurship?
 Entrepreneurs
– Risk-taking individuals who take actions to
pursue opportunities and situations others may
fail to recognize or may view as problems or
threats.
 Entrepreneurship
– Strategic thinking and risk-taking behavior that
results in the creation of new opportunities for
individuals and/or organizations.
2

What is entrepreneurship?
 Entrepreneurs are …
– Founders of businesses that become large-scale
enterprises.
– People who introduce a new product or
operational change in an existing organization.

3

An Entrepreneur…

… takes on the risk of
starting their own
enterprise or
investing in other
start-ups.

Successful
entrepreneurs are
known for…

… Finding innovation
and market gaps for
new products and
services.

What is entrepreneurship?
 Typical entrepreneurial backgrounds and

experiences:

– Parents were entrepreneurs or self-employed.
– Families encouraged responsibility, initiative and
independence.
– Have tried more than one business venture.
– Have relevant personal or career experience.
– Become entrepreneurs between 22 and 45 years of age.
– Have strong interests in creative production and
enterprise control.
– Seek independence and sense of mastery.
6

What is entrepreneurship?
 Typical characteristics of entrepreneurs:
– Internal locus of control
– High energy level
– High need for achievement
– Tolerance for ambiguity
– Self-confidence
– Passion and action-orientation
– Self-reliance and desire for independence
– Flexibility
7

David McClelland characterized high achievers/
entrepreneurs as possessing these traits:
– Preference for moderate risk (risk eliminators)
– Desire for responsibility
– Confidence in their ability to succeed
– Desire for immediate feedback
– High level of energy
– Future orientation
– Skill in organization
– Value of achievement over money

Entrepreneurial capacities
An entrepreneur should have or build the capacity
to:
a)exhibit entrepreneurial behaviour for business success
b)
perceive and act on business opportunities
c)
set challenging and attainable business goals
d) start and run a new businesses and improve on existing
ones
e)develop & execute business plans- e.g. for application to
banks/ other investors
f)

source and use information for market development
including differentiating from competition
g) apply high standards of excellence in their performance
h) build up confidence to make effective presentations/
communicate effectively with various audiences
i) improve interpersonal competence

Personal traits and characteristics of
entrepreneurs.

10

What is the Role of the
Entrepreneur?
 Opportunity recognition
 Market uncertainties

• Dealing with the future
 Risk taking

• Businesses, financial and personal
 Resource gathering
 Profits / Reward

Model of the entrepreneurial process
Professor Kevin Hindle – exploitation of an opportunity
is a jerky process of:
1.
2.
3.
4.

Spotting the opportunity
Evaluating it
Creating a business model
Moving from commitment to achievement of
value

Theory of alertness
Kirzner’s theory of alertness:
• Entrepreneurs are more alert to new

opportunities than other people.
• Entrepreneurs are opportunity identifiers

who can spot unexploited market niches.
• Entrepreneurs depend on a broad range of

sources of ideas, networks and
relationships.

Opportunity assessment
Entrepreneur seeks to identify risks and
uncertainties for which strategies can be
developed to either manage risks or reduce
uncertainty
– One extreme: risks may be unmanageable
and uncertainty intolerable – abandon (for
now)
– The other extreme: risks may be minimal or
easily manageable and actions are taken to
progress towards new venture creation

Assessment trap

Beware of ‘analysis paralysis’!
You will never have all the facts
Work with...

Bibliography: • Any relevant information that
demonstrates sources of information
related to the feasibility analysis
72
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