Understanding Entrepreneurship: Key Concepts and Characteristics
Entrepreneurship encompasses the nature, definition, and traits of entrepreneurs, who are innovative individuals driving economic growth through opportunities and risk-taking. The essence of entrepreneurship lies in creating value, wealth, and employment while leaving a lasting impact on society. This introduction explores the fundamental aspects of entrepreneurship, including its role as a catalyst for socio-economic development and innovation.
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Entrepreneurship Introduction ELIB 203 Week2
Entrepreneurship Key decisions relate to: 1- Entrepreneurship- Introduction 2- TheEntrepreneurs- Who they are? - Characteristics/traits 3- MegaEntrepreneurs 4- Defining The Entrepreneur- Advantage & Disadvantage Types 5-EntrepreneurialMindset- Activity1
1- Entrepreneurship Nature of Entrepreneurship It is a socio-economic phenomenon. Engine of economic growth Creator of wealth and employment.
Entrepreneurship What You Know about Entrepreneurship
Entrepreneurship What is Entrepreneurship? It is a creative and innovative human act. Ability to create and build a vision from practically nothing. Vision requires willingness calculated risks. to take It is a discipline, hence it can be learned Peter Drucker
Entrepreneurship Definition Entrepreneurship is a phenomenon which involve two critical elements sensing & exploiting an opportunity The ability to sense an opportunity is the result of entrepreneurial traits The ability to exploit the opportunity is the result of the entrepreneur management skills
2-The Entrepreneurs Who they are? Entrepreneurs are: Making, selling or trading things or services Sole proprietors (part of a small group) Involved in business Those who discover market needs and launch new firms to meet those needs
The Entrepreneurs Who they are? Entrepreneurs are very much interested in: Success Profit Wealth creation Leaving their mark on society
The Entrepreneur Definition An entrepreneur is defined as an individual who sees an opportunity that others do not and marshals the resources to exploit it. An entrepreneur is someone who introduces a new product or a process; identifies new market or a resource of supply or creates a new type of organization. An entrepreneur raise the necessary capital, creates the new venture and assumes the control and risk of operation Creation of Value is the OUTCOME of entrepreneurial activity.
The Entrepreneurs Characteristics/traits Entrepreneurs are individuals who: Have a need to achieve Are willing to take risks Have internal locus of control Have a passion for the business Have active/vivid imagination oRecognize business opportunities oSee consequences oSee the complete picture and many alternatives
The Entrepreneurs Characteristics/traits Understand customer behaviour Are natural leaders: oThey have what it takes to get people to believe in them oThey demand and get loyalty from their staff Powerful communicators oMore powerful oral/personal rather than written oUse simple and direct language oOften use of analogy oCan present complex ideas simply
The Entrepreneurs Characteristics/traits oAre better talkers than listeners oAre not easily distracted Entrepreneurs are individuals who: oAre exceptionally competitive oMost academic research shows that entrepreneurs are abnormally (sometimes excessively) competitive people oEntrepreneurs set unnecessarily (as seen by outsiders) tough targets for themselves oSometimes they may even compete with themselves
The Entrepreneurs Characteristics/traits And entrepreneurs also Are impatient, quick to buck the system, do it first, apologise later Believe that success is the result of their own efforts, hence, luck, chance or fate has nothing to do with it Believe; The harder I work, The luckier I get Rebellious against rules, authority and the establishment May have tunnel vision Thrive on the thrill of victory Love to sell and are super sales people
3-Mega Entrepreneurs The greatest difficulty in the world is not for people to accept new ideas, but to make them forget about old ideas. -- John Maynard Keynes, Economist
W. K. Kellogg b. 1860 Kellogg's accidental discovery, promoted with savvy marketing, transformed the way Americans eat breakfast. Kellogg grasped the idea that kids influence buying decisions galvanizing the brand's success
Sam Walton b. 1918 The man who built the world's largest retailer on low prices: Wal- Mart. Bought direct from manufacturers and made his stores as efficient as possible, sending the savings back to consumers
Muhammad Yunus b. 1940 2006 Nobel Peace Prize winner, founded a banking system 30 years ago to lend small amounts of money to the rural poor in Bangladeshi villages
Martha Stewart b. 1941 Started a catering business out of her Westport (Conn.) home in 1976. Went on to expand into retail, publishing, television, and merchandising.
Richard Branson b. 1950 Richard Branson turned, Virgin, the mail-order record shop he opened in 1970 into a label he sold 22 years later for nearly $1 billion. Brand includes mobile- phone service, bridal gowns, credit cards, and life insurance. Virgin Group encompasses 200 companies in More than 30 countries.
Oprah Winfrey b. 1954 Oprah Winfrey turned her name into one of the most successful and respected brands in the world. Leveraged that fame into other interests: magazines, Web sites, film and television production and Social Entrepreneurship.
Bill Gates b. 1955 By linking his Microsoft software to IBM's first PCs, he dominated the industry. He developed a two-prong strategy of expanding the market while maintaining a strong hold on competitors
Steve Jobs b. 1955 The Apple co- founder combined simplicity with innovation to emerge from the Internet boom as one of the lone tech companies that can butt heads with Microsoft
Jeff Bezos b. 1964 Founded Amazon.com, in 1994 Bezos pioneered techniques that have become staples of online sales.
Michael Dell b. 1965 Created a new model for PC sales. Cutting out the retail middleman and custom- building computers to suit buyers' needs put Dell at the front of the class of PC makers.
Chad Hurley, 29; Steve Chen, 28 & Jawed Karim, 27 Founders of YouTube. Broadcasts 100 million short videos daily on myriad subjects. Sold to Google
Pierre Omidyar b. 1967 Founder of EBay, which made the promise of the Internet a reality by connecting far- flung customers with the goods they wanted to buy.
Mega Entrepreneurs Who Started in Their 20s Microsoft - Bill Gates & Paul Allen Apple Computer - Steve Jobs & Steve Wozniak Dell Computer - Michael Dell Federal Express Fred Smith Oracle Larry Ellison Amazon.com Jeff Bezos Nike Phil Knight Yahoo David Filo & Jerry Yang Cisco Len Bosack, Sandra Lerner & Kirk Lougheed Google.com Larry Page & Sergey Brin
Mega Entrepreneurs in Saudi Arabia Dallah alBaraka - Saleh Kamel Fitaihi Group - Ahmad Hasan Fataihi AlAhli Bank - Bin Mafhfooz Alrajhi -Alrajhi Bank Al Baik - Rami Abughazala Lomar - Loai Nasesm U turn - Abdulla Mandowi
4- Defining The Entrepreneur From our perspective: Any individual that sees and acts upon an opportunity This includes introducing a new product or service, identifying new markets, or putting a twist on an existing product, process or service Also, includes the raising of capital, taking the risk and controlling the new venture Embodies creativity, aggressiveness, and determination By assembling various resources, he takes risks and creates a venture from an idea, hobby, or simply a dream.
The Entrepreneur Motives Advantage Independence Potential financial rewards Satisfying a way of life More personal contacts with people Skills development Challenge Enjoyment
The Entrepreneur knowing the downside Disadvantage Risk (failure) Stress Need for many abilities Limited financial rewards People conflict Time demand
The Entrepreneur Types The Wheeler Dealers Visionaries Strivers Innovator -look for a better fit . -A mismatch between the way something is currently being done and how it could be done. -A poorly satisfied demand. -A recognition of an incipient user demand resulting from the creative application of new technology, so they discover the opportunity . - Most dispassionate/ calculating type. - Looks for opportunity to act. -Never satisfied with their own achievements -Fiercely competitive always trying to win -Generally dissatisfied with current situation. - Take-over is their game.
Entrepreneurial Mindset Born or Made? Is inborn talent an absolute requirement? Say the answer is, YES, then once we identify the main characteristics we can simply say, if we have them, fine, no others need to apply. We could start spotting talent in kindergarten and stream them. YES We could discourage people without talent from entrepreneurship
Entrepreneurial Mindset Born or Made? Say the answer is, NO , one does not have to be born with talent, it can be learned, then schools could teach anyone NO It would become a profession like law or medicine and government incubators would be successes Companies could establish nurseries for them The answer lies somewhere in-between. Talent plus education seems to be the way.
Entrepreneurs Are Made and Not Born The entrepreneurial mystique? It s not magic, it s not mysterious and it has nothing to do with the genes. It is a discipline. And like any discipline, it can be learned. Peter Drucker
The Entrepreneurs Family Background Entrepreneurial Traits Sensing an Opportunity Culture Positive/ Negative Environment Entrepreneurship Education Management Skills Exploiting the Opportunity Experience
