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Entrepreneurship
Assignment
Specialization: MBA-HRM
Reg-No. : 1732-109013
Zubair Ahmad
Entrepreneurship
Contents:
• What is Entrepreneurship? (Page 3-4)
Entrepreneurship
Entrepreneurship
Entrepreneurship is the act of being an entrepreneur, which is a French word
meaning "one who undertakes an endeavor". Entrepreneurs assemble resources
including innovations, finance and business acumen in an effort to transform
innovations into economic goods. This may result in new organizations or may be part
of revitalizing mature organizations in response to a perceived opportunity or
necessity. The most obvious form of entrepreneurship is that of starting new
businesses; however, in recent years, the term has been extended to include social and
political forms of entrepreneurial activity. When entrepreneurship is describing
activities within a firm or large organization it is referred to as intra-preneurship and
may include corporate venturing, when large entities start spin-off organizations.
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Entrepreneurship
Entrepreneurship
See Below…..
History of Entrepreneurship
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In the 20th century, the understanding of entrepreneurship owes much to the work of
economist Joseph Schumpeter in the 1940s and other Austrian economists such as
Carl Menger, Ludwig von Mises and Friedrich von Hayek. In Schumpeter, an
entrepreneur is a person who is willing and able to convert a new idea or invention
into a successful innovation. Entrepreneurship employs what Schumpeter called "the
gale of creative destruction" to replace in whole or in part inferior innovations across
markets and industries, simultaneously creating new products including new business
models. In this way, creative destruction is largely responsible for the dynamism of
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Entrepreneurship
industries and long-run economic growth. The supposition that entrepreneurship leads
to economic growth is an interpretation of the residual in endogenous growth theory
and as such is hotly debated in academic economics. An alternate, description posited
by Israel Kirzner suggests that the majority of innovations may be much more
incremental improvements such as the replacement of paper with plastic in the
construction of a drinking straw.
Different scholars have described entrepreneurs as, among other things, baring risk.
For Schumpeter, the entrepreneur did not bare risk: the capitalist did.
For Frank H. Knight (1921) and Peter Drucker (1970) entrepreneurship is about
taking risk. The behavior of the entrepreneur reflects a kind of person willing to put
his or her career and financial security on the line and take risks in the name of an
idea, spending much time as well as capital on an uncertain venture. Knight classified
three types of uncertainty.
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Entrepreneurship
Characteristics of Entrepreneurs
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owners fail to take their own businesses seriously enough, getting easily sidetracked
and not staying motivated and keeping their noses to the grindstone. They also fall
prey to naysayers who don't take them seriously because they don't work from an
office building, office park, storefront, or factory. Little do these skeptics, who rain on
the home business owner's parade, know is that the number of people working from
home, and making very good annual incomes, has grown by leaps and bounds in
recent years.
3. Plan everything.
Planning every aspect of your home business is not only a must, but also builds habits
that every home business owner should develop, implement, and maintain. The act of
business planning is so important because it requires you to analyze each business
situation, research and compile data, and make conclusions based mainly on the facts
as revealed through the research. Business planning also serves a second function,
which is having your goals and how you will achieve them, on paper. You can use the
plan that you create both as map to take you from point A to Z and as a yardstick to
measure the success of each individual plan or segment within the plan.
1. The money you receive from clients in exchange for your goods and services
you provide (income)
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Entrepreneurship
2. The money you spend on inventory, supplies, wages and other items required to
keep your business operating. (expenses)
Entrepreneurship
Self-promotion is one of the most beneficial, yet most underutilized, marketing tools
that the majority of home business owners have at their immediate disposal.
The home business owner can actually answer phone calls, get to know customers,
provide personal attention and win over repeat business by doing so. It's a researched
fact that most business (80 percent) will come from repeat customers rather than new
customers. Therefore, along with trying to draw newcomers, the more you can do to
woo your regular customers, the better off you will be in the long run and personalized
attention is very much appreciated and remembered in the modern high tech world.
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know how to take advantage of using it. One of the most amazing aspects of the
internet is that a one or two person business operating from a basement can have a
superior website to a $50 million company, and nobody knows the difference. Make
sure you're keeping up with the high-tech world as it suits your needs.. The best
technology is that which helps you, not that which impresses your neighbors.
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A home business must have a clearly defined unique selling proposition. This is
nothing more than a fancy way of asking the vital question, "Why will people choose
to do business with you or purchase your product or service instead of doing business
with a competitor and buying his product or service?" In other words, what one aspect
or combination of aspects is going to separate your business from your competition?
Will it be better service, a longer warranty, better selection, longer business hours,
more flexible payment options, lowest price, personalized service, better customer
service, better return and exchange policies or a combination of several of these?
15. Be accessible.
We're living in a time when we all expect our fast food lunch at the drive-thru window
to be ready in mere minutes, our dry cleaning to be ready for pick-up on the same day,
our money to be available at the cash machine and our pizza delivered in 30 minutes or
it's free. You see the pattern developing--you must make it as easy as you can for
people to do business with you, regardless of the home business you operate.
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Entrepreneurship
You must remain cognizant of the fact that few people will work hard, go out of their
way, or be inconvenienced just for the privilege of giving you their hard-earned money.
The shoe is always on the other foot. Making it easy for people to do business with you
means that you must be accessible and knowledgeable about your products and
services. You must be able to provide customers with what they want, when they want
it.
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business. You can do this in many ways, such as pitching in to help local charities or
the food bank, becoming involved in organizing community events, and getting
involved in local politics. You can join associations and clubs that concentrate on
programs and policies designed to improve the local community. It's a fact that people
like to do business with people they know, like and respect, and with people who do
things to help them as members of the community.
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business and revenue generating hours of the day. A den, spare bedroom, basement or
converted garage are all ideal candidates for your new home office. If this is not
possible, you'll have to find a means of converting a room with a partition or simply
find hours to do the bulk of your work when nobody else is home.
Entrepreneurship
See Below….
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Entrepreneurship
The US Small Business Administration says that small businesses create two of every
three new jobs, produce 39% of the gross national product, and invent more than half
the nation's technological innovation. And this kind of statistic could be repeated in
country after country around the world. Just because you work for or run a small
company doesn't mean you are unimportant. Your contribution to your country's
economy is huge.
The ability to develop and conduct your own small business is a wonderful expression
of your freedom as a citizen. You may complain about government regulations, but the
fact is that small businesses are less regulated than large firms. This gives small
businesses the freedom to focus on what is really important -- caring for customers.
I'm sure you've noticed that the larger a company grows, the harder it becomes to
provide good customer service. Just try to find the right person to help you on the
phone in a huge corporation -- it'll drive you batty. But when you ask for the owner of
a small business, chances are you'll be speaking to her or him within a few minutes.
Marketers toss around buzzwords like "Customer Relationship Management (CRM),"
but it's the small business not the megacorp that really excels at it. Small businesses
know that their livelihood is based on their customers. Small is great for customers.
Apathy doesn't breed nearly as well in small businesses as it does in big business.
Small business owners and their workers are focused and immensely proud of what
they do. Small business owners are passionate about their businesses. How many
employees in bureaucratic organizations can say the same?
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Entrepreneurship
In a small business, you have to excel at a lot of things to succeed. Small business
owners and their key employees are masters of dozens of disciplines and perform their
intricate balancing act like pros. So what if they wear more than one hat? Whom
should we admire more -- the corporate manager or the jack-of-all-trades small
business owner, whose skill-set is sharpened to a razor's edge, and who survives and
succeeds and serves? My vote is with the latter.
Small business owners learn to be risk takers and innovators. Corporate employees, on
the other hand, too often interpret their prime directive as keeping their jobs. Risk-
taking can get in the way of career-building. Innovative small businesses are prize
targets of larger corporations that often find it more cost-effective to acquire than to
innovate on their own.
Large corporations can be adverse to change, while small businesses know that their
ability to make rapid decisions and implement course corrections is their key to
success. In the ocean of business, mega-corporations turn like tankers, while small
businesses can zip around them with the agility of a speedboat.
Small business is not a synonym for small earnings. In fact, many small businesses are
extremely profitable. Their advantages of leanness, maneuverability, innovation, and
customer focus mold them into steady enterprises that earn a significant return on
investment year after year after year.
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Being big isn't a worthy goal. But delivering top customer service, a passion for
excellence, a willingness to dream and create, and the freedom to make timely
decisions -- these are worthy of acclaim.
THE END