ENTREPRENEURSHIP

Basic Concepts of Entrepreneurship

The basic concepts and characteristics

of entrepreneurship are concerned with
developing a vision of what a company
should be, and then executing that
vision by translating it into concrete
steps and following through.
Basic Concepts of Entrepreneurship

 Entrepreneurship is the act of setting out

on your own and starting a business
instead of working for someone else in his
business.
 While entrepreneurs must deal with a
larger number of obstacles and fears than
hourly or salaried employees, the payoff
may be far greater as well.
Characteristics of Entrepreneurship
 Interest and Vision
 Skill
 Investment
 Organization and Delegation
 Risks and Rewards
 Fiscal Responsibility
 Creativity
 Management Skills
 Interest and Vision

 The first factor for entrepreneurial success

is interest. Since entrepreneurship pays off
according to performance rather than time
spent on a particular effort, an entrepreneur
must work in an area that interests him.
Otherwise, he will not be able to maintain a
high level of work ethic, and he will most
likely fail.
 Interest and Vision
 This interest must also translate into a vision
for the company's growth.
 Even if the day-to-day activities of a
business are interesting to an entrepreneur,
this is not enough for success unless he can
turn this interest into a vision of growth and
expansion. This vision must be strong
enough that he can communicate it to
investors and employees.
 Skill

 All of the interest and vision cannot

make up for a total lack of applicable
skill. As the head of a company, whether
he has employees or not, an
entrepreneur must be able to wear many
hats and do so effectively.
 Investment
 An entrepreneur must invest in his company. This
investment may be something less tangible, such
as the time he spends or the skills or reputation he
brings with him, but it also tends to involve a
significant investment of assets with a clear value,
whether they be cash, real estate or intellectual
property.
 An entrepreneur who will not or cannot invest in
his company cannot expect others to do so and
cannot expect it to succeed.
 Organization and Delegation
 While many new businesses start as
a one-man show, successful
entrepreneurship is characterized by
quick and stable growth. This means
hiring other people to do specialized
jobs. For this reason, entrepreneurship
requires extensive organization and
delegation of tasks.
 Organization and Delegation

 It is important for entrepreneurs to pay

close attention to everything that goes on
in their companies, but if they want their
companies to succeed, they must learn to
hire the right people for the right jobs and
let them do their jobs with minimal
interference from management.
 Risk and Rewards
 Entrepreneurship requires risk. The
measurement of this risk equates to the
amount of time and money you invest into
your business. However, this risk also tends
to relate directly to the rewards involved. An
entrepreneur who invests in a franchise
pays for someone else's business plan and
receives a respectable income.
 Risk and Rewards
 While an entrepreneur who undertakes
groundbreaking innovations risks
everything on an assumption that
something revolutionary will work in the
market. If such a revolutionary is wrong,
he can lose everything. However, if he is
right, he can suddenly become extremely
wealthy.
 Fiscal Responsibility
 Businesses run on money, so entrepreneurs
must have a solid sense of how to raise and
manage funds. Successful entrepreneurs
have an intuitive sense of how much money
they will need to run their companies, but they
supplement this sense with concrete
documentation and calculations to mitigate
uncertainties.
 Fiscal Responsibility
 Entrepreneurs are willing to risk money by
making investments in building their
businesses, but they keep a close eye on
the numbers in order to understand how
much they are spending and whether their
expenditures are bringing about the desired
results.
 Creativity
 Starting a business is a creative
endeavor that starts with conceptualizing
a product or service, and then building a
practical infrastructure that can sustain
itself while delivering that product or
service.
 Creativity
 Entrepreneurship requires creative
problem solving as well as creative
product development, and entrepreneurs
have the creative freedom to think
outside the box and develop unique
strategies that balance personal values
with practical constraints.
 Management Skills
 Successful entrepreneurs see the big picture.
They have the skills and the humility to define
their own role in company operations, and the
interpersonal skills to successfully delegate the
tasks they can't complete themselves.
Successful entrepreneurs are successful
managers, sharing the company's vision and
clearly communicating the ways that this vision
is infused into mundane daily tasks.
 Management Skills
An entrepreneur's management skills come
into play in the process of carefully choosing
employees, and these skills carry over into
careful training, as well as the daily challenges
of motivating and organizing workers.
Principles of Entrepreneurship

1. Be a Solution Provider

2. Have a Vision
3. Choose the Right Team
4. Viable Product/Service
5. Capital
Principles of Entrepreneurship

6. Accountability
7. Growth and Marketing
8. Know Your Customer
9. Priorities
10. Never Give Up
Core Competencies
You can use the SWOT Analysis to
help determine your core
competencies. Competencies are
those skills and tasks at which you
excel and are valued by your
customer.
 Assessment

1. Identify a business enterprise for

SWOT analysis.
2. What is/are the core competency/ies
of the enterprise?
 Assessment

1. Describe success stories of well-

known entrepreneurs.
2. What are his/her competencies?
Thank you!