Entrepreneurship

Definition: Entrepreneur
• Is a person who works for himself and who accepts financial risks.
• Who is willing to take upon herself or himself a new venture or
enterprise and accepts full responsibility for the outcome.

Entrepreneurship

• Creating something new

• New product, new method of production, new markets, new source of
raw material
• Challenges the ‘norm

Why is it difficult to become an Entrepreneur?

• There is no simple formula for creating a successful business .

• Risk is always associated in business. Main ingredient for becoming an
entrepreneur is your risk taking ability.

Entrepreneurship is about taking risk. The behaviour 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.

 Risk, which is measurable statistically (such as the probability of

drawing a red colour ball from a jar containing 5 red balls and 5 white
balls).
 Ambiguity, which is hard to measure statistically (such as the
probability of drawing a red ball from a jar containing 5 red balls but with
an unknown number of white balls).
 True Uncertainty or Knightian Uncertainty, which is impossible to
estimate or predict statistically (such as the probability of drawing a red
ball from a jar whose number of red balls is unknown as well as the
number of other coloured balls).

The acts of entrepreneurship is often associated with true uncertainty,

particularly when it involves bringing something really novel to the world,
whose market never exists. However, even if a market already exists, there is
no guarantee that a market exists for a particular new player in the cola
category.

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Importance of entrepreneurs in country?

• Its is a key to unlock countries economic growth.

• Entrepreneurs are job providers. which solves the problem of
unemployment in a country.

Promotion of entrepreneurship

Given entrepreneurship's potential to support economic growth, it is the policy

goal of many governments to develop a culture of entrepreneurial thinking.
This can be done in a number of ways: by integrating entrepreneurship into
education systems, legislating to encourage risk-taking, and national
campaigns. An example of the latter is the United Kingdom's Enterprise
Week, which launched in 2004.

Reasons for entrepreneur’s success

• Outside of the political world, research has been conducted on the

presence of entrepreneurial theories in doctoral economics programs.
Hard work and long hours

• Dedication, drive, enthusiasm and belief in the idea

• Unsatisfied market demand
• Managerial competence
• Luck
• Strong control systems
• Sufficient capital

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Characteristics of entrepreneurs:

Conceptual thinking:

• Uses fresh approaches.

• Comes up with crazy new ideas leading to new or radical change.
• Listens to new ideas without pre-judgement

Networking:

• Understands networking is a key business activity.

• Networks provide access to information, expertise, collaboration and
sales.
• Careful planning and preparation leads to desired results.

Rick taking:

• Tries new things (stretching beyond what has been done in the past).
• Learns how to assess choices responsibly.
• Weighs outcomes against values and responsibilities.

Commercial attitude:

• Keeps up to date with latest developments.

• Seeks out best practice.
• Identifies and seizes opportunities not obvious to others.

Decisiveness:

• Resolves issues as they arise.

• Does not get bogged down with analysis.
• Responds flexibly to changing circumstances.

6 Roles Government Can Embrace to Support entrepreneurship:

A New Breed of Entrepreneurs Developing Solutions to Social

Problems” identified six roles for government in a new era of

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 supporting social innovation and entrepreneurship. Government
leaders who embrace any or all of these roles are the new public
innovators: government officials who look to citizens and
organizations in the private and nonprofit sectors as partners in
order to accelerate innovative, results-oriented, and sustainable
solutions to our nation’s, and the world’s, toughest social problems.

Roles of the Public Innovator

1. Encourages social innovation - Public innovators can

encourage social innovation and help spur the testing of
promising new approaches to solving social problems.
2. Foster a supportive policy environment - The very nature of
innovation means that social entrepreneurs will be heading into
new territory, and they often encounter unexpected barriers
along the way. Public innovators can lift such barriers. In
addition, merely by lending credibility and drawing attention to a
given issue or initiatives, they can help proven models gather
momentum.
3. Reward initiatives for exceptional performance - Access to
reliable sources of funding is essential to the growth and
sustainability of solutions that work. By tying decisions about
funding and purchasing to performance, government can help
ensure that solutions that work will sustain and grow their
impact.
4. Spread successful approaches - Expanding the reach of a
proven solution is often critical if the solution is to become truly
transformative. Yet acquiring the recognition, support for
spreading, or funding to scale a successful initiative is
notoriously difficult. Government can play a crucial role in
expanding the reach of solutions that work by seeking out what
works and enabling solutions to spread.
5. Produce knowledge to understand performance -
Government already serves as a critical source of data and
standards. Public innovators can play a critical role in ensuring
that knowledge is produced, clearer standards are set, and data
is easily accessible.
6. Catalyze public-private partnerships - Public leaders who
leverage the many resources available across all sectors - and
succeed in bringing various stakeholders to the table in order to
advance effective solutions - can have an impact much greater
than any solution focused solely on one institution or sector.

steps to start a business

plan your business.

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Some of the most successful and happy people we know
are entrepreneurs who created a business that’s in perfect synchronicity with
what they want out of life. If you do what you love, you’ll work harder, better
and more happily.
Choosing the business model: business can be start a business part-time or
full-time, at home, online or in a brick-and-mortar commercial location!

The key is to choose a business model that fits your Life Plan. This will ensure
that you spend the right number of hours each week, take the right level of
risk (some models involve more risk than others), are practical in terms of
your financial wherewithal, and gain the kind of satisfaction and success
you're after.

Choose the business structure: there’s no universally “right” structure for all
businesses.Choosing the best one depends on the specific needs you
and your business have. Before setting up your company, it’s important to
understand all the options available to you—in particular, you’ll want to
evaluate the advantages and disadvantages of each business formation,
paying special attention to the tax implications and government formalities.

Create key business assets: Your company assets are only as good as
your ability to protect them. This is especially true where intellectual property
is concerned. Whether it’s your company name, logo, latest invention or best-
selling product, it’s imperative that you take certain steps to secure your
ownership rights.

Find the funding: This is a critical step. You’ve got to find funding for your
business but ensure that it’s the right kind of funding.

Organize logistics: Logistics are not the most exciting aspect of starting up
a business, but having your logistics in order can mean the difference
between success and failure. Having your books in order, your contracts
buttoned up, your money safely managed and your downside covered are
each critical to your personal and business future. Accountants, lawyers,
bankers, insurance agents—the big four—are some of the people that can
help you get organized and put you on a path to starting up smart. These
service providers will be instrumental as you grow, too.

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Find great people: In a small business, the impact of a single team
member can be enormous. Every person you add to your team
must be a star.

focus on four action items in this step:

1. Understanding the Power of People

2. Find the stars to bring onto your team
3. Keep your stars
4. Importance of a mentor

Establish a brand: One of the most important assets you can develop for
your business is a powerful brand. Brands are not just logos or tag lines.
Brands are the culmination of who you are, how you’re different from your
competition, and why a buyer should do business with you.

Whether you’re an established company or small start-up, a brand has

tremendous impact. A brand instils confidence, creates loyalty, and many
times can command a premium price. But most of all a great brand reduces a
buyer’s perception of risk and makes the purchase choice easy.

Market and sell: This last step in our start-up process is all about getting the
word out about your business so customers come through your door (or
perhaps to your homepage).
First and foremost, you’ll need to study up on your target audience to develop
a marketing message that will resonate with them.

Once you’ve got a grasp of how to best express the “special sauce” of what
you offer, make sure you maintain that message consistently throughout your
marketing efforts. It should be reinforced repeatedly to build on your brand
identity and to give people a clear reason to be interested in your business.

Table of contents
1. Definition…………………………………………………………………....1
2. Difficulties becoming entrepreneur……………………………………....1

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3. Importance of entrepreneurship for a nation……………………………2

4. Reasons for entrepreneur’s success…………………………………….2

5. Characteristics of entrepreneurs…………………………………………3

6. 6 Roles Government Can Embrace to Support entrepreneurship……4

7. Steps to start a business…………………………………………………5