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ENTREPRENEURSHIP

MANAGEMENT
TERMS
• Entrepreneurship – The making of a new
business

• A New Business can be

1) A START UP – A business that did not exist


before
2) Old business that is changed so that it can be
more successful.
Entrepreneur
• A person who takes an idea and turns it into a
successful new business that is expected to
grow.

• Being an Entrepreneur is more than just having


an idea, passion and the willingness to work
hard: Being an Entrepreneur also requires
BUSINESS SKILLS
TRAITs of Entrepreneur :
• Disciplined
• Self Starter
• Creativity
• Strong work ethic
• Risk taking ability
• Competitive
• High level of energy
• Future orientation
• Skilled at organizing
Characteristics of entrepreneur :
VERY GOOD at:
1) finding the right idea that has the potential to
succeed and grow (the right OPPORTUNITY)
2) Identifying needed resources (Material, People,
Money as well as Potential Customers)
3) Making a PLAN and getting support (attracting
employees and Investors)
4) Implementing the Plan and Pursuing GROWTH
(doing what the plan says and increase business
size overtime)
Successful and Unsuccessful
Entrepreneurs

• Successful • Unsuccessful
– Creative and Innovative – Poor Managers
– Position themselves in – Low work ethic
shifting or new markets
– Inefficient
– Create new products
– Failure to plan and
– Create new processes
prepare
– Create new delivery
– Poor money managers
NOTABLE ENTREPRENEURS

• French immigrant Élruthère Irènèe du Pont de


Nemours started Du Pont in 1802.

• David McConnell borrowed $500 from a friend to start


Avon.

• George Eastman started Kodak with a $3,000


investment in 1880.

• Jeff Bezos started Amazon.com with investments from


his family and friends.

6-7
• Study ELON MUSK enterprising journey and
success
Why Entrepreneurship?
How Entrepreneurship helps the economy
Discuss why People become Entrepreneurs
Talk about challenges
Why Entrepreneurship?
• How Entrepreneurship helps the LOCAL and
GLOBAL Economic Development?
1) JOB CREATION to Employees, Suppliers and
Intermediaries
2) IMPROVE PEOPLE’s LIVES through INNOVATION
(banking through Smart Phones in rural areas)
3) EFFICIENCY (CAR engines – lesser Gas, lower
price, environment friendly, societal benefits)
# Examine the case of DRY BATH GEL in AFRICA
Why Entrepreneurship?
• Why people choose to become Entrepreneurs?

• MONEY
• FREEDOM
• INTEREST
Why Entrepreneurship?
• CHALLENGES

• STRESS
• FAILURE
• RISKY
Entrepreneurs vs SBO’s
• Difference between Entrepreneurs and Small
Business Owners
• SBO – A person who owns and manages a Small
Business and is responsible for day to day
operations
• SBO has all the three characteristics of an
Entrepreneur (1,2, and 3 except 4) but do not
pursue growth the same way an Entrepreneur
does (That’s why they stay SMALL)
• Any business that is successful and has stayed the
same for 20 – 30 years.
Characteristics of entrepreneur :
VERY GOOD at:
1) finding the right idea that has the potential to
succeed and grow (the right OPPORTUNITY)
2) Identifying needed resources (Material, People,
Money as well as Potential Customers)
3) Making a PLAN and getting support (attracting
employees and Investors)
4) Implementing the Plan and Pursuing GROWTH
(doing what the plan says and increase business
size overtime)
• Entrepreneurs often begin with a START-UP but
may also BUY an existing business and CHANGE it
where as SBO usually can buy another business
but will NOT CHANGE it.
• SBO’s manage the day to day operations and
often own the business for a very long time.
• SBO’s is focussed on keeping the business STABLE
or SAFE more than growth.
• SBO’s might own one business at a time and may
own it for the ENTIRE LIFE
# Both are important for Economic development.