chapter 1 the foundation of entrepreneurship (lecture 1 & 2)
TRANSCRIPT
![Page 1: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/1.jpg)
The Foundations of EntrepreneurshipThe Foundations of Entrepreneurship
![Page 2: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/2.jpg)
![Page 3: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/3.jpg)
What is an Entrepreneur?A person who start and operates a business
taking on financial risk to do so.
An entrepreneur is one who organizes a new business in the hopes of making a profit.
A person who organizes and manages any business, usually with considerable initiative and risk.
![Page 4: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/4.jpg)
![Page 5: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/5.jpg)
Entrepreneur is a person who starts an enterprise. The process of creation is called entrepreneurship.
orTurning ideas into marketable products
![Page 6: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/6.jpg)
Definition for engineering students
• So entrepreneur is a person who start and operates a business by using engineering skills with business management/ entrepreneurial skills.
6
Engineer Entrepreneurship a technical professional /engineering skills
entrepreneurial/ business management skills
He must be able to integrate •Business management skills with •with engineering/technical skills
![Page 7: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/7.jpg)
Entrepreneurial/ business management skills
7
New or revised product/ service idea Managing business portfolio Financial PlanMarketing planAdvertising, sales, Distribution channels managementLeadership skillsOrganizing and Managing People.Employees compensation and reward systemRisk ManagementQuality management…………………………..
![Page 8: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/8.jpg)
Entrepreneur and Entrepreneurship
Entrepreneur Entrepreneurship Organizer OrganizationDecision maker Decision Making Innovator InnovationMotivator MotivationCreator CreationLeader LeadershipManager ManagementPlanner PlanningCommunicator CommunicationAdministrator Administration
![Page 9: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/9.jpg)
Why Study Entrepreneurship?Scientists and engineers who want to lead
companies need to know how to back up ideas with business management/ entrepreneurial skills.
You will learn the complex business processes involved in commercialization.
You learn how to make trade-offs among features, benefits, price, markets, and business operations
You learn how to adapt to uncertainty and changeYou learn techniques for managing people
![Page 10: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/10.jpg)
Characteristics of EntrepreneursDesire for responsibilityWillingness to accept risk, Confidence in their ability to succeedHigh level of energyFuture orientationSkilled at organizingFlexibility
![Page 11: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/11.jpg)
![Page 12: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/12.jpg)
![Page 13: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/13.jpg)
Expectations from an Entrepreneur
An entrepreneur should be willing and able to convert a new idea or
invention into a success innovation,be able to develop new markets of customers and
buyers,discover new sources of materials, mobilize capital resources (land, machines,
buildings, money, humans), introduce new technologies, products and
services.
13
![Page 14: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/14.jpg)
![Page 15: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/15.jpg)
![Page 16: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/16.jpg)
Distinction Between An Entrepreneur And A Manager
- An entrepreneur start a business where a manager provides his services……..- An entrepreneur is the owner of the organization and he bears all the risk and uncertainties…- Entrepreneur’s objective is to establish, innovate and expand a business, where a manager implements the entrepreneur’s plans and ideas………-An entrepreneur is faced with more income uncertainties as his income is contingent on the performance of the firm……..- An entrepreneur deals with faults and failures as a part of learning experience where as a manager make every effort to avoid mistakes……..
![Page 17: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/17.jpg)
![Page 18: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/18.jpg)
Rewards of Being an EntrepreneurRewards of Being an Entrepreneur
High degree of independence—freedom from constraints
Get to use a variety of skills and talents
Freedom to make decisions
Accountable to only yourself
Opportunity to tackle challenges
Feeling of achievement and pride
Potential for greater financial rewards
![Page 19: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/19.jpg)
The cultural diversity of EntrepreneurshipYoung entrepreneursWomen entrepreneursMinority-owned enterprisesImmigrant entrepreneursPart-time entrepreneursHome-based businessesFamily businesses
![Page 20: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/20.jpg)
Nine Deadly Mistakes of Entrepreneurship1. Management incompetence2. Lack of experience3. Poor financial control4. Failure to develop a strategic plan5. Uncontrolled growth6. Poor location7. Improper inventory control8. Incorrect pricing9. Inability to make the “entrepreneurial
transition”
![Page 21: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/21.jpg)
Benefits of Small Business Ownership
The opportunity to:create your own destinymake a differencereach your full potentialreap unlimited profitscontribute to society and be
recognized for your effortsdo what you enjoy and have fun at it
![Page 22: Chapter 1 the foundation of entrepreneurship (lecture 1 & 2)](https://reader037.vdocuments.us/reader037/viewer/2022102805/554bde02b4c905706a8b56f1/html5/thumbnails/22.jpg)
Drawbacks of Small Business Ownership
Uncertainty of incomeRisk of losing your entire investmentLong hours and hard workLower quality of life until the business
gets establishedHigh levels of stressComplete responsibilityDiscouragement