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7/29/2019 Entrepship Lec 1Background

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ENTREPRENEURSHIP


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Entrepreneurship

Mainstream Economic

Factors Land

Labor

Capital Entrepreneurship


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Entrepreneurs...

14th century...Tax contractors...borethe risks of collecting taxes. If they

collected more than the fee...they keptthe rest as profit.

Called the change agents of

progressive economies


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Entrepreneurship History

Entreprendre...16th centuryFrench...the individual who undertook

the risk of a new enterprise...undertakers.

They were contractors who bore therisks of profit or loss

Examples: Adventurers, builders,merchants and funeral directors


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Entrepreneurs...

In 19th century entrepreneurswere:

Risk takers

Decision makers

Aspired to wealth

Gathered and managed resources tocreate new enterprises


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Entrepreneurship

Is a dynamic process of creatingincremental wealth. This wealth is

created by individuals who assume themajor risks in terms of equity, time andcareer commitment of providing value

for some product or service The entrepreneur must somehow infuse

value to the product or service...


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Entrepreneurship is a management and leadership style

that involves pursuing opportunities without regard to

resources currently controlled.

Any attempt at new business or new venture creation,

such as self-employment, a new business organization, or

the expansion of an existing business, by an individual, a

team, or an established business.

A way of thinking and acting that is opportunity

obsessed, holistic in approach and leadership balanced

for the purpose of value creation.

What is Entrepreneurship?


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Oldest family business in the

world? Kongo Gumi Co. Construction began in A.D. 593

Shigemitsu Kongo, travelled to Japan from the Korean kingdom ofPaekche to build Shitennoji (the first Japanese templecommissioned by a royal), one of the oldest Buddhist complexes in

Japan Masakazu Kongo, 40th Kongo is now leading the company in

Japan 1415+ years old 90% of the carpentry techniques Shigemitsu Kongobrought to

Japan from Korea in AD 593 are still used today

Temples, shrines, schools and retirement homes " Temples are our focus"


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Worlds 10 oldest family

businessesName Type1. Kongo Gumi Osaka, Japan Construction, 593, 40th

2. Hoshi Ryokan Komatsu, Japan Inn-keeping, 718, 46th

3. Chteau de Goulaine, France Vineyard, museum, butterflycollection, 1000

4. Fonderia Pontificia Marinelli, Italy Bell foundry, 10005. Barone Ricasoli, Italy Wine and olive oil, 11416. Barovier & Toso Murano, Italy Glass-making, 12957. Hotel Pilgrim Haus, Germany Inn-keeping, 1304

8. Richard de Bas, France Paper, 13269. Torrini Firenze, Italy Goldsmiths, 136910. Antinori, Italy Wine, 1385


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THE PRACTICE OFENTREPRENEURSHIP

The entrepreneurial requires differentmanagement from the existing.

But like the existing it requiressystematic, organized, purposefulmanagement.

While the ground rules are the same forevery entrepreneurial organization.


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Entrepreneurial Management

The new venture needs to learn how tobe an entrepreneur and how toinnovate.

Above all, it needs to learn how tomanage.

Logically, the discussion might start

with the new venture. Just as, logically, the study of medicine

might start with the embryo andnewborn baby.


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Entrepreneurial Management

In every case there is a discipline wemight call EntrepreneurialManagement.

The existing business The new venture

For each of these Two: A specific guide to the practice of

entrepreneurship must be developed. What does each have to do?

What does each have to watch for?

And what had each better avoid doing?


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Small Business & Entreneurship In modern era every small business is

suppose to be entrepreneurial orrepresents entrepreneurship

Small business is a generic concept.

Being the antonym of big business, itssocial significance becomes clearer

when placed in the historical context.


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The Entrepreneurial Business Big businesses don't innovate," says the

conventional wisdom.

This sounds plausible enough. True, thenew, major innovations of this centurydid not come out of the old, largebusinesses of their time

For example, Today's giants of thepharmaceutical industry were small ornonexistent fifty years ago when the firstmodern drugs were developed


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EntrepreneursTraits I

Need to achieve

Self-confident and optimistic

Able to take calculated risk Respond positively to changes

Flexible and able to adapt

Knowledgeable of markets Able to get along well with others

Independent minded


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Entrepreneurs...Traits II

Energetic

Creative

Dynamic Leader

Responsive to suggestions

Take initiatives Resourceful and persevering

Perceptive with foresight


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What is Small Business ?This perfectly normal question does nothave a precise answer.It depends upon

who provide the definition.The twowidely used answers are the definitionof SB Admin.& that of the Committee

for Economic Development.


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Types of Activity for Small Business

Manufacturing

Mining

Wholesaling

Retailing

Service

Finance

Agriculture


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Advantages & Disadvantages

of a Small FirmIt was advised that when I invested mymoney in a small business I should

know more about advantages &Disadvantages I would face, therewards and requirements for success,

and how to avoid the many failures thebusiness field has endured.The adviceproved most valuable.

The Late Learner


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Advantages

When new product or ideas are beingtried

When the personal attention of theowner is essential to daily operations

Where personal services,either

professional or skilled, are dominated When the market of the product or

service is mainly local


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Contd.

When the firm deals in perishablematerials or products

When only a limited market is availableor sought

When the industry is characterized by

wide variations in demand or in styles When close report with personal is

essential


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Disadvantages of Small Firms Failure due to lack of management

ability

Lack of proper planning The inability of firm to secure

competent employees

Improper Financing Inability to cope with monopolistic

practices


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