session 1 - entrepreneurship in the 21st century

8/18/2019 Session 1 - Entrepreneurship in the 21st Century

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Entrepreneurshipin the 21st Century

Session 1


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Content

• Defnition o entrepreneur andentrepreneurship

• Dierence between entrepreneur andmanager

• Entrepreneurship as a discipline

• Factors o entrepreneurs• Advantages and disadvantages oentrepreneurship


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Defnition oEntrepreneur

• Derived rom the French word“entreprendre” meaning “to undertake or

trying”• According to our textbook entrepreneursare individual who activel! orm or leadtheir own businesses and nurture them or

growth and prosperit!• "urato and #odgets $%&&'( stated thatentrepreneur is one


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Defnition oEntrepreneur

• “An entrepreneur is more than )ust a risktaker and innovator* #e or she is the one

who sees the uture that no one else hasseen and i perception is correct bringabout a reordering o resources to producegreater consumer satisaction” $"ir+ner

%&,&(• “Entrepreneurs see changes as the normand as health!* #e or she alwa!s searchesor change respond to it and exploits it asan opportunit! “ $-eter Drucker in his book


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Defnition oEntrepreneurship

• According to our textbookentrepreneurship is a process o creating

and expanding businesses that collectivel!orm a orce or national development andsocietal prosperit!

• .chumpeter $%&/0( defned

entrepreneurship as “a frm that operatesand implements a combination o newactivities such as product developmentmarketing resources or new materials

manuacturing approach and new


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Defnition oEntrepreneurship

• 1ole $%&2&( defned entrepreneurship as“activities that produce benefcial resultsthrough developing proft orientedbusiness”

• "uehl and 3ambing $'442( defnedentrepreneurship “is a human creative act

that builds something o value rompracticall! nothing* 5t is the pursuit oopportunit! regardless o the resources orlack o resources at hand* 5t re6uires a

vision and the passion and commitment to

Di B


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Dierence BetweenEntrepreneur and

Manager• Entrepreneurs start the businessmanagers do not the! onl! manage

• Entrepreneurs seem to be the starter andmanagers the ollowers

• 5nitiall! entrepreneurs assume the role omanager but later managerial roles aredelegated to the managers


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What aboutIntrapreneurs

• 5ntrapreneur emerge as a breed who is across between entrepreneur and manager

• 5ntrapreneurs work or the corporation butare given the task o starting new venture

• According to -inchot $%&78( intrapreneursare individuals in organisations with high

entrepreneurial characteristics

• 5ntrapreneurs practice their ideas oncompan!9s products


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Co!parison BetweenEntrepreneur "

IntrapreneursEntrepreneurs Intrapreneurs

S#i$$s#ave reedom to exploitskills

#ave the same skills asentrepreneurs but mustabide compan!9s policies

and procedures

En%iron!ent

Face with micro and macroenvironment

Face with micro : macroenvironment as well ascorporate environment

&esources

'c(uisition

;et all sorts o resources

rom a variet! o suppliers

;et resources provided b!

the compan! onl!

)ai$ures "Mista#es

Accountable or all mistakes1an hide behind thecompan!9s name

DecisionMa#ing


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* 'spects oEntrepreneurship

The creation

process

The devotion of

time and effort

Title

Rewards ofindependence,

satisfaction and

money

The assumption

of risk


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Entrepreneurshipas a Discip$ine

• %&749s in


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)actors oEntrepreneurship

The individual

Cultural factors Circumstances

in society

Combination of

factors


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+he Indi%idua$

• -assion or the business

• =enacit! despite ailure

• 1onfdence• .eldetermination

•


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+he Indi%idua$

• 1haracteristics @nderstanding their

roles 1apabilit!

eing prepared or

change 3ocus o control

5ndependent

Geed or

achievement

• 5nHuenced b! 1hildhood

environment Education

-ersonal values

Age

?ork histor!


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Cu$tura$ )actors

• .ome ethnocultural groups have higherrates o entrepreneurship than do others

=he eect o culture on entrepreneurialtendencies is not completel! clear becauseindividuals rom dierent cultural groups do notall become entrepreneurs or the same reason

• Eect or culture and traits ma! beintertwined Dierent cultures have var!ing values and

belies which aect the tendenc! toward

entrepreneurship•


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'd%antages oEntrepreneurship

• Autonom! Autonom! and the reedom to make decisions is

one o the ma)or advantages• 1hallenge o a startup =he challenge o the startup and the eeling o

achievement is exhilarating

• Financial control Entrepreneurs eel the! have more personal

control over their fnancial situation than i the!were emplo!ed b! someone else


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Disad%antages oEntrepreneurship

• -ersonal sacrifces -ersonal sacrifces ma! include long work hours

a strain on amil! relationships and a high levelo stress

• >urden o responsibilit! =he entrepreneur has a large burden o

responsibilit! and must be a Iack o all trades• 3ittle margin or errors =here is little margin or error because the

entrepreneur usuall! operates on a thin fnancial

cushion


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Change " Eect

• Downsi+ing Firms s!stematicall! and substantiall! reduce the

number o people the! emplo! to achieve areduction in cost

rganisational survival or topmanagement greed

• .ocietal change

End o )obsJ -ostindustrial societ!C a countr! where large

scale businesses are no longer as important asthe! were


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Change " Eect

• 1onse6uences to an individual @nemplo!ment or underemplo!ment

@ncertainties and pressures o )ob insecurit! ?ave o interest in entrepreneurship worldwide

• 1hanges in markets utsourcing

Kirtual organisations


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Co!petiti%e


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Co!petiti%e'd%antage o S!a$$

Businesses• Allows a business to compete eectivel!

• -ersonal relationship with customers

.mall business owners tend to develop closerelationship with their customers

• Abilit! to innovate .mall business has an excellent record o

innovation

• Flexibilit!

Hexibilit! and the abilit! to respond 6uickl! tochanges in the competitive environmentcharacteri+e successul small frms

E t i $ d


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Entrepreneuria$ andCorporate Business

Manage!entEntrepreneuria$,ractices

Corporate orInstitutiona$ ,ractices

BasicDierence

wnermanaged frms3arge corporations andeducational institutions

,rincipa$s Entrepreneurs


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Thank You

session 1 - entrepreneurship in the 21st century

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