week2 entrepreneurship introduction elib 203. key decisions relate to: entrepreneurship 1-...
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Week2Week2
EntrepreneurshipEntrepreneurshipIntroductionIntroduction
ELIB 203ELIB 203
Key decisions relate to:
EntrepreneurshipEntrepreneurship
1- Entrepreneurship- Introduction
2- The Entrepreneurs- Who they are? - Characteristics/traits
3- Mega Entrepreneurs
4- Defining The Entrepreneur- Advantage & Disadvantage – Types
5- Entrepreneurial Mindset- Activity1
1- Entrepreneurship1- Entrepreneurship
It is a socio-economic phenomenon.
Nature of Entrepreneurship
Engine of economic growth
Creator of wealth and employment.
EntrepreneurshipEntrepreneurship
What You Know about
Entrepreneurship
EntrepreneurshipEntrepreneurship
It is a creative and innovative human act.
What is Entrepreneurship?
Peter Drucker
Ability to create and build a vision from practically nothing.–
Vision requires willingness to take
calculated risks.
It is a discipline, hence it can be learned –
Entrepreneurship is a phenomenon which involve two critical elements – sensing & exploiting an opportunity
Entrepreneurship
The ability to sense an opportunity is the result of entrepreneurial traits
The ability to exploit the opportunity is the result of the entrepreneur management skills
Definition
Entrepreneurs are:
Who they are?Who they are?
2-The Entrepreneurs
• Making, selling or trading things or services
• Sole proprietors (part of a small group)
• Involved in “business”
• Those who discover market needs and launch new firms to meet those needs
Entrepreneurs are very much interested in:
Who they are?Who they are?
The Entrepreneurs
• Success
• Profit
• Wealth creation
• Leaving their mark on society
The EntrepreneurThe Entrepreneur
Definition
An entrepreneur is defined as an individual who sees an opportunity that others do not and marshals the resources to exploit it.
“Creation of Value” is the OUTCOME of entrepreneurial activity.
An entrepreneur is someone who introduces a new product or a process; identifies new market or a resource of supply or creates a new type of organization.
An entrepreneur raise the necessary capital, creates the new venture and assumes the control and risk of operation
Characteristics/traits Characteristics/traits
Entrepreneurs are individuals who:
The Entrepreneurs
• Have a need to achieve
• Are willing to take risks
• Have internal locus of control
• Have a passion for the business
• Have active/vivid imagination
oRecognize business opportunities
oSee consequencesoSee the complete picture and many alternatives
Characteristics/traits Characteristics/traits
• Understand customer behaviour
The Entrepreneurs
• Are natural leaders:oThey have what it takes to get people to believe in them
• Powerful communicators
oThey demand and get loyalty from their staff
oMore powerful oral/personal rather than written
oUse simple and direct language
oOften use of analogyoCan present complex ideas simply
• Entrepreneurs are individuals who:
The Entrepreneurs
Characteristics/traits Characteristics/traits
oAre better talkers than listeners
oAre not easily distracted
oAre exceptionally competitive
oMost academic research shows that entrepreneurs are abnormally (sometimes excessively) competitive people
oEntrepreneurs set unnecessarily (as seen by outsiders) tough targets for themselves
oSometimes they may even compete with themselves
And entrepreneurs also…
Characteristics/traits Characteristics/traits
•Are impatient, quick to buck the system, do it first, apologise later
•Believe that success is the result of their own efforts, hence, luck, chance or fate has nothing to do with it
•Believe; “The harder I work, The luckier I get”
•Rebellious against rules, authority and the “establishment”
•May have tunnel vision
• Thrive on the thrill of victory
• Love to “sell” and are super sales people
The Entrepreneurs
“The greatest difficulty in the world is not
for people to accept new ideas, but to
make them forget about old ideas.”
-- John Maynard Keynes, Economist
3-Mega Entrepreneurs 3-Mega Entrepreneurs
W. K. Kelloggb. 1860
W. K. Kelloggb. 1860
Kellogg's accidental discovery, promoted with savvy marketing, transformed the way Americans eat breakfast.
Kellogg grasped the idea that kids influence buying decisions—galvanizing the brand's success
Sam Waltonb. 1918
Sam Waltonb. 1918
The man who built the world's largest retailer on low prices: Wal-Mart.
Bought direct from manufacturers and made his stores as efficient as possible, sending the savings back to consumers
Muhammad Yunus b. 1940
Muhammad Yunus b. 1940
2006 Nobel Peace Prize winner, founded a banking system 30 years ago to lend small amounts of money to the rural poor in Bangladeshi villages
Martha Stewartb. 1941
Martha Stewartb. 1941
Started a catering business out of her Westport (Conn.) home in 1976.
Went on to expand into retail, publishing, television, and merchandising.
Richard Bransonb. 1950
Richard Bransonb. 1950
Richard Branson turned, Virgin, the mail-order record shop he opened in 1970 into a label he sold 22 years later for nearly $1 billion.
Brand includes mobile-phone service, bridal gowns, credit cards, and life insurance. Virgin Group encompasses 200 companies in More than 30 countries.
Oprah Winfreyb. 1954
Oprah Winfreyb. 1954
Oprah Winfrey turned her name into one of the most successful and respected brands in the world.
Leveraged that fame into other interests: magazines, Web sites, film and television production and Social Entrepreneurship.
Bill Gatesb. 1955
Bill Gatesb. 1955
By linking his Microsoft software to IBM's first PCs, he dominated the industry.
He developed a two-prong strategy of expanding the market while maintaining a strong hold on competitors
Steve Jobsb. 1955
Steve Jobsb. 1955
The Apple co-founder combined simplicity with innovation to emerge from the Internet boom as one of the lone tech companies that can butt heads with Microsoft
Jeff Bezosb. 1964
Jeff Bezosb. 1964
Founded Amazon.com, in 1994
Bezos pioneered techniques that have become staples of online sales.
Michael Dellb. 1965
Michael Dellb. 1965
Created a new model for PC sales.
Cutting out the retail middleman and custom-building computers to suit buyers' needs put Dell at the front of the class of PC makers.
Chad Hurley, 29; Steve Chen, 28 & Jawed Karim, 27
Chad Hurley, 29; Steve Chen, 28 & Jawed Karim, 27
Founders of YouTube.
Broadcasts 100 million short videos daily on myriad subjects.
Sold to Google
Pierre Omidyarb. 1967
Pierre Omidyarb. 1967
Founder of EBay, which made the promise of the Internet a reality by connecting far-flung customers with the goods they wanted to buy.
Mega – Entrepreneurs Mega – Entrepreneurs
• Microsoft - Bill Gates & Paul Allen• Apple Computer - Steve Jobs & Steve Wozniak• Dell Computer - Michael Dell• Federal Express – Fred Smith• Oracle – Larry Ellison• Amazon.com – Jeff Bezos• Nike – Phil Knight• Yahoo – David Filo & Jerry Yang• Cisco – Len Bosack, Sandra Lerner & Kirk
Lougheed• Google.com – Larry Page & Sergey Brin
Who Started in Their 20sWho Started in Their 20s
Mega – Entrepreneurs Mega – Entrepreneurs
• Dallah alBaraka - Saleh Kamel
• Fitaihi Group - Ahmad Hasan Fataihi
• AlAhli Bank - Bin Mafhfooz
• Alrajhi -Alrajhi Bank
• Al Baik - Rami Abughazala
• Lomar - Loai Nasesm
• U turn - Abdulla Mandowi
in Saudi Arabiain Saudi Arabia
Saudi Entrepreneurs..
4- Defining The EntrepreneurFrom our perspective:
Any individual that sees and acts upon an opportunity
This includes introducing a new product or service, identifying new markets, or putting a twist on an existing product, process or service
Also, includes the raising of capital, taking the risk and controlling the new venture
Embodies creativity, aggressiveness, and determination
By assembling various resources, he takes risks and creates a venture from an idea, hobby, or simply a dream.
MotivesMotives
•Independence
Advantage
•Challenge
The Entrepreneur
•Potential financial rewards
•Skills development
•Satisfying a way of life
•More personal contacts with people
•Enjoyment
knowing the downsideknowing the downside
• Limited financial rewards
Disadvantage
• Risk (failure)
The Entrepreneur
• Stress
• Need for many abilities
• People conflict
• Time demand
TypesTypesThe Entrepreneur
The Innovator
Wheeler DealersStrivers
Visionaries
-Generally dissatisfied with current situation.
-Never satisfied with their own achievements
-Fiercely competitive – always trying to win
- Most dispassionate/ calculating type.
- Looks for opportunity to act.
-“Take-over” is their game.
-look for a “better fit”.
-A mismatch between the way something is currently
being done and how it could be done.
-A poorly satisfied demand.
-A recognition of an incipient user demand resulting from the creative application of new technology, so they discover the “opportunity”.
5- Entrepreneurial Mindset
TEST
THE ENTREPRENEURIAL QUIZ THE ENTREPRENEURIAL QUIZ
Personality Characteristic ChecklistPersonality Characteristic Checklist
Born or Made?Born or Made?
Say the answer is, “YES,” then once we identify the main characteristics we can simply say, if we have them, fine, no others need to apply.
We could start spotting talent in kindergarten and stream them.
We could discourage people without talent from entrepreneurship
Is inborn talent an absolute requirement?
YES
Entrepreneurial Mindset
Say the answer is, “NO”, one does not have to be born with talent, it can be learned,” then schools could teach anyone
Born or Made?Born or Made?
NO
It would become a “profession” like law or medicine and government “incubators” would be successes
Companies could establish “nurseries” for them
The answer lies somewhere in-between.
Talent plus education seems to be the way.
Entrepreneurial Mindset
Entrepreneurs Are Made and Not Born
Entrepreneurs Are Made and Not Born
“The entrepreneurial mystique? It’s not magic, it’s
not mysterious and it has nothing to do with the genes. It is a discipline. And like any discipline, it can be learned.”
…Peter Drucker
The Entrepreneurs
Entrepreneurship
Sensing an Opportunity
Exploiting the Opportunity
Entrepreneurial Traits
Management Skills
Culture
Positive/Negative
Environment
Education
Experience
Family Background