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DPB2012 ENTREPRENEURSHIP

INTRODUCTION TO
ENTREPRENEURSHIP

LEARNING OUTCOME :
At the end of this chapter, student will be able to

1.

Explain the overview of entrepreneurship.

2.

Define the terms entrepreneur and entrepreneurship.

3.

Explain the differences between an entrepreneur and a small businessman.

4.

Describe the competencies of successful entrepreneurs.

5.

Explain the concept of e-business.

6.

Explain the overview of business plan.

OVERVIEW
OF
ENTREPRENEURSHIP

ENTREPRENEUR

The word entrepreneur is derived from the French word entreprendre


which means to undertake or to try.

A person who undertakes and operates a new enterprise or venture, and


assumes accountability for the inherent risks.

An entrepreneur is an individual who organizes, manages, and assumes


the risks of a business (Kuratko and Hodgetts, 2001).

Someone who establishes a new entity to offer a new or existing product


or service into a new or existing market, whether it is for a profitable or
non-profitable outcome.

ENTREPRENEURSHIP

The process of seeking businesses opportunities under conditions of risk.

The process of creating something new of value by devoting the


necessary time and effort, assuming the accompanying financial,
physical and social risks, and receiving the resulting monetary rewards,
personal satisfaction and independence.

Entrepreneurship is the process, and the entrepreneur is an innovator


who uses the process to challenge existing norms via combinations of
new resources and methods in commerce.

DIFFERENCES BETWEEN AN ENTREPRENEUR AND A SMALL BUSINESSMAN

Characteristics

Entrepreneur

Small
Businessman

TIME

Unlimited

Limited

NATURE OF JOB

Flexible

Rigid in adapting to
changes

DECISION MAKING

Makes own decisions

Follows decisions made by


others

EFFORT AND
COMMITMENT

Continuous

Low

RISK TAKING

Moderate

Low

GOAL

Maximizes self-potential
by utilizing available
opportunities

Solely for profit


maximization

THEORIES OF ENTREPRENEURSHIP
Economic

Perspective

Psychological
Sociological

Perspective

Perspective

Management

Perspective

ROLES AND SOCIAL RESPONSIBILITIES


Customers
Society/community
Suppliers
Staff
Competitors
Country

COMPETENCIES OF ENTREPRENEURSHIP

PERSONAL
INITIATIVE

SEIZE
OPPORTUNITIES

ENDURANCE
INFORMATION
SEEKER

HIGH WORK
QUALITY

COMMITMENT
TOWARDS
WORK
AGREEMENTS

EFFICIENT
POWER AND
AUTHORITY
SELFCONFIDENCE

PERSUASION
ASSERTION

SYSTEMATIC
PLANNING
CREATIVE
PROBLEM
SOLVING

CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS

Able to identify opportunities

Action-oriented

Always seeking to improve

Orient themselves to customers needs

Value their employees

Able to face reality

Able to tolerate tedium

Able to rebound from disappointments

Risk takers

Locus of control

Independent and in control

E-BUSINESS

E-BUSINESS (electronic business)


Buying

and selling of goods and services, serving


customers, collaborating with business partners,
conducting e-learning, and processing electronic
transactions within an organization.

Comprises

operation.

of : e-marketing, e-commerce, e-

Customers
Management
Digitised
Product

On-line
Store Set-up

Global
Trading

Marketing

E-BUSINESS
Payments
Option

Order
Management

Pricing
Manipulations

Shipping
Invoicing
and
Packaging

THE IMPORTANCE E-BUSINESS TO


ENTREPRENEURS
Allows

companies to reach more consumers in a much


broader economic market.

Companies

can use e-business to lower some business

costs.
Easily

do marketing and advertising

ADVANTAGES AND DISADVANTAGES OF


E-BUSINESS

BUSINESS PLAN

BUSINESS PLAN
A business

plan is known as a venture plan,


entrepreneurs plan, working paper, project
paper, or prospectus.

Between

25 to 40 pages describing the overall


plans of a business in detail, that is what the
entrepreneur plans to do and how he plans to do
it.

INDIVIDUALS WHO
NEED A BUSINESS PLAN

Entrepreneurs
Stakeholders
Bankers
Investors
Management /
employees
Customers
Suppliers

IMPORTANCE OF A BUSINESS PLAN


Determines
Increases

the right way of managing a business

the stakeholders confidence

Determines

barriers to the venture

Determines

the companys performance

Determines

the companys main competitors

Sets

the business mission

Creates

the opportunity for success

CHARACTERISTICS OF A GOOD BUSINESS PLAN


Simple/Specific
Measurable
Attainable/Achievable
Realistic/Relevant
Time-bound

FORMAT OF BUSINESS PLAN

Table of content

Execute summary/business plan synopsis

Introduction

Purpose of preparing a business plan

Business/company background

Background of owner/partners/directors

Organization/management/administration plan

Marketing plan

Operational plan

Financial plan

Project implementation schedule

Conclusion