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  • ENTREPRENEURSHIP & the ENTREPRENEUR

    By: Wilbert C. Venzon, MBA,ip

  • Entrepreneurship as a self-employment decisionThe concept of EntrepreneurshipThe Entrepreneur: The individual that steersWho is the Entrepreneur?What makes the successful entrepreneur?D. The myths, fears and excuse of people who are not entrepreneurE. The advantages of becoming an entrepreneurENTREPRENEURSHIP & the ENTREPRENEUR

  • ENTREPRENEURSHIP & the ENTREPRENEUR ENTREPRENEURSHIP AS A SELF-EMPLOYMENT DECISION

    Basically aimed to gear someone towards self-employmentPertains to engage in small & medium sized business

    If an individual merely desires independence or wants to go into business because he wants to be his own boss, he/she might get disappointed because a practicing entrepreneur has probably more bosses than he realizes. Here are some of them:

  • ENTREPRENEURSHIP & the ENTREPRENEUR The various government regulatory bodiesThe suppliers who control material flow and sometimes credit and sales policiesThe financial creditors and stakeholdersThe demands and cycles of the marketThe demands on the entrepreneurs personal life

    - because of that many businesses are experiencing ENTREPRENEURSHIP AS A SELF-EMPLOYMENT DECISION

  • Entrepreneurship should not be the economic development strategy of last resort.FAILEDFAILEDFAILEDFAILEDFAILEDFAILEDENTREPRENEURSHIP AS A SELF-EMPLOYMENT DECISION

  • ENTREPRENEURSHIP & the ENTREPRENEUR Table 1.1 Age of Business Failures

    Source: A.J William, Why small businesses FAIL, Real Estate Journal, April 1995,pg.18.ENTREPRENEURSHIP AS A SELF-EMPLOYMENT DECISION

    Age of Business(Years)Failure Rate (%)Cumulative(%)Under 127.627.61-213.841.42-311.252.63-410.162.74-56.469.15-109.378.410-208.787.1Over 2012.9100

  • ENTREPRENEURSHIP & the ENTREPRENEUR Another study was conducted to determine the causes of business failures. ( See Table 1.2)

    Table 1.2: Causes of Business Failures

    Source: A.J William, Small Business Caught in Squeeze, The Sun-Herald, 8 May 1997.pg.122ENTREPRENEURSHIP AS A SELF-EMPLOYMENT DECISION

    %Neglect3.0Fraud1.1Lack of Technical Expertise8.5Lack of Management Expertise17.4Lack of Experience21.2Incompetence44.9Disaster & other reasons3.9100

  • ENTREPRENEURSHIP & the ENTREPRENEUR From the preceding tables, it is clear that most failures occurred whenthe business was in its formative stage and that an incompetententrepreneur is most often the source of the problem.

    All these point to the fact that engaging in entrepreneurship is indeed a challenging business endeavor. An entrepreneur must possess a combination of skills, personal characteristics and abilities that would put to effective use of his highly developed sense of independence, strong sense of enterprise and risk-taking temperament in his decision to establish and operate his own business. ENTREPRENEURSHIP AS A SELF-EMPLOYMENT DECISION

  • ENTREPRENEURSHIP & the ENTREPRENEUR EXERCISESENTREPRENEURSHIP AS A SELF-EMPLOYMENT DECISIONFrom the given exercises , this will give you an opportunityto discover if you really want to be self-employed and to help you determine if you are ready to start your own business.

  • ENTREPRENEURSHIP & the ENTREPRENEUR B. The concept of ENTREPRENEURSHIPHISTORYStarted in FRANCE after the French RevolutionIt is the start of CAPITALISM and end of FEUDALISMThe word entrepreneur was coined by JEAN BAPTISTE SAY, a renowned French economist who argued that the concept of entrepreneurship is independent of the classical economics and is unable to coexist with it though closely tied with the theory of economics and society.

  • ENTREPRENEURSHIP & the ENTREPRENEUR HISTORYThe CLASSICAL CAPITALISM, which was propagated by Adam Smith spouses the optimization of what already exist which focuses on acquiring the most of the existing resources and establishingequilibrium or balance similar to the economic practice that wehave at presentIn the early 20th century, JOSEPH SCHUMPETER, also an economist, used Says ideas as the groundwork of his book. The theory of Economic dynamics. He postulated that it is not optimization and equilibrium but rather the dynamic disequilibria, brought about by the innovative entrepreneur that brings a healthy economy and is the central reality for economic theory and practice.B. The concept of ENTREPRENEURSHIP

  • ENTREPRENEURSHIP & the ENTREPRENEUR B. The concept of ENTREPRENEURSHIPENTREPRENEURSHIPIn the discussion of business ventures. The word entrepreneurship, entrepreneur, entrepreneurial and entrepreneurial process will always arise. Entrepreneurship is what the entrepreneur actually does; entrepreneurial is the approach and the entrepreneurial process is where the venturers are engaged in.

  • ENTREPRENEURSHIP & the ENTREPRENEUR B. The concept of ENTREPRENEURSHIPENTREPRENEURSHIP - meaning ( Webster Dictionary)entrepreneur noun \n-tr-p(r)-nr, -n(y)ur\

    : a person who starts a business and is willing to risk loss in order to make money

    : one who organizes, manages, and assumes the risks of a business or enterprise

  • ENTREPRENEURSHIP & the ENTREPRENEUR B. The concept of ENTREPRENEURSHIPENTREPRENEURSHIP - meaning ( Economist description)Cantillon 1725consist in doing things that are not generally done in the ordinaryCourse of business routine; it is essentially a phenomenon that comesUnder a wider aspect of leadership

    Kuratko, et al. 1995

    .is a process of innovation and new venture creation through four major dimensions - individual, organization, environment, process and aided by collaborative networks in government, education and institution.

  • ENTREPRENEURSHIP & the ENTREPRENEUR C. The Entrepreneur: The individual that steersWho is the entrepreneur?An 'entrepreneur' is a person who is in control of a commercial undertaking. The word has also come to mean a person who is 'enterprising', who is ready to engage in a bold or difficult activity.

  • ENTREPRENEURSHIP & the ENTREPRENEUR C. The Entrepreneur: The individual that steersWho can start and run an enterprise?People from all walks of life start enterprises and small businesses. You can, too, whether you're:a young person who's just left schoola qualified tradespersona new graduatean inventor or adventurerpursuing a hobby or special interestan author, performer or artistrecently retrenched or made redundanta new parent with a child to look afterre-entering the workforce after a breaka public servant looking for other work optionsa community worker or volunteera corporate manager setting up as an expert consultanta newly arrived migranta person recovering from an accident or other trauma.What matters is that you have a good idea for a business, and you're determined to do everything necessary for that business to succeed.

  • ENTREPRENEURSHIP & the ENTREPRENEUR C. The Entrepreneur: The individual that steersCharacteristics ofentrepreneursAn 'entrepreneurial' person is someone who is prepared to take some kind of risk in order to accomplish a task they find attractive. First and foremost, a successful entrepreneur is creative.

  • ENTREPRENEURSHIP & the ENTREPRENEUR C. The Entrepreneur: The individual that steersCharacteristics ofentrepreneursEntrepreneurs are also:confidententhusiasticnot afraid to make decisionsdetermined.Entrepreneurs know:what they wantwhere to get the best information.Entrepreneurs can:see opportunities that others can't seetake on a challenge rather than always opting for the safe pathplan for different possible outcomeslearn from their mistakes.

  • ENTREPRENEURSHIP & the ENTREPRENEUR C. The Entrepreneur: The individual that steersCharacteristics ofentrepreneursEntrepreneurs have:a high level of energyappropriate skills, or they know people who possess themaccess to the necessary resources.

  • ENTREPRENEURSHIP & the ENTREPRENEUR C. The Entrepreneur: The individual that steersCharacteristics ofentrepreneursSome other skills, abilities and qualities of successful entrepreneurs are:the ability to see opportunities, and the confidence to seize themthe ability to identify what other people want - existing customers, potential new customers, employees, colleaguesknowing how to satisfy people's needs and wantstenacity, persistence, determination and a willingness to work hardself-motivation and enthusiasmthe ability to work as a member of a teamthe ability to take independent actionopenness to new ideas and new ways of doing thingsgoal-setting skillsskill in locating and mobilizing the resources needed to achieve a goalreliable intuition - a good entrepreneur is an educated risk taker

  • ENTREPRENEURSHIP & the ENTREPRENEUR

    vision - the ability to see how products or practices might be improved, and to plan for different possible outcomesreadiness to look at things differently, to 'think outside the box' or to take innovative actionreadiness to learn from their mistakes and those of othersproblem-solving ability, and a desire to solve problems so that all involved parties are satisfied with the outcome.Characteristics ofentrepreneursC. The Entrepreneur: The individual that steers

  • ENTREPRENEURSHIP & the ENTREPRENEUR D. The myths, fears and excuses of people who are not entrepreneursMyths of people who are not an entrepreneurs.Entrepreneurs are bornEntrepreneurs are super humanEntrepreneurs are inventorsEntrepreneur inherit business traitsEntrepreneurs possess a definite characteristic profileThe gender-difference myths (men are better entrepreneurs)Entrepreneurs are academic and social misfitsEntrepreneurs are gamblers and risk takersLuck and money are the only things needed to become entreprene