Recommended Book

EntrepreneurshipBy

Robert D HisrichMichael P. PetersDean A. Shepherd

Case Study

THINK!!!

It is a kind of behavior that includes:•Initiative taking•The organizing and reorganizing of social and economic mechanism to turn resources and situation to practical account•The acceptance of risk and failure

4-Basic Aspects of being an entrepreneur1. Entrepreneurship involves the creation

process of value to entrepreneur and the audience

2. Requires the devotion of necessary time and effort

3. Assuming the necessary risk4. The reward of being an entrepreneur

(EURIKA)*** Nearly one million new companies are

formed only in US in a year.*** How Japan shrugged off the losses of

second world war?

The Entrepreneurial ProcessIdentification and Evaluation of

Opportunities:Opportunity assessmentCreation and length of opportunityReal and perceived value of opportunityRisk and return of opportunityOpportunity versus personal goals and skillsCompetitive environment wrt Pakistan

(Porter’s Diamond)

The Entrepreneurial ProcessDevelop Business Plan

Title pageTable of contentExecutive summaryMajor section

Description of business Description of industry Technology plan Marketing plan Financial plan Production plan Organization plan Operational plan Summary bibliography

The Entrepreneurial ProcessResources Required

Determine resources requiredDetermine existing resourcesIdentify resource gaps and available

suppliersDevelop access to needed resources

The Entrepreneurial ProcessManage the Enterprise

Develop management styleUnderstand key variables for successIdentify problems and potential problemsImplement control systemDevelop growth strategy

What steps are necessary for growth strategy?

Desirability of new venture formation?

Culture, subculture, family, teachers, peers1. Culture: Can you change culture overnight?

Being one’s own boss, having individual opportunities, being a success & making money. Do you see any significant change in culture during last ten years?

2. Subculture: Pockets of entrepreneurial subcultures

3. Family: Uplifting4. Teachers: Encouragement, creativity,

support5. Peers: Can discuss ideas, problems and

solutions

Possibility of new Venture Formation?

Government, background, marketing, role models and finance

1. Government: Infrastructure2. Background: Formal education, Previous

business experience3. Marketing: Size, know-how, price,

distribution, promotion, Launching (push/pull)

4. Role Models: To see someone else succeed makes it easier to picture yourself engaged in a similar activity

5. Financial Resources: Must be readily available.

1. Own and financial companies

Types of Start-upsLifestyle firm: A small venture that supports

the owner and does not grow. (S. A. Latif & Sons)

Foundation Company: Company formed for R&D that does not go public

High-potential Ventures: High growth potential and receives great investor interest

Gazelles: Very high growth ventures

Role of Entrepreneurship in Economic DevelopmentProduct evaluation process

Process of developing & commercializing an innovation)Iterative Synthesis:

Interaction of knowledge and social needs that start Product development process

Ordinary Innovations: New product with little technological change (M Bulb / Tube

light)Technological Innovations

New product with significant technological advancement (ES)

Breakthrough New product with some technological change (VCR/DVD)

Government as an innovator (Maquiladora)Technology Transfer