Entrepreneurship

Introduction of the Instructor

• Samir S. Amir• B.E (Mech.) NED (1985)• MBA, IBA (1987)• Running own business since 1991• Trainer with SMEDA in new businesses set-up• Has conducted this course at the following:

• IBA• PAF-KIET• Mohammad Ali Jinnah University

Course Objectives:

1. To offer both academic and real world perspective on the entrepreneurial process.

2. To develop the ability of applying class materials

3. To develop persuasive verbal and written communication skills.

4. To develop the abilities to work in entrepreneurial teams

Course Objectives (Contd.)

5. To foster creativity, initiative and entrepreneurial way of thinking

6. To expose students to the benefits and challenges associated with an entrepreneurial career

Course Method:

• Lectures• Case Studies• Presentations• Guest Speaker Sessions• Articles

Some Pre-requisites:

• Advance Readings by students• No late coming is allowed• Assignment deadlines are not extendable• Ethical behavior is expected

Grading Plan:

• As per outline

Entrepreneurship

Fifth Editionby

Robert D. Hisrich, Ph.D.Case Western Reserve University

Michael P. Peters, Ph.D.Boston College

Chapter 1

The Nature and Importance of Entrepreneurs

Evolution of the term Entrepreneur• Earliest Period – Go Between• Middle Ages – Actor or manager of big

productions• 17th Century – Contractor for the

government• 18th Century – Separate from financier• 19th & 20th Centuries – Evolved from

manager to innovator

Definition of Entrepreneurship

• Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence

Entrepreneurial Decision Process

• Entails a movement from something to something

• A change from the current lifestyle to a new lifestyle, a decision to become an entrepreneur by leaving present activity

Change from Present Lifestyle

• Two conducive work environments• R&D• Marketing

Disruption of Work Environment

Desirability of New Venture Formation

The decision to start a new venture occurs when individual perceives that forming a new venture is both desirable and possible

The perception that starting a new company is desirable results from an individuals culture, sub-culture, family, teachers, and peers

Possibility of new venture formation

• Factors that make it possible to create a new venture:

* Government

* Background

* Marketing

* Role Models

* Financing

Types of Start-Ups

• Lifestyle Firm: A small venture that supports the owners and usually does not grow

• Foundation Company: A venture formed from research and development

• High Potential Venture: High growth potential

• Gazelles: Very high growth ventures

Role of Entrepreneurship in Economic Development• The product evolution process is the

process through which innovation develops and commercializes through entrepreneurial activity

• The critical point in the product evolution process is the intersection of knowledge and a recognized social need

Facilitators of the product evolution process• Government

• Intrapreneurship

• Entrepreneurship

Types of Skills Required

Technical Business Management

Personal

Writing Planning Inner Control

Oral Communication

Decision Making

Risk Taking

Monitoring the

Environment

Human Relations

Innovative

Using Technology

Marketing (Selling)

Change-oriented

visionary

End Of Chapter 1