Lecture Entrep

8/8/2019 Lecture Entrep

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ENTREPRENEURSHIPENTREPRENEURSHIP

Objective: explain the nature andObjective: explain the nature and

characteristics of entrepreneurs.characteristics of entrepreneurs.


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D o you think you're too young to start your D o you think you're too young to start your own business? If you said, "yes" take aown business? If you said, "yes" take alook at some of the famous people belowlook at some of the famous people belowand their first start:and their first start:D ave Thomas, founder of Wendy'sD ave Thomas, founder of Wendy's

Restaurants, started his food serviceRestaurants, started his food servicecareer at age 15.career at age 15.Bill Gates, founder of Microsoft, started hisBill Gates, founder of Microsoft, started hisfirst business at the age of 15.first business at the age of 15.Oprah Winfrey, decided she was going toOprah Winfrey, decided she was going toearn her living by talking when she wasearn her living by talking when she waspaid $500 at a church when she was onlypaid $500 at a church when she was only12 years old.12 years old.


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Who is an Entrepreneur?Who is an Entrepreneur?

A ccording to Webster's, an Entrepreneur A ccording to Webster's, an Entrepreneur is defined as, "One who undertakes tois defined as, "One who undertakes to

start and conduct an enterprise or start and conduct an enterprise or business, usually assuming full control andbusiness, usually assuming full control andrisk."risk."


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Characteristics of an entrepreneur

There is no uniform, standardised,universally accepted definition of the entrepreneur. Neither, in all

probability, is there onestereotypical model. However, it isgenerally believed that thesuccessful entrepreneur possesses a

special set of personal abilities andcharacteristics (traits). Amongstthese are;


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P assionInternal locus of controlNeed for independenceNeed for achievementD etermination andpersistence (sticktuitive)


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Orientation to goals andOrientation to goals andopportunitiesopportunitiesTaking initiative and personalTaking initiative and personal

responsibilityresponsibilityP ersistence in problemP ersistence in problem- -solvingsolvingHave a sense of humour Have a sense of humour Seeking and using feedbackSeeking and using feedback


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Tolerance of ambiguity, stress andTolerance of ambiguity, stress anduncertaintyuncertaintyCalculated riskCalculated risk- -taking and risk sharingtaking and risk sharingLow need for status and power Low need for status and power Integrity and reliabilityIntegrity and reliabilityD ecisiveness, urgency and patienceD ecisiveness, urgency and patienceCoping with failureCoping with failureTeam builder and hero maker Team builder and hero maker

P eople personP eople personMotivatingMotivatingOrganisingOrganising


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High energy, health andHigh energy, health and

emotional stabilityemotional stabilityCreativity and capacity toCreativity and capacity toinnovativeinnovativeHigh intelligence and conceptualHigh intelligence and conceptualabilityability

Vision and capacity to inspireVision and capacity to inspire ..


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It is important to note that while there is noIt is important to note that while there is nosingle set of characteristics that fit everysingle set of characteristics that fit everyentrepreneur, they tend to exhibit aentrepreneur, they tend to exhibit anumber of the traits listed. These traitsnumber of the traits listed. These traitscan be learned and/or acquired.can be learned and/or acquired.


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ExerciseExercise

A m I an entrepreneur? See handout A m I an entrepreneur? See handout1 (questions 11 (questions 1- -15).15).


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What is Entrepreneurship?What is Entrepreneurship?

EntrepreneurshipEntrepreneurship is the practice of is the practice of starting new enterprises in order to enter starting new enterprises in order to enter

into new or established markets generallyinto new or established markets generallyin response to identified opportunities.in response to identified opportunities.It involves taking the risk of mobilisingIt involves taking the risk of mobilising

resources (land, labour and capital) inresources (land, labour and capital) inunique ways in order to make a profit.unique ways in order to make a profit.


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Entrepreneurship is often a difficultEntrepreneurship is often a difficult

undertaking, as a majority of newundertaking, as a majority of newbusinesses fail.businesses fail.Entrepreneurial activities are substantiallyEntrepreneurial activities are substantiallydifferent depending on the type of different depending on the type of organization that is being started.organization that is being started.Entrepreneurship ranges in scale fromEntrepreneurship ranges in scale fromsolo projects (even involving thesolo projects (even involving theentrepreneur only partentrepreneur only part- -time) to major time) to major undertakings creating many jobundertakings creating many jobopportunities.opportunities.


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Types of EntrepreneurialTypes of Entrepreneurial

BusinessesBusinessesEntrepreneurs have several types of Entrepreneurs have several types of business units to choose from whenbusiness units to choose from whenestablishing an enterprise.establishing an enterprise.


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Sole proprietorshipSole proprietorship

This is a business owned by one person.This is a business owned by one person.It is simple to form, has few costs, and the owner It is simple to form, has few costs, and the owner gets keep all the profits to his self. Sounds great,gets keep all the profits to his self. Sounds great,right?right?

The problem is, of course, that a oneThe problem is, of course, that a one- -personpersonbusiness cant make as much money as a largebusiness cant make as much money as a largebusiness, the owner will have to work very hard,business, the owner will have to work very hard,and if the business loses money, the loss isand if the business loses money, the loss isbourn by the owner. He could loose hisbourn by the owner. He could loose hispersonal assets.personal assets.


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Pa rtnershipPa rtnershipThis is a business thats a lot like a soleThis is a business thats a lot like a soleproprietorship, but more than one personsproprietorship, but more than one personsowns it. A gain, there are fewer costs andowns it. A gain, there are fewer costs and

regulations, but still it is difficult to raise asregulations, but still it is difficult to raise asmuch money as a larger business.much money as a larger business. A lso, the owners have A lso, the owners have unlimited li ab ility unlimited li ab ility ,,

as does a sole proprietor: any debtsas does a sole proprietor: any debtsincurred by the partnership must be paidincurred by the partnership must be paidby the owners, even if they have to useby the owners, even if they have to usetheir own personal property.their own personal property.


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L imited p a rtnershipL imited p a rtnership

This is, again, composed of one or moreThis is, again, composed of one or morepartners, but some have only limitedpartners, but some have only limitedliability. That is, they can only lose theliability. That is, they can only lose theamount of money they invested. However,amount of money they invested. However,these limited partners are not involved inthese limited partners are not involved inthe daythe day--toto--day business of the company.day business of the company.Note that atleast one partner must haveNote that atleast one partner must haveunlimited liability.unlimited liability.


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The Importance of EntrepreneurshipThe Importance of Entrepreneurship

Entrepreneurship is essential to theEntrepreneurship is essential to theeconomic development of every country.economic development of every country.Entrepreneurship is vital because:Entrepreneurship is vital because:new ideas and inventions are developednew ideas and inventions are developed

and this enables the continualand this enables the continualimprovement of industry and communitiesimprovement of industry and communitiesand societies on a whole.and societies on a whole.It creates new ventures. These newIt creates new ventures. These new

ventures provide a variety of new,ventures provide a variety of new,improved products and service for improved products and service for consumers to choose from.consumers to choose from.


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It aids in finding new ways of makingIt aids in finding new ways of making

products and services available to moreproducts and services available to morepeople.people.It helps to create competition with eachIt helps to create competition with eachother to be the best. This improvesother to be the best. This improves

production and keeps prices lower.production and keeps prices lower.It help to create jobsIt help to create jobsIt increases the quantity of products andIt increases the quantity of products and

services we produce in our economy.services we produce in our economy.It provides the spirit of energy for progressIt provides the spirit of energy for progressin communities and countries on a wholein communities and countries on a whole


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ExcersizeExcersize

Handout 2Handout 2

Class workClass work section Isection I -- questions 1questions 1 2525Home workHome work section IIsection IIHandout 3Handout 3

Types of businessesTypes of businesses

Lecture Entrep

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