Overview of Entrepreneurship Updated
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- 1. SMALL BUSINESSOVERVIEWWhat is entrepreneurship?
2. Derived from the French entreprendreto undertake, to pursueopportunities, to fulfill needs and wants through innovation 3. When Michael Dell started a businessselling custom made PCs in his dorm roomat the University of Texas, reaching the listof the most wealthy people in the US wasonly a dream. Yet he has realized his dream. Dell sells more than $50 million worth ofcomputer products on the Internet each dayand he has obtained a net worth of $16.5billion. 4. The Entrepreneurial Process1. Conducting opportunity analysis2. Developing the plan and setting up the company3. Acquiring financial partners and sources of funding4. Determining the resources required and implementing the plan5. Scaling and harvesting the venture 5. Entrepreneurship is the creation of an innovative economicorganization (or network of organizations)for the purpose of gain or growth underconditions of risk or uncertainty.An opportunity is the creation of an idea to begin a business.A venture is a business undertaking involving risk. 6. Common Elementsof Entrepreneurship Creativity and Innovation Resource gathering and the founding of aneconomic organization The chance for gain (or increase) under riskand uncertainty 7. The Sacrifice That is Paid to Be an Entrepreneur.EntrepreneurOnce you agree upon the price you and yourfamily must pay to be successful, it enables you toignore minor hurts, the opponents pressure, andthe temporary failures. -Vince Lombardi 8. Opportunity to do what you enjoy and have fun at it Mike Becker transformed his passion fornostalgia-based toys into a successfulbusiness venture FUNKO INC. He invested $35K of his own money toresurrect the Bobblehead selling over 2million since 1998. As long as Im doing what I want todoand were making a profitI cant imagine anything better. 9. Components of anEntrepreneurial Venture The Entrepreneur Opportunity Structure Form of Ownership/Operations/Etc. Resources Human/Financial/Equipment/Etc. Strategy Goal/Plan 10. Major Factors Contributing to the Success of a Small Business Competence of the entrepreneur has a knowledge ofhow to start a business Product/service provide a produce/service that thepublic will buy. Financing Money or investors to financially back theventure Planning Plans before beginning Management Ability to coordinate people, processes,and resources. Resources Material, funds, etc. needed to begin a smallbusiness. Image Can earn the trust of the public. 11. PERSONAL CHARACTERISTICSTHAT ENTREPRENEURS POSSESS ENERGETIC & SELF-DEMANDING - requiresgood health, work till the job gets done. TAKE CHARGE ATTITUDE - assertive,persistent, and self-confident, desires to be thedecision maker. RESOURCEFUL - inquisitive, creative andinnovative, has the ability to think of several waysto accomplish goals. INTEGRITY - reputation for long term success. RISK TAKER - willing to and enjoys risk. PROFIT ORIENTED - the bottom line. 12. Richard Foreman President & CEO of Register.comDont give up. Dont ever give up. And when things lookworst, just dont give up. 13. SKILLS NECESSARY FOR SUCCESS COMMUNICATION - speak, write, listen, andunderstand. HUMAN RELATION - people make your business. Mustbe able to make customers feel welcome and maintain aworking relationship with business associates. MATH - real world. DECISION MAKING - have the skills to work outproblems and create new opportunities. PLANNING and ORGANIZATIONAL - dont let thingshappen, plan and make things happen. TECHNOLOGICAL must have practical knowledge ofthe tools and crafts that are necessary to successfullyoperate your business. 14. LEADERSHIP STEPS IN THE DECISION MAKING PROCESS IDENTIFY THE PROBLEM - problems have symptoms. Youneed to look beyond the obvious to determine what is going on. LIST POSSIBLE SOLUTIONS/OPTIONS - gatherinformation to help you solve the problem. Do not rule out anypossibility. EVALUATE ALTERNATIVES - keep in touch with reality.Get rid of wishful thinking. Be honest with yourself and the peopleyou are dealing with. CHOOSE A SOLUTION - the option that offers you thehighest chance for success. Think of the cost involved witheach option. Not only what it costs you but what it may costyou if you do something else. ACT and GET FEEDBACK - Once you have selected asolution to a problem, you need to take action to implementyour plan. Seek out feedback. What was the effect of yourdecision.