INTRODUCTION TO ENTREPRENEURSHIP

Intro to Entrepreneurship

Introduction to Entrepreneurship
Peter F. Drucker entrepreneurship is not: Magic Mysterious But It is a DISCIPLINE and it can be LEARNED.

Intro to Entrepreneurship

Manager vs Entrepreneur

Entrepreneur Owner Manager Manager

Growth Firm Pursuit of growth and personal wealth important Lifestyle Firm Often trade or craft based. Will not grow to any size Manages a business belonging to someone else Will build an organisation putting in appropriate controls similar to a large firm

Intro to Entrepreneurship

Identifying entrepreneurial characteristics

INTRODUCTION
Entrepreneurs are individuals who recognize opportunities where others see chaos or confusion

Intro to Entrepreneurship

Entrepreneurial Culture
Always seeking something new Restless, constantly on the move Strong preference for freedom of choice for the individual Rebellious non-conformist youth is the accepted norm

Intro to Entrepreneurship

Entrepreneurial Culture
Ability think big Try to do the impossible They prefer the new or at least the improved They worship innovation They are tolerant of those who make mistakes Things need to get done quickly rather than always get done perfectly
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Intro to Entrepreneurship

Benefits of Being an Entrepreneur

Do what you enjoy Control your own destiny Contribute to society Potentially huge financial rewards

Intro to Entrepreneurship

Entrepreneurship is easier than a job?

The average working week for a self employed person is 64 hours Most people do not increase their income by becoming self employed 1 in 5 Entrepreneurs do not earn anything within the first 12 months Support of the spouse or partner is critical
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Intro to Entrepreneurship

The only place success comes before work is in a dictionary ANON

Intro to Entrepreneurship

Entrepreneurship is risky because..?

Few entrepreneurs actually know what they are doing They lack the methodology Management incompetence Poor financial control Failure to develop a plan Uncontrolled growth Improper inventory control
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Intro to Entrepreneurship

Entrepreneurship is risky because..?

Entrepreneurs who start out with the idea that they will make it big - and in a hurry - can be guaranteed failure
Drucker pg31

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Intro to Entrepreneurship

Entrepreneurship
Entrepreneurship is behavior rather than personality trait Entrepreneurs see change as the norm and as healthy The entrepreneur always searches for change and responds to it Entrepreneurship does not have to be high risk!!
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Intro to Entrepreneurship

Things To Do
Commit to your business, raising funds often forces this Have skin in the game Fail fast, fail small, try again, find a model Get excited, be confident and think big Focus on revenues, margins this will make raising money easier and valuations better Dont try to be a big business too soon Focus on the size of the pie and not the size of your piece Look for similar business models
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Intro to Entrepreneurship

Question?
What is your understanding of entrepreneurship?

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Intro to Entrepreneurship

1.4 The myths of entrepreneurship

Myth 1: Entrepreneurs are doers, not thinkers Myth 2: Entrepreneurs are born, not made Myth 3: Entrepreneurs are always inventors Myth 4: Entrepreneurs must fit the Profile
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Intro to Entrepreneurship

1.4 The myths of entrepreneurship (cont)

Myth 5: All entrepreneurs need is money or luck Myth 6: Your ideas is the most important thing and must be protected Myth 7: Entrepreneurs seek success but experience high failure rates Myth 8: Entrepreneurs are extreme risk taker (gamblers)
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Intro to Entrepreneurship

Question?
What are some of your own myths about entrepreneurship?

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Intro to Entrepreneurship

What is creativity?
involves the development of UNIQUE and NOVEL responses to problems and opportunities (Online Ticketing, E-Banking)

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Intro to Entrepreneurship

Barriers to creativity
Personal Beliefs Institutional Inertia Fear of Criticism Over-Management

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Intro to Entrepreneurship

What is innovation?
finding ways to deliver new or better goods or services. (Kinicki and Williams, 2003)

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Intro to Entrepreneurship

3.7 Types of innovation

Invention creation of a new process or method Extension iterating on existing ideas to make them more useful Duplication apply an existing idea to a different audience or field Synthesis combining two existing ideas to create something novel
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Intro to Entrepreneurship

3.8 Sources of innovation

Process needs Unexpected events New knowledge Changes of demographics

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Questions?

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Intro to Entrepreneurship

Thank You

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