Lecture 1

Definition of Entrepreneurs Today

 ‘Entrepreneurship’ is the process of creating something new and assuming the risks and
rewards (Hisrich, 2008).
 Four aspects of being an entrepreneur today:
 Involves creation process.
 Requires devotion of time and effort. 
 Involves rewards of being an entrepreneur.
 Requires assumption of necessary risks.

In other words, entrepreneurship is a dynamic, interactive process 

involving the four dimensions of: 

1. An individual with experiences and traits, like need for achievement and internal locus of
control. 
2. Working within an environment that has resources like capital and suppliers. 
3. A venture organisation that has a team and competitive strategies. 
4. A process of recognising an opportunity, accumulating resources, producing and
marketing a product, building an organisation, and responding to government and
society.

Entrepreneurs — Challenging the Unknown

 Entrepreneurs
 Recognise opportunities where others see chaos or confusion
 Are aggressive catalysts for change within the marketplace
 Challenge the unknown and continuously create the future

Our Entrepreneurial Economy— The Importance of Entrepreneurship to Society

 Entrepreneurs fulfill the needs and unlimited wants of the community.
 Entrepreneurs create choices through innovative and creative production techniques.
 Entrepreneurship generates new, improved (better quality), and more cost-effective
ways of doing things or making a product.
 Entrepreneurship results in a better quality of life with new and improved products and
services.
 Entrepreneurship results in more new start-up businesses, thus creating more job
opportunities.

ENTREPRENEURIAL FEELINGS
 Entrepreneurs come from a variety of backgrounds, family situations & work experiences

LOCUS OF CONTROL
 “an attribute indicating the sense of control that a person has over life”
 Internal locus of control
 These people believe that they can control their own destiny & make decisions at
their own.
 External locus of control
 These people believe that their lives are controlled by outside forces & external
forces influence their decisions.
Feelings About Independence 
and Need for Achievement
 Need for independence “Being one’s own boss” – one of the strongest needs of an
entrepreneur.
 Need for achievement
“An individual’s need to be recognized”.

Risk Taking
 Risk taking—whether financial, social, or psychological—is a part of the entrepreneurial
process.
 Successful entrepreneurs are not gamblers.
 They manage risks by transferring it to others. (share financial & business risks)

Common Characteristics of Entrepreneurs

 Commitment, determination, and perseverance
 Drive to achieve
 Opportunity orientation
 Initiative and responsibility
 Persistent problem solving
 Seeking feedback
 Internal locus of control
 Tolerance for ambiguity
 Calculated risk taking
 Tolerance for failure
 High energy level
 Self-confidence and optimism
 Creativity and Innovativeness
 Vision
 Independence
 Team building