Professional Documents
Culture Documents
ENTREPRENEURIAL MIND (Midterm Notes)
ENTREPRENEURIAL MIND (Midterm Notes)
fully realised.
Encompasses the following: ● This chapter highlights some
● The entrepreneurial process aspects concerning the concept of
● Creativity and innovation entrepreneur, entrepreneurship,
● Innovation entrepreneurial process and finally
● The Opportunity the entrepreneurship opportunities
● Ideas, Opportunities, and Innovation and challenges.
● Screening Opportunities ● Entrepreneurship have always been
● Packaging up Opportunities: The present, however their behavioural
Business Plan patterns were different in different
● Resource Requirements periods of time,
● The Entrepreneurial Team ● The word entrepreneur was derived
● Social Entrepreneurship from the french word “entreprendre”,
● Family Business which means”to undertake”
● Entrepreneurial Strategy (Kuratko, 2016).
● Entrepreneurial Finance ● The usage of the term entrepreneur
can be traced from 1755, wherein an
WHAT IS ENTREPRENEURSHIP? entrepreneur was described to “buy
● Entrepreneurship is the act of being the country produce from those who
an entrepreneur, who starts any bring it or to order it to be brought on
economic activity for being their account. They pay a certain
self-employed price to resell wholesale or retail at
● Entrepreneurship is the “process of an uncertain price” (Cantillon, 1931,
the entrepreneur”. It is an attempt to p.51; Hamilton & Harper, 1994)
create value through recognition of ● Entrepreneur from the very
business opportunity. It basically beginning, was principally an
communicative and management independent speculator of the
functions to mobilize financial and commodity (Hamilton & Harper,
material resources. 1994)
The management of all these aspects are explosion of e-commerce on a global scale.
carried by an enterprise, and the people
whose (b) Integration in social and political fabrics
functions are to carry out these activities are in several emerging economies.
called entrepreneurs (Bull & Willard, 1993)
(c) increasing economic situations in middle
DEFINITION OF AN ENTREPRENEUR income house-holds in several economies.
● To date, several definitions have
been penned to describe an (d) increase in cross-border engagements
entrepreneur. And some of them are and market entry mechanisms such as
mentioned herewith: strategic
● Entrepreneur is someone who
manages all the necessary alliances, subsidiaries, joint ventures etc.
resources to produce and market a
product which responds to the (e) evolving trends in channel structures
market scarcity (Leibenstein, 1968; among the developed world.
bull & Willard, 1993).
● “Entrepreneurs are individuals who (f) increased engagements in global
markets concerning social responsibility and
INTRODUCTION TO ethics (Ramachandran &
ENTREPRENEURSHIP Gokila, 2012).
(1) market penetration, (2) market -If the main purpose is to enact a harvest,
development, and (3) product then the
development entrepreneurial plan must create a
value-adding deal
➔ ad-hoc programs structure to attract investors.
-Opportunity building is like chess: The following are some basic guidelines for
-Anticipate several moves in advance entrepreneurial plan
-View the future as a movie vs. snapshot development.
● start something to find out whether IDENTIFY, ANALYZE, AND PLAN THE
they can convert that opportunity RESOURCES
into an ongoing source of fulfillment
and potential financial gain. That ● innovative and entrepreneurial
means that, ideally, the ventures combine specific resources
entrepreneur’s life experience, such as capital, talent and know-how
education, skills, work exposure, and (e.g., accountants, lawyers),
network of contacts align well with equipment, and production facilities.
the opportunity. Breaking down an opportunity’s
required resources into components
● A good entrepreneurial plan, an can clarify what is needed and when
interesting product idea, and a it is needed.
promising
● Although resource needs change THE OVERALL PROCESS
during the early growth stages of an
opportunity, at each stage the ● The process of entrepreneurship
entrepreneur should be clear about melds these pieces together in
the priority resources that enable or processes that unfold over weeks
inhibit moving to the next stage of and months, and eventually years if
growth. the business is successful. Breaking
down the process into categories
● Capital. What financial resources, in and components helps you
what form (e.g., equity, debt, family understand the pieces and how they
loans, angel capital, venture capital), fit together.
are needed at the first stage? This
requires an understanding of cash ● The opportunity can be optimally
flow needs, break-even time frames, explored with the team and
and other details. Even non-profits resources that are identified and
need to make money to stay afloat. mobilized.
Back-of-the-envelope estimates
must be converted to pro forma ● The resources must be brought to
income statements to understand bear to launch the opportunity with
financial needs. an entry strategy that delivers the
● Know-how. Record keeping and value-driven concept in a way that
accounting and legal process and solves customers’ problems.
advice are essential resources that
must be considered at the start of
every venture. Access to experts is
important, especially in the early
stages of making an opportunity
happen. New opportunities require
legal incorporation, financial record
keeping, and rudimentary systems
and resources to provide for these
expenses need to be considered.
● Facilities, equipment, and transport.
Does the venture need office space,
production facilities, special
equipment, or transportation? At the
early stage of analysis, ownership of
these resources does not need to be
determined. The resource
requirement, however, must be
identified.