MGT - Direct observation

- Speeches, Seminars, Presentation

CO1 - CO2
Entrep: a mindset
Evolution of entrepreneurship and - more than creation of business
Entrepreneurial mindset - seek opportunities
- tenacity to push through ideas
Entrepreneurs- "entreprendre" to
"undertake" Common Charac of an Entrep
- recognize opportunities where others see - Commitment
chaos and confusion - determination
- aggressive catalysts for change in - perseverance
marketplace - Seeking feedback
- challenge the unknown and create the - Tolerance for ambiguity, failure
future - calculated risk taking,
- organize, manage, assume the risks of a - high energy
business - Creativity, Innovativemess
- willingness to calcu risks - Vision
- formulate effective venture team - Team building
- build a solid business plan

Vs Small Business owners

- manage business by stable sales, profits
and growth

Vs Entrep
- focus on innovation, profitabiliyy and
sustainble growth

Importance
- innovation, start ups, job creations

Trends in Entrep Research

- Venture Financing
- Social Entrep Entrep theory
- Women and Minority Entrep E= f(e)
- Entrep Edu - interaction of skills related to control,
- Family busi planning, goal setting, risk taking,
- Global entrep movement innovation, reality perception, decision
- Entrep Cognition making, human relation, independence
- Corporate entrp
Dark side of Entrep
Sources of Research om Entrep 1. Financial risk vs profit- motive varies
- Researcha and Popular Publ. entrep's desire for wealth
2. Career risk- loss for employment security Rules for An innovative Enviro
3. Family and Social risk- competing - encourage action
commitments of work and family - use informal meetings
4. Psychic risk- psychological impact of - tolerate failure= learning
failure on well being - persist in getting idea
- reward innovation
Entrep Stress -plan physical layout
- extent which entrep work demands and - clever bootlegging of ideas
expectations exceed their abilities to - people on small teams
performs as initiators, stress - reward and promote inno persons

Source of Entrep Stress Types of innovation

- loneliness 1. Radical innov
- Immersion in business - chaotic and unplanned
- People problems - launching of inaugural br8kthrus
- need to achieve - experimentation, determined vision

Dealing with stress 2. Incremental innov

- networking - systematic discipline
- getting away - evolution of products for newer/larger
- communicating with employees markets
- Finding satis outside the company
- delegating Social Entrep
- exercising rigorously - combi of private sector focused on innov,
risk taking, problem solving
Entrep ethics and ethical dilemmas
- "ethos" - custom or mode of conduct Social Entrep Process
- greek thinker Chilon- take an honest loss - recognition of social opp into a business
than make dishonest profit concept
- resources acquired to execute enterp
Quadrants of Behaviors goals
ethical
illegal legal Social Entrepreneurs
Unethical - public, civic entrep / social innovs
- creative thinkers
- change agents
Corporate Entrep/Intrapreneurship - build social mission
- entrep inside of established org
Forms of Sustainable Entrep
Why corp, entrep become so popular? 1. Ecopreneurship
- tap innovative talents of their own workers - enviro entrep focused on natural,
- strategy than can facilitate efforts to create biodeiversity, ecosystems
innovation and cope with competitors 2. Social Entrep
- activities to enhance social wealth by
creating ventures
3. Corporate Social Responsibility
- to further social good, denotes societal
engagement orgs
Global Entreps
- global thinkers
- rise above to see global competitions
- learning diffs of language barriers,
Methods of going International
1. Importing - buying and shipping foreign
for domestic use
2. Exporting- shipping of domestic products
to foreign
3. International Alliances- agreements bet.
comps of 2/more countries
Licensing
- busi arrangement, grants permission to
some other group to manuf that product in
exchamhe for patents or payments
1. Patents
- provides owner with exc. rights to hold,
transfer, license the prod. as an intellectual
right
- 14 yrs; some last for 20 yrs
- processes, machines, products, plants,
chemical compounds, improvements
2. Copyright
- provides rights to theiir literary/artistic
prods
- reproduce, publicize, sell indiv rights
3. Trademark
- distinct name, mark, symbol, motto
identified with product
- incontestability for 5 yrs
Researching Foreign Markets
- government regulations
- Political climate
- Infrastracture
- Distribution channels
- Competition
- Market size
- Local customs/culture
International threats and risks
1. Political risks- unstable gov caused by
war, political probs
2. Economic risks- changes in tax laws,
strikes, inflation
3. Social risks- antagonism among classes,
civil war, religious conflict
4. Financial risks- Fluctuating exhange
rates, seasonal cash flows
Co3
Reasons for starting a venture, Entrep
motivations
1. Personal characteristics
2. The environment
3. The venture
Pitfalls in selecting new ventures
- Lack of obj. eval
- No real insight into the market
- Inadeqaute understanding of tech req.
- Poor financial understabding
- lack of venture uniqueness
- ignorance of legal issues
Phase in new-venture start ups
1. Pre start up
- begins with an idea, ends where door
opens for busi
2. Start up
- initiation of sales acti, delivery of prods,
ends when the busi is fully established and
surviving
3. Post start up
- lasts until the busi is terminated or the
surviving is no longer controlled
Critical factors for new venture devmt Franchisor
1. Uniqueness- product differentiation - seller of a franchise
2. Investment- Capital investment may vary
3. Product Availability- Availabilitu of salable Franchisee obligations
good, ex: bugs problem - financial investment op
4. Customer Availability- determine who the - obtain and maintain standardize inventory
customers are, buying habits - maintain quality
- franchisee fee
Why new ventures fail? - engage in cont. busine rela.
1. Product/Market Problems
- poor timing, prod design probs, inappriate franchisor provides:
dist. strat, unclear busi def, overreliance on - the comp name
one customer - identifying symbols, logos, design
2. Financial diff - professional magmt for each staff
- initial undercapitalization - sale of necessary resources
- debts - financial assistance
- venture capital relat. probs - continuing aid and guidance
3. Managerial Problems
- Concept of a team app. Sources for Capital for Entrep Vent
- Human res. prob - owners money
- fam and friends
Pathways to Entrep Ventures - angels
- Creating new ven - seed capital
- Acquiring an Existing ven - vent capital
- Obtaining a franchise - bank and gov progs
- private placements
Approaches to creatinf new ven - IPOs- intial public offering, shares of
1. New-New approach - Creat a new unique company are sold to investors
prod/service ex: fb
2. New-Old approach- adapt an existing Debt Vs. Equity
prod. Ex. IG 1. Debt financing
- secured financing of new ven involves
Adv of acquiring ongoing ven payback and interest
- less fear abt succesful futute ope. - commercial banks, loan
- reduced time and effort - peer to peer lending
- purchasing at good price 2. Equity Financing
- involves sale exchange, in return for
Franchising unsecured investment
- arramgement in which owner of a tm, cr, 3. Private placement
trade name, licensed others to use it - company sells stocks inexhange for cash

Framchisee Other source of Capital for entreps

- a purchaser of a franchise
Venture Capitalists- professional investors,
invest in busine, provide caps for start ups,
looking for higher return
Provide: capital, mark. res and strat,
management, contacts, and assistance

Informal risk capital: Angel financing

- wealthy indivs looking for inv opps
- business angels