Entrepreneurship Unit 1: Entrepreneurial Theory

Module 1: Entrepreneurial Mindset

Done by Jada Henry 6B3

 Entrepreneurship vs. Entrepreneur
Entrepreneurship is a practice and a process that
results in creativity, innovation and enterprise
development and growth. It refers to an individual’s
ability to turn ideas into action involving and
engaging in socially-useful wealth creation through
application of innovative thinking and execution to
meet consumer needs, using one’s own labour, time
and ideas. Engaging in entrepreneurship shifts people
from being “job seekers” to “job creators”, which is
critical in countries that have high levels of
unemployment. It requires a lot of creativity which is
the driving force behind innovation.
An entrepreneur is any person who creates and
develops a business idea and takes the risk of setting
up an enterprise to produce a product or service
which satisfies customer needs. Entrepreneur refers
to the person and entrepreneurship defines the
process. Both men and women can be successful
entrepreneurs; it has nothing to do with gender. All
entrepreneurs are business persons, but not all
business persons are entrepreneurs.
Drivers of Contemporary Entrepreneurship
Information and ICT is all technologies that combined allow people and
organizations to interact in the digital world. Its
Communication Technology elements include cloud computing, internet access,
(ICT) computer hardware and software, communications
technology eg. telephone and transactions.
Globalization This is the worldwide movement toward economic,
financial, trade, and communications integration.The
‘global village’ is a phenomenon created by the speed
of modern travel and communication as well as by the
level of integration in business, governance and culture.
We now live in a world of global brands, global
personalities and global businesses. Entrepreneurs are
able to access more information, resources and markets
in today’s world than was previously possible. They
have access to global markets but face global
competition. Construction, manufacturing, energy and
food service businesses can be found competing in
countries far from their start-up locations. For example
the development of the Dell brand of personal
computers quickly became a global competitor in the
PC market. Other brands include Samsung, Nike and
McDonalds.
Changing Demands The pace of life in today’s world is fast and markets are
always changing. Businesses must continuously adapt.
Entrepreneurs can exploit opportunities that arise from
unanticipated and unsatisfied needs that result from
changes in the social and business environment. This is
seen in the emergence of businesses such as Netflix and
Itunes.
Changing Demographics There is change in the vital statistics of a population
such as gender, age, income level, education, location
and ethnic composition. There are trends such as rate of
growth in population and change in ethnic statistics,
perhaps due to the inward migration of people. These
statistics provide important information for
entrepreneurs who are pursuing opportunities for
innovating and creating value.
Unemployment Changes in the local and global economy result in
changing levels of unemployment. Many
entrepreneurial ventures are born out of the
entrepreneur’s need for income. These businesses are
usually based on personal skills, work experience or a
local need for a product or service.
Institutional Support Many governments have recognized that
entrepreneurship adds value to an economy. New
businesses create new jobs and add to the country’s
GDP. As a result, there are initiatives and agencies set
up to provide training and support to entrepreneurs.
This support increases the number of persons who are
willing to take the risk of starting their own businesses
and often helps make it possible to find capital for new
ventures. Such support programmes include loan
guarantee facilities and micro finance companies.
Ease of Entry in the Informal The informal sector or informal economy is that part of
an economy that is not taxed, monitored by any form of
Sector government or included in any gross national product
(GNP), unlike the formal economy.
 Functions of an Entrepreneur
● Entrepreneur creates new businesses or
renovates existing ones.
● Entrepreneur identifies and organizes needed
resources.
● Entrepreneur solves problems.
● Entrepreneur innovates; creating value in the
marketplace.
● Entrepreneur functions as a risk taker and not
as a risk avoider.
● Entrepreneur engages in research before
developing an idea.
● Entrepreneur develops his/her management
skills.
● Entrepreneur overcomes resistance to change.
● Entrepreneur provides a catalyst for economic
development.
Theorists of Entrepreneurship
 Richard Cantillon (1680s – May 1734) was an Irish
Richard Cantillon (1680-1734)
economist and author of Essai Sur La Nature Du Commerce
En Général (Essay on the Nature of Trade in General), a
book considered by William Stanley Jevons to be the
"cradle of political economy". Although little information
exists on Cantillon's life, it is known that he became a
successful banker and merchant at an early age. His success
was largely derived from the political and business
connections he was able to acquire through his family and
through an early employer, James Brydges. During the late
1710s and early 1720s, Cantillon speculated in, and later
helped fund, John Law's Mississippi Company, from which
he acquired great wealth. His success, however, came at a
cost to his debtors, who pursued him with lawsuits, criminal
charges, and even murder plots until his death in 1734.
Joseph Schumpeter (1883-1950) According to Schumpeter, an entrepreneur is willing
and able to convert a new idea or invention into a
successful innovation. Entrepreneurship employs what
Schumpeter called "the gale of creative destruction" to
replace in whole or in part inferior offerings across
markets and industries, simultaneously creating new
products and new business models. Thus, creative
destruction is largely responsible for long-term
economic growth. An alternate description by Israel
Kirzner suggests that the majority of innovations may
be incremental improvements such as the replacement
of paper with plastic in the construction of a drinking
straw that require no special qualities.
Peter Drucker (1909-2005) Author and teacher Peter F. Drucker, “the man who
invented management,” called himself a social
ecologist. Created the foundations of modern
management and influenced the thinking of many
leaders of the 20th century, from Margaret Thatcher to
Alfred Sloan. Wrote 39 books translated into more than
30 languages about business, centering on people,
responsibility, and society. Taught at Bennington
College, New York University, and Claremont Graduate
University’s graduate school of management. Earned a
doctorate from Frankfurt University.
Jean Baptiste Say (1767-1832) Jean-Baptiste Say, a French economist who first coined
the word entrepreneur in about 1800, said: “The
entrepreneur shifts economic resources out of an area of
lower and into an area of higher productivity and
greater yield.” One dictionary says an entrepreneur is
“one who undertakes an enterprise, especially a
contractor acting as the intermediary between capital
and labour”.
Factors which influence
the rise of
entrepreneurship inside
and outside of Jamaica.

Traditionally, entrepreneurial activities

arose out of the need to survive. Persons
who had limited skills “tried their hands”
by buying and selling items, or by
creating and selling goods or services in
order to make a profit from which they
meet their personal and/or family needs.
Today, factors other than mere survival
are influencing the rise of the
entrepreneurial spirit.
 Economic changes - The economic downturns in the 1980s and
Some other factors which 1990s caused many companies to downsize and layoff numerous
influence entrepreneurship employees. This gave rise to many small businesses as
individuals took their redundancy pay and invested it into
business ventures.

Globalization and increased competition - Globalization by its

very nature demand entrepreneurial behaviour. This world is now
one big marketplace and so, factors such as speed and efficiency
(doing/producing things faster, better and less expensively) are
critical survival factors.

Advancing technology - As technology advances, new needs

arise which are not being filled by larger firms. It is
entrepreneurs who identify these unattended needs and fill them
to create a market niche (small income-earning segment in an
industry that other firms (larger) overlook or ignore).
The impact of Entrepreneurial activities in Jamaica and throughout the
world have made significant contributions to the growth
Entrepreneurship/its of the economies of those nations. Although it is
importance to economic difficult to quantify the precise amount of contribution
development and employment that entrepreneurship makes to Caribbean economies
owing to insufficient and incomplete data, it is
generally accepted that entrepreneurship has benefitted
these economies in the following ways:
● Job creation - We know that job creation is vital to the overall
long-term economic health of communities, regions, ad nations.
Entrepreneurial ventures play very important role in it. Small
business create more jobs than large business do. During
economic recession, when large companies are on their way to
retrenchment of their workforce, individuals whose jobs are
eliminated find employment with small business. The creation of
jobs by small businesses is expected to continue into the future as
new firms start small and grow.
● Entrepreneurship Serve Small Markets With New Technology:
Large firms, with their crippling overheads, do not find it
profitable to serve small populations. This is where small
entrepreneurial firms serve an invaluable role by providing
specialized products to niche customers. Entrepreneurial firms are
usually faster to come to the market with radical new
technologies. Ultimately, this will lead to a better standard of
living for the whole society.
● Entrepreneurship in small businesses helps in distribution of
products of large business. They, thus, support the large business
houses.
● Innovation - Innovating is a process of creating, changing,
experimenting, transforming and revolutionizing. Innovation is
one of the key distinguishing characteristics of entrepreneurial
activity. The passionate drive and intense hunger of entrepreneurs
to forge new directions products and processes and to take risks
set in motion a series of decisions that lead to the innovations that
are important for economic vitality. Without these new ideas,
economic, technological, and social progress would be slow
indeed. The “creative destruction” process of innovating leads to
technological changes and employment growth. Entrepreneurial
firms act as these “agents of change” by providing an essential
source of new and unique ideas that might otherwise go.
● Increase in Gross Domestic Product (the total value of goods and
services produced in a country within any given period).
Reasons why an entrepreneur wants to establish his or her own business
● Financial independence- the entrepreneur desires to make his/her own
decisions in order to create his/her own wealth; not having to depend on
another for limited financial gains.
● Self-fulfilment-the belief that he/she will get more rewards as well as
satisfying those creative needs that would be stifled in a regular job; being
able to take control instead of being told what to do.
● Self actualization-this is the ultimate satisfaction of one’s needs to fulfil their
potential;for the entrepreneur this may mean taking the risk to create a
business and see it become the best in the industry.
● Poverty
● Culture-Why are some parts of the world more active in entrepreneurship than
others? A lot of it has to do with the culture and whether it encourages
risk-taking and innovation. For instance, if a startup fails in the U.S. or
Australia, the question is: What did you learn and what will you do next?
That’s in stark contrast to many European countries where the entrepreneur is
labelled a failure when a startup doesn’t succeed.
● Desire for wealth - Desire is the first conception of wealth building. It is the desire
for wealth of Warren Buffett to become wealthy that he started earning and saving
money at young age. It is also the same desire why Bill Gates dropped out from
Harvard University. He wants to be wealthy by establishing a software company
which makes him the richest American. Burning desire for wealth is the drive of
one person to achieve his or her financial goal in life. It is our burning desires that
make us motivated, focused and determined. Remember, without the desire, we
will get easily bored and we procrastinate when working on our goal. According to
Wikipedia, desire is a sense of longing for a person or object or hoping for an
outcome. When a person desires something or someone, their sense of longing is
excited by the enjoyment or the thought of the item or person, and they want to
take actions to obtain their goal. Desire for wealth is important in realization of
our dream or attaining our goal. This gives us the drive and determination to move
and act.
Characteristics/Qualities of an 1. Creative
2. Calculated Risk Takers
Entrepreneur 3. Systematic Planner
4. Opportunity-Seeking
5. Achievement Oriented
6. Persuasiveness
7. Committed
8. Determination and Persistence
9. Perseverance
10. Information Seeking
11. Emotional Intelligence
12. Self-confident
13. Flexibility
14. Internal locus of control
15. Hardworking
Types of Entrepreneurs
● Nascent Entrepreneur - Is an individual who is in the process of
starting a new business. The nascent entrepreneur can either be a
novice or a habitual entrepreneur.
● Novice Entrepreneur - Is an individual who has NO prior
ownership experience as a business founder; inheritor of a
business or a purchaser of a business. It is not similar to early
starter; a novice can also be a 50 year old with over 25 years of
experience in the industry. He is also someone who has just
started to run his or her own business or venture and is still
learning new things to make it work successfully.
● Habitual Entrepreneur - Is an individual who has PRIOR business
ownership experience and as a result have gained tremendous
entrepreneurial experience and skills from acquiring major or
minor equity stake in two or more businesses.
● Serial Entrepreneur - Is an individual who has sold or closed an
original business, established another new business, sold or closed
that business & continue this cycle. They are experienced
entrepreneurs as they own several businesses but one at a time.
● Portfolio Entrepreneur - Is an individual who retains an original
business and builds a portfolio of additional business through
inheriting, establishing or purchasing them.
● Social Entrepreneur - A social entrepreneur is a person who
pursues novel applications that have the potential to solve
community-based problems. These individuals are willing to
take on the risk and effort to create positive changes in society
through their initiatives.
NB Serial Entrepreneur and Portfolio entrepreneur are also referred
to as Habitual Entrepreneurs.
 Entrepreneurship vs. Intrapreneurship
Entrepreneurship is the process of identifying
opportunities in the marketplace, arranging the
resources required to pursue these opportunities and
investing the resources to exploit the opportunities
for long term gains. It involves creating wealth by
bringing together resources in new ways to start and
operate an enterprise.
Intrapreneurship represent the initiation and
implementation of innovative systems and practices
within an organization, by some of its staff under the
supervision of a manager who takes the role of an
intrapreneur, in order to improve the economic
performance of the organization, by using a part of its
resources, namely those that previously have not
been used in an appropriate manner. Intrapreneurship
improves the economic and financial performance of
the company, by applying a more efficient use of the
resources and by using a suitable motivational system
for its employees
 Entrepreneur vs. Intrapreneur
An entrepreneur is a business-minded person who
always finds ways to improve and grow in business.
An entrepreneur can also be defined as a professional
who discovers a business opportunity to produce
improved or new goods and services and identifies a
way in which resources required can be mobilised.
Finally, an entrepreneur is someone who constantly
scans the environment looking for changes that can
provide opportunities for creating new
growth-oriented businesses.
The intrapreneur acts within an existing
organization. The intrapreneur is the revolutionary
inside the organization, who fights for change and
renewal from within the system. This may give rise
to conflicts within the organization, so respect is the
necessary key in order to channel these conflicts and
transform them into positive aspects for the
organization. Even though intrapreneurs benefit from
using the resources of the organization for the
implementation of the emerging opportunities, there
are several motives why innovation is more difficult
to implement in an existing organization.
 Entrepreneur
● He operates outside the organizational
environment.
● He sees a business opportunity, obtains the
necessary inputs and starts a business operation.
● He brings an organization into existence.
● He starts a small business and grows it to a
large business house.
● An entrepreneur begins his business with a
newly set up enterprise.
● As an entrepreneur establishes new business,
so he does not possess any experience over the
business.
● An entrepreneur himself raises funds required
for the enterprise.
● Entrepreneur bears the risk involved in the
business.
● An entrepreneur is independent in his
operations.
 Intrapreneur
● He operates within the organizational
environment.
● He transforms an idea into reality by focusing
on innovation and creativity in the
organizational environment.
● He brings about change in the existing state of
equilibrium of organization’s operations.
● Once the business enters stagnation (not
moving), he re-energizes entrepreneurship
within large organizations.
● An intrapreneur sets up his enterprise after
working someone else’s organization.
● An intrapreneur establishes his business after
gathering experiences through working in the
other organizations.
● Funds are not raised by the Intrapreneur.
● An intrapreneur does not fully bear the risk
involved in the enterprise.
● An intrapreneur is dependent on the
entrepreneur, i.e. the owner.
Difference between Entrepreneurship and Small Business Management
A small business is “One which is independently owned and
operated and not dominant in its field of operation.” The term
entrepreneur and small business owner sometimes are used
interchangeably. Although some situations encompass both
terms, it is important to know their differences. Small
businesses are:
● Independently owned and operated
● Not dominant in their fields
● Usually do not engage in many new or innovative
practises
● They may never grow large and the owners may prefer
a more stable and less aggressive approach to running
these businesses. In other words, they manage their
businesses by expecting stable sales, profits and
growth.
On the other hand entrepreneurial ventures are those
for which the entrepreneur’s principal objectives are
innovation, profitability and growth. Thus, the
business is characterized by innovative strategic
practices, and sustainable growth. Entrepreneurs and
their financial backers are usually seeking rapid
growth and immediate profits. They may even seek the
sale of their businesses if there is the potential for large
capital gains. Thus, entrepreneurs may be viewed as
having a different perspective from small business
owners on the development of their firms.
 Small Business

● A small business can be defined as one that is ● Small businesses are not dominant players in
‘independently owned, operated and financed.’ the industry.
● The small business is characterized as having ● Owners may tend to prefer stability therefore
less than 100 employees (U.S.). the small business is less likely to grow.
● The small business is not oriented towards new
or innovative practice; new start- ups; and job
creation.
 Entrepreneurship

● An entrepreneurial venture is characterized as ● The venture is characterized by new start-ups

an organization engaged in pursuing where ideas propel the new business.
opportunities. ● Entrepreneurial ventures have greater potential
● The entrepreneurial venture pursues growth for becoming big employers based on growth
and profit. and profit motives.
● The entrepreneurial activity is motivated by
innovation and seeks out new opportunities in
the environment.
Difference between an Entrepreneur and Small
Business Owner
The majority of small business owners do not innovate
or seek out change in a continuous or purposeful way.
Most small businesses are founded on existing ideas
and practises. They do not necessarily attempt to
innovate or seek out change but base their businesses
on hopes of increased consumption of the same
products or services also on offer elsewhere.

Many small firms lack the creative spirit as majority of

start-ups are based on established industries. There
seems to be a natural tendency to play safe, staying
with known business areas when considering a new
business.

Once established, small firms can lack innovation.

Owner-managers are invariably close to the day-to-day
problems of their businesses as they grow –often too
close to see the opportunities or the need for change.
Types of Entrepreneurship
Lifestyle Entrepreneurship Lifestyle entrepreneurs are known for organizing their
work and business activities around their own lifestyle
goals. These goals often including flexible hours,
fulfilling work, spending time with family and friends,
hobbies, charity work, or creative pursuits. For example
tour guides or dance instructors. The central
characteristic of lifestyle entrepreneur is the attempt to
create profit from personal passion. If for example, an
individual has a passion for the internet he/she may
start a site from which shoppers can shop online.
Making money is still important to lifestyle
entrepreneurs (because they are still business
professionals) but "enough" money is often more
important than the more traditional capitalist pursuit of
wealth. A lifestyle entrepreneur places passion before
profit when launching a business in order to combine
personal interest and talent with the ability to earn a
living.
Survival Entrepreneurship The process of starting businesses to supply or
supplement income. The basic goal of this venture
activity is to survive and meet the venture’s financial
obligations. Many startup ventures engage in survival
entrepreneurship where their long term goal is to stay in
business.
Survival entrepreneurship is characterized by:
1. Cutting costs
2. Laying off employees
3. Employment freeze
4. A mindset of preservation of the present state of
affairs
5. A fear of committing to future plans
Dynamic Growth The process of being motivated to create jobs and
wealth. This is the type of entrepreneurship where the
Entrepreneurship business is intended to generate significant sales and
rapid growth. The entrepreneur’s vision is to build a
large business or even an empire. This involves lots of
planning and the development of detailed plans.

Characteristics of Dynamic Growth Entrepreneurship:

1. Goal is maximum profit and growth.

2. Concentrated on pushing envelope and growing
as large as possible.
3. Focus on innovation
Speculative Entrepreneurship Ludwig von Mises saw entrepreneurship as speculative
uncertainty-bearing. Mises stated that all action by
definition is entrepreneurial in the sense that it aims to
achieve ends in an uncertain future. Actions are
future-oriented and uncertain, are subject to
profits/losses, and the risk of losing capital. They
therefore include an entrepreneurial element.
Cultural Diversity of Cultural diversity refers to the existence of a variety of
cultural or ethnic groups within a society. Diversity is
Entrepreneurship nothing more than a difference from the majority. In
any culture there is a majority and many minorities.
Culture is a set of norms that set standards for a society
of what is acceptable behaviour.
● Youth & Entrepreneurship - Barrington and Ireland (2012)
indicate that although there is a drop in new entrepreneurial
activity for a particular age bracket, there is still a number of
young people who remain strongly interested in entrepreneurship.
Statistics produced identified a significant growth in
entrepreneurship from the level of interest shown from starting a
business to entrepreneurial education in school. The
entrepreneurship of young people is particularly valuable for their
willingness to think innovatively and take advantage of the
possibilities inherent in ICT.
● Gender and Entrepreneurship- When we talk about masculine or
feminine cultures, we are not talking about diversity issues. It is
about how society views traits that are considered masculine or
feminine. This value dimension refers to how a culture ranks on
traditionally perceived “masculine” values: assertiveness,
materialism, and less concern for others. In masculine-oriented
cultures, gender roles are usually crisply defined. Men tend to be
more focused on performance, ambition, and material success.
They cut through an independent persona, while women cultivate
modesty and quality of life. Cultures in Japan and Latin American
are examples of masculine-oriented cultures.
● Family and Entrepreneurship-These ventures make huge
contributions to the economy of small states through job
creation, innovation and embedding of family values in their
operations. They are the immediate source of funds, advice and
encouragement for young entrepreneurs who are often following
in the footsteps of their parents or grandparents. Family
businesses are an integral part of our economy. 90 percent of
U.S businesses are family owned.
● Ethnicity and Entrepreneurship- Entrepreneurship is not only
about the job creation, but also about enhancing upward
mobility, developing social leadership, increasing individuals’
self-confidence by enabling them to become active agents of
their own destiny, increasing the social cohesion of ethnic
communities, and revitalising streets and neighbourhoods
through innovation of social and cultural life. Ethnic
entrepreneurship has not played a role in the strategy of cities to
support the employment and societal integration of immigrants
into local communities.
● Religion and Entrepreneurship Religious economy refers to
religious persons and organizations interacting within a market
framework of competing groups and ideologies. An economy
makes it possible for religious suppliers to meet the demands of
different religious consumers. By offering an array of religions
and religious products, a competitive religious economy
stimulates such activity in a market-type setting. The idea of
religious economy frames religion as a product and as those who
practice or identify with any particular religion as a consumer.
However, when the idea of belief is brought into the equation, this
definition expands, and ideology affects the "product" and who
"consumes" it. When examining depictions of religious identity in
a global world, it is easy to see how ideology affects the religious
economy.
 Mistakes of Entrepreneurs

1. Human Resource (HR)/Management failures. 13. Failure as a natural part of the entrepreneurial
2. Marketing failure process.
3. Poor operations management.
4. Lack of experience.
5. Poor financial management/financial failures.
6. Over-investing in fixed assets.
7. Poor credit practices.
8. Failure to plan.
9. Unplanned and uncontrolled growth.
10. Inappropriate location
11. Lack of inventory control.
12. Inability to make the “Entrepreneurial
Transition”.
Factors that Contribute to the
Success of Entrepreneurs
● Know your business in depth.
● Develop a solid business plan.
● Manage financial resources.
● Understand financial statements.
● Manage people effectively.
● Know your strengths and weaknesses.
Drawbacks of Entrepreneurship ● Uncertainty of income
● Risk of losing your entire investment
● Long hours and hard work
● Lower quality of life until the business gets
established
● High levels of stress
● Complete responsibility
● Discouragement
Myths/Misconceptions of Entrepreneurship
● Entrepreneurship is Easy.
● All entrepreneurs are rich.
● Entrepreneurs are born not made.
● All you need is money to start.
● Successful entrepreneurship needs only a great
idea.
● All you need is luck to be an entrepreneur.
● Entrepreneurs are extreme risk takers.
● Entrepreneurs are doers, not thinkers.
● Successful Entrepreneurship Needs Only a
Great Idea.
● Entrepreneurship is a Risky Gamble.
● Entrepreneurship is Found Only in Small
Businesses.
● Entrepreneurs are academic and social misfits
Factors Feeding the ● Entrepreneurs as heroes
● Entrepreneurial education
Entrepreneurship Fire ● Demographic and economic factors
● Shift to a service economy
● Technology advancements
● Independent lifestyles
● E-commerce and the Internet
● International opportunities
Benefits/importance of entrepreneurship
● Entrepreneurship allows one to undertake
different forms of self-employment.
● Entrepreneurs are their own bosses giving
them an opportunity to get more job
satisfaction and flexibility of the workforce.
● Encouragement of the processing of local
materials into finished goods for domestic
consumption as well as for export
● Healthy competition encourages higher quality
products in the market thereby making more
goods and services available to consumers.
● Development of new markets
● Promotion of the use of modern technology in
small-scale manufacturing to enhance higher
productivity.
● Freedom from dependency on the jobs offered
by others
● Possibility of achieving great
accomplishments
● There may be tax advantages
There is also the
opportunity to:
1. Create your own destiny
2. Make a difference
3. Reach your full potential
4. Reap impressive profits
5. Contribute to society and to be
recognized for your efforts
6. Do what you enjoy and to have fun at
● Create
it your own destiny.
● Make a difference.
● Reach your full potential.
● Reap impressive profits.
7. Create your own destiny
● Contribute to society and to be
8. Make a difference
9. recognized for potential
Reach your full your efforts.
●
10. Do
Reapwhat you enjoy
impressive and to have
profits
11. Contribute
fun at it. to society and to be
recognized for your efforts
12. Do what you enjoy and to have fun at
it
Pitfalls of
Entrepreneurship

● Know your business in depth

● Develop a solid business plan
● Manage financial resources
● Understand financial statements
● Learn to manage people
effectively
● Set your business apart from the
competition
● Maintain a positive attitude
Putting Failure into Perspective
● Entrepreneurs don’t fail—the venture fails.
● There are no such things as failures, only
results.
● Always look to turn a negative situation into a
positive opportunity.
● Have no fear of failure and be sure to have a
contingency plan.
● The only people who never fail are those who
never do anything or never attempt anything
new.
● The successful entrepreneur understands the
meaning of these clichés and knows how to
deal with adversity in a proactive and positive
manner.
ETHICS & SOCIAL ● Business Ethics - The study of behaviour and
morals in a business situation. Entrepreneurship
RESPONSIBILITY OF is not an easy lifestyle. The daily stressful
ENTREPRENEURS situations you must develop a balance between
ethical issues and social responsibility.
Entrepreneurs tend to depend on their own
personal value system because they do not have a
support group.
● The increase of internationally orientated
business has impacted ethics in dealing with
different cultures. Individual morality and
behavioural habits are related and identified as an
essential quality of existence. The central
question is, “For whose benefit and at what
expense should the firm be managed?” If
resource deployment is not fair then a
stakeholder in the firm may be exploited. Think
of the entrepreneurial process as a tool to achieve
outcomes for the benefits of others rather than to
the detriment of others.