Entrepreneurship

In simple words

1):Entrepreneurship is a activity to start new business, taking financial risk in the hope to earn profit.

2):Entrepreneurship is an ability to organize, develop and run a new business, with all of its uncertainties
or risk in return to earn profit.

Basic definition

1):Entrepreneurship is a function of seeking investment, and production opportunities, hiring right

people, for the job, producing new products, providing new material for the production, identifying best
site for business, developing new techniques and commodities, and taking risk to earn profit.

Who is entrepreneur?

1) Someone who has ability to establish new ventures or business, while taking financial risk is
entrepreneur.
2) Entrepreneurs are also known as sources of new ideas or innovators, they place new and unique
products in market, by replacing old one.
Product
1) Anything which is made to be sold is product.
2) Product can be tangible(Ownership) and intangible(Services-Doctors, Lawyers,
plumbers.

Types of business or entrepreneurship

1)Small Business Entrepreneurship.

1) These are small business i.e tailor, grocery store, hairdresser, plumbers etc.

2) Usually single owner, hire their family member, or local people or employee.

3) they conduct their business to feed their family, not to make million dollars business or capture the
industry.

4) They get funds for their business, for family, friends or microfinance bank.

2)Scalable startup entrepreneurship

Scalable: Able to climb or change into big.

Startup: Young company with unique idea OR

able to make something in motion.

1) Scalable startup entrepreneurship is a business start with a vision to change the world.
2) They get funds from investors by selling them out of the box idea.
3) They need investment on daily bases to fuel up their projects or business i.e self device car.

3)Large company Entrepreneurship

 1) These large companies have defined life cycle(cause of life od sales and profit),sustain and grow in
market by offering, innovative and unique products i.e Samsung. Those companies who don’t offers
innovative products eventually fall i.e Nokia.

2) Change in technology, innovation, customer preference pressure these companies to produce new
products, to sustain in market.

4) Social Entrepreneurship

1) Social entrepreneurship are the companies, produce products and services to help the society.

2) Their goal and motto is to help or betterment of society i.e Edhi Foundation (1951),world largest
ambulance structure and Kashf Foundation (1996) First largest micro finance bank.

Characteristics of Entrepreneurship

1) Ability to Task Risk

To Start a new venture or business is very risky, entrepreneur should be enough
courageous to take financial risk to start of business.
2) Innovation

Entrepreneurs should be able to generate new and unique idea to start a venture.

3) Visionary and leadership quality

1) Good entrepreneur should have clear vision, where they want to make their company
reach.
2) To turn idea into reality lots of resources and employees are required, at this point
leadership qualities are important, because leader is someone who provide direction
and lead its people, to achieve the goals.
4) Flexible
Entrepreneurship should be flexible to accept change, bring change and innovation in its
products.
5) Know your Customers
1) Entrepreneur and owners of business must know the trend of market, and well aware of
products they are offering in market.
2) Entrepreneurs must identify customers needs and wants to be successful in business.

Entrepreneurship or Entrepreneurial Process

1) These are several ways to start a business.

2) Usually entrepreneurship process consist of five steps or stages
1) Idea Generation
2) Idea evolution and screening.
3) Developing plans.
4) Formation of Company or business.
5) Growth or production.
1) Idea Generation
1) Every new business starts with idea, in our context idea is a solution (product, services)
of customer problems or need.
 2) Entrepreneurs must identify customer problem or need and then offer its
solution(products, services).
3) There are two ways to generate idea.
➢ Internal idea generation.
Idea Generation from entrepreneur.
➢ External ideas generation.
Idea Generation from market (customers, expert, distribution)
2) Idea evolution or idea screening
1) In second step, we evaluate each and every idea of new business and select the best
one, then check is there opportunity to invest in this idea or not.
2) Idea should be R.W.W (Real, Win and Worth) . Idea should be real means original,
should win customer heart (fulfill customer needs) should be worth to earning enough
profit.
3) Planning
1) When idea is of new venture is decided, third step is developing plans and strategies for
the business.
2) Plans regarding investment, location of business, production etc.
4) Company Formation
1) In this step Entrepreneurial team is formed and developed a legal company by making it
legal entity.

Business: Any legal activity to earn profit is legal business.

5) Growth
1) Last step in which we more from planning to execution.
2) In this step production of goods and services take place and we commercialize our
business.

Ethics in Business

1).Ethics word come from Greek word “ehos” means moral character.

2).Ethics can be defined as moral behavior, and moral principles, that what is right? And what is wrong?

Business Ethics

❖ Business ethics are moral principles and rules, that govern how business operations must be
conducted and how people must be treated.
❖ Business ethics mostly determines by two entities.
1. Public
Media public: Provide info about organizations.
Finance Public : Provide investment in business.
Govt. Public : Notice activities of business and deal legal issues
General Public: Provide opinion about company.
2. Interest Group
NGOs and Human and Animal rights Institute i.e Animal treatment against cruelty
behavior.
 PETA: People for ethical treatment of Animal.

Ethical Behavior

➢ Obey the company rules and policies.

➢ Fair employment practices.
➢ Fair marking and selling practices.
➢ Take opportunity for your actions.
➢ Show inactive with out being told.
➢ Product safety and quality.

Unethical Behavior

➢ Bribery
➢ Illegal payment to foreign country to start business.
➢ Use confidential information for personal use.
➢ Taking credit your other work
➢ Extended breaks.
➢ Nepotism / Favoritism
➢ Corrupt Practices.

Entrepreneurs vs Intrapreneur

▪ Both are leaders, creators and innovators.

▪ Difference between entrepreneur and Intrapreneurs is,
o An Intrapreneur is an employee,
o On the other hand, entrepreneur is a founder of business who create or design new
products and services.
▪ An entrepreneur run its own business, has freedom to take action and risk.
▪ An entrepreneur innovate and create new products and services in a confine of a business. He
or she work as an employee in a organization.
▪ Any individual who has entrepreneurial skills, vision and thinking but work as an employee is
Intrapreneur.
▪ One of the big advantage of Intrapreneur is he or she create new things, with minimum of
financial risk as compare to entrepreneur, also has less autonomy )‫)خود مختاری‬

Example of Entrepreneur

i. Professor Yunus (Social Impact)

ii. Steve Job (Technology)
iii. Elon Musk (Technology)
iv. Giorgio Armeni (Fashion)
v. Brain Chesky (Accommodation)
vi. Mark Zuckerberg (Social Media)
vii. Opera (Music)

Example of Intrapreneur

i. Ken Kutaragi
 ➢ Creator of Playstation in Sony Corporation.
ii. Brothers Lars and Jens
➢ Creator of Google Map in Google.
iii. Paul Buchhcit
➢ Creator of Gmail in Google.

Assignment

“Can Intrapreneurs become an entrepreneur and can entrepreneur become an Intrapreneur”

This assignment is not added to the slaybus.

Entrepreneurial leadership

Leadership

• Leadership is we not me, mission not my show vision not division community not domicile.
• Process of leading a group of people or organisation to achieve specific goal is leadership.

Entrepreneurial leadership characteristic

• Entrepreneurial leader should able to organized and coordinate group of people to start new
business through innovative, risk and availing opportunity.
• Follows are few characteristics of entrepreneurial leaders are given below,
➢ Vision: Leader should have clear vision, mean where they want to reach and
how much big, they want to make their company, they should be able to turn
their vision into reality.
➢ Supportive: A good leader should provide support to its team. Provide all
necessary resources to its team to achieve the goal.
➢ Communication: A good leader encourage communication between its team
members make sure the voice of each and every member must heard. Try to
remove misunderstanding and encourage friendly environment.
➢ Honest: Leader must be honest man. People usually follow the person, who
is honest, and act on, what he or she said.
➢ Shared success: Leader should give credit of success to its team members,
and should be the part of celebration.

Types of leadership Behavior

1. People orientated leadership

▪ These types of leaders focus on behavior that support them to help the people
with they interact, whether they are clients, employee, supervisors etc
▪ These leaders support their team members, fulfilled their needs and wants and
focus on communication and collaboration.
2. Task oriented leadership
▪ These leaders focus on developing goals and task and achieving them.
▪ They ignore day to day progress just focus on end result.
▪ They initiate new projects organize all resources and focus on completing task
on time
3. Dictatorial leadership
▪ These types of leaders dictate their members to fulfill the work.
▪ They pressure their employee even in stressful condition. These leaders
generate high quality results but face high turnover.
▪ Example of this Leader is 'Hitler'