Entrepreneurship

successfully launching new ventures

By Bruce R. Barringer
R. Duane Ireland
 Chapter 01
Introduction to entrepreneurship
Whenever you want to start a new business you want
to take advantage of opportunities or just a necessity to
earn an income.
To run and start a business just “motivation” is not
enough, it must be coupled with solid business idea,
good financial management and effective execution to
maximize chances for success.
What is entrepreneurship and why it is
important?
Entrepreneur who “take on the risk” or “undertake” a task
of starting a new business.
Entrepreneurship define as the process by which
individual pursue opportunities without regard to
resources they currently control for the purpose of
exploiting future goods and services.
Entrepreneurship as the art of converting an idea into a
business.
Entrepreneur saw opportunity, take risk, work hard, create
useful product for customer. Entrepreneurial firms may
be proactive, innovative and risk taking.
Why do people become entrepreneurs?
 Be their own Boss:
they are difficult to work with
have trouble accepting authority
have long term ambitions
frustrated working in traditional job
 Pursue their own ideas:
naturally alert, recognize idea for new product. Corporate
entrepreneur innovate within the context of an existing firm
typically a mechanism for their idea, in non cooperate setting
people through hobby, leisure activity or just in everyday life
recognize the need for a product.
Pursue Financial rewards
Characteristics of successful entrepreneurs
Passion for the business:
Business will positively influence people’s life
Why passion is important
i. ability to learn and iterate
ii. willingness to work hard for a extended period of
time
iii. Ability to listen to feedback on the limitation of
your organization and youself
iv. Ability to overcome setbacks and no’s
v. perseverance and persistence when the going get
tough
Product / customer Focus:
Good product with the capability of satisfying customers
Tenacity Despite Failures:
When setting a new business setbacks and failures are
inevitable, these are litmus test for entrepreneurs.
Executive Intelligence:
To open a business is very easy, to keep it open is difficult
To execute a business idea means developing a business model,
putting together new venture team, raising money, establish
partnership, managing finance, leading, motivating employees
etc.
Types of start up firms
Salary substitute firms
Lifestyle firms
Entrepreneurial firms