LESSON 1: Nature and Importance

of Entrepreneurs
ENTREPRENEURIAL COMPETENCIES

 Entrepreneurs - An individual who takes initiative to bundle resources

in innovative ways and is willing to bear the risk and or uncertainly to
act

 An individual who gathers resource to create an economic activity

while bearing different types of social and economic risk.

 Entrepreneurship is the process of creating something new

Characteristics of Entrepreneurship

1. Economic and dynamic activity

2. Related to innovation
3. Profit potential
4. Risk bearing
Entrepreneurial Decision Process
1. Recognize the problem – the gap

2. Analyze the problem

3. Define possible solutions

4. Analyze all possible solutions

5. Select the best solution for the application

6. Implement the decision

Personal Entrepreneurial Skills
 Inner Control/ disciplined
 Risk Taker
 Innovative
 Change oriented
 Persistent
 Visionary leader
 Ability to Manage change
 Self-belief
The Drawbacks of Entrepreneurship

• Uncertainty of Income
• Risk of losing your entire Investment
• Long Hours and Hard Work
• Lower Quality of Life until the business get
established
• High level of stress
• Complete Responsibility
  Know your business in depth.
 Develop a good, effective and solid Business
Plan.
How to avoid failure in an Entrepreneurial business?
 

 Manage your financial resources effectively.

 Have a thorough and complete financial
statement.
 Learn hire and manage people effectively.
 Keep physically fit.