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RUENERPERTEN
ENTREPRENEUR
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ESIRPRETNE
ENTERPRISE
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TENMENMAGA
MANAGEMENT
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ENTREPRENEURI
URENPERTELINAE
AL
R
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HENPERTNERPUREI
ENTREPRENEURSHI
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 ENTREPRENEURIA
L MANAGEMENT
CHAPTER 1
An Overview of Entrepreneurship
 Learning Objectives:

Having gone through this lesson, you may be able to:

 distinguish between entrepreneurship, entrepreneur and enterprise.
 Identify the characteristics of an entrepreneurial traits.
 Identify the different functions of entrepreneur in the society and
economy.
 Identify the different types of entrepreneur.
1  The American Heritage Dictionary defines an
entrepreneur as a person who organizes and
directs a business enterprise, assumes all the
risks for the sake of profit.

The word entrepreneur comes from the French

word “entreprendre” which means to begin
something, undertake.
1 An establishment that supplies
us with products and services
in exchange for payment is an
enterprise or business.
• Entrepreneurship is the act or
process of organizing and
directing a business enterprise.
(Asor, 2012)

• Entrepreneurship is also described

by renowned scholars as a
dynamic process and an approach.
• (Albert Shapero )
Entrepreneurial Traits and
Characteristics
1. Moderate in taking risk
Entrepreneurs like challenges suited to their skills. They want to
make things happen rather than let them happen by chance.
Characteristics of
Entrepreneur
￮ 2. Self-Confidence
Self- confidence means believing you can achieve what you
set out to do. You are not afraid to take chances
Characteristics of
Entrepreneur
￮ 3. Hardworking

￮ Creating a new enterprise is hard

work.
Characteristics of
Entrepreneur
￮ 4. Goal Oriented

A goal is an objective, something you plane to achieve. Your

chances of becoming a business owner are slim unless you first
decide you want to own your own business.
Characteristics of
Entrepreneur
￮ 5. Innovative
Successful entrepreneurs are innovative because they
introduce new ideas or methods
Characteristics of
Entrepreneur
￮ 6. Knowledgeable About Technical Factors.

. Technical knowledge is what you know about a product or

service.
 Characteristics of
Entrepreneur
￮ Knowledgeable About Business Factors.
. Business knowledge is knowing how to operate the enterprise. Entrepreneurs must
see that all tasks are performed appropriately.
 Functions of Entrepreneurs

discover new
develop new mobilize capital
sources of
markets resources
materials

introduce new
technologies new Create Provides taxes
industries and employment to the economy.
new products.
 Types of Entrepreneur

￮ (1) solo self-employed individuals

￮ They generally perform the work themselves rather than

assigning it to other people. Solo self-employed individuals are
perhaps the most numerous of all entrepreneurs.
 Types of Entrepreneur

￮ (2) Team Builders.

￮ Entrepreneurs who expand small, usually one-person

businesses into larger companies are team builders.
 Types of Entrepreneur

￮ (3) independent innovators

￮ Individuals who create companies to manufacture and sell
products they have invented are independent innovators.
 Types of Entrepreneur

￮ (4) Franchisers
￮ Individuals who create companies to manufacture and sell
products they have invented are independent innovators.
 Types of Entrepreneur

￮ (5) Economy-of-Large-Scale Exploiters

￮ When a firm has lower average costs due to its large sales
volume, economies of large scale are involved. Entrepreneurs
who can sell a large volume of goods at reduced prices are
economy-of-large-scale exploiters.
 Types of Entrepreneur

￮ (6) Capital Aggregators

￮ Entrepreneurs who take the lead in establishing financial
institutions that require a large amount of start-up capital are
capital aggregators.
 Types of Entrepreneur

￮ (7) Acquirers
￮ People who become entrepreneurs by buying an existing business
are acquirers. Finding a business that someone is ready to sell is
not usually difficult.
 Types of Entrepreneur

￮ (8) Buy-Sell Artists.

￮ Rather than making their money from the day-to-day operations
fo a business, buy-sell artists turn profit by buying a business and
then selling it at a higher price. Buy-sell artists usually buy
companies with problems that they solve before they sell the
company.
Thank you
QUIZ # 1