ENTREPRENEURSHIP

Lecture No: 07
BY
Asad Bukhari
 Students Learning Objectives
 To identify some key entrepreneurial Feelings and
Motives.

 To discuss the importance of role models and support

systems.

 To identify the similarities and differences between

male and female Entrepreneurs.

 To explain the differences Investors and Entrepreneurs.

The Individual Entrepreneurial-II
 Role Models & Support System
 parents, relatives, or
entrepreneurs in the
community.
 may serve as mentors.
 may help establish a moral
support network.
 invaluable source of counsel
and advice.
Who are your
entrepreneurial role models?
 The Individual Entrepreneur-II
Support System:
 EP establish connections to support resources early in the
formation process.

 Contacts expand they form a network with density

(extensiveness of ties between two individuals).

 And centrality (the total distance of the entrepreneur to all

other individuals)

 Strength of ties – Dependent on the frequency, level, and

reciprocity of the relationship.

 An informal network for moral and professional support

benefits the entrepreneur.
 Role Models and Support systems

Moral-Support Network:

 To establish a Moral Support Network of family and friends.

 Most EPs indicate their spouses are their biggest supporters.

 Friends can provide advice that is more honest than that received
from others.

 Plus encouragement, understanding and assistance.

 Relatives can also be sources of moral support, particularly if they

are also entrepreneurs.
 Role Models and Support systems

Professional-Support Network:
 Needs advice and counsel can be obtained from professional.
 Mentor-protégé relationship = Coach, Advocate.
 Indl selected needs to be an expert in the field.
 An EP can indicate mentor-finding process by identifying and
contacting a number of experts.
 Should be apprised of the progress of the business.
 Network of business associates.
 Self employed individuals.
 Clients and buyers are important as they provide work of mouth
advertising.
 Suppliers are good components of this network.
 Trade associations are good network additions, as they keep up
with new developments and can provide overall industry data.
 Male Vs Female

Departure Points:
 Starting the business are similar for both men and women.
 Both to a new venture is easier when the venture is an outgrowth
of a present job.
 Women often leave a previous occupation with a high level of
frustration and enthusiasm for the new venture rather than
experience.
Start-Up Financing Occupation Background:
Men investors, bank Both have experience in Backgrounds of both
loan, or personal loans. the field of their are similar. Women
Women solely rely on ventures. are little elder when
Men have exp:
personal assets or Manufacturing, Finance,
they embark on their
savings. or Technical Areas. careers.
Women have exp: Men have in
Administrative and technical or
Service-related fields. business-related
areas.
 Male Vs Female (Contd….)

Personality Support Groups Nature of the Venture:

Tend to be Men usually list Women more likely to
energetic, goal- most of important start a business in a
oriented, and supporters, with service-related area.
independent. spouse second. Men are more likely to
Men are often Women list their enter manufacturing,
more confident and spouse first, close construction, or high-
less flexible and friends second, technology fields.
tolerant than and business
women. associates third.
 Entrepreneurs
Men Vs.
 Motivated to achieve
independence and ‘make things
happen.’
 Departure point: job
dissatisfaction, layoff.
 Support group: friends,
professional acquaintances.
 Initiates between ages 25-35.
More likely to start a business in
manufacturing, construction or
high tech.
Women
 Motivated to accomplish a
goal and achieve
independence.
 Departure point: job
frustration, change in personal
circumstances.
 Support group: spouse, family,
close friends.
 Initiates between ages 35-45.
More likely to start a service
business.

Most other dimensions show no differences.

(Hisrich & Peters, p. 76)
 Minority Entrepreneurship
 Difficult to research race and authenticity.
 Entrepreneurial factors of various groups must be understood, in
the context of the environment and economic opportunities
available.
 Most literature dealing with minority EP Ship focused on the
characteristics of the group under-study.
 In terms of ownership, one study found:
 Lowest participants rate is for blacks
 Second highest but fastest growing rate is for Hispanics.
 Highest rate is for Asians.
 Studies have also found:-
 Differences in education, age, family background, age when
starting the ventures.
 Differences between ethnic groups, benefiting from community
resources.
 EP Ship has increased among Asians, African Americans,
Hispanics, and Native Americans.
 Entrepreneur Vs. Inventor
An inventor creates something for the first time. While the
entrepreneur falls in love with the new venture, the inventor
falls in love with the invention and often requires the
expertise of an entrepreneur to launch a new venture.

Historians classify Albert Einstein as an inventive genius and Henry

Ford as an entrepreneurial genius. Do you agree or disagree? Why?
 Warning: Difficult personality types.

Shotgun An entrepreneurial type who quickly

Sam identifies new, promising opportunities but
rarely, if ever, follows through.
Simplicity A type who thinks everything is a lot simpler
Sue than it actually is and feels she can create a
successful business through easy solutions.
Prima A type so in love with his own idea the he
Donna Paul feels everyone is out to steal his idea and
take advantage of him.
Ralph the This type is well grounded in theory but lacks
Rookie real-world business experience.
 Difficult personality types (continued)
Meticulous A perfectionist type who is so used to having
Mary things under control that she cannot handle
catastrophe, ambiguity and/or chaos.
Underdog This type is not comfortable with actually
Ed transforming the invention into a tangible
business success. Attends seminars.
Hidden This type does not have the right motives and
Agenda objectives for developing and expediting a
Harry new enterprise.
Inventor An inventor more than an entrepreneur,
Irving Irving is more concerned with the invention
itself rather than creating and expediting a
business.
International Entrepreneurship is the process of
an entrepreneur conducting business activities
across national boundaries.
• Foreign investors helped build the early
industrial base of the
United States.
• Ability of US. entrepreneurs
to take advantage of foreign
markets will significantly
impact future, U.S. economic
health.
 International Entrepreneurial Process
The Nature of International Entrepreneurship:
 Exporting
 Licensing
 Opening of sales office in another country
 International entrepreneurship occurs.

Importance of International Business to the Firm:

 International business increasingly important to forms of all
sizes.
 The successful EP will be someone who understands how
international business differs from domestic business and is
able to act accordingly.
 International Entrepreneurial Process
International Vs Domestic Entrepreneurship:
 Concerned about the same basic issues-sales, costs, and
profits.
 What varies is the relative importance of the factors being
considered.
 Intl EP Niel decisions are more complex due the
uncontrollable factors such as the following:
 Economics
 Balance of Payments.
 Type of System Barter or Third-party arrangements.
 Political-Legal Environment
 Cultural Environment
 Technological Environment
 Strategic Issues
International Entrepreneurial Opportunities
Entrepreneurial Entry into International Business:
 Exporting
 Indirect exporting
 Direct exporting
 Non-Equity arrangements
 Licensing
 Turn-key projects
 Management contracts
 Direct Foreign Investment
 Minority interests (provides the firm with either a source
of raw materials or a captive market for products).
 Joint ventures (Two firms get together and form a third
company in which they share the equity).
Thank you!