ENTREPRENEURSHIP

IN THE TOURISM
AND HOSPITALITY
INDUSTRY
Topic 1
 TOPIC OBJECTIVES
1. To d e f i n e E n t r e p r e n e u r s h i p a n d E n t r e p r e n e u r
2. To d i s t i n g u i s h b e t w e e n e n t r e p r e n e u r s a n d s m a l l
business owners
3. To d i s t i n g u i s h b e t w e e n b u s i n e s s a n d s o c i a l
entrepreneurs
INTRODUCTION TO
4. D i s c u s s r e a s o n s w h y p e o p l e d e c i d e t o b e c o m e
entrepreneurs. ENTREPRENEURSHIP
5. I d e n t i f y f o u r m a i n c h a r a c t e r i s t i c s o f s u c c e s s f u l
entrepreneurs.
6. To k n o w t h e a d v a n t a g e s a n d d i s a d v a n t a g e s o f b e i n g a n
Entrepreneur
7. E x p l a i n t h e R e s u l t s o f M o t i v a t i o n o f E n t r e p r e n e u r
8. E n t r e p r e n e u r i a l P r o c e s s
2
OBJECTIVE 1
To define
Entrepreneurship
and
Entrepreneur
INTRODUCTION
There is tremendous interest in
entrepreneurship around the world. Especially
in this time of Pandemic.
Many people see entrepreneurship as an
attractive career path. Think about your
friends and others you know. In all probability,
you are acquainted with at least one or two
people who want to become an entrepreneur
—either now or at some point in the future.
Even though they were not a graduate of
Entrepreneurship or any course related to
business, many people ventured on this path.
Many took advantage of our situation, they
didn’t gave up on life but saw an opportunity
in the middle of chaos.
 WHAT IS ENTREPRENEURSHIP?
There are a lot of definition of Entrepreneurship and there are a lot of versions.
There is no single definition of entrepreneur exists and no one profile can represent today’s
entrepreneur, but research is providing an increasingly sharper focus on the subject.

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 FOR YOU,
WHAT IS
ENTREPRENEURSHIP?

6
 ENTREPRENEURS
There are many kinds of entrepreneurs. The word
‘entrepreneur’ is very flexible in the English language.
 DEFINITIONS OF ENTREPRENEURSHIP

• Derived from the French • Involves bringing about

entreprendre, meaning “to
undertake.”
• Individuals who recognize
opportunities where
others see chaos or
confusion.
change to achieve some
benefit. This benefit may
be financial but it also
involves the satisfaction of
knowing you have
changed something for
the better.

• An entrepreneur is an Venture Capitalist (Fred Wilson)

individual who takes • Entrepreneurship is the art
moderate risks and brings of turning an idea into a
innovation. business.
OBJECTIVE 2
To Distinguish
Between
Entrepreneurs
and Small
business Owners
 ENTREPRENEURS VS SMALL BUSINESS OWNERS

ENTREPRENEURS • Prefer a more stable and less

aggressive approach to running
their business.
• Aim to exploit • Often like stable sales, profits and
innovative venture modest growth and want to keep
opportunities and create the business at a size they can
new markets at home personally manage and control.
and abroad.
SMALL BUSINESS OWNERS

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OBJECTIVE 3
To distinguish
between Business
Entrepreneurs
and Social
Entrepreneurs
 BUSINESS ENTREPRENEURS VS SOCIAL ENTREPRENEURS
BUSINESS
ENTREPRENEURS
• Driven by the profit motive.
• They seek growth and profits
within the business world.
• They are constant innovators and
always trying to capture larger
market shares from a competitive
marketplace.
• They are pioneering individualists
who create one venture after
another and one innovation after
another.
SOCIAL ENTREPRENEURS
• They are driven by a mission
and seek to find innovative
ways to solve problems that are
not being or cannot be
addressed by either the market
• Both business and social or the public sector.
entrepreneurs seek innovation and
growth.
• They thrive in both small enterprises
and large organizations.
• They have a mind-set that separates
them from the rest of the population.
 • The performance of an entrepreneur is
MOTIVATION dependent on his/her ability and willingness to
– AN perform.
IMPORTANT • The term motivation has been derived from the
FACTOR word “motive” which is nothing but what prompts
any person to act in a particular manner.

20XX 13
 1. To u g h c o m p e t i t i o n

2. U n f a v o r a b l e
Why motivation environment

is an important 3. To c r e a t e p u b l i c
demand
factor
…
for an 4. To e n h a n c e
entrepreneur creativity

5. To i n c r e a s e
productivity
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OBJECTIVE 4
Discuss Reasons
Why People
Decide to Become
Entrepreneurs.
Why become an
Entrepreneur?
a. Be Their Own Boss
 Many entrepreneurs want to
be their own boss because
either they have had a
longtime ambition to own
their own firm or because
they have become frustrated
working in traditional jobs.
 Why become an
Entrepreneur?
b. Pursue Their Own Ideas
 Some people are naturally alert,
and when they recognize ideas
for new products or services,
they have a desire to see those
ideas realized.
 Established firms, however,
often resist innovation. When
this happens, employees are left
with good ideas that go
unfulfilled.
Why become an
Entrepreneur?
c. Pursue Financial
Rewards
 This motivation, however, is
typically secondary to the first
two and often fails to live up to
its hype.
 The average entrepreneur does
not make more money than
someone with a similar amount
of responsibility in a traditional
job.
The 6Cs that motivate
entrepreneurs to establish
their own business:

Change
Challenge
Creativity
Control
Curiosity
Cash
OBJECTIVE 5
Identify Four
Main
Characteristics
of Successful
Entrepreneurs.
Characteristics of Successful
Entrepreneurs
1. Passion for the Business
• The number one characteristic shared by successful
entrepreneurs is a passion for the business.
• This passion typically stems from the
entrepreneur’s belief that the business will
positively influence people’s lives.

“The most important thing about “The key is to have

starting a business is to be passionate
about what you do. I think it is very
difficult to enter a business you don’t
understand and have passion for”
Oleg Tschltzoff, Fotolia, NY.
passion and never give
up. This is imperative
because it creates a drive
to solve business
problems”
Peter Flint, Trulia.Com
Characteristics of Successful
Entrepreneurs
2. Product/Customer Focus
• An entrepreneur’s keen focus on products
and customers typically stems from the fact
that most entrepreneurs are, at heart,
craftspeople.
• Good products with the capability to satisfy
customers
• Also involves the diligence to spot product
opportunities and to see them through to
completion.
Characteristics of Successful
Entrepreneurs
3. Tenacity/Determined Despite Failure
• Because entrepreneurs are
typically trying something new,
the failure rate is naturally high.
• The litmus test for entrepreneurs
is their ability to persevere
through setbacks and failures.
Characteristics of Successful
Entrepreneurs
Execution Intelligence
• The ability to fashion a solid idea into a viable business
is a key characteristic of successful entrepreneurs.
• In many cases, execution intelligence is the factor that
determines whether a start-up is successful or fails.
• The ability to effectively execute a business idea means
developing a business model, putting together a new
venture team, raising money, establishing partnerships,
managing finances, leading and motivating employees,
and soon.
• It also demands the ability to translate thought,
creativity, and imagination into action and measurable
results.
 Characteristics of Successful Entrepreneurs

Have a spirit of Be hardworking and

adventure energetic
Have a strong need to Be passionate about
achieve and seek achieving their goals
personal accomplishment
Have a positive attitude
Be self-confident and
Be willing to take
self-reliant
initiative
Be goal-oriented
Have a strong sense of
Be innovative, creative, commitment
and versatile
Be persistent
 An eye for  Judgment
opportunity
 Ability to
 Independence
accept change

 An appetite for  Make stress

hard work work for them

 Self-confidence  Need to achieve

 Discipline  Focus on profits

Characteristics of Successful Entrepreneurs

OBJECTIVE 6
To know the
advantages and
disadvantages
of being an
Entrepreneur
Some key hurdles that all entrepreneurs and business owners
face when starting a business:
1. Developing the idea and business concept
2. Raising principal for startup business
3. Gathering a business team
4. Identifying the right business site, noble employees, and loyal customers
5. Competing with competitors
6. Unanticipated business trials and expenditures
7. Keeping up with industry changes and developments
8. Withdrawing the business
9. Down in the stagnations
10. Overrating, concentration and passion, and resolution
ADVANTAGES AND DISADVANTAGES OF BEING AN
ENTREPRENEUR
• Risk
• Uncertain and irregular incomes
• Long hours
• All decisions are made independently

• Are their own bosses

• Can choose a business that interests them
• Can be creative
• Can make large sums of money
 CAN YOU THINK OF
OTHER ADVANTAGES
AND DISADVANTAGES
OF BEING AN
ENTREPRENEUR?
OBJECTIVE 7
Explain the
Results of
Motivation of
Entrepreneur
 OUTCOMES OF
ENTREPRENEUR’S
MOTIVATION
• Heavy industrialization
• Self-employment
• Economic growth
• Creating new jobs
• Proper social benefit
ECONOMIC IMPACT OF ENTREPRENEURIAL FIRMS
Innovation
Is the process of creating
something new, which is central to
the entrepreneurial process.

Job Creation
In the past two decades, economic
activity has moved in the direction
of smaller entrepreneurial firms,
which may be due to their unique
ability to innovate and focus on
specialized tasks.
WHY
ENTREPRENEURSHIP IS
IMPORTANT?
 It furthers innovation to find
new solutions to existing and
emerging demands
 Entrepreneurial Firms’ Impact on Society
Impact on Society
• The innovations of
entrepreneurial firms have a
dramatic impact on society.
• Think of all the new products
and services that make our
lives easier, enhance our
productivity at work, improve
our health, and entertain us in
new ways.
WHY
ENTREPRENEURSHIP IS
IMPORTANT? It offers far greater
opportunities for wealth
creation for self and the
society than anything else
 Entrepreneurial Firms’ Impact on Larger Firms
Impact on Larger Firms
• Many entrepreneurial firms have
built their entire business models
around producing products and
services that help larger firms
become more efficient and effective.
• For example, some entrepreneurial
firms are original equipment
manufacturers, producing parts that
go into products that larger firms
manufacture and sell
OBJECTIVE 8
The
Entrepreneurial
Process
ENTREPRENEURIAL PROCESS
1. Discover y
2. Developing a Business Plan
3. Resourcing
4. Managing the company
5. Har vesting
Discovery

Harvesting Developing a
Entrepreneurial Business Plan
Process

Managing
Company Resourcing
 ENTREPRENEURIAL PROCESS
1. Discovery
• Begins with idea generation
• Evaluation of opportunities is a Discovery

difficult task.
• Once the opportunity has been Developing a
Harvesting
decided upon, the next step is Entrepreneurial
Process
Business Plan

to evaluate it
• An entrepreneur can evaluate Managing
Company Resourcing

the efficiency of an opportunity

by continuously asking certain
questions to himself.
 ENTREPRENEURIAL PROCESS
2. Developing a Business Plan
• Business plan acts as Developing a
a benchmark and Business Plan

the evaluation
criteria to see if the
Discovery Resourcing
Entrepreneurial
Process

organization is Managing
moving towards its
Harvesting
Company

set goals
 ENTREPRENEURIAL PROCESS
3. Resourcing
• Entrepreneur
identifies the sources Resourcing

from where the Developing a Managing

finance and the Business Plan Entrepreneurial
Process
Company

human resource can

be arranged .
Discovery Harvesting
 ENTREPRENEURIAL PROCESS
4. Managing Company
• Decide management Managing
structure Company

• Initiate the business

operations to achieve
Resourcing Harvesting
Entrepreneurial
Process

the set goals Developing a

Business Plan Discovery
 ENTREPRENEURIAL PROCESS
5. Harvesting
• An entrepreneur
decides on the future Harvesting

prospects of the Managing

business, i.e. its Company Entrepreneurial
Process
Discovery

growth and Developing a

development.
Resourcing
Business Plan
• A person who has the
role of industrialist and
forms an organization
for commercial use.
• A change agent who
transforms the demand
into supply by
forecasting the needs
of society.
ENTREPRENEU