entrepreneurship

• Entrepreneurship


  The ability and readiness to develop, organize and run a business enterprise, along with any of its uncertainties in order to make a profit
• Entrepreneur


  An individual who organises, manages and assume the risk of a business
• Definitions of entrepreneurship


  • Seeing entrepreneurship as a process of successful organisation
  • Seeing entrepreneurship as building mindset and skills
  • Generating jobs opportunities and lead to economic development
• Process of entrepreneurship


  Seeking business opportunities under the conditions of risk
• Entrepreneur


  An individual who creates a new business in the face of uncertainty for the purpose of achieving profit and growth by identifying and capitalizing opportunities and assembling the necessary resources to capitalise on the identified opportunities
• Entrepreneur


  An individual or a team thereof, having an innovative idea, and takes every step to turn the idea into reality, while bearing the risks
• Entrepreneurship


  A risky activity of commencing a business usually a startup company, offering distinct products and services to the target customers, which may or may not get success
• Importance of Entrepreneurship


  • Accelerates Economic Growth
  • Promotes Innovation
  • Promotes social changes
  • Promotes Research and Industrial Development
  • Develops and Improves Existing Enterprises
• Risk


  A chance taken by an entrepreneur of losing his time and money on a business that may not prove profitable
• Risk Takers


  People who view risk as potential gain
• Risk-Averse


  People who avoid all risk; they view risk as a threat of loss
• Business


  Economic activities performed for earning profits
• Goods


  Tangible, have a physical presence and can be touched
• Services


  Intangible in nature, products that cannot be touched, held in hand
• Differences between goods and services

  • Goods are tangible, services are intangible
  • Ownership of goods can be transferred, services cannot be separated from the service provider
  • Goods can be stored, services cannot be stored
  • Goods have a significant time gap between production and consumption, services are produced and consumed together
• Revenue


  The total amount of money a business takes in during a given period by selling goods and services
• Expense


  The cost of operations that a company incurs to generate revenues
• Profit


  The amount of money a business earns above and beyond the cost (expenses)
• Profit


  Revenue - Expenses
• Entrepreneurship process


  1. Identifying (Idea Generation) & Opportunity Evaluation

  2. Business Planning

  3. Company formation/launch

  4. Manage the enterprise
• Identifying and Evaluating Opportunity

  • The first stage of entrepreneurial process is to identify the potential opportunities and evaluate them effectively
  • It is very essential for entrepreneur to remain attentive and on serious while searching options
  • These opportunities should match the skill and expectations of the entrepreneur
  • Every entrepreneur must devote required time and determination to exploit opportunities efficiently
• Developing Business Plan


  • A well-defined plan is essential for starting a new venture
  • A business plan is a detailed layout of entrepreneurial activities in the form of a document based on detailed assessments and significant facts and figures
  • A business plan also explains the technical viability and success chances of the business idea
  • It is also suggests different actions to be performed in different sections to realize the business opportunity
• Company formation/launch


  1. Entrepreneurs must carefully determine the required business resources to form the business entity

  2. Technical resources needed for production purpose in order to develop quality products

  3. Financial resources like cash-in-hand equity and borrowing authorities

  4. Physical resources in the form of assets such as buildings machinery equipment, and vehicles

  5. Human resources including skilled and experienced employees and workers with emotional and intellectual abilities

  6. Intangible resources such as information, networks, protected patents, latest technology, and brand recognition
• Manage the enterprise


  • Procured resources are utilized for effective implementation of business plan
  • Management of the enterprise is also crucial
  • Entrepreneur develops an appropriate organizational structure and style
  • Key success factors are also determined in this stage
  • This is the most challenging stage of entrepreneurship as some entrepreneurs fail to manage and grow the enterprise
• Small and Medium Enterprises (SMEs)


  • Businesses that maintain revenues, assets, or a number of employees below a certain threshold
  • Include both manufacturing and service businesses
  • Each country has its own definition of what constitutes a small and midsize enterprise
• Classification of SMEs in Oman

  • Micro establishment: 1-10 workers, annual revenues less than OMR150,000
  • Small establishment: 11-50 workers, annual revenue OMR150,000-1,250,000
  • Medium establishment: 51-150 workers, annual revenue OMR1,250,000-5m