entrep

• Entrepreneurial activities today have become a very important and are keys to economic development. Growth, industrial development, including employment generation depend upon entrepreneurial behavior of a country.
• Entrepreneurs are the reason for a large quantity of highly developed industries which result to a greater employment opportunities for unemployed youth, increase in per capita income higher standard of living and increased individual saving, revenue to the government in the form of income tax, value added tax, export duties, import duties, and balanced regional development.
• Relevance of entrepreneurship to an organization

  • Development of managerial capabilities
  • Creation of organizations
  • Means of economic development
  • Improving standard of living
• Entrepreneur


  Someone who undertakes an enterprise
• What entrepreneurship is


  • The act of creating a business or businesses while building and scaling it to generate a profit
  • An important driver of economic growth and innovation
  • What people do take their career and dreams into their hands and lead it in the direction of their own choice
  • About building a life on your own terms. No Bosses. No restricting schedules. And no one holds you back
  • A person who sets up a business with the aim to make a profit and creates a new business, bearing most of the risks and enjoying most of the rewards
  • An innovator, a source of new ideas, goods and services and business or/procedures
  • Playing a key role in any economy using the skills and initiative necessary to anticipate needs and bring good new ideas to market
• Types of entrepreneur

  • Megaentrepreneurs - Individuals who are willing to absorb huge risks of using enormous amounts of capital in their business ventures
  • Microentrepreneurs - Individuals who are engaged in micro or small businesses as an alternative as an alternative formal employment
• Managerial capabilities/functions

  • Planning
  • Organizing
  • Staffing
  • Directing
  • Controlling
  • Decision Making
  • Problem Solving
  • Communicating
  • Budgeting
  • Evaluating
• Personal entrepreneurial competencies (achievement cluster)

  • Opportunity seeking
  • Persistence
  • Commitment to work contract
  • Risk-taking
  • Demand for efficiency and Quality
• Personal entrepreneurial competencies (power cluster)

  • Persuasion and networking
  • Self-confidence
• Qualities of successful entrepreneur

  • Initiative
  • Wide Knowledge
  • Open mind and optimistic outlook
  • Leadership Qualities
  • Willingness to assume risk
  • Adaptability
  • Self-confidence
  • Orientation towards hard work
• Core competencies in entrepreneurship

  • Economic and dynamic activity
  • Innovation
  • Profit Potential
  • Risk Bearing
• Types of entrepreneurs

  • Innovative Entrepreneur
  • Imitating Entrepreneur
  • Fabian Entrepreneur
  • Drone Entrepreneur
  • Social Entrepreneur
• Myths about entrepreneurs


  • Entrepreneurs, like leaders are born, not made
  • Entrepreneurs are academic and social misfits
  • To be an entrepreneur, one needs money only
• Entrepreneurs face demanding

  • Vendors
  • Investors
  • Bankers
  • Customers
• Factors affecting business opportunity

  • Markets
  • Individual Interests
  • Capital
  • Skills
  • Supplies of inputs
  • Manpower
  • Technology
• Market


  Refers to the number of prospective buyers, competitors, the price, and the quality of goods and services that have to be analyzed
• Individual interest


  Business interest of individuals should match business opportunities
• Capital


  Serves as the fuel that keeps the business operating
• Skills


  The entrepreneur should have the proper skills in the business he is going to undertake
• Supplies of inputs


  Steady suppliers of raw material and other inputs to the business
• Manpower


  The success of any business also depends on the efficiency of its employees
• Technology


  Entrepreneurs should be aware of the presence of technology to improve their products or services, or introduce new innovations in the market
• Stages of product life cycle

  • Introduction
  • Growth
  • Maturity
  • Decline
• Introduction stage


  High costs in bringing product to market but low sales resulting in initial losses
• Growth stage


  • Sales increase and unit costs decrease because of economies of scale
  • Product starts to become profitable at sales above the break-even point
• Maturity stage


  • Profits gradually increase as both demand peaks and costs continue to reduce because of efficiencies
  • Eventually competitors also enter the market with their own products in pursuit of these profits and this increased competition leads to a reduction in sales
• Decline stage


  Sales and profits reduce significantly as the product comes to the end of its life and customers move to other products
• Essentials in entrepreneur's opportunity seeking

  • Entrepreneurial mind frame
  • Entrepreneurial heart flame
  • Entrepreneurial gut game
• Entrepreneurial mind frame


  • Allows the entrepreneur to see things in a very positive and optimistic way in the midst of difficult situation
  • Being a risk-taker, an entrepreneur can find solutions when problems arise
• Entrepreneurial heart flame


  • Entrepreneurs are driven by passion
  • They are attracted to discover satisfaction in the act and process of discovery
  • Passion is the great desire of an entrepreneur to achieve his/her goals
• Entrepreneurial gut game


  • Ability of the entrepreneur of being intuitive
  • Also known as intuition
  • The gut game also means confidence in one's self and the firm belief that everything you aspire can be reached
• Sources of entrepreneurial opportunities

  • Changes in the environment
  • Technological discovery and advancement
  • Government's thrust, programs, and policies
  • People's interest
  • Past experiences
• Physical environment


  Includes climate, natural resources, and wildlife
• Societal environment


  Includes political, economic, sociocultural, and technological forces
• Industry environment


  Includes competitors, customers, creditors, employees, government, and suppliers
• Technological discovery and advancement


  Provides opportunities for entrepreneurs to identify new business ideas
• Government's thrust, programs, and policies


  Can be sources of entrepreneurial ideas
• People's interest


  Hobbies and preferences of people can lead to entrepreneurial ideas
• Past experiences


  Expertise and skills developed in a particular field may lead to the opening of related business enterprise
• Five forces of competition

  • Buyers
  • Potential new entrants
  • Rivalry among existing firms
  • Substitute products
  • Suppliers