GE ELEC 2

• Entrepreneurship


  The pursuit of opportunity beyond resources controlled
• Entrepreneurship


  The process of designing, launching and running a new business, which is often initially a small business, or as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit"
• Risks of entrepreneurship


  • Financial risks
  • Strategic risks
  • Technology risk
  • Market risk
  • Competitive risk
  • Reputational risk
  • Environmental, political and economic risk
• Financial risks


  An entrepreneur will need funds to launch a business either in the form of loans from investors, their own savings, or funds from family. The founder will have to put their own "skin in the game." Any new business should have a financial plan within the overall business plan showing income projections, how much cash will be required to break-even, and the expected return for investors in the first five-year timeframe. Failure to accurately plan could mean that the entrepreneur risks bankruptcy, and investors get nothing.
• Strategic risks


  An impressive business plan will appeal to investors. However, we live in a dynamic and fast-paced world where strategies can become outdated quickly. Changes in the market or the business environment can mean that a chosen strategy is the wrong one, and a company might struggle to reach its benchmarks and key performance indicators (KPIs).
• Technology risk


  New technologies are constantly emerging, particularly in the era of the Fourth Industrial Revolution. Some of these changes are characterized as "paradigm shifts" or "disruptive" technologies. To be competitive, a new company may have to invest heavily in new systems and processes, which could drastically affect the bottom line.
• Market risk


  Many factors can affect the market for a product or service. The ups and downs of the economy and new market trends pose a risk to new businesses, and a certain product might be popular one year but not the next. For example, if the economy slumps, people are less inclined to buy luxury products or nonessentials. If a competitor launches a similar product at a lower price, the competitor might steal market share. Entrepreneurs should perform a market analysis that assesses market factors, the demand for a product or service, and customer behavior.
• Competitive risk


  An entrepreneur should always be aware of its competitors. If there are no competitors at all, this could indicate that there is no demand for a product. If there are a few larger competitors, the market might be saturated, or, the company might struggle to compete. Additionally, entrepreneurs with new ideas and innovations should protect intellectual property by seeking patents to protect themselves from competitors.
• Reputational risk


  A business's reputation is everything, and this can be particularly so when a new business is launched and customers have preconceived expectations. If a new company disappoints consumers in the initial stages, it may never gain traction. Social media plays a huge role in business reputation and word-of-mouth marketing. One tweet or negative posting from a disgruntled customer can mean huge losses in revenue. Reputational risk can be managed with a strategy that communicates product information and builds relationships with consumers and other stakeholders.
• Environmental, political and economic risk

  Some things cannot be controlled by a good business plan or the right insurance. Earthquakes, tornadoes, hurricanes, wars, and recessions are all risks that companies and new entrepreneurs may face. There may be a strong market for a product in an under-developed country, but these countries can be unstable and unsafe, or logistics, tax rates, or tariffs might make trade difficult depending on the political climate at any point in time. Also, some business sectors have historically high failure rates, and entrepreneurs in these sectors may find it difficult to find investors. These sectors include food service, retail, and consulting.
• Rewards of entrepreneurship


  • Job satisfaction
  • Higher wages
  • Greater control
• Job satisfaction


  Many entrepreneurs start businesses because they have a passion for it. Striving for success means prolonging the life of the business and staying in touch with your passion long term. This sense of personal satisfaction is what drives many entrepreneurs
• Higher wages


  Although a third of all businesses fail in the first two years, according to the Small Business Administration, business owners who are still in business are financially better off than employees.
• Greater control


  Being your own boss or not having a boss is probably the greatest advantage of having your own business. It provides you with more control over your life. The profits you generate from your work benefit you, not someone else. You don't have to ask for time off, you decide when to have a vacation, how many hours to work and you can choose to do work you enjoy and find fulfilling. Being your own boss is also exciting; although it has special challenges, no day is the same and you have more flexibility and you will never stop learning
• Types of entrepreneurship


  • Small business entrepreneurship
  • Large company entrepreneurship
  • Scalable startup entrepreneurship
  • Social entrepreneurship
  • Innovative entrepreneurship
  • Hustler entrepreneurship
  • Imitator entrepreneurship
  • Researcher entrepreneurship
  • Buyer entrepreneurship
• Small business entrepreneurship


  is often when a person owns and runs their own business. They typically hire local employees and family members. Local grocery stores, hairdressers, small boutiques, consultants and plumbers are a part of this category of entrepreneurship.
• Large company entrepreneurship


  when a company has a finite amount of life cycles. This type of entrepreneurship is for an advanced professional who knows how to sustain innovation. Companies such as Microsoft, Google and Disney are examples of this kind of entrepreneurship.
• Scalable startup entrepreneurship


  This kind of entrepreneurship is when entrepreneurs believe that their company can change the world. They often receive funding from venture capitalists and hire specialized employees. Scalable startups look for things that are missing in the market and create solutions for them. Many of these types of businesses start in Silicon Valley and are technology-focused. They seek rapid expansion and big profit returns. Examples of scalable startups are Facebook, Instagram and Uber.
• Social entrepreneurship


  An entrepreneur who wants to solve social problems with their products and services is in this category of entrepreneurship. Their main goal is to make the world a better place. They don't work to make big profits or wealth. Instead, these kinds of entrepreneurs tend to start nonprofits or companies that dedicate themselves to working toward social good.
• Innovative entrepreneurship


  are people who are constantly coming up with new ideas and inventions. They take these ideas and turn them into business ventures. They often aim to change the way people live for the better. Innovators tend to be very motivated and passionate people. They look for ways to make their products and services stand out from other things on the market. People like Steve Jobs and Bill Gates are examples of innovative entrepreneurs.
• Hustler entrepreneurship


  People who are willing to work hard and put in constant effort are considered hustler entrepreneurs. They often start small and work toward growing a bigger business with hard work rather than capital. Their aspirations are what motivates them, and they are willing to do what it takes to achieve their goals. They do not give up easily and are willing to experience challenges to get what they want. For example, someone who is a hustler is willing to cold call many people in order to make one sale
• Imitator entrepreneurship


  are entrepreneurs who use others' business ideas as inspiration but work to improve them. They look to make certain products and services better and more profitable. An imitator is a combination between an innovator and a hustler. They are willing to think of new ideas and work hard, yet they start by copying others. People who are imitators have a lot of self-confidence and determination. They can learn from others' mistakes when making their own business.
• Researcher entrepreneurship


  take their time when starting their own business. They want to do as much research as possible before offering a product or service. They believe that with the right preparation and information, they have a higher chance of being successful. A researcher makes sure they understand every aspect of their business and have an in-depth understanding of what they are doing. They tend to rely on facts, data and logic rather than their intuition. Detailed business plans are important to them and minimize their chances of failure.
• Buyer entrepreneurship


  It is a type of entrepreneur who uses their wealth to fuel their business ventures. Their specialty is to use their fortunes to buy businesses that they think will be successful. They identify promising businesses and look to acquire them. Then, they make any management or structural changes they feel are necessary. Their goal is to grow the businesses they acquire and expand their profits. This kind of entrepreneurship is less risky because they are purchasing already well-established companies.
• Technopreneurship


  A blend of "technology" and "Entrepreneurship". It is a kind of entrepreneurship in the field of technology. The process of technopreneurship is a combination of technological advancements and entrepreneurial skills. In the products and services transformation, an integral part of technopreneur is technology. This is a new breed in the field of entrepreneurship. These types of entrepreneurship are suitable for a person who is intelligent, innovative, tech-savvy, appetite, and passionate in the calculation of risk. Technopreneurship gets to the next level of success through teamwork.
• Importance of technopreneurship


  Creating employment opportunities
• When startup businesses, then there is an increase in the pool of employment opportunities
• Entrepreneurship


  Acquiring and growing well-established businesses to expand profits
• Technopreneurship


  • Blend of technology and entrepreneurship
  • Combination of technological advancements and entrepreneurial skills
  • Integral part of technopreneur is technology
  • Suitable for intelligent, innovative, tech-savvy, risk-taking, passionate individuals
  • Achieves success through teamwork
• Creating employment opportunities


  Startup businesses increase job opportunities and help combat unemployment
• Local resources


  Entrepreneurs can utilize local natural and productive resources, increasing their value and reducing wastage
• Business diversification and decentralization

  Entrepreneurs can find business opportunities in suitable areas, including remote areas
• Technological advancement


  Creative and innovative technopreneurs play an important role in technology utilization and development
• Capital formation


  Entrepreneurs require funds from investors and financiers, utilizing public savings to drive economic development
• Cyberpreneurship


  Digitizing access to products and services by leveraging information technology, especially the internet
• Areas of Cyberpreneurship


  • Selling digital information products
  • Selling physical products
  • Selling sponsorship
  • Selling consultancy and services

  
• Creativity


  The act of turning new and imaginative ideas into reality
• Can creativity be learned?

  Creativity begins with a foundation of knowledge, learning a discipline, and mastering a way of thinking. It can be learned through experimenting, exploring, questioning assumptions, using imagination and synthesizing information.
• Creativity skills


  • Associating
  • Questioning
  • Observing
  • Networking
  • Experimenting
• Creativity in business


  Fuels big ideas, challenges employees' way of thinking, and opens the door to new business opportunities. Makes companies competitive, nurtures company culture, aids productivity, helps solve problems, and changes the world.