entrepreneurship

• Entrepreneurship


  Someone who is able to: Discover and recognise business opportunity, Create a viable idea for a business, product or service to generate value, Build a vision and carry it out by organizing the necessary resources by taking into account associated risks and rewards
• Entrepreneurship


  • Innovation spirit is the key
• Entrepreneur


  Requires managerial functions (planning, Organising, leading and controlling) and need to have skills in management (e.g. human, technical, and conceptual)
• Entrepreneur


  Requires skills for opportunity identification, take risks and create product and services
• Entrepreneur v Manager

  Requires managerial functions (planning, Organising, leading and controlling) and need to have skills in management (e.g. human, technical, and conceptual)
• Entrepreneurial Process


  1. Founder/entrepreneur

  2. Need for high achievement

  3. Taking personal responsibility for goals and problems

  4. Tolerance of ambiguity

  5. Not big risk takers, rather moderate, calculated risk takers, Comfortable with uncertainty

  6. Internal locus of control

  7. Degree to which people believe their lives are in control
• Opportunity


  Good idea not always = Good Opportunity, Gap in markets for products and services, these is a market demand
• Opportunity


  • Due to: Market trends, Problems in Existing Market
• Team


  • Relevant and complementary skills and experience, Motivation to succeed, Commitment, determination and persistence
• Maori Entrepreneurship


  • Communalism rather than individuality (to Whanau or iwi), Reciprocity (giving something in return for something one has received) rather than acquisitiveness (desire to acquire things), Social gain rather profits
• Small Business


  NZ definition those enterprises under 20 employees
• Unique contributions of small business

  • Vehicle for entrepreneurship, normally starts as a small business, Encouraging innovation and flexibility being small can make business more nimble and prepared to try new things, Maintaining closer relations with customers and community-owners part of community, Keep larger firms competitive, Generate new employment - 42% of all new jobs
• Stages of Growth - small business

  1. Inception: Focused on producing products and services and obtaining customers, Owners direction managerial and dedication is important

  2. Survival: Demonstrated as a workable entity, Producing product/service with enough customers but generating enough cash flow is a concern, Grow in size and profitability

  3. Growth: Economically strong and sufficient size and market penetration, Business requires professional managers and systems and enhanced planning, Threats from larger competition

  4. Expansion: Team building and delegation, Owner develop management team capable of taking over increase complex task, Needs to delegate responsibilities to manage growth

  5. Maturity: Business will either succeed or not, More formalised systems of operations
• 60% of Small Business's fail in 5 years
• Reasons for small business failure

  • Lack of expertise
  • Lack of experience
  • Lack of strategy
  • Poor financial control
  • Growing to fast
  • Lack of Commitment
  • Ethical Failure