Professional Documents
Culture Documents
LECTURE 1
ENTREPRENEURIAL PROCESS
Juliet Simon
Sum -1- 2017
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Entrepreneurship Defined
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What is an Entrepreneur?
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Why
are
entrepreneurs
Unique??
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Coz…
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Some Defined their lives
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Some Changed the world
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Some are in school
CEO, Elementeo
www.elementeo.com
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Some Changed their countries
Some …
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Factors Influencing an Entrepreneur
Personal Environmental
Attributes Factors
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Ten D’s of a successful Entrepreneur
Devotion
Dream
Details
Doers
Destiny
Characteristics of
Entrepreneurs
Decisiveness
Dollars
Determination
Distribute
Dedication
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Why become an Entrepreneur?
What was the main reason why you
decided to start your business?
being creative
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Risks of Entrepreneurship
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Characteristics of Entrepreneurs
Key Personal
Attributes
Strong Managerial
Competencies
Successful
Good Technical Skills
Entrepreneurs
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Ten Essential Entrepreneurial Skills
math teamwork
problem-solving social
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Common myths about entrepreneurs
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Model of Entrepreneurial Process
PERSONAL ORGANIZATIONAL
PERSONAL SOCIOLOGICAL
Job Loss Team
Achievement Networks
Job Dissatisfaction Structure
Locus of Control Parents & Family
Education Culture
Ambiguity Tolerance Teams
Age Strategy
Risk Taking Role Models PERSONAL
Gender
Education Advisors Manager & Leader
Commitment
Experience Commitment
Resources
Vision
ENVIRONMENTAL
Role Models ENVIRONMENTAL ENVIRONMENTAL
Creativity Economy Competitors
Opportunities Competition Customers
Incubator Suppliers
Moore Government Policy Investors
Economy
Model Policies
LAUNCH BUSINESS
LAUNCH
STRATEGY PLAN
License Develop PLANS
Allen Joint venture Team, Funding,
Start a business etc
Model
Allen, K.“Entrepreneurship for Scientists and Engineers”, Prentice Hall, 2010
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Model of Entrepreneurial Process
Timmons Model –
Start Up Stage
Uncertainty
Opportunity Entrepreneur
Uncertainty Uncertainty
Resources
• The Resources
– Capital, technology, equipment, and most importantly – people
– Low overhead, high productivity, and controlling, but not owning resources
– Find ways to get things done faster, cheaper or better.
Most companies will never take on outside investors, and many will never use debt
financing for growth. 87% of start up companies started with own money, 19% from
family/friends, 17% bank loans, 4% only from VC.
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Nine F’s of a Successful Company
• Once the entrepreneurs decide to pursue the opportunity, these nine
F’s are important factors to become a winning business (adapted
from the original list by Rosabeth Moss Kanter*).
• Founders • Forever-innovating
• Focused • Flat
• Fast • Frugal
• Flexible • Friendly
• Fun
*Kanter, R.M. “Change Masters: Innovation and Entrepreneurship in the American Corporation”, Simon & Schuster,
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Nine F’s of a Successful Company
Founders. Successful companies are led by a first-class, experienced
entrepreneur. This experience can be achieved through past
business experience or an in-depth entrepreneurial education, but
not by entrepreneurial zeal.
Focus. Successful company founders don't try to focus on broad
markets with their products or services. Instead, they specialize by
focusing on niche markets within these larger markets where there
are unmet customer needs and less competition.
Fast. When they know what they want, successful entrepreneurs go
for it. They make strategic decisions rapidly and thoughtfully,
implementing them quickly.
Flexible. These business owners are not fixed in their ways. They
always keep an open mind so they are able to respond to change.
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Nine F’s of a Successful Company
Forever innovating. By definition entrepreneurs are innovators. They are tireless
in their innovative zeal, which can sustain future product development as more
unmet market needs are discovered.
Flat. Because they abhor too much management, these entrepreneurs maintain the
minimal number of management layers possible within the business.
Frugal. These business owners know the difference between profit and cash flow,
and they strive to maximize both by keeping overhead costs low and productivity
high, thus minimizing expenses.
Friendly. These companies maintain a strong commitment to customer service
(providing customers what they want), as well as to the well-being of their
employees and satisfaction of their suppliers.
Fun. This is why these entrepreneurs started the business, and they never lose sight
of it, especially in the tough times.
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Summary
• We have covered:
• Our context of entrepreneur and entrepreneurship
• Rationales of people becoming entrepreneurs
• Characteristics of entrepreneurs
• Several entrepreneurship process models
• Brief introduction of funding issues for a start up
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