Lecture Note 2

The distinction between Entrepreneurs and Managers

Who is Entrepreneur (general description)
An entrepreneur is a person who has an idea and strives to build a product or service that people will buy,
as well as an organization to support that endeavour. An entrepreneur may also be someone who has an
idea. Entrepreneurs are typically regarded as visionaries or innovators because of the significant risk and
initiative they take while starting a new firm.
1. While they are Coasting, an opportunity may come their way (or it may not).
2. Conservative (extremely cautious use of resources, conserving existing resources) (very
moderate use of resources, protecting existing resources)
3. Aggressive (proactive, all-in, actively pursues opportunity) (proactive, all-in, actively seeks
opportunity)
4. Innovator/Revolutionary (attains growth through innovation) (attains growth through
innovation)
There are generally agreed-upon classifications for wealthy and successful entrepreneurs: business owner
entrepreneurs and angel investor entrepreneurs. Both types of entrepreneurs can acquire a significant
fortune. There are some critical differences between the steps required to become an angel investor
entrepreneur and those required to become a business owner entrepreneur.
When it comes to the former, there is typically a deeper awareness of the desire to own the enterprise they
have. This drives a lot of their motivation. This persona takes great pleasure in exercising direct authority.
In addition, the firm's proprietor or Entrepreneur feels an overwhelming need to be involved right from the
start in formulating the idea. They are interested in being in the base camp, designing the camp themselves,
and then moving on. Because of the intensity of this urge for creation quality, we believe this behavioural
attribute is likely the most crucial factor in determining which of the two possible courses of action they
will choose to pursue.
Howard Schultz (https://www.starbucks.com/)
Ralph Lauren (sales assistant at Brooks Brothers started POLO https://www.ralphlauren.de/
Sophia Amoruso, https://www.nastygal.com/ https://www.girlboss.com/about
Daymond John, https://abc.com/shows/shark-tank, https://fubu.com/
Sam Walton, https://www.walmart.com/
Kevin Plank, https://www.underarmour.com/en-us/
Sara Blakely, https://spanx.com/
In the meantime, having a clear characteristic of a portfolio mindset distinguishes the angel investor
entrepreneur. According to the community of business owners surveyed, an angel investor's strategy from
the very beginning is to consider the possibility of investing in more than one firm. This was the consensus
of the community. Many people stated that they were so enthusiastic because they were involved in such
an interesting variety of businesses. They are, in essence, the financial bees that pollinate new company
opportunities. The current pollination pattern has a purpose that is tied to accomplishing a goal. This
outcome can be viewed as a financial return on one level. They all are Y Combinator, a startup accelerator
that invests in a wide range of startups twice a year.
Jeff Bezos
Paul Buchheit
Jeff Clavier
Paul Graham
David Lee
Max Levchin
Benjamin Ling
Marissa Mayer
Dave McClure
Dave Morin
Types and Functions of Entrepreneurs
Who exactly is this entrepreneur thing?
Entrepreneurs perceive a commercial need in their society, develop an idea for a business, and then take
the initiative to start their firm. Suppose a business idea does not centre on producing a product that fills a
gap in the existing market. In that case, it often centres on applying technical advancements to simplify
procuring a product or service.
1. Initiating and leading business activities
The role of an entrepreneur traditionally entails starting a business from scratch and seeing it through to
maturity. People continually create new requirements as societies grow, and an entrepreneur can satisfy
these needs with the ideas they have for their businesses. This concept for a business could involve the
provision of either goods or services that would be useful to the community.
2. Allocating employees' duties
Entrepreneurs must assign employee duties from the start. Small firms must be careful when hiring skilled
workers. Entrepreneurs must create a corporate structure and culture that maximizes employee potential.
Employees often make a business successful. So, to maximize business productivity, entrepreneurs must
define their team's roles and duties. Allocating tasks reduces team strife, boosts production, and boosts
morale.
3. Anticipating changes in the business environment
As they grow, most companies encounter some degree of unpredictability. Here, an entrepreneur's job is to
look forward and deal with problems as soon as they arise. Decisions like decreasing or increasing stock,
purchasing new software, and acquiring loans, can all be aided by a good forecast.
4 Creating jobs.
Business owners must make personnel decisions whenever they launch new ventures or grow existing ones.
Entrepreneurs think about who can keep things running well and who can handle the paperwork. An
entrepreneur may need to think about people who can work as service providers, software sellers, or
programmers, even if they do not directly hire workers to work in an office.
5. Identifying business opportunities
Entrepreneurs seek earnings opportunities. They choose new products and markets. Entrepreneurs should
listen to potential customers and research ways to create customized products. An entrepreneur can learn
how local businesses succeed by doing a little competition study. This may involve a physical survey or
reading industry trends. Interacting with clients also helps entrepreneurs understand their pain points or
problem area.
6. The generation of wealth and its distribution
Getting a business off the ground requires a series of steps and actions. Many entrepreneurs start with
savings and borrow from family, friends, or banks. Investors frequently look forward to investing in startups
that can become successful. In contrast, lenders build their own companies by growing their customers'
businesses by collecting interest on loans made to business owners. The cycle of such fund mobilization
can benefit the local economy's wealth growth.

7. Enhancing people's overall quality of life

The standard of living can be measured through an economy's production. These living conditions have the
potential to increase due to the advances or services that an entrepreneur's enterprise brings about.
Customers can minimize the amount of money they spend as a result of innovations that lower the costs
associated with producing a product. This results in the product's price being reduced while the company's
profits remaining the same. People can put the money they save by purchasing a product at a lower price
toward various goals when they can do so. There is evidence that people are now enjoying a higher standard
of living.
8. Accepting and managing one's share of the company's risk
When entrepreneurs begin a new venture, one of the first things they do is invest time in conducting analysis
and research to ensure that their ideas will be successful. An entrepreneur's responsibility is to minimize
any possibility of their company going out of business by taking whatever precautions are necessary to limit
their exposure to risk. These strategies include recruiting qualified and devoted personnel to the company,
acquiring insurance coverage for the most high-risk aspects of the organization, and incentivizing an
increased number of investors to purchase shares in the company so that it can expand.
9. Establishing important business alliances
For an entrepreneur's business to succeed, it must cultivate a climate where business partnerships can
flourish. One of the most important skills for entrepreneurs is the ability to generate and pursue new
company leads. Entrepreneur needs to make the most of their marketing capability, spend time talking to
qualified potential partners, and make consistent phone calls to all of their prospects. The formation of
strategic partnerships can assist business owners in improving the quality of decisions made for their
companies and even increase their access to additional funding.
10. Implementing digital technology into corporate processes
A business product or service can become irrelevant due to the introduction of new technology and the
rapid pace at which technology advances. Entrepreneurs must ensure that any company procedures or
activities they participate in use the most recent technological advancements. Among the many roles that
entrepreneurs play concerning technology are:

 researching the most cutting-edge approaches to lowering production costs

 Getting rid of equipment that is not helping increase profits is being considered.
 They are Planning training sessions for employees to acquaint them with the most recent technical
applications available on the market to enhance operational effectiveness.
 Using the most well-known and up-to-date marketing medium to increase the likelihood of reaching
the intended audience.
Role of Entrepreneurship in business development

 Entrepreneurship stimulates economic expansion.

Entrepreneurs are essential to market economies because they can serve as the engines of economic
expansion. Businesses promote new employment by developing new products and services, accelerating
economic growth. Hence, policies that stimulate and support entrepreneurship should be considered
essential for economic expansion.

Entrepreneurship generates a significant number of new jobs and possibilities. Entrepreneurship generates
a large number of entry-level positions that are crucial for transforming unskilled workers into skilled
workers. Additionally, it prepares and supplies huge industries with skilled staff. Expanding employment
in a nation largely depends on the rise of entrepreneurship. Hence, entrepreneurship plays a significant role
in creating new job prospects.
By incorporating innovation into every part of a firm, entrepreneurial ventures maximize the use of existing
resources to increase productivity. Entrepreneurs create new markets by introducing innovative products,
services, and technologies. Hence, they contribute to creating new wealth and increasing the national
revenue so that the government can provide more national advantages to its citizens.

 Entrepreneurship encourages innovation.

Entrepreneurs introduce innovation that paves the way for new businesses, markets, products, and
technologies by employing the proper research and development techniques. Entrepreneurs have a role in
resolving problems existing products and technology cannot answer. By creating new products and services
or introducing innovation to current ones, entrepreneurship can enhance the lives of others.

 Entrepreneurship can foster social transformations.

Entrepreneurs alter or dismantle society's traditions or cultures and minimize reliance on old methods,
structures, and technologies. Entrepreneurs are pioneers of new technology and processes that ultimately
bring about social transformation. These improvements are related to lifestyle improvement, generosity of
thought, and moral and economic options. Hence, social changes gradually influence national and global
transformations. Therefore, the significance of social entrepreneurship must be recognized. Duke's
Innovation and Entrepreneurship Initiative includes a specialized curriculum for Social Innovation. The
program is "building on and extending the university's strengths to create a transformative learning
environment that will inspire, prepare, and assist entrepreneurial leaders and scholars in their pursuit of
innovative solutions to the world's most pressing issues." As an illustration, one of the initiative's most
recent projects is the duke-UNICEF Innovation Accelerator, which focuses on entrepreneurship for
menstrual health and hygiene for women and girls in vulnerable areas in three African nations.

 Entrepreneurship encourages research and industrial growth.

In addition to coming up with novel company concepts and thinking outside the box, entrepreneurs
stimulate research and development. They cultivate their ideas, give them a new form, and transform them
into a profitable commercial ventures. Entrepreneurs are distinct types of individuals who always seek to
develop new concepts and enhance existing ones. Nevertheless, their influence extends beyond their
businesses and ventures: when an entrepreneur creates a new product, service, or idea, others frequently
follow suit (and sometimes even further refine the ideas). Entrepreneurs' collaborative efforts accelerate
innovation and industry. They can encourage one another, offer ideas and inspiration, and collaborate on
establishing new industries. Changes in the current industrial climate simultaneously create opportunities
for others. Hence, we can see that the significance of entrepreneurship to the economy is multifaceted.

 Entrepreneurship improves and expands existing businesses.

We frequently associate entrepreneurs with the creation of brand-new goods and concepts. However, they
also affect established businesses. Since entrepreneurs think differently, they can develop novel strategies
to extend and improve existing businesses. For instance, they are upgrading production processes, adopting
new technologies in the overall distribution and marketing operations, and assisting current businesses in
utilizing their existing resources more efficiently to maximize profit. In conclusion, supporting and
developing entrepreneurship can positively affect the economy and even current firms. Social
entrepreneurship raises the possibility of finding innovative solutions to social problems faced by
communities around the globe.
Entrepreneurs do
1. Wealth Creation and Sharing:
2. Create Jobs:
3. Balanced Regional Development:
4. GDP and Per Capita Income:
5. Standard of Living:
6. Exports:
7. Community Development: