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Entrepreneurship (IEM-321)

The document defines entrepreneurship and discusses the characteristics of successful entrepreneurs. It notes that entrepreneurs take risks to start new businesses by identifying opportunities and assembling resources. Key characteristics include being a risk taker, having a strong desire to achieve, versatility, dedication, self-confidence, and the ability to work with others. The document also distinguishes entrepreneurs from managers, noting that entrepreneurs own businesses and are responsible for combining resources and converting ideas into products, while managers ensure day-to-day operations run effectively and efficiently.

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Shakeel Mohmand
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42 views12 pages

Entrepreneurship (IEM-321)

The document defines entrepreneurship and discusses the characteristics of successful entrepreneurs. It notes that entrepreneurs take risks to start new businesses by identifying opportunities and assembling resources. Key characteristics include being a risk taker, having a strong desire to achieve, versatility, dedication, self-confidence, and the ability to work with others. The document also distinguishes entrepreneurs from managers, noting that entrepreneurs own businesses and are responsible for combining resources and converting ideas into products, while managers ensure day-to-day operations run effectively and efficiently.

Uploaded by

Shakeel Mohmand
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Entrepreneurship

(IEM-321)
Definition
The Entrepreneur
The word entrepreneur in English originated from the
French word ‘entreprendre’, meaning ‘to undertake’.
someone who takes the risks of running an enterprise by
paying certain price for securing and using resources for a
product and resetting it at an uncertain price.

 Entrepreneurship
This is the act or process of identifying business
opportunities, assembling the necessary resources, taking
calculated risks to initiate a successful business activity.
Characteristics of Successful Entrepreneur
one who establishes a business and manages it only for profit without a
vision for growth is more of a business person than an entrepreneur. In
other words all entrepreneurs are business people and not all business
people are entrepreneurs. Some characteristics are following;

 Risk Taker
Entrepreneurs are often thought of in terms of the risk they assume.
Entrepreneurs are neither high nor low risk takers. They prefer situations
in which they can influence the outcome, and they like challenges if they
believe the odds are in their favor.
Characteristics of Successful Entrepreneur
Desire to Achieve
Any successful entrepreneur will tell you that starting a business is not a get-rich-
quick alternative. New businesses usually take from one to three years to turn a
profit. In the meantime, you will do well to break even. At start-up stage,
entrepreneurs do not buy anything they do not need, his focus is on creating a
company with a strong financial base for future expansion. A strong enough dream
and desire will always point towards success and provide the fuel to get there.

Personal Life
All successful entrepreneurs work long hours, which cuts into their personal life.
However, long working hours are not unique to entrepreneurs. Many corporate
managers and executives work well beyond the average forty-hour work week, some
higher-level manager calls a Saturday meeting, you’ve got no choice but to be there.
They schedule important meetings, during the week so that they can have
weekends off for their personal life, which is very important to them.
Ability to Work with Others
Initially, entrepreneurs might work alone, the astute entrepreneur knows that he
or she must draw on the experience and ideas of others in order to succeed.
Entrepreneurs will actively seek the advice of others and will make many business
contacts to validate their business ideas. The entrepreneur who is a loner and will
not talk to anybody will never start a successful business.

Versatile Knowledge
A recent study of successful entrepreneurs showed that most of them worked for
a large corporation for a number of years before they started their own business.
In every instance, they used the corporate structure to learn everything they
could about the business they intended to establish, before they started.
Dedication
Dedication is an attribute that all successful entrepreneurs exhibit. They are
dedicated to becoming their own boss. To this end, they will conduct extensive
research campaigns into the advantages and disadvantages of their business ideas
in their dedicated drive to start a business.
Self-Confidence
An entrepreneur is confident of achieving realistic and challenging goals,
coupled with a sense of effectiveness, will ultimately contribute to the
success of the venture. They also have the ability to solve problems and make
decisions which involves striving with determination.

Independence
Many individual become ‘economically displaced’ (unemployed). For these
individuals, starting a new venture can be advantageous, a breath of fresh air
into an otherwise stale life-style.

Initiative and Positives Thinker


They have the ability to generate new ideas and implement them ahead of
the others to be able to create a competitive edge. Entrepreneurs are
resourceful and creative.
Function of Entrepreneur
The general function of an entrepreneur is to achieve one or more of
the following objectives.
Entry of a new venture into an existing system
Survival or expansion of existing ventures
 Achieve operation efficiency
 Achieve higher productivity
 Use non-conational resources
 Make optimum use of unutilized or underutilized resources
 Add value to existing goods or services
 Savings in costs of inputs
For success of an entrepreneur; innovatory attitude is fundamental. The complex tasks that
the successful entrepreneurs usually perform may be classified under the following major
functional areas.
Understanding own capability; This involves examining dominant aspect of the business
environment that influence survival and growth of an enterprise, identifying and comparing
own personal abilities and skills vis-à-vis those particularly essential to entrepreneurial success
and to establish own strength, weaknesses and the overall capability to translate a creative
ideas into a business reality.
 Planning a new venture; This function entails preparation of project report; estimating
technical know-how; plant machinery and supporting services needed and knows their
suppliers. The function also involved establishing legal requirements for setting up a new unit,
understanding layout of production operation and space requirement as well as estimating
both permanent and working capital needed to start up a venture and immediate future
requirement.
Organizing a new venture; This function involves among others determining organizational
structure of an organization choosing the form of ownership of the
proposed firm. Ensuring proper maintenance of office records, initiating steps for
observance of related statutory and non-statutory requirements.
 Identifying a new venture opportunity; This entails identifying market needs and establishing
need for a change. Carrying out market research and analyzing techno-economic feasibility of
an idea conceived in mind. To establish answers to internal and external risk. Factors as well as
ascertaining the workable new venture opportunity.
Managing finance; This function entails arranging own and borrowed capital,
availing grants and subsidies obtainable from government where appropriate,
outlining business credit policy and collection procedure. In addition the function
also entails preparation and review from time to time sectional and master budgets
in addition to period funds flow that need to be prepared.
Managing production operation; This function basically involves formulation
of purchasing policy and inventory central system; formulation of framework for
total quality control and guidelines for production schedule and ensuring that
every component/raw material procured is of right quality from right source at
right price in right quantity and is delivered at right place and in right time.
Managing work force; This function involves among other systematic
manpower planning, preparation of job descriptions for all positions at all level,
determining pay and perquisites for each position, selecting and recruiting
personnel for each position and assigning responsibility. The function also
involves delegation of authority to the personnel concerned; supervising training
and motivating employees as appropriate as well as evaluating performance of
each employee.
 Managing market; This is a function that entails collecting and analyzing
regularly data on customer needs with special references to product quality;
function of the product, pricing and after sale service.
Distinction Between Entrepreneur and
Manager
A manager can be defined as the individual who oversees the day to day
operations and efficiency of a continuous process. The tasks of a manager
include availing required personnel machinery and raw materials which are
combined in appropriate proportions to produce outputs, minimize wastages,
maximize resources, and execute contracts and marketing. A manager is
therefore responsible for the achievement of vision, mission, and objectives
of the venture using the minimum resource possible. The entrepreneur on
the other hand is responsible for combining resources, locating new ideas,
and converting them into products and services. Managers on the other hand
are viewed as people who ensure operations are functioning effectively and
efficiently. The entrepreneur must coordinate, direct others to direct the
business to a new development.
An entrepreneur is a person who organizes and manages a business
undertaking assuming the risk for the sake of profits. An entrepreneur
requires communication skills; the ability to make one understood. To be
successful one requires technical skills to understand his product and market.
A successful entrepreneur must have strategic management skills to
consider both long and short-term implication of decisions made;
strength and weaknesses as well as competition. In the past,
entrepreneur was viewed as a boss but of recent he is viewed as a
leader. Many entrepreneurs were self oriented but now they are a net
workers. They need to take quick decisions but now they take time to
build imagination. A manager can be said to be one who does not own
the venture while as an entrepreneur owns the venture and manager
of the venture who maximizes opportunities. A manager may be
employed by Entrepreneur to manage the business on behalf of the
entrepreneurs and take to policies formulated by the entrepreneur for
which he/she had no direct role when they were made.
END

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