Entrepreneurship for engineers

(IEng5242)

Lecture 1

: Entrepreneurship for engineers for

1.1 Meaning of the terms entrepreneur,

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 What is Entrepreneur?
 Entrepreneurs, are action-oriented, highly motivated
individuals who take risks to achieve goals.
 An entrepreneur, is an individual who creates a new
business, bearing most of the risks and enjoying most
of the rewards.
 The entrepreneur is commonly seen as an innovator,
a source of new ideas, goods, services, and business/or
procedures.
 Entrepreneurs are people who have the ability;
to see and evaluate business opportunities,
to gather the necessary resources to take advantage of
them;
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to initiate appropriate action to ensure success.
 Who is an Entrepreneur?
 Entrepreneur is a person who owns, organizes, manages and
runs an enterprise assuming the risk of a business or
enterprise.
 Entrepreneur a person who establishes a new business
venture and is a visionary leader.
 a person who dreams great.
 Entrepreneur is a person who has the ability to see and
evaluate business opportunities to gather the necessary
resources to take advantage of them, and to initiate
appropriate action to ensure success.

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 Cont…
 Economists; view entrepreneurs as those who bring
resources together in unusual combinations to generate
profits.
 Psychologists; tend to view entrepreneurs in
behavioral terms as those achievement- oriented
individuals driven to seek challenges and new
accomplishments.
 Peter Drucker states, as “Entrepreneur is someone
who always searches for change responds to it, and
exploits it as an opportunity.”
 Example: It is the entrepreneur who only knows
Opening of new university near the society
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Opening of Hotels near tourists’ attraction-center
 What is Entrepreneurship?
 Entrepreneurship is the process of designing,
launching and running a new business, which is often
initially a small business.
 The people who create these businesses are
called entrepreneurs.
Entrepreneurship; is the capacity and willingness to
develop, organize and manage a business venture
along with any of its risks to make a profit.
 it is typically focus on the launching and running of
businesses, due to the high risks 

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 Cont…
 Entrepreneurship is the dynamic process of creating
incremental wealth.
This wealth is created by individuals who assume the
major risks in terms of equity, time and /or career
commitments of providing value for some product or
service.
The product or service itself may or may not be new or
unique but value must somehow be infused by the
entrepreneur by securing and allocating the necessary
skills and resources”
Entrepreneurship is very rarely a get rich-quick
proposition; rather, it is one of building long-term value
7 and durable cash flow streams.
 Generally Entrepreneur And Entrepreneurship
 Entrepreneur: a vision-driven individual who assumes
significant personal and financial risk to start or expand
a business.
 Entrepreneurship: The pursuit of opportunity
through innovation, creativity and hard work without
regard for the resources currently controlled.

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 Cont…

Entrepreneur Entrepreneurship Enterprise

The person The process The outcome

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 Factors Influencing Entrepreneurship

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 The Entrepreneurial Process
It is opportunity/market driven
 It is driven by a lead entrepreneur and an
entrepreneurial team
 It is resource parsimonious and creative
 It depends on the fit and balance among these
 It is integrated and holistic

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 Entrepreneurial Process
 Income generation is the initial stage in the
entrepreneurial process in which tries to generate
surplus or profit. They are often taken on part- time or
casual/informal
 Self-employment is the 2nd stage in the
entrepreneurial process and refers to an individual’s
fulltime involvement in his own occupation.
 Entrepreneurship, is the terminal stage of the
entrepreneurial process where in after setting up a
venture one looks for diversification and growth

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 Entrepreneurs Vs. Intrapreneurs
Entrepreneurs are people that notice
opportunities and take the initiative to mobilize
resources to make new goods and services.
Intrapreneurs also notice opportunities and
take initiative to mobilize resources, however
they work in large companies and contribute to
the innovation of the firm.
Intrapreneurs often become entrepreneurs.

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 Entrepreneurial Skills
 The following are foundational skills entrepreneurs
need to run and operate a successful business:
Communication Skills
– Writing, Speaking & Listening
Human Relations, communication and negotiation
Skills
Math or financial Skills
Problem Solving & Decision Making Skills
Planning and leadership skills
Technical Skills
Basic Business / marketing Skills
14 Project Management Skills
 Owner manager
 The owner-managers are a person who both owns a
business and manages it.
 Owner-managers of an enterprises are workers who
hold a job in an incorporated enterprise, in which they:
 Alone, or together with other members of their
families or one or a few partners, hold controlling
ownership of the enterprise; and
 Have the authority to act on its behalf as regards
contracts with other organizations and the hiring and
dismissal of persons.

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 Owner Managers and Entrepreneurs
 Both managers and entrepreneurs are answerable for
producing results. The results are, of course, different.
 Both are accountable.
 Both have to produce results through people working
with them though they deal with different sets of
people.
 They are not effective in the long run, if they are
loners.
 Both are decision-makers but the decisions are
different as their tasks vary.
 Both have to operate under constraints, which are
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understandably different. To be effective in their
 Owner Managers and Entrepreneurs
 Both have to follow sound principles of management
like planning, staffing, delegation and control.
 Generally Similarities between Managers and
Entrepreneurs
 To produce results
 To produce results through people
 To take decisions .
To cooperate under constraints
To follow sound principles of management
 A successful organization needs both entrepreneurship
and management.
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 The entrepreneur versus the owner manager
Entrepreneur
a. Entrepreneurial function is the organization of
production:
 Entrepreneurship is an economic concept. Economics
describes four factors of production, namely, land, labor,
capital and entrepreneurial ability (organizational skill).
b. Decision-making and calculated risk bearing:
c. An entrepreneur has an all-round personality:
d. High levels of achievement motivation
e. Innovative, creative, imaginative soul
f. The entrepreneur is the owner of the business who enjoys
the position of an employer.
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 Owner manager
 They may or may not be entrepreneurs.
 They own and manage a small enterprise, in a way,
which fits with their personal motivations.
 They are more intent on survival than seeking
innovative change and growth.
1. Limited scope for innovativeness, creativity and imagination
2. Managerial jobs are transferable
-As a manager in the business organization, his
job is transferable from office to office, from one
unit and location to another location
3. Managers do not bear-risk
-Risk bearing capacity is an entrepreneurial quality
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 K Y OU
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