Session 1 & 2

Entrepreneurship Introduction &

Overview

Discussion Topics
The World of the Entrepreneur
What is an Entrepreneur?
Entrepreneur Profile & Characteristics
The Benefits of Entrepreneurship
The Potential Drawbacks of Entrepreneurship
Behind the Boom: Whats Feeding the Entrepreneurial Fire?
Small Business & Its Power
Deadly Mistakes of Entrepreneurship
Putting Failure into Perspective
How to Avoid the Pitfalls

Entrepreneurs Hero
1. Bill Gates (Microsoft Corporation): is one of the best-known entrepreneur who left
Harvard and co-founded personal computer software company Microsoft with Paul
Allen. He is consistently ranked world's wealthiest people from 1995 2009. Time
Magazine named him as one of 100 people who influenced 20th Century.
2. Steven Paul "Steve" Jobs: was an American entrepreneur and inventor who was the
co-founder, chairman, and CEO of Apple Inc. He has been referred to as "futurist"
and a "visionary", and has been described as the "Father of the Digital
Revolution," and Master of Innovation. In 1976, Jobs and Wozniak formed their
own business, which they named "Apple Computer Company" and they started off
selling circuit boards. He was of the opinion that market research and focus group
only limited ability to innovate.
3. Sergey Brin: is an American computer scientist and internet entrepreneur who,
together with Larry Page, co-founded Google by borrowing money from faculty
members, friends and family for some servers & to rent a garage. They have
suspended their Ph.D for newly born enterprise. They dreamed about downloading
entire web onto computers.

Entrepreneurs Hero
4. Michael Dell: is an American entrepreneur who founded and CEO of Dell Inc., one
of the worlds leading sellers of personal computers (PCs). Dell started informal
business of upgrade kits for personal computers when he was students of Texas
University. Capitalization cost of Dell Computer Corporation was $1000 with
three members staff with screwdrivers sitting on six-foot tables.
5. Lawrence Joseph "Larry" Ellison an American businessman, entrepreneur, cofounder of Oracle Corporation and Enterprise Software Company who is declared
third-wealthiest man in America and as the fifth-wealthiest person in the world in
2014. He started Software Development Laboratories (SDL) with two partner and
$2000 investment.
6. Jeff Bezos: is technology entrepreneur who is founder and CEO of Amazon.com,
the largest book retailer on the World Wide Web and a top model for Internet
sales. He purchased Washington Post in 2013. He initially set up his company in his
garage.
7. Samuel Moore "Sam" Walton was an American businessman and entrepreneur
who founded the retailers Walmart and built it into largest company in the world.

Entrepreneurs Hero
8. Frederick Wallace "Fred" Smith is the founder, chairman, president, and CEO
of FedEx, originally known as Federal Express, the first overnight express delivery
company in the world, and the largest in the world. He came of this business idea
for Federal Express in a term paper for a Yale University.
9. Mark Elliot Zuckerberg is an American computer programmer and Internet
entrepreneur. Together with his college roommates and fellow at Harvard
University, Zuckerberg launched Facebook from Harvard's dormitory rooms. In
2007, at the age of 23, Zuckerberg became a billionaire as a result of Facebook's
success.
10. Muhammad Yunus is a Bangladeshi social entrepreneur, banker, economist and
civil society leader who was awarded the Nobel Peace Prize for founding
the Grameen Bank and pioneering the concepts of microcredit and microfinance.
These loans are given to entrepreneurs too poor to qualify for traditional bank
loans.

Entrepreneurial Profile

Desire for responsibility

Confidence to Succeed
High Level of Energy
Future Orientation
Skill at Organizing
High Degree of Commitment
Clarity about Purpose
Self-Motivation
Dynamic Personality
Technical Know How
Desire for Immediate Feedback
Preference for Moderate Risk
Value of Achievement over Money
Tolerance for Ambiguity
Flexibility

Who is Entrepreneur?
Entrepreneurship: Creation a new business in the face of risk and uncertainty
for the purpose of achieving profit and growth by identifying significant
opportunities and assembling the necessary resources to capitalize on them.
Entrepreneur: Person who creates a new business in the face of risk and
uncertainty for the purpose of achieving profit and growth by identifying
significant opportunities and assembling the necessary resources to capitalize
on them.
Serial Entrepreneur: Entrepreneurs who repeatedly start businesses and grow
them to a sustainable size.
Social Entrepreneur: Entrepreneurs who use their skills not only to create
profitable businesses, but also to achieve social and environmental goals for
the common good.

Entrepreneurship Other Perspectives

Entrepreneur are the guy who create creative destruction means people
who come up with ideas and embody those ideas in high growth companies.
Replicative entrepreneurs who set up small businesses much like others.
Innovative' entrepreneurs who upset and disorganise the existing way of
doing things.
A company CEO or Manager who disrupts a market, innovates, grows quickly
and captures most of the value in the market is highly entrepreneurial even if
using someone else's balance sheet.
Person who copies successful innovations from foreign markets and
introduces them into their home market, high-growth manner is also
entrepreneur.
Entrepreneurship is about game-changing innovation and ambition to rapidly
grow small businesses into big ones.

What Is An Enterprise?
A deliberate arrangement of people to accomplish some
specific purpose. All enterprise have three common
characteristics i.e. distinct purpose, deliberate structure
and people.

The Enterprise
Organization- An
As An
Open
System
The
Open
System
Environment

System

Inputs
Raw materials
Human resources
Capital
Technology
Information

Transformation
Employees work
activities
Management
activities
Technology and
operations methods

Feedback

Environment

Outputs
Products and services
Financial results
Social results
Information
Human results

Categories of Enterprises
For
Profit
Enterprise:
A
business
whose primary goal is making money (a profit).

or

other

organization

Not For Profit Enterprise: Non for profit organization which focuses a goal such as
helping the community and is concerned with money only as much as necessary to keep
the organization operating.
For Benefit Enterprise: New type of entity is appearing that operates like a traditional
business in many ways, but is founded primarily to provide social benefits rather than to
maximize financial returns. Hospitals, Universities are a few examples.
Like non-for-profits entity, wide range of social objectives are pursued.
Like for-profits enterprise, broad range of products and services that contribute to
financial success of the organization and contribute towards economy.

Benefits of Entrepreneurship
Opportunity to Create Own Destiny
Opportunity to Make Difference
Opportunity to Reach Full Potential
Opportunity to Reap Impressive Profits
Opportunity to Contribute to Society
Be Recognized for Efforts
Opportunity to Do What You Enjoy

Cultural Diversity of Entrepreneurship

Young Entrepreneurs: Generation X might be more appropriately called Generation E.
Women Entrepreneurs: Despite incentive and legislative action number of women
entrepreneur is small.

Immigrant Entrepreneurs: Unlike past today immigrant are educated & more skilled.
Part Time Entrepreneurs: Starting part time business is popular gateway to
entrepreneurship.

Home-Based Entrepreneurs: 91% of all home base businesses is small business.

Family Business: Family based companies account for 60 % of total U.S. employment.
Copreneurs: Entrepreneurial couples who work together as co-owners of their business.
Corporate Castoffs & Dropouts : Best defence against job insecurity is an entrepreneurial
offense.

Social Entrepreneurs: Business as mechanism for achieving social goal.

Drawbacks of Entrepreneurship
Start-up, a small business, or an initiative within a large corporation has always been a hitor-miss proposition.
New research by Harvard Business School shows, 75% of all start-ups fail.
35 % of new business fail within two years, 54 % shut down within four years & 64 % folded
within six years.
According to recent survey 65 % of entrepreneur devote 40 hours per week to their
companies.
Research study found that 29 % of small business owners had no plans to take summer
vacation.
34 % of business owners have no person to turn to for help when making a crucial decision.
Businesses do not produce grandchildren.

Income Uncertainty, Risk of Losing Entire Investment, Long Hours & Hard Work, Lower
Quality of Life Until the Business Gets Established, High Level of Stress, Complete
Responsibility, Discouragement

Feeding the Entrepreneurial Fire

Entrepreneurs as Heroes
Entrepreneurial Education
Shift to Service Economy
Technological Advancement
Independent Lifestyles
E-Commerce & Word Wide Web
International Opportunities

Deadly Mistakes of Entrepreneurship

Management Mistakes: Poor management as primary cause of business failure.
Lack of Experience: Experience about business spells the difference between failure and success.
Poor Financial Control: Adequate financial control and maintain cash flows are key for business success.
Week Marketing Efforts: Product philosophy instead of market philosophy ruins the business.
Failure to Develop a Strategic Plan: Small business owners neglect of strategic business planning.
Uncontrolled Growth: Business growth is natural, healthy and desirable of any business enterprise but
dangerous if not planned & controlled.
Poor Location: The choice of location especially for retailers is lifeblood for business.
Improper Inventory Control: Short of inventory & too much of wrong type of inventory.
Incorrect Pricing: How much it cost to make, market and deliver.
Inability to Make the Entrepreneurial Transition: Entrepreneur failure to manage transition phases of
business life cycle & product/service life cycle.

How to Avoid The Pitfalls

Know Your Business in Depth
Develop Solid Business Plan
Manage Financial Resources
Understand Financial Statement
Effective People Management
Keep in tune with Yourself

References
First Chapter - Essentials of Entrepreneurship and Small Business Management
Zimmerer/Scarborough
HBR (2001) - Natural-Born Entrepreneur; Forbes (2011) - How I Became An
Entrepreneur; HBR (1992) - The Reluctant Entrepreneur; HBR (1985) - The heart
of entrepreneurship; HBR (2013) - What Entrepreneurs Get Wrong; HBR (2010) How To Start An Entrepreneurial Revolution?; Smart Business Northern California
(2014) - A checklist for entrepreneurs, HBR (2001) - Natural-Born Entrepreneur;
HBR (2001) - The Top Ten Lies of Entrepreneurs; Fortune International Asia (2014)
- 12 Greatest Entrepreneurs of Our Time & What You Learn from Them;
Forbes(2014) - China 10 Richest Internet Entrepreneurs; Forbes (2010) - All Star
Students Entrepreneurs; Forbes (2012) - The Master Entrepreneur; Fineweek
(2014) - What's an entrepreneur really?
http://en.wikipedia.org/
Entrepreneurship I & II (Video)