Académique Documents
Professionnel Documents
Culture Documents
Subordinated rights
Limited Earnings
Curbing (restrain) of initiatives
Possibility of mismatched career
Does not enjoy any pleasure of doing anything unique
Can not easily provide jobs at their choice for some one they require
to do.
Advantages of Becoming Entrepreneur
1. Self-expression
2. Growth
3. Community Service
4. Self-employment
5. Social Relations
6. Advancement
7. Security [none can fire him]
8. Legacy – heirs can inherit wealth
9. Independence
10. Proving capability better than others
11. Enjoy greater prestige and status in the society
12. Desire to occupy time when financially independent, regards of age.
13. Desire to supplement income after retirement
14. Efficient & creative
Definition of Entrepreneurship
Entrepreneurship is considered as the act of assuming the risk and the tasks of an
entrepreneur.
1. Kuratko D F and Hodgetts RM – “ The process of organising,
managing and assuming the risks of a business.”
2. Koontz & Fulmer – “The ability of a person to see business
opportunity, to get together the capital needed to take advantage of
the opportunity, and to start a business, taking the risk of failure in
the hope of reaping the rewards of success.”
3. Nathaniel H Leff – “Entrepreneurship is the capacity for
innovation, investment, and expansion in new markets, products
and techniques.”
4. An expert ‘ “The act of starting a business
Definition of Entrepreneur
Entrepreneur
Takes the key role in controlling and administering the firm in all its
aspects and functions. He is the one who takes most of the risks (as
when he loses his shirt and faces scorn) and receives most of the
rewards (as when he gets rich and reaps recognition. (DTI – YOUR GUIDE
TO STARTING A SMALL ENTERPRISE)
A patent gives the inventor the exclusive legal right to make, use, or sell the invention for a
limited time;
A trademark is an identifying symbol or name for a particular good
A copyright, according to the IPO, “is a form of protection provided by the laws of the United
States for ‘original works of authorship’ including literary, dramatic, musical, architectural,
cartographic, choreographic, pantomimic, pictorial, graphic, sculptural, and audiovisual
creations.”
How to create barriers to entry
In Summary ……
Barrier to Entry Example
Natural monopoly Water and electric companies
Control of a physical resource DeBeers for diamonds
Post office, past regulation of airlines and
Legal monopoly
trucking
These barriers include: economies of scale that lead to natural monopoly; control of a
physical resource; legal restrictions on competition; patent, trademark and copyright
protection; and practices to intimidate the competition like predatory pricing.
Intellectual property refers to legally guaranteed ownership of an idea, rather than a
physical item.
The laws that protect intellectual property include patents, copyrights, trademarks, and
trade secrets. A natural monopoly arises when economies of scale persist over a large
enough range of output that if one firm supplies the entire market, no other firm can enter
without facing a cost disadvantage.
References