Module: Entrepreneurship
Topic: Entrepreneurship: An Evolution Concept
Kashif Ali
Department of Business Administration
[email protected]
Week 1
1
Broad Aim
• To provide an awareness of the
contribution entrepreneurship makes
to the economy and society and to
recognise the essential requirements
of successful entrepreneurs.
Learning Objectives
• To define who is entrepreneur?
• To differentiate between businessman and
entrepreneurs.
• To examine the evolution/historical
development of entrepreneurship
• To set forth a comprehensive definition of
entrepreneurship
• To examine the Entrepreneurial Revolution
taking place today
• To explore the myths of entrepreneurship
Learning Objectives (Cont’d)
• To define and explore the major schools of
entrepreneurial thought.
• To define who are cyberpreneurs?
• To learn the importance of e-business.
• To discuss some very famous & successful
entrepreneurs.
• To learn the 21st century trends in entrepreneurship
research.
About Entrepreneurship
• A society that has entrepreneurs is considered to be
a successful society.
• This is because entrepreneurs are individuals who
are creative, dynamic and innovative. They are
willing to take risks and face unpredictable and
uncertain challenges by using their creativity and
will power.
About Entrepreneurship
(Cont’d)
• Entrepreneurs would develop and penetrate new
business areas in order to stay competitive in the
industry.
• Then, more products or services being offered to the
society, which would enhance the society’s
economic development.
Who is an Entrepreneur?
• A person who sets up a business or businesses,
taking on greater financial risks in order to do so.
• An individual who has a vision to see things
differently and has or can develop a capability to do
things in a way that is better than it was done
previously.
Entrepreneurs Vs
Businessman
• An entrepreneur is an individual who seeks
profitable opportunities and takes the necessary
risks to establish and operate a business.
• A businessman main desire is to grow his business.
• A manager is responsible for using the
organization’s resources to accomplish the
organization’s goals.
Entrepreneurs Vs
Businessman (Cont’d)
• Small Businesses Owners
– Manage their businesses by expecting stable
sales, profits, and growth.
• Entrepreneurs
– Focus their efforts on innovation, profitability
and sustainable growth.
• So… all entrepreneurs are businessmen BUT not
all businessmen are entrepreneurs.
Entrepreneurship: A Mindset
• Entrepreneurship is more than the mere creation of
business:
– Seeking opportunities
– Taking risks beyond security
– Having the tenacity to push an idea through to reality
• Entrepreneurship is an integrated concept that
permeates an individual’s business in an innovative
manner.
The Evolution of
Entrepreneurship
• Entrepreneur is derived from the French
entreprendre, meaning “to undertake.”
• The entrepreneur is one who undertakes to
organize, manage, and assume the risks of a
business.
• Although no single definition of entrepreneur exists
and no one profile can represent today’s
entrepreneur, research is providing an increasingly
sharper focus on the subject.
A Summary Description
of Entrepreneurship
• Entrepreneurship (Robert C. Ronstadt)
• The dynamic process of creating incremental wealth.
• This wealth is created by individuals who assume
major risks in terms of equity, time, and/or career
commitment of providing value for a product or
service.
• The product or service itself may or may not be new
or unique but the entrepreneur must somehow
infuse value by securing and allocating the
necessary skills and resources.
An Integrated Definition
Entrepreneurship
•A dynamic process of vision, change, and creation.
•Requires an application of energy and passion
towards the creation and implementation of new ideas
and creative solutions.
An Integrated Definition
(Cont’d)
• Essential ingredients include:
• The willingness to take calculated risks—in terms of
time, equity, or career.
• The ability to formulate an effective venture team;
the creative skill to marshal needed resources.
• The fundamental skills of building a solid business
plan.
• The vision to recognize opportunity where others
see chaos, contradiction, and confusion.
The Myths of
Entrepreneurship
• Myth 1: Entrepreneurs Are Doers, Not Thinkers
• Myth 2: Entrepreneurs Are Born, Not Made
• Myth 3: Entrepreneurs Are Always Inventors
• Myth 4: Entrepreneurs Are Academic and Social
Misfits
• Myth 5: Entrepreneurs Must Fit the “Profile”
• Myth 6: All Entrepreneurs Need Is Money
• Myth 7: All Entrepreneurs Need Is Luck
• Myth 8: Ignorance Is Bliss For Entrepreneurs
The Myths of
Entrepreneurship (Cont’d)
• Myth 9: Entrepreneurs Seek Success But
Experience
High Failure Rates
• Myth 10: Entrepreneurs Are Extreme Risk Takers
(Gamblers)
Entrepreneurial Schools-of-
Thought Approach
Macro View: External Locus
of Control
• The Environmental School of Thought
– Considers the external factors that affect a potential
entrepreneur’s lifestyle.
• The Financial/Capital School of Thought
– Based on the capital-seeking process—the search for
seed and growth capital.
• The Displacement School of Thought
– Alienation drives entrepreneurial pursuits
• Political displacement (laws, policies, and regulations)
• Cultural displacement (preclusion of social groups)
• Economic displacement (economic variations)
Micro View: Internal Locus
of Control
• The Entrepreneurial Trait School of Thought
– Focuses on identifying traits common to successful
entrepreneurs.
– Achievement, creativity, determination, and technical
knowledge
• The Venture Opportunity School of Thought
– Focuses on the opportunity aspect of venture
development—the search for idea sources, the
development of concepts, and the implementation of
venture opportunities.
• Corridor principle: New pathways or opportunities
will arise that lead entrepreneurs in different
directions.
Micro View: Internal Locus
of Control (Cont’d)
• The Strategic Formulation School of Thought
– Emphasizes the planning process in successful venture
development.
• Ronstadt’s View
– Strategic formulation is a leveraging of unique elements:
– Unique Markets—mountain gap strategies
– Unique People—great chef strategies
– Unique Products—better widget strategies
– Unique Resources—water well strategies
An Integrative Model of
Entrepreneurial Inputs and
Outcomes
Who are cyberpreneurs?
• Entrepreneur involve in e-business also known as
cyberpreneur.
• A cyberpreneur is someone who is starting or
running a business in cyberspace and the internet.
Understand E-Business
• An entrepreneur who has an online based business
on the internet targets international consumers.
• These cyberpreneurs do not need offices or
extensive support staff all over the world. They just
need a great idea and a cable to connect to the
internet.
Question!
Define e-Commerce
• How about your answer?
• Have you done before?
The Importance of e-Business
• Attracts a large number of customers – customer all
over the world.
• The company can be visited without time restrictions
– 24hrs / 7days throughout the year without
encountering different time zones.
• Gives an image of a well-established company – to
obtain customers’ confidence when dealing with the
company.
The Importance of e-Business
(Cont’d)
• Minimizes management costs – min the
management costs such as phone bill, fax,
transportation etc.
• Disseminates business information – help to spread
business information to individuals within the
company and parties outside the company.
The Importance of e-Business
(Cont’d)
• At the same time, entrepreneurs can enjoy various
facilities such as electronic mail, online forums,
Feedback/Enquiry chat rooms, and information
bargains through the library catalogue.
• Businesses will be able to store, create, and display
information through the server.
The Importance of e-Business
(Cont’d)
• By using e-business, companies can send out
information to millions of people.
• By surfing website at any time without having to go
out from the building, entrepreneurs can obtain
feedback and improve business operations.
• The cost of communication will also be reduced.
Question!
Why Become an Entrepreneur?
Why Become an Entrepreneur?
• The three primary reasons that people become
entrepreneurs and start their own firms.
1. Desire to be their own boss
2. Desire to pursue their own ideas
3. Financial rewards
Some Very Famous &
Successful Entrepreneurs
Monis Rahman
Monis Rahman
• According to Forbes, Monis Rahman is one “who
slept the least, whose office was tiniest.
• In 2006 he started Rozee.pk and has built it to a
company with over 40, 000 employers and 5.4
million professionals registered on its portal.
Abdul Sattar Edhi
Abdul Sattar Edhi
• Abdul Sattar Edhi who founded the Edhi Foundation,
which runs the world's largest volunteer ambulance
network, along with homeless shelters,
across Pakistan.
• He is also known as “Angel of Mercy” for his selfless
services and tremendous contributions to helping
the poor, orphans, sick and abandoned.
Khalid Nawaz Awan
Founder and Chairman
of TCS logistics.
Jeffrey Preston Bezos
Jeffrey Preston Bezos
• Jeffrey Preston Bezos is an American businessman
and investor. He is the founder, CEO, and president
of Amazon.com
• Worth: $131bn
William Henry Gates
William Henry Gates
• William Henry Gates is an American business
magnate, investor, author and humanitarian. He is
best known as the pioneer of the microcomputer
revolution of the 1970s and 1980s, and the principal
founder of Microsoft.
• Worth: $96.5bn
Mark Elliot Zuckerberg
Mark Elliot Zuckerberg
• Mark Elliot Zuckerberg is an American technology
entrepreneur. Zuckerberg is known for co-founding
and leading Facebook as its chairman and chief
executive officer.
Steven Paul Jobs
Steven Paul Jobs
• Steven Paul Jobs was an American inventor,
designer and entrepreneur who was the co-founder,
chief executive and chairman of Apple Computer.
21st Century Trends in
Entrepreneurship Research
Venture
Financing
Corporate Social
Entrepreneurship Entrepreneurship
Trends in Women
Entrepreneurial
Entrepreneurship and Minority
Cognition
Research Entrepreneurs
Global
Entrepreneurial
Entrepreneurial
Education
Movement
Family
Businesses
21st Century Trends in
Entrepreneurship Research
• Venture Financing: venture capital and angel
capital financing and other financing techniques
strengthened in the 1990s.
• Corporate Entrepreneurship and the need for
entrepreneurial cultures has drawn increased
attention.
• Social Entrepreneurship has unprecedented
strength within the new generation of entrepreneurs.
• Entrepreneurial Cognition is providing new
insights into the psychological aspects of the
entrepreneurial process.
21st Century Trends in
Entrepreneurship Research
• Women and Minority Entrepreneurs appear to
face obstacles and difficulties different from those
that other entrepreneurs face.
• The Global Entrepreneurial Movement is
increasing.
• Family Businesses have become a stronger focus
of research.
• Entrepreneurial Education has become one of the
hottest topics in business and engineering schools
throughout the world.
Reference Book /Reading
Material
1.Kuratko, D. F. (2016). Entrepreneurship: Theory,
process, and practice. Cengage learning.
Any Questions?
In case of any query feel free to contact:
[email protected] Thank you
