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Chapter 1

Entrepreneurship involves creating new businesses amidst risk and uncertainty, driven by the desire for profit and growth. Entrepreneurs possess characteristics such as a desire for responsibility, confidence, and a tolerance for ambiguity, and they come from diverse backgrounds. While entrepreneurship offers benefits like creating one's destiny and potential profits, it also comes with drawbacks such as income uncertainty and high stress levels.

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35 views17 pages

Chapter 1

Entrepreneurship involves creating new businesses amidst risk and uncertainty, driven by the desire for profit and growth. Entrepreneurs possess characteristics such as a desire for responsibility, confidence, and a tolerance for ambiguity, and they come from diverse backgrounds. While entrepreneurship offers benefits like creating one's destiny and potential profits, it also comes with drawbacks such as income uncertainty and high stress levels.

Uploaded by

bluesandy1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

ENTREPRENEURSHIP

Chapter 1
The Challenge of Entrepreneurship

1
Who Is an Entrepreneur?
One who creates a new business in the face of
risk and uncertainty for the purpose of
achieving profit and growth by identifying
opportunities and assembling the necessary
resources to capitalize on them.

2
Characteristics of Entrepreneurs
• Desire for responsibility

• Preference for moderate risk – risk


eliminators

• Confidence in their ability to succeed

• Desire for immediate feedback

3
Characteristics of Entrepreneurs
• High level of energy

• Future orientation – serial entrepreneurs

• Skilled at organizing

• Value achievement over money

• Tolerance for Ambiguity

• Flexibility
4
Entrepreneurship
• One characteristic of entrepreneurs stands
out:
Diversity!
• Anyone – regardless of age, race, gender,
color, national origin, or any other
characteristic – can become an entrepreneur
(although not everyone should).

5
Benefits of Entrepreneurship
The opportunity to:

• Create your own destiny

• Make a difference

• Reach your full potential

6
Benefits of Entrepreneurship
The opportunity to:

• Reap impressive profits

• Contribute to society and to be


recognized for your efforts

• Do what you enjoy and to have fun at it

7
Drawbacks of Entrepreneurship

• Uncertainty of income

• Risk of losing your entire investment

• Long hours and hard work

8
Drawbacks of Entrepreneurship

• Lower quality of life until the business gets


established

• High levels of stress

• Complete responsibility

• Discouragement

9
Feeding the
Entrepreneurial Fire

• Entrepreneurs as heroes

• Entrepreneurial education

• Demographic and economic factors

• Shift to a service economy

10
Feeding the
Entrepreneurial Fire

• Technological advancements

• Independent lifestyles

• E-commerce and the World Wide Web

• International opportunities

11
The Cultural Diversity of Entrepreneurship

• Young entrepreneurs
• Women entrepreneurs
• Minority-owned enterprises
• Immigrant entrepreneurs
• Part-time entrepreneurs

12
The Cultural Diversity of Entrepreneurship

• Home-based businesses
• Family businesses
• Copreneurs
• Corporate castoffs
• Corporate dropouts

13
Deadly Mistakes of Entrepreneurship

• Management mistakes
• Lack of experience
• Poor financial control
• Weak marketing efforts
• Failure to develop a strategic plan

14
Ten Deadly Mistakes of Entrepreneurship

• Uncontrolled growth
• Poor location
• Improper inventory control
• Incorrect pricing
• Inability to make the “entrepreneurial
transition”

15
Putting Failure into Perspective
• Entrepreneurs are not paralyzed by the
prospect of failure.
• Failure – a natural part of the creative
process.
• Successful entrepreneurs learn to fail
intelligently.

16
Avoiding the Pitfalls of
Small Business Failure

• Know your business in depth


• Develop a solid business plan
• Manage financial resources
• Understand financial statements
• Learn to manage people effectively
• Keep in tune with yourself

17

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