Entrepreneurship
&
Entrepreneurs Traits
Ahram Canadian University
December 2011
Module No.-1
Objectives
By the end of this session, you will be able to:
• Describe the concepts and principles of
entrepreneurship.
• List the essential skills and characteristics of a
successful entrepreneur
• Explain barriers for Enterprising
• Develope and evaluate a business proposal
(Idea).
Module No.-2
Module No.-3
When are You Most Enterprising?
• Enterprising behaviour can arise for all sorts of
reasons. It might be boredom, changes at work,
the need for cash or satisfaction or
independence, a moment of inspiration, a
passion and so on.
• When were you at your most enterprising and
what was your trigger? What motivated you to
carry on?
Module No.-4
Motives for Enterprising
• Desire for independence
• Opportunity to exploit a gap in the market
• Frustration
• Solution Orientation
• Wealth
• Safety Orientation
• Change in their life – Move, redundant, etc.
Module No.-5
Emotional Benefits for Enterprising
Module No.-6
External Barriers for Enterprising
• Lack of awareness and
Knowledge about
– Enterprise legal environment
– Regulatory authorities
– Market requirements
– Supplier
– Competitors
– Financial sources
– Human resources
– Quality Standards
Module No.-7
Internal Barriers for Enterprising
• Lack of Skills
– Technical
– Managerial
– Organizational
– Networking
– Financial / Resources
Management
– Market dynamics
Module No.-8
Barriers for Starting
• Lack of the right business idea
• Complicated regulatory efforts
• Own financial risk
• Lack of courage
• Lack of right founding partner
• Lack of equity
• Lack of debt capital
• Know-how-deficit
Module No.-9
Barriers for Enterprising
• Lack of contact clients/customers
• Economic cycle
• Business environment
• Fear of failure
• Support by family and friends
• Lack of time
• Lack of entrepreneurial skills
Module No.-10
Characteristics of Entrepreneurs
• Opportunity seeking and grasping
• Taking the initiative to make things happen
• Solving problems creatively
• Managing autonomously
• Taking responsibility for, and ownership of, things
• Seeing things through
• Networking effectively
• Putting things together creatively
• Using judgement to take calculated risks
Module No.-11
Traits of Entrepreneurs
• High need for achievement need to always achieve new bold goals
• Risk taking propensity willingness to take financial risks
• Tolerance for ambiguity no fear of the unknown
• Innovation ability to create new or modify existing business concepts
• Intuition make decisions based on ‘gut feelings’
• High need for independence & autonomy make own decisions
• Internal locus of control belief that the future is determined by their own actions
• Low need for conformity unhappy in environment with strict rules
• Proactive plans for events before they occur
Module No.-12
Enterprise
‘Enterprise is purposeful, active behaviour which
can take place in any number of contexts,
business being only one. Enterprise is making
things happen, having ideas and doing
something about them, taking advantage of the
opportunity, and bringing about change’
• Paul Kearney, 1994
Module No.-13
An Entrepreneur…
• In the private sector… ‘is a person who habitually creates and innovates to build something of recognized value around perceived opportunities’.
Bill Bolton and John Thompson
• In the social sector… ‘identifies under-utilised resources; people, buildings, equipment – and finds ways of putting them to use to satisfy unmet social needs’.
Leadbeater, 1997
Module No.-14
Creativity & Entrepreneurship
• Competition
• Cost of Tech Transfer
• Avoiding Short life-cycles
• Adaptability
Module No.-15
What is Creativity?
Creativity is finding
a new way to
achieve tasks.
Module No.-16
Creativity & Entrepreneurship
• Strengthen existing ideas
• Find a more interesting
idea
• Adapt your idea to be
different to the competition
• If at first you don’t succeed
… try a new idea
• Create better ideas
Module No.-17
Creativity & Entrepreneurship
What are your skills and your interests, hobbies and your business?
What goods or services you believe that the environment surrounding
you need?
Do you have ideas for developing an existing commodity or service?
Is there a change in the directions or wishes of the members of the
community around me?
Is there a need not satisfied locally (people travel to bring it)?
Do you have relationships with some producers and consumers for a
specific product?
Module No.-18
Stages of Idea Development
Module No.-19
• Acquiring Motivation
• Finding an Idea
• Validating the Idea
• Identifying the Resources
• Negotiating to get • into Business
• Birth and Survival
Stages of Idea Development
Module No.-20
1 Ideas generation
2. Feasibility and business planning
3. Start-up and survival
4. Consolidation
5. Growth
6. Maturity
Challenges of Business Ideas
• Confidence, motivation, commitment
• Viability of the business idea in the market
• Resourcing the idea within capital limits
• Skills and knowledge gaps
Module No.-21
Challenges of Business Ideas
• Strategic decisions
• Business systems and administration
• The regulatory environment
• Dependence on staff
Module No.-22
Developing a Business Idea
Module No.-23
Ideas
Resources Needs Thinking
Problems
Visiting
New Places
Media Looking
Locally
Listening Visitors
Family &
Friends
Media
Employment
Skills Formal
Informal
Hobbies
Networks social
work family
Developing a Business Idea
from Things Around you
Module No.-24
RESOURCE USE BITS OR PARTS
USE AS A SUBSTITUTE FOR
ADAPT OR ALTER - SHAPE, SIZE, COLOUR, TASTE, SMELL, SOUND, FEEL
COMBINE WITH OTHER THINGS
USE IT TO PROVIDE A
SERVICE
ELIMINATE IT, DISPOSE OF IT RECYCLE IT RE-USE IT REPACKAGE IT
PUT TO OTHER USES, FOR OTHER PEOPLE
Developing a Business Idea
from Your Skills
Module No.-25
WHAT
SERVICES?
WHICH
BUSINESSES?
FOR
BUSINESSES
WHAT
SERVICES?
WHICH
PEOPLE?
FOR PEOPLE
FOR
BUSINESSES
WHICH
BUSINESSES?
WHAT
PRODUCTS?
FOR PEOPLE
WHICH
PEOPLE?
WHAT
PRODUCTS?
MAKING THINGS
PROVIDING A
SERVICE
YOUR
SKILL Skill
Developing a Business Idea
from Your Skills
Module No.-26
MAKING THINGS
COOKING
PROVIDING A SERVICE
WHICH PEOPLE?
Vegetarians
Diabetics
Children
WHICH PEOPLE?
Older and single people
People who can’t cook well
Engaged couples
FOR BUSINESSES
WHAT PRODUCTS?
Vegetarian meals
Sugarless cakes
WHICH BUSINESSES?
Hotels
Sweet shops
Whole food cafes
WHAT PRODUCTS?
Freezer meals
Handmade chocolates
WHICH BUSINESSES?
Restaurants
Guest Houses
Solicitors
WHAT SERVICE?
Cook relief service
Special diet recipe service
Board room lunches
WHAT SERVICE? Cooking for one recipes Cookery classes Wedding catering
FOR PEOPLE
FOR BUSINESSES FOR PEOPLE
Developing a Business Idea
from Problems Around You
Module No.-27
Problem
Make it Unnecessary
Look at it from another point of view
Random Word
Association
Make Better Reduce the
Problem
Shift Attention
to something else
Substitute Outrageous Suggestions
Developing a Business Idea
from Problems Around You
Module No.-28
PROBLEM
Cycles, train, bus, taxi
Videos on traffic lights, apologising traffic cones car radio cassettes
Car queue sitting service13
SUBSTITUTE? Use other ways of travelling
SHIFT THE FOCUS OF ATTENTION? Entertain the driver
OUTRAGEOUS SUGGESTIONS? Leave the car In the queue
REDUCE PROBLEM? Have less cars
MAKE IT BETTER? Reduce the stress
Share Cars Car Phones
LOOK AT IT FROM ANOTHER POINT OF VIEW? Residents
MAKE IT UNNECESSARY? Don’t travel
*RANDOM WORD ASSOCIATION Plants grow
They can make money washing the cars while you wait
Roads grow - extra lanes provided at peak hours
Work and shop at or near home
Ideas Validation
MAIR Model
Motivation
Ability
Idea/market
Resources
Module No.-29
Ideas Validation
Module No.-30
Motivation and Determination
Of the individual/group, etc. Reflected in support of family, partners, and track record in already trying to achieve start-up. Reflected also in the objectives of the individual group
Key Success Factors
Idea and Market
Reflected in the viability of the idea. Whether it can be demonstrated that it works. What needs it meets. How it is better than others. Who are the customers and how many of them are there. And what is the competition.
Resources
Physical resources needed
(premises, plant, materials,
labour). Financial resources
available and needed
Ability
Of the individual, family and others involved. Previous track record (employment and associated knowledge and skill) and relevance to business. Technical and managerial ability.
Summary
By the end of this session, you became able to:
• Describe the concepts and principles of
entrepreneurship.
• List the essential skills and characteristics of a
successful entrepreneur
• Explain barriers for Enterprising
• Develop and evaluate a business proposal
(Idea).
Module No.-31
Module No.-32