entrepreneurial venture and its components
TRANSCRIPT
Introduction
There is more emphasis on entrepreneurship and being an entrepreneur.
WHY
Introduction Cont’d
Entrepreneurs
•Contribute to economic development,
•Have a creative problem solving skills
This innovative way of doing things, makes their
operations different from a regular small business
Entrepreneurship is the...
• engine room of economic growth
• driving force that aides growth and development as well as the restructuring of wealth and economic resources.
• Catalyst for socio-economic transformation
Economic Importance of Entrepreneurship
• Employment generation • Improvement on National income• Decentralization economic wealth• Reducing unrest and social tension
amongst youth• Innovations in enterprises • Improvement in living standards • Economic independence
Below are some of the economic importance of entrepreneurship
These are forces and pressures in the marketplace which exert influence on entrepreneurship and they can be positive or negative.
• Social and societal factors
• cultural attitude towards risk and failure,
• access to education,
• the level of social fragmentation,
• the flow of information etc.
• in some societies, women are not allowed to engage in any form of business activity or gain access to education
Factors that affect entrepreneurship
• Technology factors• advanced technology• Research funding• Collaboration between industry and universities
• Economic factors • tax rates, • interest rates, • income level, • standard of living and purchasing powers of the market
Factors that affect entrepreneurship
• Political/regulatory factors• These factors have impact on how companies are established,
• the requirement for registration,
• and other legal obligations.
• Other factors considered by H. Kantis (Ed.) in his work on Developing Entrepreneurship, includes
• Personal factors
• This refers to socio-demographic profile of the entrepreneur—which are influenced by his or her family, educational and work environments—and his or her entrepreneurial skills (e.g., propensity to assume risk, tolerance for hard work, managerial capacities, and creativity);
Factors that affect entrepreneurship
Factors that affect entrepreneurship
Networks
These are the assistance provided through personal social
networks
(i.e., friends and family), institutional networks (i.e., business
associations, institutions of higher learning and/or
development agencies) and commercial networks (i.e.,
suppliers and customers);
So is there a Difference between
Regular Business and
Entrepreneurial Venture?
Yes!
Different scholars have varying opinion regarding the differences however, risk and innovation is a common denominator that differentiates entrepreneurial ventures from small businesses
• Amount required
• Speed of Wealth creation
Entrepreneurial ventures create substantial wealth
more than regular businesses, and they create it
faster too.
‘Whatsapp’ messaging service application for
instance, started with $8 million and was sold for
over for $19 billion in 2014.
So what makes the difference?
• Risk
• InnovationThe risk of an entrepreneurial venture is usually high; this is partly because they go out of their way to make products that did not exist in the market as at that time.
For instance, Richard Branson attempted establishing a commercial space shuttle that can take people to space and back.
So what makes the difference?
What is an Entrepreneurial Venture?
Entrepreneurial venture can be defined as
an organisation that places innovation and
opportunism at its heart in order to
produce economic or social value.
Please NOTE ....
•For this discussion, we are not interested in the size or structure of the organisation, but those characteristics that make entrepreneurial ventures unique.
Entrepreneurial Ventures
Small and MediumBusiness
Big Business
The Components of Entrepreneurial Ventures
• Entrepreneurs are innovation driven, and are always
ready to challenge conventional business knowledge.
• Nevertheless, entrepreneurial ventures are often
highly correlated with entrepreneurial characteristics.
ABILITY TO ADAPT TO CHANGE
They have the ability to identify And create business from
the opportunities offered by change, and they
benefit from the new openings.
INTERNAL LOCUS OF CONTROL
They believe that the Future is within Their control, and that they
are responsible for their own success.
PRODUCT DRIVEN
Aside meeting customer needs, entrepreneurial ventures are highly
motivated in business because of the uniqueness of their products.
OPPORTUNITY-DRIVEN
They don’t continue on
the same line of business
for a long time, they
always seek ways to
expand their business
scope.
Google started as a search engine company, but today, they own Youtube, Android OS, web browser etc
PROACTIVESmall businesses often times react to market changes where as entrepreneurial ventures learn to follow the trend, and deal with changes or difficulties as it happens or before it happens.
Nike, though a sports shoe company, it has anticipated the need for sports shoes and technology to work together. The company introduced Nike + iPod sports kit to measure the distance and speed of a run or a walk.
INNOVATION FOCUSED
What makes an entrepreneurial firm is not the ability to start a business, but the strength of its innovativeness
Blackberry phone and its messaging service changed how we interact and chat on the internet.
Calculated Risk-Taker
Entrepreneurs are known to be risk takers. Risk is part of every business however, the level of risk taking differs from business to business, and from industry to industry. In the case of entrepreneurial firms, what makes their ‘risks’ noticeable is the fact that they have new ways of doing things, or they are introducing new products.
A chance of exposure to loss or injury
that might be undertaken after its
advantages and disadvantages have
been carefully
The value of products and services today is based more and more on creativity – the innovative ways that they take advantage of new material, technologies, and processes.
Value Creation
The performance of actions that increase the worth of goods, services or even a business. http://www.businessdictionary.com/definition/value-creation.html#ixzz3rAVyEN3b
QUESTIONS&
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