Techno Reviewer Prlim: Characteristics of Entrepreneurs

Techno reviewer prlim
BUSINESS
“Any activity which is undertaken with an intention
to earn profit is called business”
ENTREPRENEUR
“Is the one who creates a new business in

the face of risk and uncertainty, for the
purpose of achieving profit and growth,
CHARACTERISTICS OF ENTREPRENEURS
1) Desire for Responsibility
2) Preference for moderate Risk
3) Confidence in their ability to Succeed
4) Desire for immediate Feedback
5) High level of Energy
6) Future Orientation
7) Organizing Skills
8) Value of Achievement over Money
BENEFITS OF ENTREPRENEURSHIP
1) Opportunity to create your own Destiny
2) Opportunity to make a Difference
3) Opportunity to Reach your full Potential
4) Opportunity to Reap impressive Profits
5) Opportunity of being Recognized
6) Opportunity to do What you Enjoy
(DDPPRE)
DRAWBACKS OF ENTREPRENEURSHIP
1) Uncertainty of Income
2) Risk of loosing entire Investment
3) Long Hours and Hard work
4) Low quality of life till business Success
5) High levels of Stress
6) Complete Responsibility
7) Discouragement
(IIHSSD)
DEADLY MISTAKES OF ENTREPRENEURSHIP
1) Management Mistakes
2) Lack of Experience
3) Poor Financial Controls
4) Weak Marketing Efforts
5) Failure to develop a strategic Plan
6) Uncontrolled Growth
7) Poor Location
8) Improper Inventory Control
9) Incorrect Pricing
10) Inability to make “Entrepreneurial Transition”
HOW TO DEVELOP A STRATEGIC PLAN
1) Develop a clear Vision and transform into a meaningful Mission
2) Assess the company’s strength
3) Scan the Environment for opportunities
4) Identify key factors for Success
5) Analyze the competition
6) Create Company’s Goal and Objectives
7) Formulate Strategic options
8) Translate Strategic plan into Action plan
9) Establish an accurate control
Types of Capital
Financial Capital
 Human Capital
 Structural Capital
 Customer Capital
ADVANTAGES OF SOLE PROPRIETORSHIP
1) Simple to create
2) Least Costly
3) Profit Incentive
4) Total Decision Making
5) No Legal restrictions
6) Easy to discontinue
DISADVANTAGES OF SOLE PROPRIETORSHIP
1) Unlimited Liability
2) Limited Skills and Liabilities
3) Feeling of Isolation
4) Limited Capital
5) Lack of Continuity
ADVANTAGES OF PARTNERSHIP
1) Easy to establish
2) Complementary skills
3) Division of Profits
4) Larger pool of Capital
5) Ability to attract limited Partners
6) Limited Govt. regulations
7) Flexibility
8) Taxation
DISADVANTAGES OF PARTNERSHIP
1) Difficult to create
2) Very Costly
3) Profit Division
4) Dependant Decision Making
5) Legal Restrictions
6) Difficult to Discontinue
FREITAG BAGS -- came up with a creative product, one that has won numerous design awards
and is sold worldwide.
CREATIVITY, INNOVATION &ENTREPRENEURSHIP
 Creativity involves generating something from nothing. Entrepreneurship is a constant process

that relies on
 creativity, innovation and application in the marketplace.
“CREATIVITY” A NECESSITY FOR SURVIVAL
 Creativity and innovation are integral parts of entrepreneurship.

Paradigm-- is a preconceived idea of what of the world is, what it should be like, and how it should
operate.
BARRIERS TO CREATIVITY
Searching for the one “right” answer.
 Focusing on “being logical”.
 Blindly following the rules.
 Constantly being practical.
 Viewing play as frivolous
 Becoming overly specialized.
 Avoiding ambiguity.
 Fearing looking foolish.
 Fearing mistakes and failure.
 Believing that “I’m not creative”.
10 Secrets For Leading Creativity

 They Think.
 They are Visionaries.
 They Listen To Customer.
 They Understand How To Manage Ideas.
 They are People Centred.
 They Maintain a Culture Of Change.

 They Maximize team Synergy, balance and focus.
 They hold themselves and others accountable for extremely high standard of
Performance.
 They Refuse to take ‘’no’’ for an Answer.

 They Love what they do and fun doing it.
Techniques of enhancing individual Creativity
 Allow Yourself To Be Creative.
 Recognize The Creative Power of Mistakes.
 Keep A Journal Handy To Record Yours Thoughts And Ideas.
 Listen To Other People .
 Talk To A Child.
 Keep Toy Box In Your Office.
 Read Books On Stimulating Creativity OR Take a Class On Creativity.
 Take Some Time Off.
THE CREATIVE PROCESS (cont.) 7 STEPS
Preparation: This step involves getting the mind ready for creative thinking. Preparation might
include a formal education , on-the job training
Incubation: The subconscious needs time to reflect on the information collected
Illumination: This phase of the creative process occurs at some point during the incubation stage
when a spontaneous breakthrough causes ‘’the light bulb to go on’
Verification: Validating the idea as accurate and useful, for entrepreneurs, may include conducting
experiments, running simulations, test
Implementation: The focus of this step is to transform the idea into reality. Plenty of people come
up with creative ideas for promising new products
BRAINSTORMING: A process in which a small group of people interact with very little structure with
the goal of producing a large quantity of novel and imaginative ideas.
Mind-Mapping -- A graphical technique that encourages thinking on both sides of the brain, visually
displays the various relationships among ideas, and improve the ability to view a problem from many
sides.
Rapid Prototyping : -- The process of creating a model of an idea, enabling an entrepreneur to discover
flaws in the idea to make improvements in the design.
The three principles of rapid prototyping are the three R’s :
Rough, Rapid, Right
Patents -- A grant from the federal government’s Patent and Trademark Office to the inventor of a
product, giving the exclusive right to make, use, or sell
The patent process:

Establish the invention’s novelty.
Document the device
Search existing patents
Study search results
Submit the patent application
Prosecute the patent application
Trademarks -- Any distinctive word, phrase, symbol, design, name, logo, slogan, or trade dress that a
company uses to identify the origin of a product or to distinguish it from other goods on the market.
Trade Dress:-- The unique combination of elements that a company issues to create a product’s image
and to promote it.
Copyrights:-- An exclusive right that protects the creators of original works of authorship such as
literary, dramatic, musical and artistic works.
CRUX: -- Creative process is a tenant of the entrepreneurial experience . Creativity results in value
Intellectual capital -- A key source of a company’s competitive advantage that is:
1) human capital 2) structural capital and 3) customer capital.
Strategic management -- The process of developing a game plan to guide a company as it strives to
accomplish its vision, mission, goals and objectives
Competitive advantage -- The aggregation of factors that sets a small business apart from its
competitors and gives it a unique position in the market superior to its competition.
Core competencies -- A unique set of capabilities that a company develops in key operational areas
that allow it to vault past competitors.
The strategic management process
Step 1 Develop a clear vision and translate it into a meaningful mission statement.
Step 2 Assess the company’s strengths and weaknesses.
Step 3 Scan the environment for significant opportunities and threats facing the business.
Step 4 Identify the key factors for success in the business.
Step 5 Analyze the competition.
Step 6 Create company goals and objectives.
Step 7 Formulate strategic options and select the appropriate strategies.
Step 8 Translate strategic plan into action plan.
Step 9 establish accurate controls.
Balanced scorecard -- A set of multidimensional measurement that are unique to a company and that
incorporate both financial and operational measures.
Five important perspectives balance score card
1) Customer perspective 2) Internal business perspective 3) Financial perspective
4) Corporate citizenship 5) Innovation and learning perspective

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Techno reviewer prlim

“Is the one who creates a new business in

 Creativity involves generating something from nothing. Entrepreneurship is a constant process

“CREATIVITY” A NECESSITY FOR SURVIVAL

 Creativity and innovation are integral parts of entrepreneurship.

10 Secrets For Leading Creativity

 They are People Centred.

 They Maintain a Culture Of Change.

 They Refuse to take ‘’no’’ for an Answer.

Incubation: The subconscious needs time to reflect on the information collected

The patent process:

The strategic management process

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