Entrepreneurship

Unit 1 Mod. 1 Handout #3 Oronde Chase

About Entrepreneurs
Types of Entrepreneurs

 Nascent- These are individuals who are engaged in preparations to launch a business
venture. They have determined the nature of the new venture but plans for the
business start-up operations are not completed.

 Novice-A novice entrepreneur is an individual who is embarking on his first business

venture.

 Habitual- A habitual entrepreneur is one who has started a business venture and is
involved either as a minority or a majority proprietor in one or more other enterprises.

 Serial- These individuals launch a number of business ventures. The enterprise is

managed and placed on a successful path, before it is sold by the business owner. The
entrepreneur then moves to another new venture.

 Portfolio- This is an entrepreneur who owns and operates several businesses at the
same time. They keep their original venture while creating/ acquiring other
enterprises.

Characteristics of Entrepreneurs

1. Innovative- This is a person’s ability to apply creative solutions to problems and

opportunities to enhance or enrich products (goods and services)

2. Creative- This is the ability to develop new ideas and discover new ways of looking at
problems and opportunities.

3. Calculated Risk-Takers- A calculated risk is one that may be considered because if

successful the result will be beneficial. Hence; a calculated risk taker is one who takes
risks (not all) based on their belief of it being successful and having the ability to reap
massive benefit.

4. Systematic Planner- a planning process that is based on the scientific method and
includes concepts such as objectivity of approach and acceptability of results.
Systematic planning is based on a common sense, graded approach to ensure that the
level of detail in planning is equal with the importance and intended use of the work
and the available resources. This framework promotes communication between all
organizations and individuals involved in an environmental program. Through a
systematic planning process, a team can develop acceptance or performance criteria

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for the quality of the data collected and for the quality of the decision.

5. Visionary- Simply put, a visionary is one who plans the future with wisdom

6. Achievement Oriented- A person who is said to be “Achievement Oriented” is one

who clearly sets out their goal/purpose and sets out to achieve/execute said goal or
purpose.

7. Persistent- This refers to the ability of a person to keep trying even after failing.

8. Dynamic- A dynamic person is one who is constantly changing/progressing.

9. Hard-Working

10. Self-Confident

11. Aggressive

12. Egotistic- An entrepreneur must be aware of himself, and must possess an abundance
of confidence.

13. Emotional Intelligence- This may be defined as the capacity to be aware of, control
and express one’s emotions. This person must also be able to handle interpersonal
relationships empathetically.

Mistakes of Entrepreneurs
1. Management Failures- This includes lack of leadership, experience, judgement and
knowledge as well as no management structure and conflicts in relationships. A Good
and strong management team is essential to a business’s success. A one-man show is
often met with danger and instability.

2. Operation Failures- Includes poor inventory management, poor planning, High

operational costs, lack of infrastructural support and little or no control systems.
Efficient, effective production and operations are critical to any business venture. The
highest quality and maintenance standards are priority.

3. Marketing Failures- Misjudging the size of the market, a weak marketing strategy,
underestimating the competition, not maintaining quality standards, logistical
difficulties, uncontrolled growth, poor location and incorrect pricing are all factors

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that may affect profitability. Meeting customer needs and demands are the drivers to
marketing success.

4. Financial Failures- Includes poor financial management control, inadequate record

keeping, rising and uncontrollable costs (start-up, operations, capital and debt), cash-
flow and profit problems. Giving attention to revenue and expenditure flows is not to
be ignored.

5. Failure as a natural part of the entrepreneurial process.

Factors that contribute to the success of entrepreneurs

 Knowing your business in depth

 Develop a solid business plan
 Manage financial resources
 Understand financial statements
 Manage people effectively
 Know your strengths and weakness

Myths of Entrepreneurs

 Entrepreneurship ventures and small businesses are the same thing.

 All entrepreneurs are rich.
 Entrepreneurs are born not made.
 Entrepreneurship is easy.
 All you need is money to start.
 Successful entrepreneurship needs only a great idea.
 Entrepreneurs always generate new ideas.
 All you need is luck.
 Entrepreneurs are extreme risk takers.

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Entrepreneurship
Unit 1 Mod. 1 Handout #3 Oronde Chase

Questions
Review and Discuss
Prepare a research paper on one organisation located in the Caribbean region that supports
entrepreneurial activity. The paper should give examples of the types of support provided.

Case Study
Peter had grown up in a small town in St. Lucia and had decided that after college he would
start his own business venture. He really wanted to be an entrepreneur, as he thought he had
the requisite skill sets. He was a visionary, he had high levels of commitment and he was
dedicated to starting his own venture.
On completion of his associate degree at college, Peter was offered the opportunity to join a
creative team in bringing a new product to market. Though Peter wanted to start his own
business, he jumped at the idea of doing exactly what he wanted in a larger organization.
Peter noted that generating innovative ideas becomes more difficult as organisations grow in
size and complexity. Though the culture was different and the bureaucracy was overbearing
at times, he never gave up, as he was at one of the largest electronic corporations living his
dream.
Within a few years of coming up with several new product ideas, he saw himself rubbing
shoulders with the next generation leaders. Peter had linked his success to not only being
committed and dedicated but also to understanding all aspects of the internal and external
environment. He further noted that he now had a good grasp of the internal corporate
environment and corporate politics.
1. What characteristics did Peter have that made him a good fit for his new job.
2. Is Peter an entrepreneur or intrapreneur.? Explain your reasoning
3. Do you think that Peter was independent, totally in control and in charge of decisions
in the venture? Explain.

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Unit 1 Mod. 1 Handout #3 Oronde Chase

Answer List a list b

Process in which an a. Cultural diversity
opportunity is recognized

Management Author b. Micro Small and Medium

Enterprise Alliance (MSME)

Driver of Contemporary c. Institute of Private

Entrepreneurship Enterprise Development for
micro, small and medium-
sized business enterprises.
(IPED)
Business organisations d. Joseph Schumpeter
representing small and
medium sized enterprises in
Jamaica

Engages in very risky e. Peter Drucker

innovative practices

Diverse mix of people f. National Entrepreneurship

Development Company
Limited (NEDCO)

Goal is to operate business in g. Intrapreneurship

a structured controlled
manner

Stated that an entrepreneur is h. Entrepreneurship

someone who creatively
destructs’
State owned private limited I. Small business manager
liability micro-finance
company

Located in Guyana j. Changing Demographics

Entrepreneurial skills used k. Entrepreneur

within an organisation