400L Entrepreneurship 2

ENTREPRENEURSHIP
An entrepreneur is an individual who creates a new business, bearing most of the risks and
enjoying most of the rewards. The process of setting up a business is known as
entrepreneurship.
Entrepreneurship is the ability and readiness to develop, organize and run a business
enterprise, along with any of its uncertainties in order to make a profit. The most prominent
example of entrepreneurship is the starting of new businesses.
Entrepreneurs play a key role in any economy, using the skills and initiative necessary to
anticipate needs and bring new ideas to market. Entrepreneurship that proves to be successful
in taking on the risks of creating a startup is rewarded with profits and growth opportunities.
A person who undertakes the risk of starting a new business venture is called an entrepreneur.
An entrepreneur creates a firm to realize their idea, known as entrepreneurship, which
aggregates capital and labor in order to produce goods or services for profit.
Entrepreneurship is highly risky but also can be highly rewarding, as it serves to generate
economic wealth, growth, and innovation.
IMPORTANTANCE ENTREPRENEURS
Entrepreneurship is one of the resources economists categorize as integral to production, the
other three being land/natural resources, labor, and capital. An entrepreneur combines the first
three of these to manufacture goods or provide services. They typically create a business plan,
hire labor, acquire resources and financing, and provide leadership and management for the
business.
IMPORTANCE OF ENTREPRENEURSHIP
Creation of Employment
Impact on Society and Community Development
Increase Standard of Living
Supports research and development
TYPES OF ENTREPRENEURS
Builder
Builders seek to create scalable businesses within a short time frame. These individuals seek to
build out a strong infrastructure by hiring the best talent and seeking the best investors.
Opportunist
Opportunistic entrepreneurs are optimistic individuals with the ability to pick out financial
opportunities, get in at the right time, stay on board during the time of growth, and exit when a
business hits its peak. These types of entrepreneurs are concerned with profits and the wealth
they will build, so they are attracted to ideas where they can create residual or renewal income.
Innovator
Innovators are those rare individuals that come up with a great idea or product that no one has
thought of before. Rather than focusing on money, innovators tend to care more about the
impact that their products and services have on society. These individuals are not the best at
running a business as they are idea-generating individuals, so they often leave the day-to-day
operations to those more capable in that respect.
Specialist
These individuals are analytical and risk-averse. They have a strong skill set in a specific area
obtained through education or apprenticeship. A specialist entrepreneur will build out their
business through networking and referrals, sometimes resulting in slower growth than a builder
entrepreneur.
TYPES OF ENTREPRENEURSHIP
As there are different types of entrepreneurs, there are also different types of businesses they
create.
Small-business
Small business entrepreneurship refers to opening a business without turning it into a large
conglomerate or opening many chains. A single-location restaurant, one grocery shop, or a
retail shop to sell goods or services would all be examples of small business entrepreneurship.
Scalable startup
These are companies that start with a unique idea that can be built to a large scale. The hopes
are to innovate with a unique product or service and continue growing the company,
continuously scaling up over time. These types of companies often require investors and large
amounts of capital to grow their idea and expand into multiple markets.
Large-company
Large company entrepreneurship can be a new business division created within an existing
company. The existing company may be well placed to branch out into other sectors or it may
be positioned well to become involved in new technology.
Social entrepreneurship
The goal of social entrepreneurship is to create a benefit to society and humankind. This form
of business focuses on helping communities or the environment through their products and
services. They are not driven by profits but rather by helping the world around them.
7 GENERAL STEPS THAT MANY SUCCESSFUL ENTREPRENEURS HAVE FOLLOWED:
Ensure financial stability

This first step is not a strict requirement but is definitely recommended. While entrepreneurs
have built successful businesses while being less than financially flush, starting out with an
adequate cash supply and stable ongoing funding is a great foundation.
Build a diverse skill set
The beauty of step two is it can be done concurrently with step one. Building a skill set can be
achieved through learning and trying new tasks in real-world settings. For example, if an
aspiring entrepreneur has a background in finance, they can move into a sales role at their
existing company to learn the soft skills necessary to be successful.
Consume content across multiple channels

As important as developing a diverse skill set is, the need to consume a diverse array of
information and knowledge-building materials is equally so. This content can be in the form of
podcasts, books, articles, or lectures. The important thing is that the content, no matter the
channel, should be varied in what it covers.
Identify a problem to solve

Through the consumption of content across multiple channels, an aspiring entrepreneur is able
to identify various problems in need of solutions. One business adage dictates that a company's
product or service needs to solve a specific pain point, either for another business or for a
consumer group. Through the identification of a problem, an aspiring entrepreneur is able to
build a business around solving that problem.
Solve That Problem

Successful startups solve a specific pain point for other companies or for the public. This is
known as "adding value within the problem." Only through adding value to a specific problem
or pain point does an entrepreneur become successful.
Network
Networking is critical for any new entrepreneur. Meeting the right people who can introduce
you to contacts in your industry, such as the right suppliers, financiers, and even mentors, can
mean the difference between success and failure.
Lead by example
Every entrepreneur needs to be a leader within their company. Simply doing the day-to-day
requirements will not lead to success. A leader needs to work hard, motivate, and inspire their
employees to reach their best potential, which will lead to the success of the company.
SMALL BUSINESS VS. ENTREPRENEURSHIP

A small business and entrepreneurship have a lot in common but they are different. A small
business is a company—usually, a sole-proprietorship or partnership—that is not a medium-
sized or large-sized business, operates locally, and does not have access to a vast amount of
resources or capital.
Entrepreneurship is when an individual who has an idea acts on that idea, usually to disrupt the
current market with a new product or service. Entrepreneurship usually starts as a small
business but the long-term vision is much greater, to seek high profits and capture market
share with an innovative new idea.
SOME CHARACTERISTICS OF ENTREPRENEURS
1. Versatility
2. Flexibility / Adaptability
3. Money savviness
4. Resilience
5. Focus
6. Business smarts
7. Communication skills
8. Ability to take a risk
9. Innovation / creativity
10. Visionary Leadership quality
11. Open-Minded
12. Knowledgeable about Products
11. Networking abilities
12. Passion
13. Ethical in nature
14. Confident
15. Curiosity
16. Decisiveness
17. Optimist
18. Goal oriented
19. Disciplined
20. Resourceful
ADVANTAGES OF ENTREPRENEURSHIP
Potential financial rewards:

Independence:
Personal growth:
Creativity:
Job satisfaction:
THE DISADVANTAGES OF ENTREPRENEURSHIP CAN BE AS FOLLOWS:

There will be no fixed working hours
There will be no assurance of income in the initial days
You need to find investors who will be interested in your project
There is a risk of going bankrupt if the business idea does not work out
You will be experiencing more stress than usual

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ENTREPRENEURSHIP

7 GENERAL STEPS THAT MANY SUCCESSFUL ENTREPRENEURS HAVE FOLLOWED:

Ensure financial stability

Consume content across multiple channels

Identify a problem to solve

Solve That Problem

SMALL BUSINESS VS. ENTREPRENEURSHIP

Potential financial rewards:

THE DISADVANTAGES OF ENTREPRENEURSHIP CAN BE AS FOLLOWS:

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