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The document discusses key aspects of entrepreneurship including defining entrepreneurs, important entrepreneurial traits, factors for starting a business, and the importance of entrepreneurship. It also covers topics like innovation, the creative process, conditions for successful innovation, business plans, developing ideas, legal issues, and insurance.

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16 views31 pages

Presentation 1

The document discusses key aspects of entrepreneurship including defining entrepreneurs, important entrepreneurial traits, factors for starting a business, and the importance of entrepreneurship. It also covers topics like innovation, the creative process, conditions for successful innovation, business plans, developing ideas, legal issues, and insurance.

Uploaded by

df
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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CHAPTER ONE

Entrepreneurs And Entrepreneurship

what is entrepreneur?
-action-oriented,
-highly motivated individuals
-who take risks to achieve goals
-have the ability to see and evaluate business
opportunities

.
 ability to gather the necessary resources to take
advantage of them

 thinker and the doer.

 sees an opportunity for a new product or service,


a new approach anew policy, or a new way of
solving a historic problem
Entrepreneurial Traits and Competences

 Need for achievement- childhood exp., born

 Self- Determination- reject influence of chance

 Desire for Independence- wish for autonomy

 Innovation- assess mkt dd & innovate to meet dd


Willingness to Take Risks-invest money, assume
financial risk, leave secured jobs
Factors Starting a Business

 Desire for Independence

 Desire to Exploit an Opportunity

 Turning a Hobby or Work Experience into a


Business
 Financial Incentive

 Redundancy

 Unemployment (or threat of)

 Disagreement With Previous Employer:


4. Importance of Entrepreneurship

- country’s economic development and


technological advancement
- new jobs are generated by small business
- low-paying service
- foster innovation
- government’s income from tax is increased
- import substitution
- exportable products are produced
CHAPTER TWO
Entrepreneurship and Innovation

Creativity:

 The ability to bring something new.

It is ability not activity of bringing something new

Innovation: is the process of doing new things.

 is the transformation of creative ideas into useful


applications, and creativity is a prerequisite to
innovation.
2.2. The Creative Process
1. Germination-seeding Stage of a new idea
2. Preparation-conscious search for knowledge

3. Incubation- subconscious assimilation of infn.

4. Illumination-Recognition of idea as feasible

5. Verification- Application or test to prove ideas has


value
Conditions Required for Success in Innovation

1. executive leadership position to support strategic


decisions that encourage creativity
2. operational leader to carry out the essential tasks
3. A clear need for the application by sufficient
potential consumers
4. The realization of the product, process, or service
as a useful innovation providing value to society.
5. Good cooperation among the crucial player
6. Availability of resources
7. Cooperation and support from external sources
2.5. Windows and Corridors

A window
is a time horizon during which opportunities exist
before something else happened to eliminate
them.
The corridor
is opportunities evolve from entrepreneurs being
positioned in similar work or having had experience
2.6. Success Factors for Entr.

 The Entrepreneurial Team

 Venture Products and Services

 Marketing and Timing

 Business ideology
Chapter Three
Creating and Developing the Business

• Sources of new ideas


1 internal source :
-salesmen
-production personnel
-marketing executives
2 external source:
-customers - competitors
-middlemen - private research
organizations
-inventor - trade
Methods of generating new ideas

 Involve everyone in the search for


Ideas
 Involve Customers in Your Process

 Seek Ideas from New Customer Groups

 Involve Suppliers in Product


Ideation
Developing and using a business plan
1.Information needs

Executive Summary: overview of


business

Marketing Strategy: mtds to reach


target mkt

Financial Information: income &


expense

 Operational Information: steps in


production
Writing the business plan
 A business plan is a comprehensive set of
guidelines for a new venture
 also called a feasibility plan that encompasses
the full range of business planning activities

 describe where you are, where you want to go,


and how you propose to go there.
Importance of the Business plan

 help the owner/manager crystallize


and focus his ideas
 help the owner/manager set
objectives
 benchmark against which to monitor
performance
 attract any external finance needed
 emphasizes the strengths and
recognizes the weaknesses of the
proposed venture
Using and implementing business plan

 When

-At the start up of a new business

-Business Purchase

-Ongoing

-Major decisions
Who
 Managers
 Owners
 Lenders

Why

-Assessing the feasibility and viability of the


business or project

-Setting objectives and budgets

-Calculating how much money is needed


The Format of a Business Plan

1)Executive Summary
2)Company Description
 Promoters, shareholders and Board
 Advisors
 Products and services
 Long Term Aim of Business
 Objectives
 S.W.O.T. Analysis
3 Market Analysis
Target market
Total market valuation
Targeted share
Market trends
Profile of competitors
Competitive advantage
Benefits to clients
4 Marketing/Sales Strategy
Income sources
Marketing strategy
Pricing
Advertising and Promotion
Sales Strategy
5 Research & Development
- Patents, copyrights and brands -
Product/Service Development -
R&D

6 Staffing and Operations


Management Organization Charts
Staffing
Training Plans
Operations
7 Financial Projections
Key Assumptions
Profit and Loss Accounts
Balance Sheets
Cash flow Projections

8 Sales channel

9 Funding Requirements

10 Appendices
Chapter four
Legal issues for entrepreneurs

- Any business in country is regulated by law


- needs to be aware of rules that affect it.

 Intellectual property

- Includes patents, trademarks, copyrights, and


trade secrets represent important assets of
entrepreneur
- refers to products that come from the
creative mind
- Any Innovation, Commercial or Artistic, or
any Unique Name, Symbol, Logo etc
There are four ways to protect these assets:

 1. Patents on Inventions
 2. Trademarks on Branding Devices
 3. Copyrights on Music, Videos,
Patterns, Forms of Expression
 4.Trade Secrets for Methods
/Formulas with Economic Value
1 Patents

-A contract between government &


inventor in exchange for disclosure
of invention to make, use & sell it
alone for certain period of time

 Utility Patents:
Protect Processes, Machines, etc
 Design Patents
designs for Articles of
Manufacture
2 Copyright Laws

- protects the form of


expression of a creator
against copying
- protects works of authorship,
such as writings, dramatic,
music, and works of art
- To stop others from printing,
copying, or publishing
3 Trade Secrets
- Trade secrets are information that
companies keep secret to give them
an advantage over their
competitors
4 Trademark Laws
- protect words, names, symbols,
sounds, or colors that distinguish
goods and services
- A great trademark can help with
the sales of goods and services
Product Safety & Liability

 must not Breach Legal Specifications of a Product


 must follow the Prescribed Specification

Product Liability Claims Types:

1. Negligence: in Production & Marketing Process


2. Warranty: Exaggerating the Benefits
3. Strict Liability: Defective Products for Sale
4. Misrepresentation: material facts on Labels
Business Insurance
- is the transfer of risk from the
business owner to an insurance provider

- It is a contract (policy) in which an


individual or entity receives financial
protection against losses from an
insurance company.
- It is a cover against any unexpected
risk
Buying Insurance

Price
Coverage Offered
Specialization of the Company
Reputation of the Insurance Company

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