Entrepreneurship

for Engineers

Empowering Future Innovators with

Business Skills
Introduction

This presentation
explores the essentials
of entrepreneurship
tailored for engineering
students, highlighting its
significance and
foundational concepts.
 01
Entrepreneurship
Basics

Basic concepts
What is Entrepreneurship
Entrepreneurship is the
process of designing,
launching, and running a
new business, typically a
startup offering a product,
service, or process.

It encompasses the ability to

take risks while seeking to
capitalize on market
• “Entrepreneurship is the dynamic process
of creating incremental wealth.

• It is the process of creating and building

something of value from practically nothing.

• Entrepreneurship is a human creative act. It

involves finding personal energy by
initiating and building an enterprise or
organization, rather than by just watching,
analyzing, or describing one.
An Entrepreneur

An entrepreneur is a
person who starts a
business and is willing to
risk loss in order to make
money.

Best things come to those

who try and wait.
 Importance for
Engineers

For engineers, entrepreneurship fosters innovation and

creativity. It provides the skills to transform technical
expertise into viable business solutions, encouraging
the development of new products and technologies
that meet market demands.
 Entrepreneurship Characterstics
Adabtability: closely analyse the environment and adapt to any
potential changes in this constantly changing business environment.

Systematic Activity: is not a gift or charm that occurs by chance! It is a

systematic, step-by-step, and deliberate activity which can be acquired,
learned, and developed.

Lawful and Purposeful Activity: The goal of entrepreneurship is to

conduct legal business.
 Characterstics of entrepreneurs
• Innovation: It entails coming up with new ideas and implementing them
in business.

• Risk Taker: The essence of entrepreneurship is “willingness to

assume risk,” without which one cannot succeed.
“The higher the risk, the higher the gain”
• Organisation of Production: the entrepreneur mobilises resources
such as land, labour, capital, and technology into a productive
enterprise or firm.
 Key traits of Entrepreneurs
Successful entrepreneurs often exhibit key

traits such as creativity, resilience, strong

leadership skills, adaptability, and the ability to

network effectively. These qualities enable

them to navigate challenges, innovate, and

lead their teams toward business success.

 inspiring creativity
Passionate Risk taking
Collaborativ
Driven
e
Knowledge
visionary
able
ENTREPR
Trustworthy ENEURS persistent

Innovative Resilient

Ambitious strategic
Adaptable Resourcefu
ethical
Confident
l
 General concept
• Starting and growing a business: it’s a
start-up (“entrepreneurship”)

• An initiative towards growing an

established business [Developing new ideas
within an existing organization]

(“intrapreneurship”)
 Who is an intrepreneur
An entrepreneur can be described as someone who:
• owns and manages his/her own business
• identifies new products/services or opportunities,
• is creative and innovative,
• organizes and controls resources to ensure a profit for the business,
• has the ability and insight to market, produce and finance a service or
product,
• has financial means or can obtain financing to support the business and
• is willing to take calculated risks.
• Traditional Entrepreneurship:This is the most common
form of entrepreneurship. It focuses on starting and running
a business with the primary goal of generating profit. These
businesses typically provide goods or services in exchange
for money, and success is measured by factors like revenue,
market share, and profitability.
• Social Entrepreneurship

Social entrepreneurs aim to solve social or environmental problems

while also generating revenue. They prioritize societal impact over
profit maximization.
• Serial Entrepreneurship

• Serial entrepreneurs aren't content with just one business idea. They are
driven by a constant stream of new ideas and the challenge of building
something successful from the ground up.

• While some may juggle multiple ventures at once, serial entrepreneurs

typically focus on one business at a time, taking it to a certain stage before
moving on to the next. This stage could be achieving profitability, reaching
a specific market share, or even selling the business entirely. These
entrepreneurs are also known as the Hustlers.
• Imitative entrepreneurship:

Imitative entrepreneurship refers to the process of replicating or

imitating an existing business model, product, or service in a new
market or context.
• Tech Entrepreneurship

Tech entrepreneurship is the exciting world of building businesses

around innovative technology products or services. These
entrepreneurs use technology to address problems, create new
markets, and disrupt established industries.
 Who can be an intrepreneur
Anyone – regardless of age, race, gender, • Desire for immediate feedback
color, national origin, or any other • High level of energy(work harder and
characteristic – can become an longer than employee
entrepreneur (although not everyone
• Future orientation(strong will , less
would).
payment at beginning, do not give up
• Desire for responsibility
• Skilled at organizing
• Preference for moderate risk – risk
• With good health and physical
eliminators
stability
• Confidence in their ability to succeed
• Value achievement over money
 Entrepreneurial competencies
Entrepreneurial competency is • Seeking opportunities
a set of skills and behaviour • Conveying a compelling
vision
needed to create, develop, • Persuasiveness
manage, and grow a business • Effective strategist
venture. • Eagerness to learn and try
• Taking initiative new things
• Being highly competitive
• Exploiting change
• Dealing with uncertainties
Your surrounding environment will affect how the entrepreneurial
competencies are combined to implement a social or business enterprise.
• Knowledge consists of a set or body of information stored, which
may be recalled at an appropriate time.
• Skill is the ability to apply knowledge.
• Traits are qualities that make one person or thing different from
another OR are the total of peculiar characteristics that constitutes
personal individuality.
 Knowledge
Skill

• business opportunity
Technical Managerial

• the market
• customers Leadership
 Catering
• competitors
Planning
 Mechanics
• production processes
Organization
• treatments of supplyer  Carpentry
 Financial management
• technical matters  Sewing
• Time management
business management  Engineering
• sources of assistance  Computing
Marketing(including
• Source of problems selling)
 Hard Working Traits  Willing to Listen

 Self-Confident  Sets own Standards

 Builds for the Future  Copes with Uncertainty

 Profit-Oriented  Committed

 Goal-Oriented  Builds on Strengths

 Persistent  Reliable and Has Integrity

 Copes with Failure  Risk-Taker

 Responds to Feedback

 Demonstrates Initiative
 Costs and rewards of intrepreneurship
Rewards for Being an • Providing jobs and benefits to
Entrepreneur: others
• Create your own destiny • Creating economic value
• Make a difference (product/service, incomes for
workers, profits for
• Reap impressive profits
shareholders/partners)
• Self-actualization/personal
fulfilment
• Feeling of freedom and
independence
COSTS OF BEING AN ENTREPRENEUR

• Works long Class Sessions

• Always concerned about the
business
• Needs high energy
• Sacrifices other important aspects of
life
• Limited social life
• Not much time with family and
friends
• Risk of losing your entire investment
• Lower quality of life until the
 Role of Entrepreneurship in Society
• Entrepreneurs play a key role in business and the private sector where in
most of the wealth in a society or nation is created.

 Products and Services. Business entrepreneurs fulfill the role both to

discover consumer demands and to do whatever is required to satisfy them
 Employment. Business ventures are the major providers of “real” jobs –
i.e. decent work for people who need and want to work
 Income (Wages, Salaries and Profits) Through its employment creation,
business provides an income base to its stakeholders in terms of salaries,
wages, profits and taxes.
 Taxes. For social institutions and services afford. Continued…
 Investment in Productive Assets: A business needs capital investments to
create productive capacity: innovation, modernization, and expansion of
assets.

 National Well-being: Most of the goods, services as well as technological

know-how required to satisfy our needs come from business activity and
economic development of privately owned resources.

 Environmental Sustainability: Sustainable enterprises do not only maximize

their personal profit in the short term but ensure the long term availability of
natural goods and services.
 Characteristics of successful
Entrepreneurs
Successful enterprise owners possess many of
the following characteristics:
• drive and energy
• high initiative & personal responsibility
• self-imposed standards
• continuous pragmatic problem solving
• money as a measure not merely an end
• moderate risk taking
• tolerance of ambiguity
Continued…
• low fear of failure
• self-confidence
• use of feedback
• use of resources
• clear goal setting
• internal locus of control
• long-term involvement
 RISK in business
• A risk situation occurs when a choice is required
between two or more alternatives whose potential
outcomes are not known and must be subjectively
evaluated.

• It involves potential success and potential loss.

• The greater the possible loss or gain, the greater the

risk involved.

• Risk-takers make decisions in conditions of

uncertainty, and they balance potential success against
• Financial risk: Startups often operate with limited resources, and
the pressure to achieve a return on investment can be immense.

• Legal Risk: Entrepreneurs must also contend with legal risks, which
encompass regulatory compliance, intellectual property disputes,
and contractual obligations.

• Strategic Risk: Strategic risks involve decisions that affect the

long-term viability of the business. A common danger is misjudging
market demand, leading to product that fail to meet consumer
demand.
• Operational Risk: risks linked with the day-to-day functioning of the
business. They can arise from internal processes, people, or systems.
eg. a supply chain disruption, significantly delaying product delivery.

• Reputational Risk: In the digital age, a company's reputation can be

its most valuable asset or its Achilles' heel. Negative

reviews or social media can deter potential customers, eg. the case of

a food delivery that received widespread criticism for poor service.

 Choosing a risky alternative depends on

• how attractive the alternative is

• extent to which the risk taker is

prepared to accept the potential
loss

• relative probabilities of success

and failure and

• degree one’s efforts increase

likelihood of success and
decrease likelihood of failure.
 Calculated Risk-Taking
• Most entrepreneurs take calculated and moderate risks.

• Entrepreneurs avoid low-risk situations because there is lack of challenge

• but they also avoid high-risk situations because they want to succeed.

• They set high goals and enjoy the excitement of a challenge, but they do
not gamble.

• Hence, low-risk situations and high-risk situations are avoided because

these risks do no satisfy the entrepreneur.

• In short, the entrepreneur likes a difficult but achievable challenge

• What are the biggest obstacles to achieving my goal?
Questions to Ask Before Taking a Risk
• Is the goal worth the risk involved?

• How can the risk be minimized?

• What information is needed before taking the risk?

• What fears do I have in taking this risk?

• Am I willing to try my best to achieve the goal?

• What will be achieved by taking the risk?

• What preparation will I need to make before taking the risk?

• What people and other resources can help to minimize the risk?
 How to Analyze Risky situation?
• Here are suggested procedures for analysing a risk situation.
1. Assess the risk: whether or not a risk is involved

2. Determine goals and objectives:. Is the risk involved consistent with objectives?

3. Clarify the alternatives: survey the various alternatives

4. Gather information and weigh the alternatives: intensive information-gathering

so that a realistic assessment of the odds can be made for each alternative
5. Minimize risks:

6. Plan and implement the best alternative

 Negotiations
• Negotiations are formal discussions in order to reach an agreement.
• It is not a skill that is typically taught in formal education, but
gained through effort and experience.

• It is both a science and an art.

• Without proper negotiation skills, you will leave money on the

table, lose important deals, or perhaps make deals that do not serve
your business.
• Prepare Thoroughly
• Know Your Worth
• Communication skills
• Listen More Than Talk
• Confidence
• Develop a Win-Win Mentality
• Adequete Preparation
• Problem-solving (roadblocks)
• Flexibility to compromise
• Be Willing to Walk Away
 Some possibilities
• Hire a lawyer who is a good negotiator
• Learn as much as possible about the person or institution you’re
facing.
• Try to list all the issues that will surface in the negotiation.
• Try to maintain an atmosphere of openness.
• The objective of negotiation is not to beat the other side. It is to
strike a deal that is better for everybody than the initial conditions.
• In some business related negotiations, market indicators such as
supply and demand will influence the outcomes of the negotiations.
 Personal Attributes Needed to Negotiate
• In addition to knowledge, negotiators need the following
personal attributes:
• Integrity: A negotiator must be honest as honesty builds
mutual trust and cooperation that is crucial in bringing about
free and open exchange of ideas.
• Empathy: This is the ability to understand the other party’s
point of view
• Patience: This is the calm endurance of the prevailing state
of affairs
Negotiation skills
• Clarity in communication is essential. Do not engage in
long paragraphs. You lose attention.
• Stick to objectives and learn to avoid personalizing
situations.
• Control your emotions.
• Occasionally show anger may be effective, but never
lose your temper.
 Successful Negotiating
• Negotiating outcomes should be a win-win for both parties.
• Both parties should feel satisfied with the results.
• Do not become emotional.
• Focus on solving problem.
• Use the negotiation style of other party to achieve positive outcomes.
• Be flexible in your demands.
• Compromise. Don’t expect all of your demands to be met.
• Ask good questions and then listen. You can’t learn anything when you are
talking.
 Time Management
• Time is a unique resource because everyone has 24 hours a day and
168 hours a week—no more, no less
• There is no such thing as lack of time; there is just lack of planning.
Efficient time management involves:
• Organization and planning, which can result in accomplishing a
best outcome
• Planning the use of every minute is important even if some of the
time is used for doing nothing.
• Once time is lost or wasted it cannot be recovered. Inefficient time
management causes people to waste a very important resource.
 Tips on Time
Management
• Efficient time management means that you must organize and plan
• Activities tend to fall into three areas:
• things that must be done
• things that should be done, and
• things that are least important or do not have to be done at all.
• It is recommended that you make a list of all things that you want to accomplish in a day.
Then set up a rating system for your list
• Following a schedule helps to control the time needed to complete tasks.
• Choose five activities you would like to accomplish by the end of the day. Rank each
activity by level of importance (A,B,C) and indicate how much time is needed for each
activity
• Set up a schedule for the day to complete these activities.
 Deadly Mistakes of
1. Management mistakes
Entrepreneurship
2. Lack of experience
3. neglecting customer needs
4. Poor financial control and planning
5. Poor marketing strategies; lack of research
6. Failure to develop a strategic plan
6. Uncontrolled growth
7. Poor location selection
8. Improper inventory control
9. Incorrect pricing
10. Inability to make the “entrepreneurial transition”
but your goals should
be

SMART.
 End of chapter

Thank you!
Any questions?
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