02 - entrepreneur and entrepreneurship

8/2/2019 02 - Entrepreneur and Entrepreneurship

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AGENDA

Entrepreneurs and Entrepreneurship

Successful Entrepreneurs in Modern Human

History

How to Become a Successful Entrepreneur

9 Myths about Entrepreneurs and

Entrepreneurship


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ENTREPRENEUR

An entrepreneur is a person who has possession of an

enterprise, or venture, and assumes significant

accountability for the inherent risks and the outcome. It is

an ambitious leader who combines land, labour, and

capital to create and market new goods or services (Arthur

Sulivan, 2003, Economics : Principle in Action)

The word "entrepreneur" is a loanword from French. In

French the verb "entreprendre" means "to undertake

An entrepreneur is a person who is willing and able to

convert a new idea or invention into a successful

innovation (Schumpeter,1950)


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ENTREPRENEUR

Entrepreneur take actions to commercializes invention or innovation

and create New Ventures to appropriate value from them (Burgelman& Hitt, 2007)

When successful entrepreneur identify an opportunity, they pursue it

with vigor. They are immersed in the business dayin and day out,

risking both capital and time. They are driven to succeed and areprobably more afraid of failure than anything else. Wayne Huizenga

as interviewed by Donal L. Sexton (Entrepreneur and Wealth Creator,

AME, 2001, Vol. 15 No.1)

Entrepreneurs are persons who take actionthey engage invigorous, persistent efforts to convert their ideas and visions into

profitable, operating companies.Baron, R. (2007). Behavioral and

cognitive factors in Entrepreneurship: entrepreneurs as the Active

element in new venture creation, SEJ.


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Entrepreneurship

is the practice of starting new organizations or revitalizingmature organizations, particularly new businesses

generally in response to identified opportunities.

Entrepreneurship is often a difficult undertaking, as a vast

majority of new businesses fail. Entrepreneurial activities

are substantially different depending on the type of

organization that is being started. Entrepreneurship ranges

in scale from solo projects (even involving theentrepreneur only part-time) to major undertakings creating

many job opportunities


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Entrepreneurships Attention:To wealth creation centres on identifying new and emerging

opportunities in market place (Shane & Venkataraman, 2000)OPPORTUNITY SEEKING

Strategic Managements Attention:How do firms outperform others. Competitive Advantage

ADVANTAGE SEEKING

Strategic Enterpreneurship:Pursuit of superior performance via simultaneousopportunity-seeking and advantage-seekingactivities (Ireland, Hit, & Simon, 2003)


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Opportunities

Threats

Strengths

Weaknesses

Kirzner (1997) : Entrepreneur often see what

others do not see

Kirzner (1997) : They have Entrepreneurial Alertness, asuperior insight into market imperfection creating an

entrepreneurial opportunities


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The opportunities are limited onlyby creativity and imagination. Geoff Ramsey


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Successful Entrepreneur

in Modern Human History


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John Rockefeller

b. 1839, d. 1937 Rockefeller started his first

business selling grain and

other goods before he was 20.

By buying out oil refineries

around Cleveland and New

York after the Civil War,

Rockefeller soon dominated

the market


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Estee Lauder

b. 1907, d. 2004 In 1946, she founded thecompany that bears hername to sell makeup andperfume in high-enddepartment stores aroundthe world

Lauder became a giant inthe nascent beauty industry

by making sure the qualityof her products exceededthe expectations of hertarget market, namelywealthy society women


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Henry Ford

b. 1863, d. 1947

Ford did not invent the

automobile, but he

made it affordable to

the middle class that hehelped create

His manufacturing

process created themodern car industry,

and with it, the car

culture of the 20th

century


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Harland Colonel Sanders

b. 1890, d. 1980

Kentucky FriedChicken, pioneered byColonel HarlandSanders, became one of

the largest quickservice food servicesystems in the world

A billion "finger lickin'good" KFC dinnersserved annually inmore than 80 countriesand territories.


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Thomas A. Edison

b. 1847, d. 1931 Edison's relentless

innovation made him themost prolific inventor ofhis time

Started as a telegraphoperator but soon movedon to refining thattechnology and creating

others that would turn theworld on its head: a deviceto turn power into light, amachine to record and playback sound


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Bill Gates

b. 1955

By linking his Microsoftsoftware to IBM's first PCs,he dominated the industry

He developed a two-prongstrategy of expanding themarket while maintaining astrong hold on competitors


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Jeff Bezos

b. 1964

Founded Amazon.com,

in 1994

Bezos pioneered

techniques that have

become staples of

online sales.


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Oprah Winfrey

b. 1954

Oprah Winfrey turned her

name into one of the most

successful and respected

brands in the world

Leveraged that fame into

other interests: magazines,

Web sites, film and

television production and

Social Entrepreneurship.


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Muhammad Yunus

b. 1940

2006 Nobel Peace

Prize winner, founded abanking system 30

years ago to lend small

amounts of money to

the rural poor inBangladeshi villages


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Chad Hurley, 29; Steve Chen, 28 &

Jawed Karim, 27

Founders of YouTube

Broadcasts 100 millionshort videos daily onmyriad subjects

Sold to Google


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Pierre Omidyar

b. 1967

Founder of EBay,

which made thepromise of the Internet

a reality by connecting

far-flung customers

with the goods theywanted to buy


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How to become asuccessful entrepreneur

What is success? When is an entrepreneur successful?

What skills does the entrepreneur need?


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Entrepreneurship

built on

Vision

Innovation Strategy

Finance

Leadership


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Characteristics of the

entrepreneur Huge drive

Willing to take risks

Able to develop new ideas

Able to get on with people

Strong leader (driven followers)

Dominant person

Has problems with a manager above


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Psychological aspects

The entrepreneur

wants to prove himself/herself more then others

has the pressure to reach something

wants to be in control

is convinced he/she can do it better

is not afraid of taking risks


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Sociological view

Entrepreneurship cant exist without the

entrepreneurs network and the social skills

of the entrepreneur The entrepreneur has to have the creativity

to find combination in the weak ties in his

network


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Motivation for venture creation

Make a daily living

Achieve social and economic security

Work for oneself, not for others

Commercialize a particular idea, technology

or skill

Focus on the business

Becoming market leader


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Another recognition

High motivation for success

Innovate ideas and concepts

Collective sharing of results Commercialization of highly sophisticated

technology

Try to control the market rather than thecompany

Growth by acquiring; global alliances


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How to succeed?

Spin offs have the biggest change for success It is not the new technology that concurs the market, but

the combination of technologies

the modified product that suits in the market

the ability to get it in the market

It not the inventor but refiner of the technology whoknows how to penetrate the market, who succeeds


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9 Myths aboutEntrepreneurs

andEntrepreneurship

Laura L. Hollis, 2008Clinical Professor of Business AdministrationUniversity of Illinois at Urbana Campaign


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#1. Entrepreneurship is a young persons game; most

first-time entrepreneurs are either in college or right out

of itFALSE

In fact, the average age of a first-time entrepreneur

starting a technology business is 39! And since this isan average, that means that just as many start-upfounders are olderas are younger.

Source: Wadhwa, Freeman and Rissing, Education and Tech Entrepreneurship,Report of the Kauffman Foundation, May 2008


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#2. Successful entrepreneurs are those who come upwith the most creative, original ideas for their businesses

FALSE

It depends on what you mean by creative and original.

According to some studies, anywhere from 70% - 90% of

the ideas for a new business come from anentrepreneurs previous employment or existing businesscontacts.

In other words, the more experience you get working forsomeone else, the more likely you are to come up with anidea for a new business.

Source: Prof. Ikhlaq Sidhu, Center for Entrepreneurship and Technology, University of

California, Berkeley


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#3. Most entrepreneurs are motivated by money or greed

FALSE

And not just false, but way, way off.

Most entrepreneurs are motivated by a desire to workfor themselves, and a passion for solving problemsparticularly difficult, entrenched human problems.

Even the most successful entrepreneurs will tell you

that if youre in it for the money, get out now; its mucheasier to make money working for someone else!

Sources:Scott Shane, The Illusions of Entrepreneurship, Yale University PressGuest lectures, Lectures in Entrepreneurship course, University of Illinois, 2001-2008


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#4. Most successful entrepreneurs especially in high-tech companies have Ph.Ds in science

FALSE

6% of U.S. born tech company founders have a high

school diploma or less

2% have an associates degree, some college, or a

certification

44% have a bachelors degree

30% have a masters

Only 10% of high-tech company founders have a Ph.D!

Source: Wadhwa, Freeman and Rissing, Education and Tech Entrepreneurship, Report of

the Kauffman Foundation, May 2008


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#5. Entrepreneurs are born different

FALSE

In fact, a good number of people who becomeentrepreneurs never planned to be.

Although there are correlations between certain types ofbehavior or psychological traits and entrepreneurship, itseems that as many successful entrepreneurs learnthese skills and acquire these attributes as are born withthem.

And we know that some of the most significantpersonality traits associated with entrepreneurship suchas self-efficacy - CAN be taught

Source: Bill Lucas, MIT and Sarah Cooper, Cambridge University


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#6. To be successful, an entrepreneur needs a degreein business

FALSE

Although many self-employed people have businessdegrees, there is a stronger correlation between a

degree in the sciences or engineering

According to a recent study, 34% of U.S. founders ofhigh-tech companies held degrees in business, financeor accounting

47% held degrees in STEM-related fields (Science,Technology, Engineering, or Mathematics

Source: Wadhwa, Freeman and Rissing, Education and Tech Entrepreneurship,

Report of the Kauffman Foundation, May 2008


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#7. Most entrepreneurs are millionaires

FALSE

Most new businesses fail

The average self-employed person earns lessthan they

would working for someone else

Entrepreneurs work more hours, on average, than thoseworking for someone else

Source: Scott Shane, The Illusions of Entrepreneurship, Yale University Press


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#8. You cant be an entrepreneur without venture capital

FALSE

Only .03% of new companies are financed by venturecapital

The average amount of money used to start a businessis between $15,000 - $20,000

The most common source of this money is theentrepreneurs savings; not banks, or even loans fromfriends and family

65% of entrepreneurs finance their companies use

some form of personal debt Fewer than 1 in 12 start-ups gets investment money

(equity financing) from family and friends



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#9: Entrepreneurs are happier than those who work forother people

TRUE

But! It depends upon what measure you are looking at Remember, entrepreneurs work more hours than those

working for someone else

And, they tend to make less money And, most new businesses fail That said, self-employed people report HIGHER job

satisfaction dramatically higher : 62.5% versus 45.9%

Why? Autonomy, flexibility, greater impact and greatercontrol.



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How to become a

successful entrepreneur ?


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There is no Magic Pill for becoming a

Successful Entrepreneur


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Entrepreneurs are those who

ALWAYS STRIVE

FOR EXCELLENT


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Entrepreneurs are those who

NEVER GIVE UP


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