ENTREPRENEURSHIP andENTREPRENEUREngineering EntrepreneurshipSecond Semester of A.Y. 2014/2015International ProgramCivil Engineering DepartmentFaculty of EngineeringUniversitas Atma Jaya Yogyakarta

ENTREPRENEURSHIP

HISTORY of ENTREPRENEURSHIPEntrepreneur is from French wordIn English means between-taker or go-betweenKnown as science in economics since 1755First person to introduce was Richard CantillonCantillon said, an entrepreneur is someone pays particular price for a particular product and sells it later with uncertain price while making decisions related to use resources and to accept risks of businessEntrepreneurs attempt to find best opportunities in using resources to give highest possible commercial results

ESSENTIALS of ENTREPRENEURSHIPIn daily life, there are still many people interpret and consider entrepreneurship is identical to what owned and done by entrepreneurs inappropriate because soul and attitude of entrepreneurship do not belong only to entrepreneurs but also by anyone who think creatively and act innovatively such as farmers, government officers, private employees, students, teachers, project managersInnitially, entrepreneurship was found in business but it is recently developed in various aspects of life, it is even one of requirements to be a leader of an organization

ESSENTIALS of ENTREPRENEURSHIPCreative and innovative ability as a base, tricks, and resources to find successful opportunityAbility to create something new and different through creative thinking and innovative action for the creation of opportunityAbility in creating added value in market through management process of resources using new and different ways such astechnology developmentscientific knowledsge inventionimprovement of current products of good & servicefind new ways to obtain more products with more efficient resources

PROCESS of ENTREPRENEURSHIPIt is a process of running new business, either:new product to current market,current product to new market, and/orcreate new organizationIt has 4 (four) real phases, i.e.:Identifying and evaluating opportunitiesDeveloping business planDetermining required resourcesRunning business

CAPITALS of ENTREPRENEURSHIPNot necessarily money and goods but also intellectual ideas + knowledge, ability, skill, commitment, responsibilitysocial and moral honesty & trust to shape image, integrity, loyalty, fainess, helpful, respectful, lawfulmental courage to face challenge & risk based on spirituality

Entrepreneurship and EmployabilityJobless young people are all over the world, they face difficulties in transition from educational world to the professional world important and lingering issue in Europe and industrial countries; it attracts attention of UN, World Bank, ILOPredominant factors contributes to creation of employment for young people:Employability: ability to penetrate labor market and keep achievement even capability to get other workEqual opportunities: balance opportunityEntrepreneurshipEmployment creation

REQUIRED SKILLS in EMPLOYABILITY

BASIC SKILLTEAM WORK SKILLPERSONAL MANAGEMENT SKILLRequired as base of further development

Required productively to contribute or add value to work result, project or teamAttitude and behavior to support someones potentials to grow and to offer bigger opportunity for achievementCommunicationInformation managementMathematical abilityThinking & problem solvingWork with other peopleParticipating to project and workShowing positive attitude and behaviorResponsibleAdaptableContinuous learningWork safely

ENTREPRENEURSHIP

EMPLOYABILITYSelling skill

Leadership/ humanity

Creating businessCommunication

Team work

Personal development

ENTREPRENEUR

ENTREPRENEURIs someone who creates new business by taking risk and uncertainty to gain benefit and growth by identifying opportunities and combining resources to establish it

Good entrepreneur is risk-avoider and not risk-taker.They seem as risk-takers since they see market in different way of the common way people normally see.They see product or service according to change of culture. They immediately create it. They systematically eliminate all risk factors and will be protected from risk when entering the market. They become risk eliminator.

In perception of Adam Smith, entrepreneurs react on economic change so that they become economic agents who transform demand to be supplyEntrepreneur does not belong to business only. Hence, it is grouped into 4 (four), i.e.:business entrepreneurgovernment entrepreneuracademic entrepreneursocial entrepreneur

ENTREPRENEUR CHARACTERISTICSInternal control locus: control ownself fate, direct ownself, love autonomyHigh energy level: persistent human, willing to work hard, willing to give extra effort to reach succeedHigh need of achievement: motivated to act individually to gain challenging goalsTolerance upon ambiguity: willing to accept risk, tolerant to situation of high uncertaintyHigh trust: confident on self-competence, self-confident, willing to make decisionsAction oriented: try to act preceding problems, try to finish task as soon as possible, not wasting time

Can entrepreneur be resulted from education?Answer: entrepreneur is result ofbornenvironmentpractice/exercise

CONVENTIONAL MANAGER vs. ENTREPRENEUR

CONVENTIONAL MANAGERENTREPRENEURHighly aware of rules and bansConsider rules only as guidanceSensitive of future and willing to delay returnConcept of future is based on chimeraLower treshold of frustrationStrong desire to be acceptedUnclear control, succeed, responsibilityPossibly manipulative and exploitative to othersAble to identify problem in all directions of actionMake detail planImpatience of discussion and theoryAct fast following intution

POTENTIAL DISADVANTAGES of ENTREPRENEURUncertain incomeRisk of lost all investment research-based risk of failure of small businesses is relatively high: 24% new businesses fail within 2 years, 41% within 4 years, 63% within 6 yearsQuestions prior to business establishment:What is worst to happen if I open a business and fail?What is the chance of the worst to happen?What to do to reduce risk of failure?If it happens to fail what is the back up plan to overcome it?3.Work long and hard 60-69 hours/week on average

TIME SPENT PER WEEK TO WORK AS AN ENTREPRENEUR

POTENTIAL DISADVANTAGES of ENTREPRENEURLow quality of life prior to settled business most entrepreneurs start at the age of 30 when they have family to take care ofHigh mental stressFull responsibility

AGE TO START AS ENTREPRENEUR

The Entrepreneur..

Ones see but not think

Think but not understand

Understand but not being impressed

Being impressed but not act

Act but not doing entrepreneurship

Doing entrepreneurship but not successful

Real entrepreneur fails 10 times but raises 11 times

(Dr. Ir. Ciputra)