ENTREPRENEURSHIP

The
Entrepreneur
• Is a borrowed word from
the French word
“entreprendre”
• In economics,
entrepreneurship combined
with land, labor, natural
resources and capital can
produce profit.
• Entrepreneurial spirit is
characterized by innovation
and risk-taking, and is an
essential part of a nation’s
ability to succeed in an ever
changing and increasingly
competitive global
marketplace.
Characteristics of an Entrepreneur
1. The entrepreneur is
motivated by an
overwhelming need for
achievement and strong urge
to build.
2. The entrepreneurs are tough,
pragmatic people driven by
needs of independence and
achievement.
3. They have keen insights,

prone to brainstorms,
deceptions, ingeniousness
and resourcefulness.
4. They are cunning,
opportunistic, creative, and
unsentimental.
5. Entrepreneurs exhibit
extreme optimism in their
decision-making processes
6. Entrepreneurs are prone to
overconfidence and over
generalizations
Types of Entrepreneur
• Small/ Business, Lifestyle and

Family Entrepreneurs
- A small business entrepreneur is
an individual who establishes and
manages a business for the
principal purpose of furthering
personal goals.
• Franchise Entrepreneurs
- Franchising is where a franchisor
is offering a franchisee exclusive
rights in return for their payment
of royalties and comformance to
standardized operating
procedures.
• Professional Fast-Growth and

Serial Entrepreneurs
- Professional entrepreneurs lead
these ventures, which typically
employ between 20 and 500
people and have sales growth of
at least 20 percent each year for
four straight years.
• Corporate Entrepreneurs and

Intrapreneurs
- A driving force for the corporate
world is “innovative or die”
“Any organization that believes
that management and
entrepreneurship are different let
alone incompatible” - Drucker
• Creative Disrupters and

Innovators
- These entrepreneurs are a rare
breed, living on the creative edge.
Most often, these brilliant
“entrepreneurial-engineers” look
to technology to solve problems in
ways that “unlock value”.
• Extreme Entrepreneurs
- are formula-1 race car drivers,
North Atlantic Fihermen,
Lumberjacks etc. Branson says
“Being an adventurer and
entrepreneur are similar. You are
willing to go where most people
won't dare”
• Social and Nonprofit

Entrepreneurs
- Giving to the local community
was important. Social and
nonprofit entrepreneurs who
pursue endeavors for the benefit
of society have existed since
ancient times.
Contribution of Entrepreneurs
1. Develop New Markets.

- Markets are people who are
willing and able to satisfy their
needs.
- In economics, this is called
effective demand.
2. Discover New Sources of

Materials
- Entrepreneurs are never satisfied
with traditional or existing sources
of materials.
- Due to their innovative nature,
they persist on discovering new
sources of materials.
3. Mobilize Capital Resources

- They properly mix these factors
of production to create goods and
service.
- Capital resources, from a
layman's view, refer to money.
- In economics, capital resources
represent machines, buildings,

and other physical productive
resources.
4. Introduce New Technology

- Entrepreneurs take advantage of
business opportunities, and
transform these into profits.
- So they introduce something
new or something different.
5. Create Employment
- The business biggest employer is
the private business sector.
-Millions of jobs are provided by
the factories, service industries,
agricultural enterprises and the
numerous small-scale businesss.
CAPITAL RESOURCES
1. Human Capital
This includes physical labor,

one of the most important
resources which can be classified
in a number of ways.
CAPITAL RESOURCES
2. Opportunity Capital
This is the lead-time before

others see a problem. It is the
insight to the opportunity and
particular know-how in solving a
problem. Also called intangibles
and goodwill.
CAPITAL RESOURCES
3. Economic Capital
The second of two business

assets is called tangibles. There
are two types of tangibles: fixed
assets like land, physical building,
manufacturing plant, office space
and machinery.
CAPITAL RESOURCES
The second type is called current

assets which includes inventory,
materials, direct materials and
subcontract materials, like
components, parts, asemblies
produced by a supplier or vendor
in accordance with designs and
specifications
CAPITAL RESOURCES
4. Financial Capital
This includes cash in the
checking account, and cash
equivalents like publicly traded
stocks, U.S. bonds, sometimes
accounts receivables from
marquee costumers, and
personally secured loans made to
the venture. (most needed)
CAPITAL RESOURCES
4. Entrepreneurial Capital
This includes the collective
domain expertise, the execution
intelligence, the time and
commitment, and combined
intrinsic motivation of a venture
team.
ADVANTAGES OF ENTREPRENEURS
1. Enormous personal financial

gain.
2. Self-employment, offering more
job satisfaction and flexibility of
the work force.
3. Employment for others, often in
better jobs
4. Development of more
industries, especially in rural areas
or regions disadvantaged by
economic changes, for example
due to globalization effects
5. Encouragement of the
processing of local materials into
finished goods for domestic
consumption as well as for export
6. Income generation and

increased economic growth
7. Healthy competition thus
encourages higher quality
products
8. More goods and services
available
9. Development of new markets
10. Promotion of the use of

modern technology in small-scale
manufacturing to enhance higher
productivity
11. Encouragement of more
researches/ studies and
development of modern machines
and equipment for domestic
consumption
12. Develop of entrepreneurial

qualities and attitudes among
potential entrepreneurs to bring
about significant changes in the
rural areas
13. Freedom from the dependency
on the jobs offered by others
14. The ability to have great

accomplishments
15. Reduction of the informal
economy
16.Emigration of talent may be
stopped by a better domestic
entrepreneurship climate.
Entrepreneur vs. Manager of a
Large Organization
1. Costumer Handling and
Satisfaction
A manager of large
organization is evaluated on
organization specific parameters
when it comes to customer
satisfaction.
Large Organization
1. Costumer Handling and
Satisfaction
An entrepreneur, being flexible

and adaptive, will quickly move to
resolve any costumer issues.
Large Organization
2. Career Growth and Salary
For a manager of large

organization, there is a certain
career path. Salaries are
guaranteed at the end of the
month. However promotions are
time bound and career growth
cannot be explosive.
Large Organization
2. Career Growth and Salary
For an entrepreneur, career

growth is all dependent on the
growth of the venture. If the
venture succeeds entrepreneur
gets rewarded by lots of money.
Large Organization
3. Problem Solving vs. Delivering
Manager of large organization is

more concerned about delivering in
specified budget, time and quality.
More on facilitator and coordinator
rather than a problem solver.
Large Organization
3. Problem Solving vs. Delivering
An entrepreneur has a lot more
challenges and issues to handle. She
is not only the facilitator but
sometimes problem solver, a hands
on kind of person. Since her team is
small, she has to take care of more
than just communication and it does
get challenging at times.

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The

3. They have keen insights,

• Small/ Business, Lifestyle and

• Professional Fast-Growth and

• Corporate Entrepreneurs and

• Creative Disrupters and

• Social and Nonprofit

1. Develop New Markets.

2. Discover New Sources of

3. Mobilize Capital Resources

represent machines, buildings,

4. Introduce New Technology

This includes physical labor,

This is the lead-time before

The second of two business

The second type is called current

1. Enormous personal financial

6. Income generation and

10. Promotion of the use of

12. Develop of entrepreneurial

14. The ability to have great

An entrepreneur, being flexible

For a manager of large

For an entrepreneur, career

Manager of large organization is

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