GE ELECT 1-The Entrepreneurial Mind

GE ELECT 1- The Entrepreneurial Mind
Lecture 2
Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind

Entrepreneur’s Background and Characteristics
1. Family Environment- in most cases, people follow the footstep of their
father. A businessman’s son take up business and a salaried person’s
son tries to find a job. So if a family has had a tradition of
entrepreneurship, later generations also follow the step of their
ancestors.
2. Education – education has no correlation with entrepreneurial spirit. If
at all there is one, it seems to be inversed. Most of the entrepreneurs
come from low education background. Educated people who get
decent job rarely prefer comfort of salaried job.
3. Age – there are people who start early as probably 10 and some others
after their retirement. Harland David Sanders, better known as Colonel
Sanders started his famous Kentucky Fried Chicken business quite late
in his varied career.
Entrepreneur’s Background and Characteristics
4. Physical Attributes – have absolutely no correlation with
entrepreneurial spirit.
5. Marital Status – no direct correlation but going by the age group, most
entrepreneurs are married.
6. Working History – entrepreneurs quite have some working experience
as a salaried employee in the field of their venture. It always halps to
learn a little about business before putting your money in.
7. Family Contacts – family contacts in business world reduce the risks
and help the entrepreneur.
8. Family Contacts – family contacts in business world reduce the risks
and help the entrepreneur.
9. Personal Values
10. Lifestyle – most entrepreneurs are fond of good things in life but are
willing to wait till they strike rich. In the interim they are willing to rough
it out.
What is a job competency?
It is knowledge, skills and attitude related
to a particular job. Performance emerges
from the combination of knowledge, skills
and attitude. A perfect balance of all the
three is required. They cannot compensate
each other. Very high knowledge and skill
cannot compensate absence of right
attitude.
Entrepreneurial Decision Process
A person decides to do something either
because something in that activity lures
him or he takes it as option in lieu of
something else, for example: he is
forced to do it by people or
circumstances. The factors which lure a
person to become entrepreneur are
called Pull factors and the factors that
compel him are called Push factors.
Pull Factors
a. Perception of Advantages – if a person feels that he can earn better or overall
gains in terms of money, status, security, future, etc., as an entrepreneur are
better than working as an employee, he tends to turn an entrepreneur.
b. Spotting an Opportunity – Many employees spot a business opportunity in the
course of their work and decide to exploit that opportunity rather than pass it on
to their employer. Many employees buy unsuccessful businesses at throw away
prices from their former employer and turn them around.
c. Government Policies – government very often formulate policies to promote
certain business activity or backward areas which offer tax concessions/holidays,
cash subsidies, cheap land, etc., which improve success and profit prospects.
d. Motivation from biographies or success stories.
e. Influenced by culture, community, family background, teachers, peers etc.,
Push Factors
a. Job Dissatisfaction – many people start their own venture because they feel dissatisfied with their existing
jobs/boss/work environment.
b. Relocation – repeated or especially unhappy relocation sometimes prompts some people to
entrepreneurship.
c. Joblessness – this is the biggest source of micro-level entrepreneurships. Many parents help their
academically poor children, who fail to find a job, to start their own micro ventures. But success rate in such
ventures is poor.
d. Lay off – lay-offs often lower the market value of an employee to half. Thus, if a person is laid off and he is
unable to find a suitable job for him, he might think of starting his own business.
e. Retirement – many retired, but physically and mentally fit, people start their own business either to
supplement their pension/savings or just to keep themselves gainfully occupied.
f. Boredom – This is applicable to many ladies from well to do families. With their army of servants to take
care of home, they find an avenue to keep the boredom away and start ventures like boutiques, fashion
designing, etc.,
Entrepreneurship and Economic Development
Entrepreneurial spirit of people is greatly responsible for economic
development of any country. There is no resource including diamond
mines as valuable as human resource. South Africa and a few other
African countries despite their fertile gold and diamond mines have
remained poor, where as Japan with literally no natural resources and
having suffered devastation during World War II- became a developed
country in just three decades. Therefore, if a country allows its human
resources to be unutilized, its economic development would be severely
hampered.

GE ELECT 1-The Entrepreneurial Mind

Uploaded by

Copyright:

Available Formats

GE ELECT 1-The Entrepreneurial Mind

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

GE ELECT 1-The Entrepreneurial Mind

Uploaded by

Copyright:

Available Formats

GE ELECT 1- The Entrepreneurial Mind

Prof. Hapilen M. Dacasin CoE.,MME. The Entrepreneurial Mind

You might also like