Chapter 6 Starting Your Own Business The Entrepreneurship
>>>> Chapter 6 Starting Your Own Business: The Entrepreneurship Alternative
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What is ? p i h s r u e n Entrepre • An entrepreneur is a person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business. • Differs from small business owners: Often smallbusiness owners also posses entrepreneurial qualities but entrepreneurs differ from small-business owners in their strong desire to make their business grow and expand. • Differs from managers: Managers are employees who direct the efforts of others to achieve an organization’s goals.
f o s e i r o g e t Ca s r u e n e r p Entre • Classic Entrepreneurs • Serial Entrepreneurs • Social Entrepreneurs
En f o s e i r Catego ). d t n o c ( s r u e trepren Classic entrepreneurs – identify a business opportunity and allocate available resources to tap that market. Serial entrepreneurs – start one business, run it, and then start and run additional businesses in succession. Social entrepreneurs – recognize a societal problem and use business principles to develop innovative solutions.
Social Business
e m o c e B e l p o e P y h W s r u e n e r p Entre
Why ? p i h s r u e n e Entrepr • Being your Own Boss – Self-management (i. e. to have control over when, where, and how to work) is the motivation that drives many entrepreneurs. • Financial Success – Entrepreneurs are wealth creators. – They believe it is not possible to become rich by working for others and research actually confirms that. – Although, this is a primary motive for entrepreneurs, the path to riches can be long and uncertain.
Why ? p i h s r u e n e Entrepr • Job Security – Over the past ten years, large companies have eliminated more jobs than they have created to improve efficiency. – Although the demand for skilled employees remains high, however, there is no job security. • Quality of Life – Starting a business gives the founder some choice over when, where, and how to work. – A lifestyle entrepreneur is a person who starts a business to reduce work hours and create a more relaxed life. – A common misconception about entrepreneurship is that it is an easy route for someone tired of working and with a little extra cash to invest.
r o f t n e m n o r i v n E e h T p i h s r u e n e Entrepr
n o i t a z i l Globa The rapid globalization of business has created many opportunities for entrepreneurs
c i h p a r g o m e D / T I / n o i t a c Edu s d n e r T c i m o & Econ Education • Now most colleges and universities around the globe offer entrepreneurship courses as well as majors. • Universities are helping students launch businesses. • Apart from educational institutes many other organizations have started teaching entrepreneurship to young people. • Research furthermore shows that students who major in entrepreneurship or take such courses are three times as likely to be self-employed and three times more likely to help start new companies. • It was also found that entrepreneurship education raises both attitudes and overall entrepreneurial intentions.
c i h p a r g o m e D / T I / n o i t a c Edu s d n e r T c i m o & Econ Information Technology • Technology has given entrepreneurs tools that help them compete. • The explosion in IT has provided one of the biggest boosts for entrepreneurs in terms of work pace and efficiency, customer service, sales, etc. • Entrepreneurs have used information technology to revolutionize industries. • The internet and web have also created opportunities for entrepreneurs. Demographic and Economic Trends • Changing demographic factors such as age, cultural, social and religious groups create different kinds of opportunities for entrepreneurs to market new goods and services.
f o s c i t s i r Characte s r u e n e r p Entre
l a i r u e n Entrepre s c i t s i r e Charact • Vision - entrepreneurs begin with an overall idea for how to make their business idea a success • High Energy Level - a willingness to work hard • Need to Achieve - entrepreneurs work hard because they want to excel • Self-Confidence - fearlessness in the face of difficult odds • Tolerance for Failure - entrepreneurs are not easily discouraged • Creativity - entrepreneurs devise innovative ways to overcome difficult problems and situations • Tolerance for Ambiguity - entrepreneurs take in stride uncertainties. • Internal Locus of Control - entrepreneurs believe they can control their own fate
g n i c n a n i F Finding • Debt Financing – borrow money that must be repaid – Credit Cards – Family and Friends – Bank Loans • Equity Financing – exchange a share of ownership for money supplied by investors.
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