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De-Pe: Intro To Entrepreneurship

The document provides an introduction to entrepreneurship, covering several key topics: 1) It discusses Peter Drucker's view that entrepreneurship is a discipline that can be learned, not magic or mysterious. 2) It outlines different types of companies - lifestyle businesses and high growth businesses. 3) It compares the roles of managers versus entrepreneurs in growth firms and lifestyle firms. 4) It examines classical viewpoints of entrepreneurs as risk-takers and organizers of production. 5) It identifies entrepreneurial characteristics like recognizing opportunities where others see chaos.

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muhammad irfan
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46 views28 pages

De-Pe: Intro To Entrepreneurship

The document provides an introduction to entrepreneurship, covering several key topics: 1) It discusses Peter Drucker's view that entrepreneurship is a discipline that can be learned, not magic or mysterious. 2) It outlines different types of companies - lifestyle businesses and high growth businesses. 3) It compares the roles of managers versus entrepreneurs in growth firms and lifestyle firms. 4) It examines classical viewpoints of entrepreneurs as risk-takers and organizers of production. 5) It identifies entrepreneurial characteristics like recognizing opportunities where others see chaos.

Uploaded by

muhammad irfan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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De-Pe

Intro to
Entrepreneurship
Intro to Entrepreneurship

Introduction to Entrepreneurship

• Peter F. Drucker
entrepreneurship is not:-
– Magic
– Mysterious
– But It is a DISCIPLINE and it can be
LEARNED.

2
Intro to Entrepreneurship

Types of Companies

Lifestyle
– Provide a family income/support desired lifestyle
– Fulfill personal goals
– Generally $1M or less in annual sales
– Limited upside
– Sole proprietorship, LLC, S-Corp
High Growth
– Fewer than 1 in 20 businesses
– Possibly very large returns
– Generally require more funds
– Fiduciary responsibilities

3
Intro to Entrepreneurship

Manager vs Entrepreneur

Entrepreneur Growth Firm


Pursuit of growth and personal wealth important
Owner Manager Lifestyle Firm
Often trade or craft based. Will not grow to any size
Manager Manages a business belonging to someone else
Will build an organisation putting in appropriate control
similar to a large firm

4
Intro to Entrepreneurship

Classical Viewpoint of the Entrepreneur

Risk-taker New Product Manager


Combinations

Uncertainty Entrepreneur Decision-maker

Market Capitalist Organises


Opportunities Production
5
Intro to Entrepreneurship

Identifying entrepreneurial characteristics

• INTRODUCTION
– Entrepreneurs are individuals who
recognize opportunities where others see
chaos or confusion

6
Intro to Entrepreneurship

Entrepreneurial Culture

• Always seeking something new


• Restless, constantly on the move
• Strong preference for freedom of choice
for the individual
• Rebellious non-conformist youth is the
accepted norm

7
Intro to Entrepreneurship

Entrepreneurial Culture
• Ability think big
• Try to do the impossible
• They prefer the new or at least the
improved
• They worship innovation
• They are tolerant of those who make
mistakes
• Things need to get done quickly rather
than always get done perfectly
8
Intro to Entrepreneurship

Hofstede’s Dimensions of Culture


High Low
(upper quartile countries) (Lower quartile countries)

USA, Australia, South America,


New Zealand, UK,
Canada, France, Germany
Individualism Pakistan

Malaysia, Philippines, UK, USA, Scandinavia,


France, South America Power Distance Germany

Greece, Portugal,
Uncertainty Avoidance
Uruguay, Guatemala,
France
Hong Kong, Singapore,
UK, USA
Japan, Austria,
Italy, UK, USA,
Germany Masculinity North Europe

9
Intro to Entrepreneurship

Hofstede’s Dimensions of Culture


• Individualism vs Collectivism
– The degree to which people prefer to act as individuals
rather than groups
• Power Distance
– The degree of inequality among people that a community is
willing to accept
• Uncertainty Avoidance
– The degree to which people prefer to avoid ambiguity,
resolve uncertainty and prefer structured rather than
unstructured situations
• Masculinity vs Femininity
– This defines quality of life issues. Masculine virtues are
those of assertiveness, competition and success. Feminine
virtues are those such as modesty, compromise and
cooperation

10
Intro to Entrepreneurship

Benefits of Being an Entrepreneur

• Do what you enjoy


• Control your own destiny
• Contribute to society
• Potentially huge financial rewards

11
Intro to Entrepreneurship

Entrepreneurship is easier than a job?

• The average working week for a self


employed person is 64 hours
• Most people do not increase their
income by becoming self employed
• 1 in 5 Entrepreneurs do not earn
anything within the first 12 months
• Support of the spouse or partner is
critical

12
Intro to Entrepreneurship

“ The only place success comes


before work is in a dictionary” ANON

13
Intro to Entrepreneurship

Entrepreneurship is risky because…..?

• Few entrepreneurs actually know what


they are doing
• They lack the methodology
• Management incompetence
• Poor financial control
• Failure to develop a plan
• Uncontrolled growth
• Improper inventory control

14
Intro to Entrepreneurship

Entrepreneurship is risky because…..?

• “ Entrepreneurs who start out with the


idea that they will make it big - and in a
hurry - can be guaranteed failure “
Drucker pg31

15
Intro to Entrepreneurship

Entrepreneurship

• Entrepreneurship is behavior rather


than personality trait (Drucker pg23)
• Entrepreneurs see change as the norm
and as healthy
• The entrepreneur always searches for
change and responds to it
• Entrepreneurship does not have to
be high risk!!

16
Intro to Entrepreneurship

Things To Do

• Commit to your business, raising funds often forces


this
• Have skin in the game
• Fail fast, fail small, try again, find a model
• Get excited, be confident and think big
• Focus on revenues, margins – this will make raising
money easier and valuations better
• Don’t try to be a big business too soon
• Focus on the size of the pie and not the size of your
piece
• Look for similar business models

17
Intro to Entrepreneurship

Question?

• What is your understanding of


entrepreneurship?

Please answer this question at de-pe.com/faq/

18
Intro to Entrepreneurship

1.4 The myths of entrepreneurship

• Myth 1: Entrepreneurs are doers, not


thinkers
• Myth 2: Entrepreneurs are born, not
made
• Myth 3: Entrepreneurs are always
inventors
• Myth 4: Entrepreneurs must fit the
“Profile”

19
Intro to Entrepreneurship

1.4 The myths of entrepreneurship (cont)

• Myth 5: All entrepreneurs need is


money or luck
• Myth 6: Your ideas is the most important
thing and must be protected
• Myth 7: Entrepreneurs seek success
but experience high failure rates
• Myth 8: Entrepreneurs are extreme risk
taker (gamblers)

20
Intro to Entrepreneurship

Question?

• What is are some of your own myths


about entrepreneurship?

Please answer this question at de-pe.com/faq/

21
Intro to Entrepreneurship

What is creativity?

• “…involves the development of


UNIQUE and NOVEL responses to
problems and opportunities” (Online
Ticketing, E-Banking)

22
Intro to Entrepreneurship

Barriers to creativity

• Personal Beliefs
• Institutional Inertia
• Fear of Criticism
• Over-Management

23
Intro to Entrepreneurship

What is innovation?

• “…finding ways to deliver new or better


goods or services.” (Kinicki and
Williams, 2003)

24
Intro to Entrepreneurship

3.7 Types of innovation

• Invention – creation of a new process or


method
• Extension – iterating on existing ideas
to make them more useful
• Duplication – apply an existing idea to a
different audience or field
• Synthesis – combining two existing
ideas to create something novel
25
Intro to Entrepreneurship

3.8 Sources of innovation

• Process needs
• Unexpected events
• New knowledge
• Changes of demographics

26
Intro to Entrepreneurship

Questions?

27
Intro to Entrepreneurship

Thank You

28

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