Entrepreneurship

Lecture 1
Mr. Ibrahim Mohamed Ali
BBA,MBA (HRM)
Human Resource Director
Hormuud University
Mogadishu-Somalia. 1
 Chapter 1

The Foundations of Entrepreneurship.

 History of Entrepreneurship
Entrepreneurship: is a popular subject among
students of business as well as among management
scholars and researchers. University courses, books
and academic journals on entrepreneurship.
Many governments around the world, believing that
entrepreneurship is the key to economic
development, offer Entrepreneurship Development
Programs (EDPs).
about the nature and role of entrepreneurship have
focused on one issue or the other: either the
division between risk and uncertainty.
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 Origin of the term entrepreneur

The term entrepreneur is derived from the French

word known as Entreprendre which means to
“undertake”. It appeared in French language also
only in the beginning of the 16th century. In the 17th
century it was extended to cover civil engineering
work also. The term was first used for the economic
activities only in 18th century.

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 What is an Entrepreneur?
Entrepreneur: is someone who is willing to work
16 hours a day to keep from working 8 hours a
day for someone else!
Entrepreneur: a person who sets up a business or
businesses, taking on financial risks in the hope
of profit.
Entrepreneurship is the process of designing, a
new business, which is often originally a small
business, and the people who create these
businesses are called entrepreneurs.

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 Entrepreneurship vs. Entrepreneurs
Entrepreneurship Entrepreneur
• The process of starting and • An entrepreneur is an
running a business individual who undertakes
• This involves a the risk with creating,
considerable amount of organizing, and owning a
risk. business.

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Concepts of This Subject
Entrepreneur Entrepreneurship Enterprise

Person Process of action Outcome

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 Entrepreneurship Process
The process of entrepreneurship
can be observed through the Identity an
Opportunity
six-stage process:
Establish a vision
Persuade
others
Gather
resources
Create new venture,
product or market

Change/adapt with
time

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 The Opportunity

A good opportunity can be turned into a business.

An Idea + A Market = An Opportunity

 Why Become an Entrepreneur?
The are three primary reasons that people
become entrepreneurs and start their own
firms.
1: To be their own boss
2: To follow their own ideas
3:To get Financial rewards

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 Why Are Small Businesses
Important?
In particular, small businesses do the following:
❖ Create jobs.
❖ Contribute to society and to
be recognized for your efforts.
❖ Provide opportunities for many people,
including women and minorities, to
achieve financial success and
independence.
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 Types of Entrepreneurship
1: Corporate entrepreneurship

2: private or independent entrepreneurship

3:Social entrepreneurship

4: Public sector entrepreneurship

5: Academic entrepreneurship
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 CON…..
1:Corporate entrepreneurship: is a growing movement
in large companies and opportunity that can improve a
company's performance.

2:private or independent entrepreneurship:

independent entrepreneur is defined extensively as
profession or business activity.

3:Social entrepreneurship: is the use of the by start up

companies and other entrepreneurs to develop, fund and
implement solutions to social, cultural, or environmental
issues.
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 CON…..
4:Public sector entrepreneurship: defined (PSE) as
the process of creating value for citizens by bringing
together unique combinations of public and/or
private resources to achievement social
opportunities.
5:Academic entrepreneurship: is Business activities
of the academic community, including students,
alumni, graduate students and research workers as a
result of which the university begins to operate on a
commercial basis, acting as a seller of certain goods
and services, such as specialized courses or modern
technology. 14
Characteristics of Entrepreneurs
Want for Responsibility
Confidence in their ability to succeed
Want for immediate feedback
High level of energy
Future direction
Skilled at organizing
Value achievement over money

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 Personal Characteristics of
Successful Entrepreneurs

✔ Persistent ✔ Goal-oriented
✔ Creative ✔ Independent
✔ Responsible ✔ Self-confident
✔ persuade ✔ Risk taker

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 Skills Needed by Successful
❖
Entrepreneurs
Communication skills
❖ Human relations skills
❖ Math skills
❖ Problem-solving & Decision-making skills
❖ Technical skills
❖ Basic Business skills

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Benefits of Entrepreneurship
❖ Create your own talent
❖ Make a difference
❖ Reach your full potential
❖ Gain profits
❖ Contribute to society and to be recognized for your
efforts
❖ Do what you enjoy and to have fun at it

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Drawbacks of Entrepreneurship
• Uncertainty of income
• Risk of losing your entire investment
• Long hours and hard work
• Lower quality of life until the business gets
well-known
• High levels of stress
• Complete responsibility
• Discouragement

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 QUALITIES OF ENTREPRENEUR
❖ Risk Taker: Businesses face risk. Entrepreneurs minimize
risk through research, planning, and skill development.

❖ Craving: They openly love their work. They are willing to

put in those extra hours to make the business succeed
because there is a joy their business.

❖ fantastic: Entrepreneurs like to know how things work.

They take the time and creativity to follow the unknown.

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 Con…
❖ Resourceful: Entrepreneurs are creative. They imagine
solutions to solve problems that encourage them to create
new products and generate ideas.
❖ Determined: True entrepreneurs face make mistakes,
receive and deal with money, family, or stress problems.
But they still stick to their dreams of seeing the project
succeed.
❖Hardworking: Entrepreneurs need a great deal of energy to
see a project start and succeed. And they need long hours
to achieve their goal.
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 Con…
❖ Self-confident: Entrepreneurs believe in themselves. Their
self-confidence.

❖ Flexible: Entrepreneurs must be flexible in order to adapt to

changing movements, markets, technologies, rules, and economic
environments.

❖ Strong people skills: Most successful entrepreneurs know how to

motivate their employees so the business grows overall.

❖ Goal-setting: Entrepreneurs are motivated by the enjoyment of

staring a new business. Once achieved, they seek out new goals or
projects to try.
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 Mistakes of Entrepreneurship
1. Management mistakes
2. Lack of experience
3. Poor financial control
4. Weak marketing efforts
5. Failure to develop a strategic plan
6. Uncontrolled growth
7. Poor location
8. Improper inventory control
9. Incorrect pricing

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 The Role of
Entrepreneurship
Determine objective
Development of the organization
Searching Resource
Arranging Technology & Equipment
Development New Market
Good relation between public authorities & society
Manegement of human relations
Financial Manegement
Production Manegement
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 why entrepreneurship is important
to the economy
The following are six reasons:
1. Entrepreneurs Create New Businesses
2. Entrepreneurs Add to National Income
3. Entrepreneurs Also Create Social Change
4. Community Development
5. The Other Side of Entrepreneurs
6. The Role of States

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Avoiding the Difficulties
of
Small Business Failure
❖ Know your business in deeply
❖ Develop a business plan
❖ Manage financial Resources
❖ Understand financial statements
❖ Learn to manage people effectively
❖ Keep in adjust with yourself
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 Why Do Some Businesses
Fail?
❖Bad business idea.
❖Cash problems.
❖Managerial inexperience or inability.
❖Lack of customer focus.
❖Lack of experience
❖Poor financial control
❖Lack of strategy and strategic leadership
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 How Entrepreneurs Can
Succeed
4. Plan and manage effectively

3. Gather an expert team to perform the

business concept

2. Test the opportunity in the marketplace

1. Recognize opportunity
Thank You For Attending

This Session.