Entrepreneurship in Action

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Entrepreneur and Entrepreneurship

CONTENTS

Section-1 (Introduction)

Chapter -1    Introduction to Entrepreneur and Entrepreneurship

Chapter -2   The context of Entrepreneurship

Section-2 (start-up issues)

Chapter-3     Researching Venture’s feasibility

Chapter-4     Planning the venture

Chapter-5     Organizing the venture

Chapter-6     Launching the venture

Section-3 (managing the venture)

Chapter-7     Managing processes

Chapter-8     Managing people

Chapter-9     Managing growth and other challenges

Section-1 (Introduction)

Chapter -1    Introduction to Entrepreneur and Entrepreneurship

Entrepreneurs:-

Any person involved in “Entrepreneurship“ is the Entrepreneur .

Entrepreneurship:- This can be defined in many way

Def.-1        It is the process which is:

  • New
  • Innovative
  • Flexible
  • Dynamic
  • Creative
  • Risk taking

Def.-2        The process of identifying and pursuing the opportunities.

Def.-3        It may be:

  • Creation of values
  • The process of starting/growing new profit making business.
  • Providing a new product or service.
  • Intentional operation of values through organization by an individual contributor or group of partner.

Def.-4        the process of creating something different with value by devoting the necessary time and effort; assuming the accompanying financial, psychological , and social risk; and receiving the resulting rewards of monetary and personal satisfaction.

Def.-5        The creation and management of :

  • New business
  • Small business
  • Family business

Def.-6        Entrepreneurship involves:

  • Changing
  • Revolutionizing and
  • Introducing new approaches

Organization Creation:-

  • What is this?
  • What it does have to do with entrepreneurship?
  • Why it is necessary?
  • How to create an organization?

Creating the Values:-

  • What does it mean to create values?
  • Which type of values here talking about?
  • How to create these values?

Values:-

  • The new products, services, transactions, approaches, resources, technologies, and markets are created that contribute some value (profit) to a community or market place.
  • Values are created when resources are transformed it to outputs; and these outputs may be the product or services.
  • Values are created because the entrepreneur is fashioning something worthwhile and useful.
  • Resources  àOutputs  àProducts/Services

Environments of entrepreneurship:-

  • Profitable environment
  • Non-profitable environment (social entrepreneurship)

Emphasis on Growth:-

  • Entrepreneurship = Growth/Change
  • It is not about standing still.
  • There must be uniqueness

Process:-ongoing decisions and actions.

History

  1. The word entrepreneur is a French word which means “Go between” or “between takers”.
  2. A person who took an active risk-bearing role in pursuing the opportunities.
  3. Actively involved risk taker.
  4. Planning, supervising, organizing and even owning the factors of production.
  5. Someone who “Creatively Destructs”.
  6. Destruction of the old became creation of the new.
  7. Entrepreneur recognizes and acts on opportunities.
  8. Entrepreneurship demands :
  9. Commitments
  10. Determination
  11. Hard work

Misconception about “RISK”

  • Entrepreneurship never talks about “Unnecessary Risk” it always talks about “Calculated Risk”.
  • Entrepreneurship minimizes the unnecessary risks.

Importance of entrepreneurship:-

  • Innovations
  • New startups
  • Job creation

Innovation:-

It is a process which involves:

  • Creation
  • Changes
  • Experiments
  • Transformations
  • Revolution

Exploring the entrepreneurial context:-

Too must entrepreneurs be aware of the context within which entrepreneurial decisions are made.

  • How to define opportunities?

Positive external trends or changes that provides unique and distinct possibilities for innovation and value creation.

  • How to define competitive advantages?

It is what sets an organization apart. It is crucial for an organization’s long term success and survival.

Types of Entrepreneurs:

  1. Nascent: Who is in the process of starting a new business.
  2. Novice: Who has no prior business ownership, experience as a business or         a purchaser of a business?
  3. Habitual: Who has prior business experience?
  4. Serial: Who sold/closes the present business and starts the new one.
  5. Port-folio: who retains an original business and builds a portfolio of additional business through inheriting, establishing or purchasing them.

What Entrepreneurs Do?

  • They create something new and different.
  • They search for changes, respond to it and exploit it.

Planning:-

  • Developing a viable organizational vision and mission.
  • Exploring organizational culture issues.
  • Creating strong and effective business plans.

Organizing the ventures:-

  • Choosing a legal form of business organization
  • Addressing others legal issues just like
  • Patent/copyrights
  • How work is going to be done?

Launching the ventures:-

  • Setting goals and strategies
  • Identifying technology operations methods
  • Marketing plans
  • Information systems
  • Financial accounting systems
  • Cash flow management systems

Managing the venture:-

  • Process management:-
  • Making decisions
  • Establishing action plans
  • Analyzing the ventures:-
  • Internal environment
  • External environment
  • Measuring and evaluating performance
  • Simulating and making necessary changes
  • People management:-
  • Selecting and hiring the peoples
  • Appraising and training
  • Motivating
  • Managing the conflicts
  • Delegating tasks
  • Being an effective leader
  • Growth management:-
  • Developing appropriate growth strategies
  • Dealing with crises
  • Exploring ways to financial growth
  • Determining the venture’s values even preparing to
  • harvest or Exit the venture.
Business can be done well or disastrously but it is done best when
It is on your own terms.
For your own reason.
Using your own skills.
Change is the normal state of affairs for entrepreneurs.

Chapter -2   The context of Entrepreneurship

Coming soon…….please wait!

        Section-2 (start-up issues)

Chapter-3     Researching Venture’s feasibility

Coming soon…….please wait!

Chapter-4     Planning the venture

Coming soon…….please wait!

Chapter-5     Organizing the venture

Coming soon…….please wait!

Chapter-6     Launching the venture

Coming soon…….please wait!

     Section-3 (managing the venture)

Chapter-7     Managing processes

Coming soon…….please wait!

Chapter-8     Managing people

Coming soon…….please wait!

Chapter-9     Managing growth and other challenges

Coming soon…….please wait!

We often hear that entrepreneurship is important, but it’s hard to overstate just how vital entrepreneurship is for the economy at large. Entrepreneurial activity, or in other words, the creation of new businesses, is what supports local economies, what supports our country’s GDP and what helps the stock market continue to grow.

So why is it that entrepreneurship is such a powerful engine of economic development?

It’s actually more complex than you might think.Small businesses, new businesses and job growth

First, the evidence suggests that small businesses created by entrepreneurs are disproportionately responsible for job growth. Small companies create more than 1.5 million jobs annually in the United States, which translates to 64 percent of total new job growth.

Why are new jobs so important? Economic growth is partially dependent on job growth. More available jobs lead to more people working, and more people working leads to higher GDP. On top of that, more people have recurring income and can better provide for their families.

This can also create a kind of cascade of entrepreneurship; more people work, have an opportunity to save up money and can then start businesses of their own.Influence on other businesses

It’s also worth noting that an emerging small business will also impact its local community of fellow business owners. For example, once your business begins operations, you may want to pay a local marketing firm for digital marketing services, or contract with local vendors to get the raw materials you need. In effect, a single business can help support dozens of others, resulting in a groundswell of spending economic development. Innovation and technology

Entrepreneurs are also innovators. Some of the most noteworthy entrepreneurs of our era have been tech masterminds who introduced brand-new concepts and services to us. Consider how much of an impact Google, Amazon and Facebook have made on the world; these companies scarcely existed (or didn’t exist at all) just 20 years ago. Now, each of these companies provides an abundance of tools that other businesses can use to operate more effectively, reach more people and make more money.

When one entrepreneur innovates, the entire world stands to benefit. With higher rates of entrepreneurship, we see the rollout of more new technologies and our collective productivity continues to grow.Challenging existing businesses

When businesses get bigger and older, they tend to become stagnant. They function as mega-bureaucracies, they lose efficiency and they no longer innovate; instead, they offer what they already know and understand. In other words, they become big, slow and stagnant.

Young companies led by ambitious entrepreneurs, by contrast, are agile and constantly adapting. They become fierce competitors quickly, and because of this, they force big companies to change. Even mega-corporations must become more agile and strive to innovate in order to keep pace, and this has a profound positive impact on the economy at large.

New businesses don’t just benefit the people who created them. They also stand to benefit everyone who invests in them. Angel investors, venture capitalists and other first-line investors can make a lot of money by choosing the right entrepreneurs and business models to invest in. And even average investors can cultivate wealth by investing in early-stage businesses poised for growth. The downsides

Throughout this article, I’ve doted on the economic benefits of entrepreneurship. But are there any widespread economic effects that are negative?

Minimal entrepreneurial interest.

First, our economic growth is somewhat dependent on entrepreneurial interest.

If nobody wants to start a new business, the benefits tend to disappear.

The risk of failure.

Not all entrepreneurs succeed.

In fact, nearly half of business fail within the first five years of operation.

Losing a major investment and seeing a company collapse can have a significant negative effect on the individual. Cataclysmic events. Entrepreneurship and business growth overall are vulnerable to cataclysmic events that change how the economy functions. For example, in the midst of a pandemic or economic collapse, the entire business environment stands to change. Mid-term growth woes. New businesses consistently add jobs in the early stages of development, but they also tend to lose jobs when they reach mid-term growth as they start to refine operations. Dependence on minimal regulations. Much of our economic growth depends on a landscape that favors entrepreneurs — and that means minimal government regulations. Many people become entrepreneurs because they dream of becoming billionaires or because they love the idea of being in charge. But there are also those who are motivated because they want to be a driving economic force. They want to create new jobs, innovate new technologies and help push us all forward. We need to do what we can to support all entrepreneurs and continue helping our economy thrive — even during periods of hardship.