Chapter :03 The Individual Entrepreneur www.AssignmentPoint.com

ENTREPRENEURIAL FEELINGS There is no "true entrepreneurial profile"- entrepreneurs come from many educational backgrounds, family situations, and work experiences. A potential entrepreneur may presently be a nurse, secretary, assembly line worker, sales person, mechanic, home maker, manager or engineer. A potential entrepreneur can be male or female and of any race or nationality. www.AssignmentPoint.com

Some key Entrepreneurial Feelings 1. Locus of Control Locus of Control: An attribute indicating the sense of control that a person has over life. Whether individual will be able to sustain the drive and energy required to form something new and to manage the new enterprise and make it grow? Locus of control refers to the internal-external control dimension of an individual. Managers and entrepreneurs both have more of an internality tendency than the general public. www.AssignmentPoint.com

2. Feelings about Independence and Need for Achievement Need for Independence: “Being one’s own boss”…..(most strongest needs). Need for Achievement: An individual’s need to be recognized. Entrepreneurs also seem to have a high need for independence and may have a high need for achievement----McClelland 1961 www.AssignmentPoint.com

Feelings about Independence and Need for Achievement McClelland specified three attributes as characteristics of entrepreneurs: Individual responsibility for solving problems and setting and achieving goals. 2. Moderate risk taking as a function of skill. 3. Knowledge of results of decision/task accomplishment. www.AssignmentPoint.com

ENTREPRENEURIAL FEELINGS...cont’d 3. Risk Taking - Empirical observation have not found whether risk taking is a distinguishing characteristics of entrepreneurs. 4. ENTREPRENEUR Background and Characteristics Childhood family environment. Education Personal values Age Work history www.AssignmentPoint.com

ENTREPRENEURIAL FEELINGS...cont’d Education Formal education is not necessary for starting a new business. level of education plays a major role to solve creative problems. Personal Values - A successful entrepreneur is frequently characterized as a winner. - Leadership, support, aggression, benevolence, conformity, creativity, veracity, and resource seeking may also be important. www.AssignmentPoint.com

ENTREPRENEURIAL FEELINGS...cont’d Work History Dissatisfaction with one’s job often motivates the launching of a new venture. Entrepreneurial experience becomes increasingly important as the complexity of the venture increases. MOTIVATION “Independence”----not wants to work for anyone else. Money is the second reason for starting a venture. www.AssignmentPoint.com

INFLUENCING ENTREPRENEUR Importance of Role Models and Support systems www.AssignmentPoint.com

1. Role Models 2. Moral-Support Network Influencing entrepreneurs in their career choice is role models. Role models can be parents, relatives, or successful entrepreneurs in the community. invaluable source of counsel and advice. 2. Moral-Support Network Most entrepreneurs indicate that their spouses are their biggest supporters. 3. Professional-Support Network Entrepreneur needs advice and counsel Network of business associates. Clients and buyers, Suppliers, Trade associations. www.AssignmentPoint.com 4

INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES An entrepreneur executes his or her business in more than one country, international entrepreneurship occurs. For effective planning, reporting, and control, the entrepreneur should consider: Environmental analysis Strategic planning Structure Controlling the marketing program operational Planning www.AssignmentPoint.com 4

ENTREPRENEURIAL ENTR Y INTO INTERNATIONAL B USINESS Exporting Indirect exporting Direct exporting Non equity arrangements Licensing Turn-key projects Management contracts Direct Foreign Investment Minority interests Joint ventures Majority interest www.AssignmentPoint.com 4