DIP - Entrepreneur Lim Sei Kee @ cK

Starting a Business - What is an entrepreneur? There are many definitions of what is meant by an entrepreneur, but they tend to say the same thing, which is that an entrepreneur is…

Someone who takes a risk by starting a business An entrepreneur is someone who is enterprising.

An entrepreneur: Takes the initiative in trying to exploit a business opportunity Takes time to understand and calculate the risks involved Makes an investment to set up the business Goes ahead, despite the risk that the business venture might fail

ENTREPRENEUR? A: Takes the initiative in trying to exploit a business opportunity √ B: Takes time to understand and calculate the risks involved √ C: Makes an investment to set up the business √ D: Goes ahead, despite the risk that the business venture might fail √

Critical questions before making decisions: Do I have a clear idea about the vision for the business? Am I really determined and committed to making the business work? Do I appreciate and accept the personal challenges and sacrifices that I will have to make? Can I handle the inevitable feeling of isolation and insecurity that a start-up brings?

Critical questions before making decisions: Can I afford to fail?  What are the financial implications if the business does not succeed? Will customers really buy the product, assuming that I get it right? Who already provides this product (or something similar) and can I do it better or cheaper? How will I know if the business is succeeding or failing?

Critical questions before making decisions: Is my business plan sufficiently realistic, particularly in terms of cash flows and likely start-up losses? Can I access the resources (cash, supplies, distribution) that are needed to make the idea work? Do I need to obtain legal protection for the idea?

Entrepreneurs play an important role in society.  They make a major contribution to economic activity. Imagine how many jobs are created by the thousands of new businesses that are set up every year and by the small businesses that prosper and take on more staff.  

Entrepreneurs encourage innovation through investment and risk-taking. Many of the products and services you use every day have been developed through entrepreneurial activity rather than in the research laboratories or board-rooms of large multinationals.

However, it is important to realize that starting a business is rarely glamorous. In fact it is nearly always very hard work. For every success story there are almost certainly many more business failures or businesses that do not meet the expectations of the people who set them up.

Activity Assess and evaluate own potential as a successful entrepreneur. What are you good at and what are your weaknesses?