Entrepreneurship Presenter:Syed Tariq ijaz kaka khel MBA (Human Resource Management)

What is Entrepreneurship ? Entrepreneurship is the process of creating something new value by devoting necessary time and effort assuming the accompanying financial, physical, and social risk and uncertainties and receiving the resulting rewards of monitory and personal satisfaction.

Who is Entrepreneur? An individual who takes initiative to bundle resources in innovative ways and is willing to bear the risk.

The definition of entrepreneur stresses four basic aspects  Entrepreneurship involves the creation process  Entrepreneurship requires the devotion of necessary time and effort  Definition involves rewards of being an entrepreneur  Assuming the necessary risk and uncertainty.

Phases of Entrepreneurial process  Identification and evaluation of opportunity  Development of business plan  Determination of required resources  Management of resulting enterprise

Identify and evaluate opportunity  Opportunity assessment  Creation and length of opportunity  Real and perceived value of opportunity  Risk and return of opportunity  Opportunity versus personal skills and goals

Development business plan  Title page  Table of content  Executive summery  Major section  Description of business  Description of industry  Technology plan  Marketing plan  Financial plan

Resources required  Determine resources needed  Determine existing resources  Identify resources gaps and available suppliers  Develop access to needed resources

Manage the Enterprise  Develop management style  Identify problems and potential problems  Implement control system

Entrepreneurial process The process of creating something new with value by devoting the necessary time and effort, assuming the accompanying risks and receiving resulting rewards.

Phases of Entrepreneurial process  Identification and evaluation of opportunity  Development of business plan  Determination of required resources  Management of resulting enterprise

Identify and evaluate opportunity  Opportunity assessment  Creation and length of opportunity  Real and perceived value of opportunity  Risk and return of opportunity  Opportunity versus personal skills and goals

Development business plan  Title page  Table of content  Executive summery  Major section  Description of business  Description of industry  Technology plan  Marketing plan  Financial plan

Resources required  Determine resources needed  Determine existing resources  Identify resources gaps and available suppliers  Develop access to needed resources

Manage the Enterprise  Develop management style  Identify problems and potential problems  Implement control system

Why become entrepreneur? Entrepreneurs are their own bosses. They make the decisions. They decide what hours to work, as well as what to pay and whether to take vacations.

2. Entrepreneurship offers a greater possibility of achieving significant financial rewards than working for someone else.

3. It provides the ability to be involved in the total operation of the business, from concept to design and creation, from sales to business operations and customer response.

4. It offers the prestige of being the person in charge.

. Freedom of Speech. If I ask you if you have freedom of speech I am sure you will come up with a resounding YES! If you are working a 9- 5 job I can assure you this is not true, you have no freedom of speech! When working a 9-5 job you can’t just talk to your boss anyhow because talking to your boss anyhow can lead to you being fired (Go call your boss a jerk if you don’t believe this!) but as an entrepreneur it doesn’t matter if you are talking to the CEO of one big company or a 12- year-old boy you still have right to the same words, you are simply not afraid of anybody.

How entrepreneur thinks  Effectuation  Cognitive ability  Learning from failure

1.Causal process A process that starts with a desired outcome and focuses on the means to generate that outcome

Example of causal Imagine a chef assigned the task of cooking dinner there are tow ways the task can be done The host pick out a menu in advance. All the chef need is to list the ingredients needed, shop for them and then actually cook meal. It begins with a given menu and focusing on selecting effective ways to prepare meal.

2. Effectuation process A process that starts with what one has (who they are, what they know and whom they know) and selects among possible outcome

Example of effectuation In this case the host ask the chef to look through the cupboard for possible ingredients and then cook meal. Here the chef has to imagine possible menu based on the given ingredients, select the menu and prepare meal. It begins with given ingredients and focuses on preparing one of many possible desirable meals with them

Entrepreneur mind set Involve the ability to rapidly sense, act, and mobilize, even under uncertain conditions

 Cognitive adaptability Describe the extent to which entrepreneur are flexible, self regulating, and engaged in the process of generating multiple decision framework focused on sensing and processing changes in their environment and acting on them

 Learning from failure Entrepreneur who have more experience will possess the knowledge to perform more effectively the roles and tasks necessary for success

Chapter 1 (Entrepreneurship and the Entrepreneurial Mindset) Chapter 1 (Entrepreneurship and the Entrepreneurial Mindset) NATURE AND DEVELOPMENT OF ENTREPRENEURSHIP Entrepreneurial action - Behavior in response to a judgmental decision under uncertainty about a possible opportunity for profit.

HOW ENTREPRENEURS THINK Causal process – Starts with a desired outcome. – Focuses on the means to generate that outcome. Effectuation process – Starts with what one has (who they are, what they know, and whom they know). – Selects among possible outcomes. Entrepreneurial mind-set involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions.

Cognitive adaptability describes the extent to which entrepreneurs are: – Dynamic, flexible, self-regulating and engaged in the process of generating multiple decision frameworks focused on sensing and processing changes in their environments and then acting on them. Entrepreneurs who are able to increase cognitive adaptability have an improved ability to adapt to new situations, be creative, and communicate one’s reasoning behind a particular response. HOW ENTREPRENEURS THINK

Entrepreneurs who are able to increase cognitive adaptability have an improved ability to:  Adapt to new situations.  Be creative.  Communicate one’s reasoning behind a particular response.

Learn from business failure  Deal with loss  Achieve emotional recovery These can allow the entrepreneur to be motivated to try again and improve the next time they start a new venture. HOW ENTREPRENEURS THINK

Uncertainty, changing conditions, and insufficient experience can contribute to failure among entrepreneurial firms. An entrepreneur’s motivation is not simply from personal profit but from:  Loyalty to a product.  Loyalty to a market and customers.  Personal growth.  The need to prove oneself.

ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT Bring about innovations that improve society: – Ordinary - New products with little technological change. – Technological – New products with significant technological advancement. – Breakthrough – New products with some technological change.