1. ENTREPRENEURSHIP 6TH EDITION
ROBERT D. HISRICH

2. NATURE & IMPORTANCE OF ENTREPRENEURSHIP
CHAPTER 1
VISHNU PARMAR
(Assistant Professor)

3. Who is an Entrepreneur?
The word “entrepreneur” stems from French, means “between-taker” or “go between
An Entrepreneur is one who brings resources, Labor, Materials and other assets into combinations that make their value greater than before, and also one who introduces changes, innovations, and new order.

4. Who is an Entrepreneur?
Entrepreneur is an individual who takes initiatives to bundle resources in innovative ways and is willing to bear the risk and/or uncertainty to act

5. What is Entrepreneurship?
Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, Psychic, and social risks and uncertainties, and receiving the resulting rewards of monetary and personal satisfaction.

6. What is Entrepreneurship?
This definition contains four basic aspects of entrepreneurs
Creation of a new venture
Investing necessary time and effort
Accepting associated risks!
Enjoying resulting rewards!

7. What is an Entrepreneurial Process?
It is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, Psychic, and Social risks and uncertainties and receiving the resulting rewards of monetary and personal satisfaction.

8. The Entrepreneurial Process has 4 distinct phases
2-2
The Entrepreneurial Process has 4 distinct phases
Identification and evaluation of the opportunity
Development of the business plan
Determination of the required resources
Management of the resulting enterprise

9. 1. Identify and Evaluate the Opportunity
Opportunity Assessment
Creation and Length of Opportunity
Real and Perceived Value of an Opportunity
Risks and Returns of Opportunity
Opportunity vs Personal Skills and Goals
Competitive Environment

10. Opportunity Analysis: Assessing the Opportunity
2-3
Opportunity Analysis: Assessing the Opportunity
What market need does it fill?
What personal observations have you made?
What are the underlying social conditions?
Examine the market research data.
Assess competition. Any patents?
Where is the money to be made?

11. 2. Develop Business Plan Title Page Table of Contents
Executive Summary
Major Sections
Description of Venture
Description of Industry
Technology Plan
Marketing Plan

12. 2. Develop Business Plan 5. Financial Plans 6. Production Plan
7. Organization Plan
8. Operational Plan
Appendixes (Exhibits)

13. 3. Resources Required Determining Resources Needed
Determine Existing Resources
Identify Resource Gaps and Available Suppliers
Develop access to needed resources

14. 4. Manage the Enterprise Develop the Management Style
Understand Key variables for success
Identify problems and potential Problems
Implement Control System
Develop Growth Strategy

15. How Entrepreneurs Think
Entrepreneurs thinks differently than non-entrepreneurs and vary in situation to situation and environment to environment

16. Thought Process of an Entrepreneur
Effectuation is a process that starts with what one has (Who they are, What they Know, and Whom they Know) and select among possible outcomes.
Entrepreneurial Mind Set, it involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions

17. Thought Process of an Entrepreneur
Cognitive Adoptability, it 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

18. Role of Entrepreneurship in Economic Development
Product Evaluation Process: for developing and commercializing an innovation.
Iterative Synthesis: The intersection of knowledge and social need that starts the product development process
Ordinary Innovation: New products with little technological change

19. Importance of entrepreneurship in economic development
Increase per capita output/income
Initiating change in business/society structure
Innovation stimulates new products/services
Innovation stimulates new investments in new ventures (increased capital expands capacity for economic growth)
Growth in economy stimulates additional spending (increased demand)

20. What type of environment favors entrepreneurial activities?
Culture that values independence, “being one’s own boss”
Failure not considered a disgrace
Available markets
Available capital sources
“Critical mass” of entrepreneurial talent
Strong educational base
Tax structure that favors new ventures
Government policies and programs (facilitate technology transfer)