Entrepreneurship

1. Entrepreneurship Introduction ELIB 203

2. Entrepreneurship • Key decisions relate to: 1- Entrepreneurship- Introduction 2- TheEntrepreneurs- Who they are? - Characteristics/traits 3- MegaEntrepreneurs 4- Defining The Entrepreneur- Advantage & Disadvantage – Types 5-EntrepreneurialMindset- Activity1

3. 1- Entrepreneurship Natureof Entrepreneurship • It is a socio-economic phenomenon. • Engine of economic growth • Creator of wealth and employment.

4. Entrepreneurship What You Know about Entrepreneurship

5. Entrepreneurship What is Entrepreneurship? • It is a creative and innovative human act. • Ability to create and build a vision from practically nothing.– • Vision requires willingness to take calculated risks. • It is a discipline, hence it can be learned – Peter Drucker

6. Entrepreneurship Definition • Entrepreneurship is a phenomenon which involve two critical elements – sensing & exploiting an opportunity • The ability to sense an opportunity is the result of entrepreneurial traits • The ability to exploit the opportunity is the result of the entrepreneur management skills

7. 2-The Entrepreneurs Who they are? • Entrepreneurs are: • Making, selling or trading things or services • Sole proprietors (part of a small group) • Involved in “business” • Those who discover market needs and launch new firms to meet those needs

8. The Entrepreneurs Who they are? • Entrepreneurs are very much interested in: • Success • Profit • Wealth creation • Leaving their mark on society

9. The Entrepreneur Definition • An entrepreneur is defined as an individual whoseesanopportunitythat others do not andmarshalstheresourcesto exploit it. • An entrepreneur is someone who introduces a new product or a process; identifies new market or a resource of supply or creates a new type of organization. • An entrepreneur raise the necessary capital, creates the new venture and assumes the control and risk of operation “Creation of Value” is the OUTCOME of entrepreneurial activity.

10. The Entrepreneurs Characteristics/traits • Entrepreneurs are individuals who: • Have a need to achieve • Are willing to take risks • Have internal locus of control • Have a passion for the business • Have active/vivid imagination • Recognize business opportunities • See consequences • See the complete picture and many alternatives

11. The Entrepreneurs Characteristics/traits • Understand customer behaviour • Are natural leaders: • They have what it takes to get people to believe in them • They demand and get loyalty from their staff • Powerful communicators • More powerful oral/personal rather than written • Use simple and direct language • Often use of analogy • Can present complex ideas simply

12. The Entrepreneurs Characteristics/traits • Entrepreneurs are individuals who: • Are better talkers than listeners • Are not easily distracted • Are exceptionally competitive • Most academic research shows that entrepreneurs are abnormally (sometimes excessively) competitive people • Entrepreneurs set unnecessarily (as seen by outsiders) tough targets for themselves • Sometimes they may even compete with themselves

13. The Entrepreneurs Characteristics/traits • And entrepreneurs also… • Are impatient, quick to buck the system, do it first, apologise later • Believe that success is the result of their own efforts, hence, luck, chance or fate has nothing to do with it • Believe; “The harder I work, The luckier I get” • Rebellious against rules, authority and the “establishment” • May have tunnel vision • Thrive on the thrill of victory • Love to “sell” and are super sales people

14. 3-Mega Entrepreneurs “The greatest difficulty in the world is not for people to accept new ideas, but to make them forget about old ideas.” -- John Maynard Keynes, Economist

15. W. K. Kelloggb. 1860 • Kellogg's accidental discovery, promoted with savvy marketing, transformed the way Americans eat breakfast. • Kellogg grasped the idea that kids influence buying decisions—galvanizing the brand's success

16. Sam Waltonb. 1918 • The man who built the world's largest retailer on low prices: Wal-Mart. • Bought direct from manufacturers and made his stores as efficient as possible, sending the savings back to consumers

17. Muhammad Yunusb. 1940 2006 Nobel Peace Prize winner, founded a banking system 30 years ago to lend small amounts of money to the rural poor in Bangladeshi villages

18. Martha Stewartb. 1941 • Started a catering business out of her Westport (Conn.) home in 1976. • Went on to expand into retail, publishing, television, and merchandising.

19. Richard Bransonb. 1950 • Richard Branson turned, Virgin, the mail-order record shop he opened in 1970 into a label he sold 22 years later for nearly $1 billion. • Brand includes mobile-phone service, bridal gowns, credit cards, and life insurance. Virgin Group encompasses 200 companies in More than 30 countries.

20. Oprah Winfreyb. 1954 • Oprah Winfrey turned her name into one of the most successful and respected brands in the world. • Leveraged that fame into other interests: magazines, Web sites, film and television production and Social Entrepreneurship.

21. Bill Gatesb. 1955 • By linking his Microsoft software to IBM's first PCs, he dominated the industry. • He developed a two-prong strategy of expanding the market while maintaining a strong hold on competitors

22. Steve Jobsb. 1955 • The Apple co-founder combined simplicity with innovation to emerge from the Internet boom as one of the lone tech companies that can butt heads with Microsoft

23. Jeff Bezosb. 1964 • Founded Amazon.com, in 1994 • Bezos pioneered techniques that have become staples of online sales.

24. Michael Dellb. 1965 • Created a new model for PC sales. • Cutting out the retail middleman and custom-building computers to suit buyers' needs put Dell at the front of the class of PC makers.

25. Chad Hurley, 29; Steve Chen, 28 & Jawed Karim, 27 • Founders of YouTube. • Broadcasts 100 million short videos daily on myriad subjects. • Sold to Google

26. Pierre Omidyarb. 1967 • Founder of EBay, which made the promise of the Internet a reality by connecting far-flung customers with the goods they wanted to buy.

27. Mega – Entrepreneurs Who Started in Their 20s • Microsoft - Bill Gates & Paul Allen • Apple Computer - Steve Jobs & Steve Wozniak • Dell Computer - Michael Dell • Federal Express – Fred Smith • Oracle – Larry Ellison • Amazon.com – Jeff Bezos • Nike – Phil Knight • Yahoo – David Filo & Jerry Yang • Cisco – Len Bosack, Sandra Lerner & Kirk Lougheed • Google.com – Larry Page & Sergey Brin

28. Mega – Entrepreneurs in Saudi Arabia • DallahalBaraka- Saleh Kamel • Fitaihi Group - Ahmad Hasan Fataihi • AlAhli Bank - Bin Mafhfooz • Alrajhi-Alrajhi Bank • Al Baik-Rami Abughazala • Lomar- LoaiNasesm • U turn - Abdulla Mandowi

29. Saudi Entrepreneurs..

30. 4- Defining The Entrepreneur From our perspective: • Any individual that sees and acts upon an opportunity • This includes introducing a new product or service, identifying new markets, or putting a twist on an existing product, process or service • Also, includes the raising of capital, taking the risk and controlling the new venture • Embodies creativity, aggressiveness, and determination • By assembling various resources, he takes risks and creates a venture from an idea, hobby, or simply a dream.

31. The Entrepreneur Motives • Independence Advantage • Potential financial rewards • Satisfying a way of life • More personal contacts with people • Skills development • Challenge • Enjoyment

32. The Entrepreneur knowing the downside Disadvantage • Risk (failure) • Stress • Need for many abilities • Limited financial rewards • People conflict • Time demand

33. The Entrepreneur Types • The Innovator • Wheeler Dealers • Strivers • Visionaries • -look for a “better fit”. • -A mismatch between the way something is currently being done and how it could be done. • -A poorly satisfied demand. • -A recognition of an incipient user demand resulting from the creative application of new technology, so they discover the “opportunity”. • - Most dispassionate/ calculating type. • - Looks for opportunity to act. • -“Take-over” is their game. • -Never satisfied with their own achievements • -Fiercely competitive – always trying to win • -Generally dissatisfied with current situation.

34. 5- Entrepreneurial Mindset TEST

35. THE ENTREPRENEURIAL QUIZ

36. Personality Characteristic Checklist

37. Entrepreneurial Mindset Born or Made? Is inborn talent an absolute requirement? • Say the answer is, “YES,” then once we identify the main characteristics we can simply say, if we have them, fine, no others need to apply. YES • We could start spotting talent in kindergarten and stream them. • We could discourage people without talent from entrepreneurship

38. Entrepreneurial Mindset Born or Made? • Say the answer is, “NO”, one does not have to be born with talent, it can be learned,” then schools could teach anyone NO • It would become a “profession” like law or medicine and government “incubators” would be successes • Companies could establish “nurseries” for them • The answer lies somewhere in-between. Talent plus education seems to be the way.

39. EntrepreneursAre Made and Not Born “The entrepreneurial mystique? It’s not magic, it’s not mysterious and it has nothing to do with the genes. It is a discipline. And like any discipline, it can be learned.” …Peter Drucker

40. The Entrepreneurs Family Background Entrepreneurial Traits Sensing an Opportunity Culture Positive/ Negative Environment Entrepreneurship Management Skills Education Exploiting the Opportunity Experience