BDV4C1
Entrepreneur:
Web-Based Venture
Business Basics: The Entrepreneur

Who is an Entrepreneur, What are they like? What drives
them?

What does an Entrepreneur do that is ‘different’ than
regular business people?

When does the Entrepreneur know when to bring a
product or service to market?

Where does the Entrepreneur launch his/her product or
service?
Is e-commerce a viable option to get a
product to market?

Why are Entrepreneurs important to the economy?
Marketing 101

Marketing is the fundamental business activity that seeks
to identify what people want or need and develop a
response to that need in the form of a product or service
that is either new or better.

In return for providing a solution to a consumer’s need or
want, the business is rewarded with the consumer’s
money.

If costs are carefully controlled and the product meets
the needs of the ‘target market’, sales will follow and
profit will be made.
Marketing 101: The 4 Ps

Product: Develop a new product to meet a need or
want OR respond to consumer dissatisfaction with
current products by improving some aspect of the
product (‘New Improved!!).

Price: Seek to lower manufacturing/operating costs by
finding cheaper labour or by taking advantage of
‘economies of scale’. If costs are all accounted for
and the product is sold for a reasonable amount, the
profits will follow.
Marketing 101: The 4 Ps

Place: Where is the product available? How does it get
there through the distribution channels? Is the internet
used?

Promotion: How does the target market informed about
this product? What advertising is used, and by whom
(manufacturer, retailer or both)? How are the product’s
features and benefits communicated
Marketing 101: The 2 C’s

Customers: What people have you identified as
potential buyers of your product or service – converting
them from ‘consumers’ to ‘customers’. What are their
demographics, Geographics and Psychographics?

Competition: who is it now…and more importantly who
can quickly bring a similar product to market that may
have an advantage of a more familiar name and a
bigger budget?
Entrepreneurs:
What’s Important to Them

To achieve a sense of personal accomplishment

To be their own boss

To have an element of variety and adventure

To make better use of their training and skills

To have freedom to adopt own approach to work

To be challenged by problems and opportunities of starting a
new business
Marketing’s Role in
Entrepreneurship

All entrepreneurs share 4 key characteristics:
 They
understand that Marketing is the key business skill
 They
accept that risk is unavoidable but also
controllable
 They
one
 They
prefer to start a business rather than maintain
are visionary; part of their task is to get others to
see what they see
Components of a
Successful Venture:

Self – What are the entrepreneur’s personal strengths?

Ideas – Entrepreneurs are creative thinkers who make connections

Opportunities – Entrepreneurs recognize opportunities & trends

Marketing & Operations – Entrepreneurs understand Marketing

Resources – Entrepreneurs know how to seek and use resources

Finance – Entrepreneurs are also good with numbers

Management – Entrepreneurs are good at working with people

Intrapreneurship – Being an enterprising person, a risk taker
The Meaning of
Entrepreneurship

Root in French word ‘prendre’ or ‘take’ – appropriate on several
levels:


Entrepreneurs take risks.
Entrepreneurs take hold of opportunities many others don’t notice or are
not in a position to take advantage of.
 Assess
real or psychological needs to identify consumer
opportunities
 Identify wants – desires – which are less tangible but no less
important to fill
“The essence of entrepreneurship
is the creation and building of a venture to fill a market niche.”
Characteristics of
Entreprenurial Ventures

For Profit ventures goal is to generate income for investors

Not-for-Profit ventures goal is to raise funds for a cause, not
to get rich

Scale: Size of venture reflects size of needs and wants, local,
regional vs national or international

Service Production – work done for a fee or advice provided
for a fee

Goods Production – tangible materials made to be sold at a
profit
Characteristics of
Entreprenurial Ventures

Physical Business – ‘bricks and mortar’ stores or offices
people go to

Virtual Business – conducted electronically on internet: ecommerce

Size of Market can range from local to global in reach
and benefit from better communication systems.

Growth can be Organic (growing from small to larger) or
Strategic through acquisition (buy other companies to
grow)
The Effect of Technology
on Ventures

In a period of rapid technological development for both personal
and business applications

E-Commerce allows smaller players to compete more effectively

Greater flexibility to respond to shifts in consumer demographics,
needs and wants

Better access to information on consumers and better consumer
access to information on companies

Cost of start-up is decreasing as it becomes more popular

Impact of downsizing/’rightsizing’ on workforce
Supply and Demand
Supply
Equilibrium
Point
Price
$
Demand
Quantity #
Impact on the Community

Four major impacts entrepreneurs on communities:

Job Creation – the ‘multiplier effect’ means for every one person
employed by an entrepreneur, many others benefit from supplying
goods to them and because employees are consumers too.

New Ideas – Entrepreneurs often bring new products or services to a
market – it can also broaden the range of things available.

Economic Benefits – Competition is a major factor in lowering prices
and improving the standard of living. The health of peripheral,
supporting industries is also enhanced.

Political Benefits – When the spirit of entrepreneurship is strong, it is
often due to an environment providing legal and financial support
Entrepreneurship and
Demographics

Demographics: ‘Demos’ from Greek word for people + ‘Graphis’
from the Greek word for measure.

Studies the characteristics of a population:

Age

Gender

Family Life Cycle (i.e.: single, married, married with children,
separated/divorced, blended family, widowed.

Ethnicity, culture

Education

Employment situation (unemployed, part time, temp full time, full time

Home ownership/household income
Intrapreneurship

Intrapreneurship: When the spirit of an entrepreneur is at
work within an organization

Progressive corporations promote and encourage the
dynamic thinking that entrepreneurs bring to a company.

Today’s successful corporations rely on intrapreneurship to
give them a competitive advantage.

The penalty of not being competitive is losing market share
– the percent of total sales in a particular market that your
company has.
Approaches to
Entrepreneurship

New Venture: Entrepreneurs bring a new product or
service to market – the result of an idea or research into
needs/wants that are unfulfilled.

Existing Venture: Entrepreneurs may buy in to an existing
business model by way of owning a franchise.

Modified Venture: Entrepreneurs can take the core idea
of one business model and modify it – giving it a slightly
different approach that makes it an
improvement/alternative in the eyes of the consumers.
Entrepreneurs:
Made or Born?

Entrepreneurs more likely to have been raised in an
entrepreneurial family – where enterprise and risk-taking
is encouraged and rewarded.

Entrepreneurship can also be a reaction to a work
environment – where the drive to ‘be your own boss’
comes from years of working to make someone else rich.

Both share a sense of vision and willingness to take risks.
Characteristics of Successful
Entrepreneurs (what they are)

Self-Confident – Believe inn themselves and in ability to succeed.

Perceptive – Able to identify both problems and opportunities.

Hard-Working – Good stamina to devote time and effort to business.

Motivated – Driven by internal need for accomplishment.

Resourceful – Adept at using a network of resources to achieve
goals.

Able to Manage Risk – Risks are assessed and taken to achieve
rewards.

Creative – Take charge of situations, make change – don’t wait.
Characteristics of Successful
Entrepreneurs (what they are)

Goal Oriented – Continually set goals and targets to achieve.

Optimistic – A positive mental attitude and enthusiasm to
prevail.

Flexible – Able to adjust to shifting marketplace conditions.

Independent – Enjoy the freedom to make their own
decisions.

Visionary – Can ‘see the future’ and their role in it.

Able to Get Along with Others – Team dynamics is a valuable
tool that entrepreneurs are skilled at using to gain consensus.
Entrepreneurial Skills
(What they do)

Communicate

Solve Problems

Generate Ideas

Negotiate

Plan

Network

Organize

Market their ideas

Make Decisions

Keep records

Lead others
Entrepreneurial Roles
(Hats they wear)

Inventor – Develop new ideas for products, processes &
services

Innovator – Improve existing products, processes or
services

Manager – Set goals and develop a plan to achieve
them

Administrator – Implement the plan to achieve goals

Leader – Create a vision and communicate it to others