Entrepreneurship
Introduction
ELIB 203
Week2
Entrepreneurship
 Key decisions relate to:
1- Entrepreneurship- Introduction
2- The Entrepreneurs- Who they are?
- Characteristics/traits
3- Mega Entrepreneurs
4- Defining The Entrepreneur- Advantage &
Disadvantage – Types
5- Entrepreneurial Mindset- Activity1
1- Entrepreneurship
Nature of Entrepreneurship
 It is a socio-economic phenomenon.
 Engine of economic growth
 Creator of wealth and employment.
Entrepreneurship
What You Know about
Entrepreneurship
Entrepreneurship
What is Entrepreneurship?

It is a creative and innovative human act.
 Ability
to create and build a vision from
practically nothing.–
 Vision
requires
calculated risks.
willingness
to
take
 It is a discipline, hence it can be learned –
Peter Drucker
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
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
The Entrepreneurs
Who they are?
 Entrepreneurs are very much interested in:
• Success
• Profit
• Wealth creation
• Leaving their mark on society
The Entrepreneur
Definition



An entrepreneur is defined as an individual who sees
an opportunity that others do not and marshals the
resources to 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.
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
oRecognize business opportunities
oSee consequences
oSee the complete picture and many alternatives
The Entrepreneurs
Characteristics/traits
• Understand customer behaviour
• Are natural leaders:
oThey have what it takes to get people to believe in them
oThey demand and get loyalty from their staff
•
Powerful communicators
oMore powerful oral/personal rather than written
oUse simple and direct language
oOften use of analogy
oCan present complex ideas simply
The Entrepreneurs
Characteristics/traits
oAre better talkers than listeners
oAre not easily distracted
• Entrepreneurs are individuals who:
o Are exceptionally competitive
oMost academic research shows that entrepreneurs are
abnormally (sometimes excessively) competitive people
oEntrepreneurs set unnecessarily (as seen by
outsiders)
tough targets for themselves
oSometimes they may even compete with themselves
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
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
W. K. Kellogg
b. 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
Sam Walton
b. 1918
 The man who built the
world's largest retailer
on low prices: WalMart.
 Bought direct from
manufacturers and
made his stores as
efficient as possible,
sending the savings
back to consumers
Muhammad Yunus
b. 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
Martha Stewart
b. 1941
 Started a catering
business out of her
Westport (Conn.) home
in 1976.
 Went on to expand into
retail, publishing,
television, and
merchandising.
Richard Branson
b. 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.
Oprah Winfrey
b. 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.
Bill Gates
b. 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
Steve Jobs
b. 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
Jeff Bezos
b. 1964
 Founded
Amazon.com, in 1994
 Bezos pioneered
techniques that have
become staples of
online sales.
Michael Dell
b. 1965
 Created a new model
for PC sales.
 Cutting out the retail
middleman and custombuilding computers to
suit buyers' needs put
Dell at the front of the
class of PC makers.
Chad Hurley, 29; Steve Chen, 28 &
Jawed Karim, 27
 Founders of
YouTube.
 Broadcasts 100
million short videos
daily on myriad
subjects.
 Sold to Google
Pierre Omidyar
b. 1967
 Founder of EBay,
which made the
promise of the
Internet a reality by
connecting farflung customers
with the goods they
wanted to buy.
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
Mega – Entrepreneurs
in Saudi Arabia
• Dallah alBaraka - Saleh Kamel
• Fitaihi Group - Ahmad Hasan Fataihi
• AlAhli Bank - Bin Mafhfooz
• Alrajhi -Alrajhi Bank
• Al Baik - Rami Abughazala
• Lomar - Loai Nasesm
• U turn - Abdulla Mandowi
Saudi Entrepreneurs..
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.
The Entrepreneur
Motives
Advantage
• Independence
• Potential financial rewards
• Satisfying a way of life
• More personal contacts with people
• Skills development
• Challenge
• Enjoyment
The Entrepreneur
knowing the downside
Disadvantage
•
•
•
•
•
•
Risk (failure)
Stress
Need for many abilities
Limited financial rewards
People conflict
Time demand
The Entrepreneur
Types
Visionaries
Strivers
Wheeler
Dealers
The
Innovator
-look for a “better fit”.
-Generally
dissatisfied with
current situation.
-Never satisfied
with their own
achievements
- Most
dispassionate/
calculating type.
-Fiercely
competitive –
always trying to
win
- Looks for
opportunity to act.
-“Take-over” is
their game.
-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”.
5- Entrepreneurial Mindset
TEST
THE ENTREPRENEURIAL QUIZ
Personality Characteristic Checklist
Entrepreneurial Mindset
Born or Made?
Is inborn talent an absolute requirement?
 Say the answer is, “YES,” then once we identify
YES
the main characteristics we can simply say, if we
have them, fine, no others need to apply.
 We could start spotting talent in kindergarten
and stream them.
 We could discourage people without talent from
entrepreneurship
Entrepreneurial Mindset
Born or Made?
 Say the answer is, “NO”, one does not have to
NO
be born with talent, it can be learned,” then
schools could teach anyone
 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.
Entrepreneurs
Are 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
The Entrepreneurs
Sensing an
Opportunity
Entrepreneurial
Traits
Family
Background
Culture
Positive/
Negative
Environment
Entrepreneurship
Exploiting the
Opportunity
Management
Skills
Education
Experience