Download Study unit 3 Perspectives of Entrepreneurship

PERSPECTIVES OF
ENTREPRENEURSHIP
Study unit 3
INTRODUCTION
 Entrepreneurship: collective activities of entrepreneurs, which result in
a new business or venture creation, such as self-employment, or the
expansion of an existing business by an individual, team of individuals,
or an established business by an individual, team of individuals, or an
established business;
 Entrepreneurship: a way of thinking, reasoning and acting that is
opportunity obsessed, holistic in approach, and leadership balanced
and that eventually leads to new business ventures.
INTRODUCTION
 ability to recognise and exploit business opportunities
 creativity, innovation, risk-taking and hard work
 correct appropriation of resources
 rewarded for their initiatives
 ability to generate change through innovation
 ability to find new combinations of resources
 ability to improve existing operations
 ability to lead economic activity at a profit in times of uncertainty
 willingness to take calculated business risks
 promise of growth, expansion and long-term financial gain
INTRODUCTION
 Entrepreneur is a person who is skilled in identifying
opportunities for new products or services (or sometimes new
methods of production), setting up operations to provide new
products, marketing the products and arranging the financing of
operations. They may use their own capital, or the funds may be
derived from other sources. Entrepreneurs are essentially risk
takers who are generally associated with the economic growth
of a country. The aim of entrepreneurs is to establish growth and
create value for themselves and others, either in creating jobs,
financial gain, or both.
DRIVING FORCES OF ENTREPRENEURIAL PROCESS
 it is opportunity driven
 an entrepreneur that takes the lead and a team of skilled people
steer this process
 it is economical and creative in using resources
 it is important that there is a fit between the entrepreneur,
opportunity and resources
 the timing of the process is crucial
 it is integrated and holistic
ENTREPRENEURIAL TEAM
 Entrepreneurs may not always possess the capabilities to implement
their business idea(s). They will need a partner or team who is able
to help.
 Team should have the relevant experience and know-how,
motivation to excel, commitment, determination, persistence,
adaptability and creativity and should have good communication and
leadership abilities.
 Team may consist of the co-founders, the management team,
employees and/or consultants.
MYTHS ABOUT ENTREPRENEURS
 Myth 1: Entrepreneurs are born, not made
 Myth 2: Entrepreneurs are doers, not thinkers
 Myth 3: Entrepreneurs are always inventors
 Myth 4: Entrepreneurs are academic and social misfits
 Myth 5: Capital is the most important ingredient for success
 Myth 6: Entrepreneurs depend on luck
 Myth 7: Entrepreneurs are all the same
 Myth 8: Entrepreneurs are young and energetic
 Myth 9: Entrepreneurs are gamblers and extreme risk-takers
 Myth 10: Entrepreneurs are only motivated by financial rewards
CREATIVITY
 Creativity is the generation of new ideas and approaches that result in
the improved efficiency or effectiveness of a system.
 Entrepreneurial behaviour, on the other hand, involves the ability to
identify opportunities based on these new ideas and approaches, and to
turn them into an economically viable product, service or venture.
 Creativity implies a vision for what is possible, the entrepreneur
translates that vision into action.
 Creativity phases - Phase 1: Background or knowledge accumulation
Phase 2: The incubation process
Phase 3: The idea experience
Phase 4: Evaluation and implementation
NATURE AND IMPORTANCE OF INTRAPRENEURSHIP
 Intrapreneurship is a process whereby an individual or a group of
individuals, in association with an existing business, creates a new
business or instigates renewal or innovation within the business.
 Entrepreneur vs intrapreneur