Download Entrepreneurship

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Define entrepreneurship.
Discuss characteristics and types of
entrepreneurs.
Discuss the applicability of entrepreneurship
principles in the profession of pharmacy.
Given an “opportunity concept,” apply the
process of entrepreneurship to evaluate,
pursue, execute, and harvest the venture
One commonly used definition is
“the process by which individuals pursue
opportunities without regard to resources
they currently control.”
A process means that it can be repeated
analyzed and improved
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Some of the common characteristics of
entrepreneurs include:
A high level of achievement motivation
An internal locus of control
A tolerance for ambiguity.
They are not necessarily experts in all areas
of business
They are very good at establishing networks
of people who can help them in areas that
are not their strengths
Personal Achievers
1. Need for feedback
2. Need for achievement
3. Strong commitment
4. Internal locus of control
Expert Idea Generators
1. Build venture around new products
2. Involved with high-tech companies
3. Desire to innovate
4. Intelligence as source of competitive advantage
Super Sales People
1. Capacity to understand others, empathize
2. Belief that social processes are important
3. Good at external relationship building
4. Belief in sales force
Real Managers
1. Desire to take charge, compete, be decisive,
stand out
2. Desire to be corporate leader, desire for
power
3. Positive attitude towards authority
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Learning entrepreneurship is important
because it provides a structured approach
that can be repeated, analyzed, and improved
on.
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Ideas can come in many different forms and
from many different places
Entrepreneurs often generate and maintain
an opportunity register
The entrepreneur must be disciplined in the
selection of opportunities to pursue because
resources likely will be limited and pursuit of
an opportunity requires focus, perseverance,
and dedication.
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Identify an opportunity
Changing demographics
Emergence of new market segments
Process needs New technologies
Incongruities Regulatory change
Social change
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Determining which idea to pursue and how to
execute the opportunity are key decisions for
the entrepreneur to make. To guide these
decisions, the entrepreneur often will perform
a feasibility analysis
Extensive research is performed on the
product/service, industry, market,
organizational feasibility, and financial
feasibility of the opportunity.
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Develop the Concept
New products
New services
New processes
New markets
New organizational structure/forms
New technologies
New sales / distribution channels
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Entrepreneurs typically will not have all the
resources needed to pursue the identified
opportunity
This step in the process, which can be a part of
the feasibility analysis, will help to identify what
resources are needed and help to determine if
the entrepreneur can obtain those needed
resources
Identify the extent to which financial resources
need to be acquired and at what stage in the
business-development timeline they are needed
In entrepreneurship compares equity to manure
The more manure is piled up, the more it smells,
but the more it is spread around (on a field), the
more it helps things to grow.
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Determine the required resources
Skilled employees
General management expertise
Marketing and sales expertise
Technical expertise
Financing
Distribution channels
Sources of supply
Production facilities
Licenses, patents, and legal protection
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Once the entrepreneurial idea and venture
have been well defined and researched
through the feasibility analysis, resources are
acquired to pursue the idea
To help get others to invest, the
entrepreneur will have to put some of his or
her own money into the development
Grants and small-business loans are used
often, but grants can take longer to acquire
than other methods.
“sweat equity” (time put into developing the
business without receiving payment for the
time put in) required
Acquire the necessary resources
1. Debt
2. Equity
3. Leveraging
4. Outsourcing
5. Leasing
6. Contract labor
7. Temporary staff
8. Supplier financing
9. Joint ventures
10. Partnerships
11. Barter
12. Gifts
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Decision-making abilities and experience are
two of the most important attributes for
success in this process.
Degrees , training and during work
experience are ways of gaining of these skills
Training for entrepreneurship the BEL(
Bernelli Entrepreneurial Learning) Method
identifies five stages of development and
provides initially for exposure and hands-on
experience.
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The key to implementing and managing the
opportunity will center on cash flow.
First, acquiring capital to get the business
started and then, once the business is
started, balancing the expenditure of money
with the need to obtain more to keep the
business going.
Businesses often fail because they do not
have enough cash when they start.
It is recommended that a business have
enough cash to support it for 3 years when it
is started. However, this is often difficult to
obtain. Additionally it is typical for the
business to pursue rounds of funding.
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Implement and manage
Implementation of concept
Monitoring of performance
Payback of resource providers
Reinvestment
Expansion
Achievement of performance goals
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How the entrepreneur will reap the rewards
of the endeavor
selling the business to someone else,
passing the business on to someone in the
family,
licensing the rights of the intellectual
property developed in the business
copyrights , trademarks and patents
going public with the business
shutting the business down.
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To maximize the reward of the opportunity, it
is important to develop the exit strategy or
list of potential exit strategies early on in the
concept-development process
Copyright protection is the easiest and least costly to
acquire. However, it also generally provides the least
amount of protection. This protection does not
protect the ideas, processes, or methods of the
intellectual property. It only protects the form, or
original work, which is the end result of the ideas,
processes or methods.
Trademarks are used to protect names, brands, logos,
and other marketing devices that are distinctive.
Trademarks are somewhat more expensive. It is
also possible to do a trademark search on your own
on the Internet It is also possible to pay attorneys
Patents offer the highest level of protection. They take
the most time and money to acquire, usually taking
at least 2 years and $4,000 to file. It is generally
necessary to hire intellectual property attorneys to
assist with the filing and defense of the patent.
Patents protect the idea, method, and design of
products and businesses
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Incubators bring all or many of the necessary
areas together (e.g., accounting, business
plan development, legal, capital acquisition,
etc.) to help entrepreneurs bring their ideas
to market
Incubators usually take significant equity of
the business to get started
entrepreneur must assess how much is really
needed and how much the incubator is going
to contribute before signing on
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Timing is everything
First-movers, the first person to bring a
concept to market, can have what is called
first-mover advantage, allowing them to gain
the rewards of early entry into a market. At
other times, the second person into the
market can gain the advantage because the
first mover has had to go to all the effort to
train and educate the market about the
concept.
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The entrepreneur must be able to quickly
communicate the value proposition
associated with the product, service, or
business.
In entrepreneurship circles, this is referred to
as the elevator pitch. the ability to pitch the
concept to a potential investor in the amount
of time it takes to get on an elevator and then
get off
1. Describe the importance of networking for
entrepreneurs, and identify methods of
networking in the profession, community, and
business world.
2. What, in your opinion, is the most difficult step
in the process of entrepreneurship? Describe and
explain why?
3. Describe an approach to financing an
entrepreneurial venture. Include a discussion of
the pros and cons of debt acquisition, using
personal and “friends and family” funds, and
venture capital.
4. After identifying an opportunity, develop a 30second elevator pitch that clearly communicates
the value of the concept
1. What are three common characteristics of
entrepreneurs?
2. What are the four types of entrepreneur
personalities, which one do you most identify
with, and what leads you to identify yourself
with this characterization?