ENTREPRENEUR. INTRODUCTION It is the result of strong mental efforts by thinking clearly, confidently, courageously and proactively. They have won the battle of the mind and made right thinking a way of life.
It is the result of strong mental efforts by thinking clearly, confidently, courageously and proactively.
They have won the battle of the mind and made right thinking a way of life.
They believe to be pace setter- they are not satisfy with reaping the sweat of others.
The are important figure in capitalist society
- they are undertakers of activities
- they are always optimistic
- they are control risk takers.
-It occurs when innovation renders old ideas or technologies obsolete.
Henry Ford (1863-1947)
-He pioneered the development of automobile industry as an engineer in Edison illuminating company.
-He built a car as a hubby, ten years after he started Ford motor company.
Williams Hesketh lever (1851-1925)
-He started a grocery business,but because of his innovation his father admitted him as a partner.
-They later came up with the name ‘sunlight’ for the family soap, he cut the soap into tablets, wrapped each tablet to preserve the freshness and the smell. He later merge with van de berge to become Unilever.
-He invented electric light bulb and had 1,093 inventions. He keeps receiving patients annually.
- they could be called agent of change
- they are describe as being innovative, imaginative, person of ideas etc.
It is also a daring adventure, a controlled risk taking activity and calculated game that skilled business people play. – Marshall.
-the creation of a new product or the alteration of the present quality.
-the development of the new method of production.
-the opening of a new market.
-the capture of a new source of supply.
-a new organization of enterprises.
The role of entrepreneur is entrepreneural function while the process is called the entrepreneurship.
- the personal achiever
- the super sales person
- the real manager
- the expert idea generator and
- the complex entrepreneur
The personal achiever- he has a need to achieve or there is an dynamo which drives him to put in long hours.
-he wants to be in control of his life and his actions show this.
-he has a high desire to set goals and to plan.
-he receives feedback to asses performance.
-he has strong personal initiative and a strong commitment to the organisation.
-he believes that one person can make a difference and that work should be guided by personal goal.
-they empathize with others and this leads to the desire to help others.
-they belief that social processes are important.
-they help them to sell without employing persuasion or pressure tactics, they rather develop a strong positive relationship with others which is then depended upon for continuous sales.
-they are special entrepreneurs
The corporate manager has a slim chance of making it as entrepreneur, also the classical entrepreneur is not likely to make it climbing the corporate ladder- the real manager entrepreneur comes to match the two together.
–they like to be in charge, they are decisive, competitive and goes along with those in authority enjoying power
-they migrates from being a manager in big firms into being in his own business
-these are the people that come up with new products and processes.
-they outshine their competitors as they introduce unique products, cutting niches and creating new markets
-they always have desire to innovate, they love ideas and good intelligence.
-the love for original, novel, creative and innovative approaches stand them out.
-they function as initiators and promoters of new idea, concepts and services.
-they do not just create ideas but they have the intuition for which ones would sell.
-It is the type of entrepreneur that combines two types of entrepreneur together. i.e they might be 78% of super sales and 22% real manager.
They know when to concentrate on idea generation and when to sell or manage the idea.
-Push:-it is a factor that force an individual to look for means of survival e.g dissatisfaction with present employment, unemployment and loss of good job.
-Pull:- fortuitous/accidental circumstances that encourages individual into business, e.g government incentive programmes and availability of capital to take off.
Profession –By the training, professionals like accountants, lawyers, doctors, pharmacist and engineers can set up businesses and consulting outfits
-Are u ready to go into business enterprise?
-Do you possess the traits?
-Which entrepreneurship pattern do you exhibit?
-Can you handle the responsibilities?
-Can you stand the challenges of the market place?
-Do you have the potential to stand out and beat competition?
-What are your personal goals?
-What are your short-term goals?
-What are your long-term goals?
-Are your goals realistic?
-What if you do not achieve your goals- what will you do?
-What are your business goals?
-Does the two goals reconcile?
-Have you sold, made or offered these products or services in the past?
-How are you different? How will you differentiate your service or product?
-Is it different, unique or better than the competitor’s?
-Is there a market for these services or products?
-How do you fulfill customers’ orders or requests? What is your distribution channel?
-Do you have confidence that what you are making, providing, or selling is of good quality?
-What compensation will you offer any employee you may have?
-how many employees can you afford at different salaries
-what sources of help are available to you?
-can your local or state government offer start-up assistance?
-where will you rent or lease an office, store, warehouse or plant?
-can you start with a home office(micropreneur).
-what office and computer equipment do you need?
-will you need separate phone lines? A post office box?
-can you afford office space?
-where will you get start-up funding?
-where do you want to be (in life) in five, ten, fifteen years time?
How can you ensure customers are attracted and stay attracted?
How will you get these customers?
How will you compete with them: price, quality, service, location?
Are they too competitive or too entrenched/deep rooted
What are their weaknesses?
Is the market oversaturated?
Do you need partners?
Do you work better alone? can you work alone?
How do you pick a partner?
Will they be committed to the business?
a)How will you promote your business and/or product/service.
-what choice of media should you use for advertising?
Should you advertise in the newspaper?
b)How much start-up capital will you need?
-what are your initial fixed cost?
-what will be your eventual fixed and variable costs?
-can you get assistance to determine your start-up need?
-is the economy-local, regional, state, national good?
-should you work your current job while starting the business?
b) When will you find time for family and friends?
-is it possible to let them work with you in the business?
There are six stages you will go through before a business is truly born.
It requires the following tasks:
It requires the following tasks:
-clarify what needs it meets
-see how it works in operating conditions
-check for business barriers
-identify competition and learn from it
Stage 3: From valid idea to scale of operation and resource identification.
-identify market: number, location, type of operation and resource customers.
-clarify how to reach the market(promotion).
-identify minimum desirable scale for a living.
-estimate financial requirements.
It requires the following tasks:
-develop business plan and proposal
It requires the following: