Entrepreneur And Entrepreneurship: Engr. Lito I. Mauro

Entrepreneur and Entrepreneurship Engr. Lito I. Mauro

Entrepreneur – a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk. Entrepreneur – Someone who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what, how, and how much of a good or service will be produced.

Entrepreneur – a driver for economic development, emphasizing their role as one of the collecting factors of production allocating resources from less to fields that are more productive.

Entrepreneur – a person who pays a certain price for a product and resells it at an uncertain price, "making decisions about obtaining and using the resources while consequently admitting the risk of enterprise".

Entrepreneur – a risk taker who deliberately allocates resources to exploit opportunities in order to maximize the financial return.

Entrepreneur assumes the risk and to deal with uncertainty, thus he drew attention to the function of the entrepreneur and distinguished between the function of the entrepreneur and the owner who provided the money.

An entrepreneur supplies risk capital as a risk taker, and monitors and controls the business activities. The entrepreneur is usually a sole proprietor, a partner, or the one who owns the majority of shares in an incorporated venture. Entrepreneurs are not necessarily motivated by profit but regard it as a standard for measuring achievement or success.

Entrepreneurship – The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The obvious example of entrepreneurship is the starting of new businesses. In economics, entrepreneurship combined with land, labor, natural resources and capital can produce profit.

Entrepreneurial spirit is characterized by innovation and risk-taking, and is an essential part of a nation's ability to succeed in an ever changing and increasingly competitive global marketplace.

Entrepreneurial resource – Assets, both tangible and intangible, that are mobilized by entrepreneurs in the process of building a business, organization, or other initiative.

Entrepreneurial resources include sources of financing such as lines of credit and investment capital. It also includes abstract resources like knowledge of a particular field or technology, or networks of contacts that can be called upon to contribute financial support, publicity, or other benefits to a growing enterprise.

Entrepreneurial profit – Income received that exceeds the expenses of an entrepreneurship. Entrepreneurial organization – Group of business owners who meet on a regular basis to share information, experiences, and tools for improving businesses.

Relationship between small business and entrepreneurship Many small businesses are sole proprietor operations consisting solely of the owner—or they have a small number of employees—and many of these small businesses offer an existing product, process or service and they do not aim at growth.

Entrepreneurial ventures offer an innovative product, process or service and the entrepreneur typically aims to scale up the company by adding employees, seeking international sales and so on, a process which is financed by venture capital and angel investments.

An angel investor (also known as a business angel, informal investor, angel funder, private investor, or seed investor) is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Successful entrepreneurs have the ability to lead a business in a positive direction by proper planning, to adapt to changing environments and understand their own strengths and weakness.

Types of entrepreneurs Three main types of entrepreneurs: A – Darwinians B – communitarians C – missionaries These types of entrepreneurs diverge in fundamental ways in their self-views, social motivations and patterns of new firm creation.

Darwinians Ambitious young go-getters join a startup and iterate their way to a successful product. The goal is to fail fast and cheap, learn lessons and hit on a successful business model while the money still lasts. If things don't work out, they join another startup and try again.

Communitarians Entrepreneurs need to practice effective communication both within their firm and with external partners and investors in order to launch and growth a venture and enable it to survive.

Missionaries Entrepreneurs should be charismatic leaders, so they can communicate a vision effectively to their team and help to create a strong team. Communicating a vision to followers may be well the most important act of the transformational leader.

The vision must be communicated through written statements and through in-person communication. Entrepreneurial leaders must speak and listen to articulate their vision to others.

Types of entrepreneur and/or entrepreneurship A – Ethnic entrepreneurship The term "ethnic entrepreneurship" refers to self-employed business owners who belong to racial or ethnic minority groups in the United States and Europe.

B – Institutional entrepreneurship In modern organizations, human resources need to be combined in order to better capture and create business opportunities. New institutions arise when organized actors with sufficient resources see in them an opportunity to realize interests that they value highly.

C – Cultural entrepreneurship Cultural entrepreneurship is "practices of individual and collective agency characterized by mobility between cultural professions and modes of cultural production", which refers to creative industry activities and sectors.

Three types of cultural entrepreneur: 1 – Cultural personalities – individuals who build their own personal brand of creativity as a cultural authority and leverage it to create and sustain various cultural enterprises.

2 – Tycoons – entrepreneurs who build substantial clout in the cultural sphere by forging synergies between their industrial, cultural, political, and philanthropic interests. 3 – Collective enterprises – organizations which may engage in cultural production for profit or not-for-profit purposes.

D – Feminist entrepreneur A feminist entrepreneur is an individual who applies feminist values and approaches through entrepreneurship, with the goal of improving the quality of life and well-being of girls and women.

E – Social entrepreneur Social entrepreneurship is the use of the by start-up companies and other entrepreneurs to develop, fund and implement solutions to social, cultural, or environmental issues.

F – Nascent entrepreneur A nascent entrepreneur is someone in the process of establishing a business venture. The nascent entrepreneur can be seen as pursuing an opportunity, i.e. introduce new services or products, serve new markets, or develop more efficient production methods in a profitable manner.

Before such a venture is established, the opportunity is just a venture idea. The pursued opportunity is perceptual in nature, propped by the nascent entrepreneur’s personal beliefs about the feasibility of the venturing outcomes the nascent entrepreneur seeks to achieve.

G – Project-based entrepreneur Project entrepreneurs are individuals who are engaged in the repeated assembly or creation of temporary organizations. These are organizations that have limited lifespans which are devoted to producing a singular objective or goal and get disbanded rapidly when the project ends

Industries where project-based enterprises are: sound recording, new media, film production, software development, television production, and construction. Project entrepreneurs are exposed repeatedly to problems and tasks typical of the entrepreneurial process.

Project-entrepreneurs face two critical challenges that invariably characterize the creation of a new venture: A – Locating the right opportunity to launch the project venture B – Assembling the most appropriate team to exploit that opportunity.

H – Millennial entrepreneur The term "millennial entrepreneur" refers to a business owner who is affiliated with the generation that was brought up using digital technology and mass media—the products of Baby Boomers, those people born during the 1980s and early 1990s.

Also known as Generation Y, these business owners are well equipped with knowledge of new technology and new business models and have a strong grasp of its business applications

Entrepreneurial Behaviors The entrepreneur is commonly seen as an innovator—a designer of new ideas and business processes. Management skills and strong team building abilities are often perceived as essential leadership attributes for successful entrepreneurs. Leadership, management ability and team building are essential qualities of an entrepreneur.

Uncertainty perception and risk-taking The entrepreneur is willing to put his or her career and financial security on the line and take risks in the name of an idea, spending time as well as capital on an uncertain venture.

Three types of uncertainty: Risk, which is measurable statistically (such as the probability of drawing a red color ball from a jar containing five red balls and five white balls) 

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Ambiguity, which is hard to measure statistically (such as the probability of drawing a red ball from a jar containing five red balls but an unknown number of white balls)

True uncertainty or Knightian uncertainty, which is impossible to estimate or predict statistically (such as the probability of drawing a red ball from a jar whose contents, in terms of numbers of colored balls, are entirely unknown)

Entrepreneurship is often associated with true uncertainty, particularly when it involves the creation of a novel good or service, for a market that did not previously exist, rather than when a venture creates an incremental improvement to an existing product or service.

"Coachability" and advice taking The ability of entrepreneurs to work closely with and take advice from early investors and other partners are considered a critical factor in entrepreneurial success.

Strategies that entrepreneurs may use: Innovation of new products, services or processes Continuous process improvement (CPI) Exploration of new business models Use of technology Use of business intelligence Use of economical strategics Development of future products and services Optimized talent management 

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Designing individual/opportunity nexus (Connection) Entrepreneurship comprises both "enterprising individuals" and "entrepreneurial opportunities". Higher economic inequality tends to increase entrepreneurship rates at the individual level, suggesting that most entrepreneurial behavior is based on necessity rather than opportunity.

Opportunity perception and biases The ability of entrepreneurs to innovate relates to innate traits, including extroversion and a proclivity forrisktaking. The capabilities of innovating, introducing new technologies, increasing efficiency and productivity, or generating new products or services, are characteristic qualities of entrepreneurs.

Goals and Objectives Checklist If you're having trouble deciding what your goals and objectives are, here are some questions to ask yourself:  How determined am I to see this succeed?  What's going to happen to me if this venture doesn't work out?

 Am I willing to invest my own money and work long hours for no pay, sacrificing personal time and lifestyle, maybe for years?  If it does succeed, how many employees will this company eventually have?  What will be its annual revenues in a year? Five years?

 What will be its market share in that time frame?  Will it be a niche marketer, or will it sell a broad spectrum of good and services?  What are my plans for geographic expansion? Local? National? Global?  Am I going to be a hands-on manager, or will I delegate a large proportion of tasks to others?

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If I delegate, what sorts of tasks will I share? Sales? Technical? Others?  How comfortable am I taking direction from others? Could I work with partners or investors who demand input into the company's management?  Is it going to remain independent and privately owned, or will it eventually be acquired or go public?

Your Financing Goals The amount of control you'll have to surrender. Partner/s may demand equal control. You should consider the amount of money you're likely to need. Consider the cost. This can be measured in terms of interest rates and shares of ownership. 

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How Will You Use Your Plan Part of planning your plan is planning what you'll do with it. Deciding how you intend to use yours is an important part of preparing to write it. Do you intend to use your plan to help you raise money?

Financial: • What initial investment will the business require? • How much control are you willing to relinquish to investors? • When will the business turn a profit? • When can investors, including you, expect a return on their money?

• What are the projected profits of the business over time? • Will you be able to devote yourself full time to the business, financially? • What kind of salary or profit distribution can you expect to take home? • What are the chances the business will fail? • What will happen if it does?

Lifestyle: • Where are you going to live? • What kind of work are you going to be doing? • How many hours will you be working? • Will you be able to take vacations? • What happens if you get sick? • Will you earn enough to maintain your lifestyle? • Does your family understand and agree with the sacrifices you envision?

10 Most Important Business Objectives Your business objectives are the results you hope to achieve and maintain as you run and grow your business. As an entrepreneur, you are concerned with every aspect of your business and need to have clear goals in mind for your company. Having a comprehensive list of business objectives creates the guidelines that become the foundation for your business planning.

1. Profitability Maintaining profitability means making sure that revenue stays ahead of the costs of doing business. Focus on controlling costs in both production and operations while maintaining the profit margin on products sold.

2. Productivity Employee training, equipment maintenance and new equipment purchases all go into company productivity. Your objective should be to provide all of the resources your employees need to remain as productive as possible.

3. Customer Service Good customer service helps you retain clients and generate repeat revenue. Keeping your customers happy should be a primary objective of your organization.

4. Employee Retention Employee turnover costs you money in lost productivity and the costs associated with recruiting, which include employment advertising and paying placement agencies. Maintaining a productive and positive employee environment improves retention.

5. Core Values Your company mission statement is a description of the core values of your company. It is a summary of the beliefs your company holds in regard to customer interaction, responsibility to the community and employee satisfaction. The company's core values become the objectives necessary to create a positive corporate culture.

6. Growth Growth is planned based on historical data and future projections. Growth requires the careful use of company resources such as finances and personnel.

7. Maintain Financing Even a company with good cash flow needs financing contacts in the event that capital is needed to expand the organization. Maintaining your ability to finance operations means that you can prepare for long-term projects and address short-term needs such as payroll and accounts payable.

8. Change Management Change management is the process of preparing your organization for growth and creating processes that effectively deal with a developing marketplace. The objective of change management is to create a dynamic organization that is prepared to meet the challenges of your industry.

9. Marketing Marketing is more than creating advertising and getting customer input on product changes. It is understanding consumer buying trends, being able to anticipate product distribution needs and developing business partnerships that help your organization to improve market share.

10. Competitive Analysis A comprehensive analysis of the activities of the competition should be an ongoing business objective for your organization. Understanding where your products rank in the marketplace helps you to better determine how to improve your standing among consumers and improve your revenue.

Entrepreneurship is Beyond Survival Survival (making a living) is not the goal of entrepreneurship but rather significance (making a difference). Entrepreneurship is about using your life to do what you really love and truly care about-passion. It is not about submitting to the status quo (enjoying comfortability); it’s about challenging the status quo (creating change).

The Purpose of Entrepreneurship Money is the reward (product) NOT the goal (purpose) of entrepreneurship! Entrepreneurship is much more than making money. It is a calling. And like every other calling, it is peoplecentered.

It is never about you, it’s all about others. It is a calling to serve; it’s not about what you can accumulate (money/profit), it is about what you can contribute (service/value). A calling is a strong urge to follow a particular career or do a particular type of work. You being an entrepreneur cannot choose yourself. You are chosen.

The Starting Point of Every Entrepreneur is Either; The recognition of a need (problem) or The conception of an idea (solution). When an entrepreneur recognizes need (problem), he goes in search of a solution (product or service) to meet that need. And when an entrepreneur conceives an idea for a product or service, he goes in search of a group of people who have a need for it. 

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The entrepreneur is always in search of something or going after something. Entrepreneurs do not exist for themselves or by themselves; they depend on something out there; something beyond them before they can birth whatever it is they carry.

They don’t do, they are being used. They don’t create, they instruments of creation. They don’t start the process; they only complete what has been started. They see a need they didn’t create (problem) and find a way to fill it (solution).

An entrepreneur is but an instrument of nature; a servant to customers functioning as a problem solver to humanity. This is why entrepreneurship is a calling and not a money-driven venture (profit) but rather a value-adding venture (service). And like every other calling, it has its own reward.

Businesses don’t Exist for Profits’ Sake; they Exist for Customers’ Sake Customers exist because they have a need or problem that needs to be solved. Anybody fit enough to solve these problems becomes an entrepreneur.

An entrepreneur is someone who has answered the call to solve a problem (input or activity) for a set of people (target market) and gets money (result or outcome) as a reward for being able to accomplish all these things.

The goal of any entrepreneur going into business should not be what he will get (output or result) but rather what he will give (input or effort). This is because what he gets (money or outcome) is directly tied to how much he can and is prepared to give (effort or input).

An entrepreneur should revolve around the problems you can solve for people. • How well am I solving this problem? • How many people out there have this kind of problem and need my solution? • How may I reach them? • Who else is out there solving this same problem for people too? • How may I do better than this other person?

You as an Entrepreneur have but ONE Task: To either solve one problem for so many people or Solve many problems for a few people.