1. The Foundations of
Entrepreneurship
The Foundations of
Entrepreneurship

3. What is an Entrepreneur?
A person who start and operates a business taking
on financial risk to do so.
An entrepreneur is one who organizes a new
business in the hopes of making a profit.
A person who organizes and manages any busines
s, usually with considerable initiative and risk.

5. Entrepreneur is a person who starts an
enterprise. The process of creation is called
entrepreneurship.
or
Turning ideas into marketable products

6. Definition for engineering students
• So entrepreneur is a person who start and operates a
business by using engineering skills with business
management/ entrepreneurial skills.
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Engineer Entrepreneurship
a technical
professional
/engineering skills
entrepreneurial/ business
management skills
He must be able to integrate
•Business management skills with
•with engineering/technical skills

7. Entrepreneurial/ business management skills
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New or revised product/ service idea
Managing business portfolio
Financial Plan
Marketing plan
Advertising, sales,
Distribution channels management
Leadership skills
Organizing and Managing People.
Employees compensation and reward system
Risk Management
Quality management
…………………………..

8. Entrepreneur and Entrepreneurship
Entrepreneur Entrepreneurship
Organizer Organization
Decision maker Decision Making
Innovator Innovation
Motivator Motivation
Creator Creation
Leader Leadership
Manager Management
Planner Planning
Communicator Communication
Administrator Administration

9. Why Study Entrepreneurship?
Scientists and engineers who want to lead companies
need to know how to back up ideas with business
management/ entrepreneurial skills.
You will learn the complex business processes involved
in commercialization.
You learn how to make trade-offs among features,
benefits, price, markets, and business operations
You learn how to adapt to uncertainty and change
You learn techniques for managing people

10. Characteristics of Entrepreneurs
Desire for responsibility
Willingness to accept risk,
Confidence in their ability to succeed
High level of energy
Future orientation
Skilled at organizing
Flexibility

13. Expectations from an Entrepreneur
An entrepreneur should
be willing and able to convert a new idea or invention into
a success innovation,
be able to develop new markets of customers and buyers,
discover new sources of materials,
mobilize capital resources (land, machines, buildings,
money, humans),
introduce new technologies, products and services.
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16. Distinction Between An Entrepreneur
And A Manager
- An entrepreneur start a business where a manager provides
his services……..
- An entrepreneur is the owner of the organization and he
bears all the risk and uncertainties…
- Entrepreneur’s objective is to establish, innovate and
expand a business, where a manager implements the
entrepreneur’s plans and ideas………
-An entrepreneur is faced with more income uncertainties as
his income is contingent on the performance of the firm……..
- An entrepreneur deals with faults and failures as a part of
learning experience where as a manager make every effort to
avoid mistakes……..

18. Rewards of Being an EntrepreneurRewards of Being an Entrepreneur
High degree of independence— freedom
from constraints
Get to use a variety of skills and talents
Freedom to make decisions
Accountable to only yourself
Opportunity to tackle challenges
Feeling of achievement and pride
Potential for greater financial rewards

19. The cultural diversity of Entrepreneurship
Young entrepreneurs
Women entrepreneurs
Minority-owned enterprises
Immigrant entrepreneurs
Part-time entrepreneurs
Home-based businesses
Family businesses

20. Nine Deadly Mistakes of Entrepreneurship
1. Management incompetence
2. Lack of experience
3. Poor financial control
4. Failure to develop a strategic plan
5. Uncontrolled growth
6. Poor location
7. Improper inventory control
8. Incorrect pricing
9. Inability to make the “entrepreneurial transition”

21. Benefits of Small Business Ownership
The opportunity to:
create your own destiny
make a difference
reach your full potential
reap unlimited profits
contribute to society and be recognized for
your efforts
do what you enjoy and have fun at it

22. Drawbacks of Small Business Ownership
Uncertainty of income
Risk of losing your entire investment
Long hours and hard work
Lower quality of life until the business gets
established
High levels of stress
Complete responsibility
Discouragement