Entrepreneurship For Engineers Chapter - 1

ENTREPRENEURSHIP FOR ENGINEERS
CHAPTER -1
1.1 Entrepreneurs and Entrepreneurship

1.2 The Concept of Entrepreneurship
1.3 The Entrepreneur as an Individual
Creativity and Innovation.
1.1 Entrepreneur and Entrepreneurship
 Entrepreneurship is a start-up
company offering a product, process or
service.
Otherwise capacity and willingness to
develop, organize and manage a
business venture along with any of its
risks in order to make a profit
The entrepreneur is "a person who organizes
and manages any enterprise, especially a
business, usually with considerable initiative
and risk.“
The entrepreneur is commonly seen as a
business leader and innovator of new ideas and
business processes. Entrepreneurs perceive new
business opportunities and they often exhibit
positive biases in their perception (i.e., a bias
towards finding new possibilities and unmet
market needs) and a pro-risk-taking attitude.
ENTREPRENEURIAL ACTIONS
1. Developing a business plan

2. Hiring the human resources
3. Acquiring financial and other required
resources
4. Providing leadership
5. Being responsible for the venture's
success or failure.
ENTREPRENEURSHIP ECOSYSTEM
Advice and mentoring by
1. Government programs and services
2. Non-government business associations
or organizations to promote and
support entrepreneurs.
THREE CATEGORIES OF AN
ENTREPRENEUR
1. Classic entrepreneur — person who identifies
a business opportunity and allocates available
resources to tap that market.
2. Intrapreneur — entrepreneurially oriented
person who develops innovations within the
context of a large organization.
3. Change agent — manager who tries to
revitalize an established firm to keep it
competitive.
INFLUENCE OF ENTREPRENEUR ON THE
ECONOMY OF A COUNTRY
1. CREATING MAJOR INVENTIONS AND INNOVATIONS
a. Create new products
b. Build new industries
c. Bring new life to old industries
2. CREATING NEW JOBS
a. Vital source of new jobs
b. Typically hire small numbers of employees per
firm . . . spread over many companies
c. See potential employees where established firms
overlook them
3. PROVIDING OPPORTUNITIES FOR WOMEN AND
MINORITIES
a. Entrepreneurship offers excellent economic
opportunities for women and minorities
CHARACTERISITICS OF AN ENTREPRENEUR
1. VISION: Have an overall idea for how to
make a business inspiration a success
2. HIGH ENERGY LEVEL: Willingly work hard to
realize their visions
3. NEED TO ACHIEVE: Need to work hard
because they want to excel
4. SELF-CONFIDENCE AND OPTIMISM: Believe
in ability to succeed, and they instil their
optimism in others
5. TOLERANCE FOR FAILURE:
A) entrepreneurs view setbacks and
failures as learning experiences.
B) not easily discouraged or
disappointed when things don’t go as
planned
6. CREATIVITY:
A) entrepreneurs typically conceive new
ideas for goods and services.
B) devise innovative ways to overcome
difficult problems and situations
7. TOLERANCE FOR AMBIGUITY:
Take the uncertainties associated with
launching a venture in stride
8. INTERNAL LOCUS OF CONTROL:
A) Believe that they control their own
fates.
B) Take personal responsibility for the
success or failure of their actions
rather than believing in luck or fate
1.2 The Concept of Entrepreneurship
In recent years, "entrepreneurship" has been
extended from its origins in for-profit
businesses to include social entrepreneurship
and the concept of the political entrepreneur.
Entrepreneurship within an existing firm or
large organization has been referred to as
intrapreneurship and may include corporate
ventures where large entities spin off
subsidiary organizations.
 Entrepreneurship ranges in scale from solo,
part-time projects to large-scale
undertakings that create many jobs. Many
"high value" entrepreneurial ventures seek
venture capital or angel funding in order to
raise capital for building the business.
Entrepreneur, is a loanword from French.
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.
Three Types of Enterprises
MANUFACTURING FIRMS produce a wide
range of products. Large manufacturers
include producers of airplanes, cars,
computers, and furniture. Many
manufacturing firms construct only parts
rather than complete, finished products.
These suppliers are usually smaller
manufacturing firms, which supply parts and
components to larger firms.
MERCHANDISERS are businesses that help
move goods through a channel of
distribution—that is, the route goods take in
reaching the consumer. Merchandisers may
be involved in wholesaling or retailing, or
sometimes both. A wholesaler is a
merchandiser who purchases goods and
then sells them to buyers, typically retailers,
for the purpose of resale. A retailer is a
merchandiser who sells goods to consumers.
SERVICE ENTERPRISES include many
kinds of businesses. Examples include
dry cleaners, shoe repair stores,
barbershops, restaurants, ski resorts,
hospitals, and hotels. In many cases
service enterprises are moderately small
because they do not have mechanized
services and limit service to only as
many individuals as they can
accommodate at one time.
1.3 Entrepreneur an individual creativity
and innovation
The Importance of Creativity
All business sectors seek novelty
o Consumer products
o Media
o Fashion
o Travel
 Views of Creativity
The Elitist View
1. Getting New & Valuable Ideas
2. A Rare Talent
3. Creating Great Works of Art
or Scientific Discoveries
4. Unable to be Taught
5. Not Relevant in My Job/
Organisation
6. A Lonely Individual Process
The Developmental View
1. Available to Everyone
2. Evident in Personal & Modest
Insights
3. Released Through Training &
Development of Personal Potential
4. Within the Scope of All Jobs
5. Encouraged or Discouraged Within
Groups According to their Climate
6. Escape from ‘Personal Stuckness’ &
Reveals Itself in Results Which are
Original & Potentially Valuable
The Reality of our Views
• Creativity Is Not Exclusively for
‘Elite’ People
• It Can be Developed in All
Persons
• Creativity is a Personal Problem-
solving Process of a Non-routine
Kind
• It Can be Learned, Practiced &
Successfully Applied by all – in
Every Walk of Life
INNOVATION
• According to the New Oxford Dictionary
(2004, p. 942), innovation means to be able
to: “Make changes in something established,
especially by introducing new methods, ideas,
or products”.
• According to the UK government,
“innovation is the process by which new ideas
are successfully exploited to create economic,
social and environmental value” (BIS 2014,
p.7).
DISRUPTIVE AND SUSTAINING INNOVATION
• The former, disruptive innovations
involve a new value proposition by which
new markets are created.
• In such instances, individuals or business
organisations seize upon basic inventions and
transform them into economic innovations,
thereby disequilibrating and altering the
existing market structure.
The latter, sustaining innovations are
best thought of as improvements to
existing products, processes or markets.
“Innovation by definition must be
successful in the market. “The test of
innovation, after all, lies not in its
novelty, its scientific content, or its
cleverness. It lies in its success in the
marketplace.” Drucker (1993)
1 st Chapter Completed
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ENTREPRENEURSHIP FOR ENGINEERS

1.1 Entrepreneurs and Entrepreneurship

1. Developing a business plan

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