Module 1

Entrepreneurship
Mindset

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 Entrepreneur- Key
attributes/qualities/desirab
le and acquirable attitudes
and behavior

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 Introduction to Entrepreneurship

There is tremendous According to the 2007 GEM

interest in study, 9.6% of Americans
are actively engaged in
entrepreneurship in the
starting a business or are
U.S. and around the world. the owner/manager of a
business that is less than
three years old.
https://www.youtube.com/watch?v=N8wYjrRiLZg

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 ENTREPRENEUR
• According to Schumpeter(1950), an entrepreneur is a
person who is willing and able to convert a new idea
or invention into a successful innovation.
• Schumpeter is also famous for the phrase “Creative
Destruction”.
• Webster’s Someone who runs a business at his or
her own financial risk.
• A entrepreneur is a person who undertakes the
creation of an enterprise or business that has the
chance of profit ( or success)
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 What is Entrepreneurship?

• Academic Definition (Stevenson & Jarillo)

– Entrepreneurship is the process by which individuals pursue
opportunities without regard to resources they currently
control.
• Venture Capitalist (Fred Wilson)
– Entrepreneurship is the art of turning an idea into a business.
• Explanation of What Entrepreneurs Do
– Entrepreneurs assemble and then integrate all the resources
needed –the money, the people, the business model, the
strategy—needed to transform an invention or an idea into a
viable business. https://www.youtube.com/watch?v=oEXIIkSZ0kM

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 Corporate Entrepreneurship

• Corporate Entrepreneurship
– Is the conceptualization of entrepreneurship at the firm
level.
– All firms fall along a conceptual continuum that ranges
from highly conservative to highly entrepreneurial.
– The position of a firm on this continuum is referred to as its
entrepreneurial intensity.

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 WHO IS ENTREPRENEUR
• Somebody who has IDEAS and makes
these ideas happen or come to life.
• Must have BUSINESS SKILLS(Ideation,
Creativity, Innovation)
• Somebody who ASSUMES RISKS
• Desires to MAKE PROFIT

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 Corporate Entrepreneurship

Entrepreneurial Firms Conservative Firms

• Proactive • Take a more “wait and see”

• Innovative posture

• Risk taking • Less innovative

• Risk adverse

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 ROLE OF AN
ENTREPRENEUR
• Entrepreneurs are Innovators
• Entrepreneur provides choice
• They provide jobs
• Help the economy grow.

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 Why Become an Entrepreneur?

The three primary reasons that people become

entrepreneurs and start their own firms

Desire to be their own boss

Desire to pursue their

own ideas

Financial rewards

https://www.youtube.com/watch?v=lJjILQu2xM8
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 Characteristics of Successful
Entrepreneurs
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Four Primary Characteristics

https://www.youtube.com/watch?v=BhoocSXyNXc
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 Characteristics of Successful
Entrepreneurs

• Passion for the Business

– The number one characteristic shared by successful
entrepreneurs is a passion for the business.
– This passion typically stems from the entrepreneur’s belief
that the business will positively influence people’s lives.
• Product/Customer Focus
– A second defining characteristic of successful entrepreneurs
is a product/customer focus.
– An entrepreneur’s keen focus on products and customers
typically stems from the fact that most entrepreneurs are, at
heart, craftspeople.

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 Characteristics of Successful
Entrepreneurs
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• Tenacity Despite Failure

– Because entrepreneurs are typically trying something new,
the failure rate is naturally high.
– A defining characteristic for successful entrepreneurs’ is
their ability to persevere through setbacks and failures.
• Execution Intelligence
– The ability to fashion a solid business idea into a viable
business is a key characteristic of successful entrepreneurs.

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 QUALITIES OF
ENTREPRENEUR
1. Inner Drive to Succeed
2. Strong Belief in Themselves
3. Search for New Ideas and Innovation
4. Openness to Change
5. Competitive by Nature
6. Highly motivated and Energetic
7. Accepting of Constructive Criticism and
Rejection
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 TYPES OF
ENTREPRENEURS
• Novice Entrepreneur:
 has no prior business ownership experiences
as a business founder, inheritor, or purchaser.
• Habitual Entrepreneur: has prior business
ownership experience.
• Nascent Entrepreneur:
 in the process of Starting a new business
 Can either a novice or a habitual entrepreneur.
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• Serial Entrepreneur:
 has sold or closed an original business and establishes
another new business
 Continues the cycle of selling/closing and establishing
• Portfolio Entrepreneur:
 Retains an original business and builds a portfolio of
additional business
 Through inheriting, establishing, and purchasing the
businesses.

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Readiness- The right time,
right age, right
conditions,

https://www.elsevier.es/en-revista-journal-innovation-knowledge-376-articulo-measuring-
readiness-for-entrepreneurship-an-S2444569X16000226

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Myths and realities of
entrepreneurship

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 Common Myths About
Entrepreneurs
1 of 5

• Myth 1: Entrepreneurs Are Born Not Made

– This myth is based on the mistaken belief that some people
are genetically predisposed to be entrepreneurs.
– The consensus of many studies is that no one is “born” to
be an entrepreneur; everyone has the potential to become
one.
– Whether someone does or doesn’t become an entrepreneur,
is a function of the environment, life experiences, and
personal choices.

https://www.youtube.com/watch?v=G8gRkJ9cnzo

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 Common Myths About Entrepreneurs
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Although no one is “born” to be an entrepreneur, there are common traits
and characteristics of successful entrepreneurs

• Achievement motivated • Optimistic disposition

• Alert to opportunities • Persuasive
• Creative • Promoter
• Decisive • Resource assembler/leverager
• Energetic • Self-confident
• Has a strong work ethic • Self-starter
• Is a moderate risk taker • Tenacious
• Is a networker • Tolerant of ambiguity
• Lengthy attention span • Visionary
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 Common Myths About Entrepreneurs
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• Myth 2: Entrepreneurs Are Gamblers

– Most entrepreneurs are moderate risk takers.
– The idea that entrepreneurs are gamblers originates from
two sources:
• Entrepreneurs typically have jobs that are less structured, and so
they face a more uncertain set of possibilities than people in
traditional jobs.
• Many entrepreneurs have a strong need to achieve and set
challenging goals, a behavior that is often equated with risk taking.

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 Common Myths About Entrepreneurs
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• Myth 3: Entrepreneurs Are Motivated Primarily by

Money.
– While it is naïve to think that entrepreneurs don’t seek
financial rewards, money is rarely the reason entrepreneurs
start new firms.
– In fact, some entrepreneurs warn that the pursuit of money
can be distracting.

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 Common Myths About
Entrepreneurs
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• Myth 4: Entrepreneurs Should Be Young and

Energetic.
– The most active age for business ownership is 35 to 45
years old.
– While it is important to be energetic, investors often cite
the strength of the entrepreneur as their most important
criteria in making investment decisions.
• What makes an entrepreneur “strong” in the eyes of an investor is
experience, maturity, a solid reputation, and a track record of
success.
• These criteria favor older rather than younger entrepreneurs.
https://www.forbes.com/sites/mikemaddock/2017/08/23/7-myths-you-probably-
believe-about-successful-entrepreneurs/?sh=689e61c02be6
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 RURAL
ENTREPRENEURSHIP

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 RURAL
ENTREPRENEURSHIP
• It can be defined as entrepreneurship emerging at
village level which can take place in a variety of
fields of Endeavour such as business, industry,
agriculture and acts as a potent factor for
economic development”.
• Industries coming under the purview of KVIC are
treated as rural industries

https
://hihindia.org/blog/village-uplift/rural-entrepreneurship-success-stories-from-maharasht
ra/
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 SOCIAL
ENTREPRENEURSHIP
https://www.forbes.com/sites/meimeifox/2016/08/08/5-reasons-why-social-entrepreneurship-is-the-new-
business-model/?sh=1756f06c44ca

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Types of Start-Up Firms

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 Changing Demographics of
Entrepreneurs
1 of 3

Women Entrepreneurs
• There were 6.2 million women-
owned businesses in 2002 (the
most recent statistics available)
• This number was up 20% from
1997.

https://startup.siliconindia.com/startup_talks/5-characteristics-of-women-entrepreneurs-nwid-16
462.html
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 Changing Demographics of
Entrepreneurs
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Minority Entrepreneurs Senior Entrepreneurs

• Minorities owned roughly 18% • Although statistics are not kept
of U.S. businesses in 2002. on senior entrepreneurs, there is
• This number was up 10% from strong evidence that the number
1997. of older people choosing
entrepreneurial careers is rapidly
increasing.

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 Changing Demographics of
Entrepreneurs
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Young Entrepreneurs

• Interest among young people in entrepreneurial careers is

growing.
• According to a Gallop study, 7 out of 10 high school students
want to start their own business.
• Over 2,000 two-year and four-year colleges and universities
offer entrepreneurship courses.

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 Economic Impact of
Entrepreneurial Firms
• Innovation
– Is the process of creating something new, which is central
to the entrepreneurial process.
– Small firms are twice as innovative per employee as large
firms.
• Job Creation
– In the past two decades, economic activity has moved in
the direction of smaller entrepreneurial firms, which may
be due to their unique ability to innovate and focus on
specialized tasks.

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 Entrepreneurial Firms’ Impact on
Society and Larger Firms
• Impact on Society
– The innovations of entrepreneurial firms have a dramatic
impact on society.
– Think of all the new products and services that make our
lives easier, enhance our productivity at work, improve our
health, and entertain us in new ways.
• Impact on Larger Firms
– Many entrepreneurial firms have built their entire business
models around producing products and services that help
larger firms become more efficient and effective.

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 The Entrepreneurial Process

The Entrepreneurial Process Consists of Four Steps

Step 1: Deciding to become an entrepreneur.
Step 2: Developing successful business ideas.
Step 3: Moving from an idea to an entrepreneurial firm.
Step 4: Managing and growing the entrepreneurial firm.

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 Unique
Marketing
Issues

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 Selecting a Market and Establishing a
Position in the Market
• Important Questions That All Startups Must Ask
– In order to succeed, a new firm must address this
important issue: Who are our customers are how will we
appeal to them?
– A well-managed start-up approaches this query by
following a three-step process:
• Segmenting the market.
• Selecting a target market.
• Establishing a unique position in the target market

https://blog.bannersnack.com/online-marketing-strategies/
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The Process of Selecting a Target
Market and Positioning
Strategy

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 Market
Segmentation
•Involves studying a firm’s
industry and determining the
different target markets in that
Segmenting the industry.
Market •Markets can be segmented in
a number of different ways,
including
- Product type
- Price point
- Customers served

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 Example: Segmenting
the Computer
Industry by
Product Type
Netbooks
Handheld Computers
(new category)

PCs Minicomputers

Mainframes

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 Selecting a Target Market

•Once a firm has segmented the

market, a target market must be
chosen.
Target Market
•The market must be sufficiently
attractive and the firm must have
the capability to serve it.
• The Netbook segment of the
computer industry is new, and
is being targeted by startups
like Eee PC.
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 Establishing a Unique
Position
•After selecting a target market, the
firm’s next step is to establish a
“position” within the market that
Positioning differentiates it from its rivals.
• A “position” is the part of a market
that the firm is claiming as its
own.
• A firm establishing a unique
position in its customers’ minds by
drawing attention to two or three
of the product’s attributes.
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 Establishing a Unique
Position
• Positioning (continued)
– Firms often develop a “tagline” to reinforce the position
they have staked out in their market, or a phrase that is
used consistently in a company’s literature and thus
becomes associated with the company.
– An example is Nike’s familiar tagline, “Just do it.”
• The beauty of this simple three-word expression is that it applies
equally to a 21-year-old triathlete and a 65-year-old mall
walker.

https://www.youtube.com/watch?v=sNzPlcmgTpk

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 Taglines—Developed to Reinforce a
Firm’s Positioning
Strategy
Match the Company to its Tagline

Sure Girl

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Product Attribute Map—Illustrates a
Firm’s Positioning Strategy
Relative to Rivals
Curves International

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 Selling Benefits Rather Than
Features
• Selling Benefits Rather Than Features
– Many entrepreneur make the mistake of positioning their
company’s products or services on features rather than
benefits.
– A positioning or marketing strategy that focuses on the
features of a product, such as its technical merits, is
usually much less effective than a campaign focusing on
what the merits of the product can do.
– Consider the example of the following slide.

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 Selling Benefits Rather Than
Features
Two difference approaches to promoting a cell
phone
Approach Illustration
“Our cell phones are equipped with sufficient
Selling Features
memory to store 1,000 phone numbers.”

“Our cell phones let you store up to 1,000 phone numbers,

Selling Benefits providing you access to the phone numbers of your
family, friends, and business acquaintances instantly.

The first statement tells a prospect how many phone

numbers the cell phone will hold but doesn’t say why
Conclusion
that’s important. The second statement tells a prospect
how buying the product will enhance his or her life or
business.

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 Establishing a Brand
1 of 5

• Establishing a Brand
– A brand is the set of attributes—positive or negative—that
people associated with a company.
• These attributes can be positive, such as trustworthy, dependable,
or easy to deal with.
• Or they can be negative, such as cheap, unreliable, or difficult to
deal with.
– The customer loyalty a company creates through its brand
is one of its most valuable assets.
• Brand Management
– Some companies monitor the integrity of their brands
through a program called “brand management.”

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Different Ways of Thinking About the Meaning of a
Brand

Establishing a Brand
2 of 5

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 Establishing a Brand
3 of 5

• Establishing a Brand
– So how does a firm establish a brand?
• On a philosophical level, a firm must have meaning in its
customer’s lives. It must create value—something for
which customers are willing to pay.
• On a more practical level, brands are built through a number of
techniques, including advertising, public relations, sponsorships,
support of social causes, and good performance.
• A firm’s name, logo, Web site design, and even its letterhead are
part of its brand.

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 Establishing a Brand
4 of 5
• Power of a Strong Brand
– Ultimately, a strong brand can be a very powerful asset for
a firm.
• Cobranding
– A technique that companies use to strengthen their brands
is to enter into a cobranding arrangements with other
firms.
– Cobranding refers to a relationship between two or more
firms where the firm’s brands promote each another.

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Establishing a Brand
5 of 5
• Zappos is a hot brand.

• From the outset,

Zappos’s CEO Tony Hsieh has
worked hard to ensure that
Zappos’s brand stands for
competitive pricing, strong
customer service, and a
pleasant shopping experience.

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 The Four Ps of Marketing for
New Ventures
Product Price

Marketing Mix

Promotion Place (or

distribution)

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 Product
• Product
– Is the good or service a firm offers to its target market.
– The initial rollout is one of the most critical times in the
marketing of a new product.
– All firms face the challenge that they are unknown and that
it takes a leap of faith for the first customers to buy their
products.
• Some startups meet this challenge by using reference accounts.

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 Core Product vs. Actual Product

Core Product Actual Product

The product itself, such The product plus all the

as an antivirus software attributes that come with
program. it such as quality level,
features, design,
packaging, and warranty.

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 Price
• Price
– Price is the amount of money consumers pay to buy a
product.
– The price a company charges for its products sends an
important message to its target market.
• For example, Oakley positions its sunglasses as innovative, state-
of-the-art products that are both high quality and visually
appealing.
• This position in the market suggests a premium price that Oakley
charges.
– Most entrepreneurs use one of two methods to set the price
for their products, as shown on the next slide.

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 Core Product vs. Actual
Product
Cost-Based Pricing Value-Based Pricing

The list price is The list price is

determined by adding a determined by
markup percentage to a estimating what
product’s cost. consumers are will to
pay for a product.

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 Promotion
• Promotion
– Refers to the activities the firm takes to communicate the
merits of its product to its target market.
– There are several common activities that entrepreneurs use
to promote their products and services.
• Advertising
– Advertising is making people aware of a product or service
in hopes of persuading them to buy it.

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 Pluses and Minuses of
Advertising
Pluses

•Raise customer awareness of a product.

•Explain a product’s comparative features and benefits.
•Create associations between a product and a certain lifestyle.
Minuses

•Low credibility.
• The possibility that a high percentage of people who see
the add will not be interested .
•Message clutter.
••Relative costliness compared to other forms of promotion.
Intrusiveness.
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Steps Involved in Putting Together
an
Advertisement

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 Google AdWords and
AdSense Program
1 of 2
• AdWords
– Allows advertisers to buy keywords on the Google home
page.
– Triggers text-based ads to the side (and sometimes above)
search results when the keyword is used.
– The program includes local, national, and international
distribution.
– Advertisers pay a certain amount per click.
– Advertisers benefit because they are able to place their ads
in front of people who are already searching for
information about their product.

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 Google AdWords and
AdSense Program
2 of 2
• AdSense
– Allows advertisers to buy ads that will be shown on other
Web sites instead of Google’s home page.
– Google selects sites of interest to the advertiser’s
customers.
– Advertisers are charged on a pay-per-click or a per-
thousand impression basis.
– Advertisers benefit because the content of the ad is often
relevant to the Web site.
– Web site owners benefit by using the service to monetize
their Web site.

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 Public
Relations
• Public Relations
– One of the most cost-effective ways to increase the
awareness of the products of a company is through public
relations.
– Public relations refer to efforts to establish and maintain a
company’s image with the public.
– The major difference between public relations and
advertising is that public relations is not paid for—directly.

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 5 Ps of Entrepreneurship
• https://willtan.com/essential-5-ps-can-help-
become-successful-e-entrepreneur/

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 10 D of Entrepreneurship
• Dream • Devotion
• Decisiveness • Details
• Doers • Destiny
• Determination • Dollars
• Dedication • Distribute

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 Public Relations
Techniques
Press release Media coverage

Articles in industry
Blogging
press and periodicals

Monthly newsletter News conference

Civic, social, and community

involvement

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 Other Promotions
Techniques
Viral Marketing Guerrilla Marketing

Facilitates and A low-budget approach

encourages people to to marketing that relies
pass along a marketing on ingenuity, cleverness,
message about a and surprise rather than
particular product or traditional techniques.
service.

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 Place (or
Distribution)
• Place
– Encompasses all the activities that move a firm’s product
from its place of origin to the consumer.
– The first choice a firm has to make regarding distribution
is whether to sell its products directly to consumers or
through intermediaries (such as wholesalers and retailers).
– Within most industries, both choices are available, so the
decision typically depends on how a firm believes its target
market wants to buy its product.

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 Selling Direct Vs. Selling Through an
Intermediary
Approach to Description
Distribution

Selling Direct Many firms sell direct to customer, maintaining control of the
distribution and sales process.

Selling Through Other firms sell through intermediaries and pass off their
Intermediaries products to wholesalers who place them in retail outlets to
be sold.

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Selling Direct Versus
Selling Through a
Intermediary
2 of 2

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 HOW TO BE A FIERCE
ENTREPRENEUR IN A
TIME OF CRISIS
1. Work Hard
2. Communication is more important than ever
3. Keep the Passion Alive
4. Know what you can and can’t Control
5. Plan for a much different business in landscape
6. Communicate with compassion
7. Get personal
8. Don’t Give up
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