ENTREPRENEURSHIP DEVELOPMENT : AN OVERVIEW

ENTREPRENEURSHIP DEVELOPMENT: AN OVERVIEW ASSIGNMENT

SUBMITTED TO: GOLAM MAHBUBUL ALAM

Assistant Professor, Department of Business Administration, Stamford University Bangladesh.

PREPARED BY: MD. YEASIN ARAFAT KHAN

STUDENT ID NO: BBA 052 (A) 16379 DEPARTMENT OF BUSINESS ADMINISTRATION, STAMFORD

UNIVERSITY BANGLADESH

DATE OF SUBMISSION: 17.06.2016

STAMFORD UNIVERSITY

BANGLADESH

ENTREPRENEURSHIP DEVELOPMENT: AN OVERVIEW ON ENTREPRENEURSHIP

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TABLE OF CONTENTS

AN OVERVIEW ON ENTREPRENEURSHIP

1. Introduction 3-5

2. HOW ENTREPRENEUR THINK 6-7

3. Backgrounds and Characteristics 8

4. Establishing Corporate Entrepreneurship in The Organization 9

5. Generation of a New Entry Opportunity 10

6. Sources of New Ideas 11

7. Methods of Generating Ideas 12

8. Opportunity Recognition 13

9. Product Planning and Development Process 14

10. Conclusion 15


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AN OVERVIEW ON

ENTREPRENEURSHIP


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Introduction

How many entrepreneurs have there been in the history of the world? Millions, certainly,

probably even billions. These are the men and women who take capital -- their own or

somebody else’s -- and use it to beget more capital. Some fail, some succeed, some

excel.

Here, are history’s 10 greatest entrepreneurs.

1. King Croesus. A pick by our veterans committee, Croesus, who ruled the Asia Minor

kingdom of Lydia in the sixth century B.C., is owed a huge debt of gratitude for minting

the world’s first coinage, thereby creating in a single stroke the lifeblood of every business:

liquidity and cash flow. Moreover, his opulent lifestyle has given entrepreneurs throughout

history something to shoot for. Is there a greater distinction for the commercially inclined

than to be deemed “as rich as Croesus”?

2. Pope Sixtus IV. Sixtus gets the nod for realizing that the “wages of sin” meant more

than unpleasant repercussions. There was money to be made in damnation, and Sixtus

mined it by opening up a new market -- the dead -- for the indulgences the church had

been selling for years. Relatives of the deceased quickly filled the Vatican’s coffers with

payments intended to lessen the time their loved ones spent in purgatory. In 1478 Sixtus

“grew his market” by authorizing the Spanish Inquisition, which swelled purgatory’s ranks

by 100,000 souls in 15 years. He also was the first pope to license brothels.

3. Benjamin Franklin. In a real sense, Franklin was America’s first entrepreneur. Unlike

other of the Founding Fathers -- the hypermoral Washington, the prodigiously intellectual

Jefferson -- whose virtues and attainments are seen today as anachronisms, Franklin

truly was a model of what many of us would become. Beneath the statesman’s mantle

resided a popular author, a printer, an inventor (the lightning rod, bifocals) and a very

savvy businessman who knew how to commercialize the fruits of his fertile mind.

4. P.T. Barnum. Americans have always loved a good scam and Phineas Taylor Barnum

took the art to new heights. He played on our fascination with the bizarre and freakish

with sideshow acts ranging from the midget Tom Thumb to Jumbo the giant elephant. In

between was a host of more dubious curiosities. He created the Barnum and Bailey Circus


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as a showcase for all this wonderment, and dubbed it “the Greatest Show on Earth.” Along

the way he invented modern advertising and became rich. For the record, he never said

“There’s a sucker born every five minutes,” but he left behind plenty of other bon mots.

Among them: “Every crowd has a silver lining.”

5. Thomas Edison. What do you say about the man who gave the world the electric

light, the phonograph, talking motion pictures and more than 1,300 other patented

inventions? That he was the world’s greatest inventor, certainly. But he was also able to

exploit the profit potential in his creations, an entrepreneurial bent that asserted itself

when Edison was a teen-ager, printing a newspaper in the baggage car of a rolling train

and then selling copies to passengers. His impact on the way people live was and is

pervasive. As a combination of inventive genius and entrepreneurial flair, he stands alone.

6. Henry Ford. Ford also fundamentally changed human lifestyles by making available

a vehicle, the Model T, that vastly extended people’s range of movement. The automobile

would allow America’s masses to fulfill their Manifest Destiny to populate every corner of

the continent. But his more profound impact was on industry. The moving assembly line

he designed to build his cars was the signal breakthrough of the Industrial Age.

Appropriately, Ford earned the seed capital for his enterprise by working as an engineer

at the Edison Illuminating Company in Detroit.

7. Benjamin Siegel. Known as “Bugsy” to his friends, Siegel was a notorious mobster

with a touch of the visionary. Legend has it that he single-handedly invented Las Vegas,

and that’s a stretch. But he was the first to see what the town could become: a lush oasis

of pleasure where gambling was just one of the attractions. He also proved adept at

attracting other people’s money to build his iconic resort, The Flamingo. Trouble was,

some of those other people belonged to an outfit called Murder Inc., and Siegel was

gunned down in 1947 amid rumors he had stolen from his partners. But give the devil his

due: Before there was the Bellagio, there was Bugsy.

8. Ray Kroc. Nothing says entrepreneur like persistence, and nothings says persistence

like Ray Kroc, the kitchen wares salesman who in 1954, at age 52 and in poor health,

had his imagination hijacked by a family-run restaurant in the desert outside Los Angeles.

Once he had bought out the McDonald brothers, Kroc proceeded to take their concept of

a limited menu, fast service and low prices and expand it nationally, in the process


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creating the fast-food industry and dramatically affecting America’s lifestyle and, sadly,

collective health.

9. H. Ross Perot. Within every entrepreneur lurks a touch of the cowboy, and there’s no

better example of the strain than Perot, the diminutive Texan who has become best known

in recent years as a political gadfly. Before that, though, he was all business, using a

$1,000 loan from his wife in 1962 to launch Electronic Data Systems. Perot’s winning idea

was that large corporations and organizations needed data-processing help if they were

to take full advantage of computer technology. When in the mid-’60s he won contracts

with two new federal health-care programs -- Medicare and Medicaid -- EDS was off and

running and Perot was on his way to being one of America’s richest citizens.

10. Jobs & Wozniak. Apple Computer’s two Steves weren’t the first Silicon Valley

entrepreneurs to launch a billion-dollar business from a Palo Alto garage -- Hewlett and

Packard were there before them -- but they were the first to democratize computing by

creating a machine whose use was so wonderfully intuitive that even technophobes

embraced it. Combine the elegance of Wozniak’s operating system design with Jobs’

marketing savvy (remember Apple’s “1984” ad?) and the result was a true phenomenon.

Yes, the Apple was eclipsed by the PC, but only after Microsoft (behind the vision of two

other notable entrepreneurs, Bill Gates and Paul Allen) developed Windows to ape its

rival’s ease of use.

So we can say that “To be one of the few successful entrepreneur requires more than just hard work and luck. It requires to think in an environment of high uncertainty, be flexible and learn from one’s failure.”


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How Entrepreneur Thinks

Entrepreneurs are a unique breed of people. While some people sit and fantasize about the glamor of being their own boss and creating their own business, those in the thick of business ownership understand that even considering all its rewards, entrepreneurship is a difficult and complicated path.

The world's most successful entrepreneurs aren’t the ones who impulsively quit their jobs to chase a get-rich-quick idea. They are the ones with an entrepreneurial mindset, a set of perspectives and values that allow them to achieve greatness.

Entrepreneurs think differently from non-entrepreneurs. Moreover an entrepreneur in a particular situation may think differently from when faced with some other task or decision making environment. Entrepreneurs must often make decisions in highly uncertain environments where stakes are high, time pressure are immense, and there is considerable emotional investments. Given the nature of entrepreneurs decision making environment he or she must sometimes –

Think Structurally

Engage in Bricolage

Effectuate

And, Cognitively Adapt.

Think Structurally

Forming opportunity beliefs often requires creative mental leaps. These creative mental leaps are launched froma source- one’s existing knowledge. In the case of entrepreneurial opportunities, a example of a creative mental leap is from knowledge about markets to a new technology that could lead to a products/services that satisfy that market. Alternatively the creative mental leap could be from knowledge about a technology to a new market that could benefit from its introduction. Making the connection between new product and a target market where it can be introduced is aided by the Superficial and Structural Similarities between the source (Market) and the destination.

Superficial similarities exist when the basic elements of the technology resemble the basic elements of the market.

Structural similarities exist when the underlying mechanism of the technology resemble the underlying mechanism of the market.


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Bricolage

Entrepreneurs often lack resources. As a result, the either seek resources from others to provide the “slack” necessary to experiment and generate entrepreneurial opportunities or they engage in Bricolage. By Bricolage we mean that some entrepreneurs make do by applying combinations of the resources at hand to new problems and opportunities.

Effectuate

A potential business leader is trained to thin rationally and perhaps admonioshed if don’t. This admonishment might be appropriate given the nature of the task, but if appears that there is an alternative way of thinking that entrepreneur sometimes use specially thinking about opportunity. Entrepreneur don’t think through a problem in a way that starts with a desired outcome and focuses on the mean to generate that outcome. Such a process is reffered to as a Causal Process. But, entrepreneurs sometimes use an Effectuation Process. Which means that they take what they have and select among possible outcomes.

Cognitive Adaptibility

Cognitive Adaptibility describes the extent to which entrepreneurs are dynamic, flexible, self-regulating and engaged in a process of generating multiple decision frameworks focused on processing changes in their environments and then acting on them.


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Backgrounds and Characteristics Most people think that entrepreneurs are dropouts and didn’t have a proper education but that’s not true at all. To evaluate the backgrounds and characteristics of an entrepreneur we should consider 3 things –

Education

Age

Work history

Education

Although some may feel that entrepreneurs are less educated than the general people, research findings indicate that this is not the case. Education, both formal and informal are important in the upbriging of an entrepreneur.

Age

The relationship of the age to the entrepreneurial carrer process is carefully researched. In evaluating these results, it is important to differentiate between entrepreneurial age and chronological age. In terms of chronological age most entrepreners initiate their entrepreneurial carrers between the age of 22-45. A carrer can be initiated before or after these ages, as long as entrepreneurs has the necessary resources and high energy level needed to launch and manage a new venture successfully. Also there are milestone ages ebery five years (25,30,35,40,45) when an individual is more inclined to start an entrepreneurial carrer.

Work History

Work history can initiate the decision to launch a new venture, but also plays a role in the growth and eventual success of the new ventures. Eperience in the following areas is particularly important:

Financing

Product/service development

Manufacturing

Development of distribution channel


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Establishing Corporate Entrepreneurship in The Organization

An organization wanting to establish a more entrepreneurial firm must implement a procedure for its operation. Although this can be done internally frequently it is easier to use someone outside to facilitate the process. This is particularly true when the org. structure is very traditional and has a record of little change and few products being introduced. To establish corporate entrepreneurship the organization –

Top management should be commited.

should identifiy Ideas and general areas that top management is interested in .

should use cutting edge technology.

must train their workers .

should develop ways to get closer to their customer.

should be productive if have fewer resources.

should establish a strong support network.

should have a appropriate reward to the performance system.

and unsuccessful entrepreneurial unit should be eliminated..


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Generation of a New Entry Opportunity

New entry refers to:

offering a new product to an established or new market.

Offering an established product to a new market.

Creating a new organization.

The entrepreneurial strategy- The set of decision, actions, and reactions that first generate, and then exploit over time, a new entry.


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Sources of new ideas Some of the more fruitful sources of ideas for entrepreneurs include consumers, existing products, and service, distribution channels, the federal government, and research and development.

1. Consumers:

Potential entrepreneurs should always pay attention to potential customer. This attention can take the form of informality monitoring potential ideas and needs or formality arranging for consumers to have an opportunity to express their opinion.

2. Existing Products and Service:

Potential entrepreneurs should also establish a formal method for monitoring an evaluating competitive products and services on the market. Frequently this analysis uncovers way to improve on these offerings that may result in a new product and service that has more market appeal and better sales and profit potential.

3. Distribution Channels:

Members of the distribution channel are also excellent sources of new ideas because of their familiarity with the needs of market. NO only do channel members frequently have suggestions for completely new product, but they can also help in marketing the entrepreneurs newly developed products.

4. Federal Government:

The federal government can be a source of new product ideas in two ways. First, the files of the patent office contain numerous new product possibilities. Although the patent themselves may not may be feasible, they can frequently suggest other more marketable product ideas. Several government agencies and publication are helpful in monitoring patent application.

5. Research and Development:

The largest sources of new ideas is the entrepreneurs own research and development efforts, which may be a formal endeavor connected with one’s current employment or an informal lab in a basement or garage.


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Methods of Generating Ideas

Even with such a wide variety of sources available, coming up with an idea basis for a new venture can still pose a problem, particularly since the idea is the basis for the business.

1. Focus Group:

Groups of individuals providing information in a structured format. In addition to generate new ideas, the focus group is an excellent method for initially screening ideas and concepts. With the use of one of several procedures available, the results can be analyzed and more quantitatively, making the focus group a useful method for generating new product ideas.

2. Brainstorming:

The brainstorming methods stimulates people to be creative by meeting with others and participating in organized group experience. Although most of the ideas generated by the group have no basis for further development, sometimes a good idea emerges. This has a greater frequency of occurrences when the brainstorming effort focuses on a specific product or market area.

3. Brainwriting:

Brainwriting is a form of written brainstorming. Brainwriting is a silent written generation of new ideas by a group of people.

4. Problem Inventory Analysis:

Problem inventory analysis a method for obtaining new ideas and solution by focusing on problem. Problem inventory analysis uses individuals in a manner analogues to focus groups to generate new product ideas. However, instead of generating new ideas themselves, consumers are provided with a list of problems in a general product category.


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Opportunity Recognition Opportunity recognition means proactively brainstorming a new business venture or expansion idea. A small-business owner typically engages in opportunity recognition at the point where he realizes he has an idea, strength or capability that matches well with a particular target market. Entrepreneurial business owners constantly seek new

revenue streams. Those that seize ripe opportunities tend to perform best financially.

Model of the Opportunity Recognition process:

The goal of this study is to propose a model of the entrepreneurial opportunity recognition process. A number of research propositions was generated based on the analysis of the available literature, and then validated by the analysis of in-depth cases of opportunity recognition that resulted in the creation of successful entrepreneurial ventures. The study indicates that entrepreneurial opportunities are discovered through recognition rather than purposeful search; prerequisites for successful opportunity discovery are a combination of entrepreneurial awareness, access to extended social networks, and prior knowledge of markets and customer problems; prior knowledge could exist due to work experience, personal, non-work related experiences and events, or due to relevant to these markets education. Further, opportunity recognition does not require an exceptional level of creativity, and is not likely to involve a prior knowledge of the ways to serve markets. Source: http://www.worldscientific.com/doi/abs/10.1142/S0218495800000073

http://www.worldscientific.com/doi/abs/10.1142/S0218495800000073


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Product planning and Development process Once ideas emerge and are analyzed through the opportunity analysis plan, they will need further development and refinement. This refining process—the product planning and development process—is divided into five major stages: idea stage, concept stage, product development stage, test marketing stage, and commercialization. These stages result in the start of the product life cycle.

Idea stage: Ideas may come from internal sources like company’s own Research and Development (R&D) department, managers, sales-force personnel etc.; or from external sources like, customers, dealers, competitors, consultants, scientists etc. The ideas should be screened properly; as any idea passing this stage would cost the firm in terms of time, money and efforts, at subsequent stages in product planning and development.

Concept stage: Those product ideas which clear the screening stage must be developed into a product concept – identifying physical features, benefits, price etc. of the product. At this stage product idea is transformed into a product concept i.e. a product which target market will accept.

Product Development Stage: Product development encompasses the technical activities of engineering and design. At this stage, the engineering department converts the product concept into a concert form of product in view of the required size, shape, design, weight, color etc. of the product concept. A model or prototype of the product is manufactured on a limited scale. Decisions are also made with regard to packaging, brand name, label etc. of the product.

Test Marketing Stage: A sample of the product is tested in a well-chosen and authentic sales environment; to find out consumers’ reaction. In view of consumers’ reactions, the product may be improved further.

Source: YourArticleLibrary.com


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Conclusion

We can conclude that successful entrepreneurs are both born and made. It appears that entrepreneurs have a dual composition – a certain set of born-in personality traits that drive them to seek out and succeed in the entrepreneurial life, as well as set of learned skills that enable them to apply their natural gifts most effectively. And study of Entrepreneurship helps to become a successful entrepreneur.

ENTREPRENEURSHIP DEVELOPMENT : AN OVERVIEW

Business

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