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Definition of entrepreneurship

What is meant by entrepreneurship? The concept of entrepreneurship was first established in the

1700s, and the meaning has evolved ever since. Starting one's own business.

Entrepreneurship is defined as the process of making money, earning profits and increasing

the wealth through such as risk taking, management, leadership and innovation. The term

Entrepreneurship is a complicated term and gives various meaning depending on the situation.

The process of bearing risk of running a business

What is entrepreneur?

A Person who is takes risk of converting a new idea in to reality.

Requirement to be an entrepreneur

Innovation

Creativity

Risk taking

Passion

Realistic view

Leadership

Three key processes

Idea generation

Creativity

Opportunity recognition

Difference between an entrepreneur and an

intrapreneur:

An Entrepreneur is someone who has the skills, passion and financial backing to create wealthfrom new business opportunities and is willing to take full responsibility for its success orfailure.

An Intrapreneur is someone who manages that business with entrepreneurial flare in line withthe expectations of the shareholders.

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Entrepreneurs Intrapreneurs

Entrepreneurs is employer Bear all the risk May not have formal qualfition Do not have any boundary for

operation

Intrapreneurs is a employee Does not bear the risk Should have some professional or

technical qualifition

Operate within the ogranition policies

Charteristic of entreprenurship

Ability to deal with a series of issues

Ability to create solution and work to perfect them

Can handle many tasks

Willingness to work hard and not expect easy solutionPossess well developed problem solving skills

Ability to learn and acquire the necessary skills for the tasks at hand

6 Inexcusable Mistakes of Entrepreneurship.There is very frustrating to see a powerful business destroyed by silly silly mistakes.There is alist of 7 inexcuseable mistakes

1. Owning an idea instead of a business:

This is the first and most critical error of entrepreneurship! A lot of people own ideas that theyclaim would change the world, but they do not own a business. One of the very controversialblogs is titledWhy Writing a business plan destroys entrepreneurship.In that article it iswritten that why business plans are the greatest stumbling block for entrepreneurs, not becausethey are unimportantbut because they discourage the execution of ideas by causing the writer

to over think versus execute. Mark Zuckerberg the CEO of facebook was sued for over $120million because he allegedly executed an idea that was not his.but the fact is this, if he neverexecuted the idea, facebook would never have been created. Remember owning an idea is not thesame thing as owning a business.

2. Investing in everything but yourself:

People would spend thousands of dollars building a state of the art website or restaurant, butwould not spend a dime to teach themselves how to market their business. And the key reason isthat they fail to see themselves as an important part of their business. If you want your businessto succeed you have to ensure that you are spending ample time investing in yourself. Yourinvestment does not need to be financial it could be as simple as reading the right type ofbusiness book or attending a free conference that relates to your business. As long as you make aconscious effort to invest in yourself your business will flourish. Ensure you invest in yourself.

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3.Signing Verbal Contracts:a verbal contract is as good as the paper it is written on . We have seen childhood friendships,family relationships and even marriages destroyed because of the verbal contract error. The

reason is because a verbal contract is interpreted differently by each party involved and evenwhen all parties are in unified understanding of the contractit is hard to enforce. When youtalk to your clients or entrepreneurs about business transactionsyou always insist that everysingle thing no matter how trivial, should be written into a contract! you dont care if it is afamily member or even your wifewrite a contract! Even when you am working with yourbrother on your website you write a contract. Executing a business transaction/activity without awritten contract is like running a country without a constitution.

4.Working for FREE in hopes of being suddenly discovered:We have seen so many people used and abused by thisunless Oprah Winfrey calls you to do ashow for free, you should never ever work for free. This is a mistake that you repeated over and

over again in your speaking business. Set a reasonable value for your time and services youbegin to grow your business and grow less frustrated.People are desperate to make a name forthemselves give out their services for free and sometimes even pay to give out their services forfree.

5.Ignoring Social Media:By ignoring the social media was the same reasoning and mentality that led to the near extinctionof businesses such as Barnes/Nobles and the New York times. Both companies hadrespectively/initially disregarded the e-books and website newspapers as fads. But within the lastfew months, both industries have revamped their entire marketing structure to fit the e-model.The same change is happening continually in businesses as marketing methods continually

evolve daily.

6. Electrocuting your clients:Everyday on facebook some poor soul is getting his or her wall bombarded with hundreds andhundreds of birthday wishes and smiley faces. Now there is nothing wrong with this, the onlyproblem is that it is impersonal and easily forgotten. Unfortunately, lots of businesses treat theirclients in the same way, resorting to automated email messages and pre-printed cards to stay intouch. Their use of electronic communication is so excessive that they lose an opportunity tomake a special connection with their clients.Thus a personal phone call is worth more than afacebook wall post. Likewise a simple handwritten note is always worth more than an email.Stop electrocuting your clientswrite a personal note.

Skills of entrepreneur

Management skillsthe ability to manage time and people (both oneself and others)

successfully

Communication skills (e.g. the ability to sell ideas and persuade others)

The ability to work both as part of a team and independently

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Able to plan, coordinate and organize effectively

Financial literacy

Able to research effectively (e.g. available markets, suppliers, customers and the

competition)

Self-motivated and disciplined

Adaptable

An Innovative and creative thinker

The ability to multi-task

Able to take responsibility and make decisions

The ability to work under pressure

Perseverance

Competitiveness

Willingness to take risks (or at least not risk averse)

Ability to network and make contacts

Why People Want to be Business

Entrepreneurs?

. In these times of economic crisis, we are taken by surprise by the fact that more and more

people decide to set up their own businesses and venture in the world of entrepreneurship. This is

crucial to the economy of every country and it can have a positive effect not just on the

individuals, but also on the overall economy by redirecting cash flow to more profitableactivities and supporting economic growth.

These are a few of the main reasons why people decide to become entrepreneurs:

1. A need for financial independence and securitySetting up and managing your own business can be a tricky and stressful endeavor; however, it

can prove to be very profitable. Having your own business can result in financial independence

and this is an enormous accomplishment for most people, especially when the economy is in a

period of decline.

2. Frustration with their current workplace or careerSome people become frustrated with their past achievements and feel like their current career

path is not going the way they expected or fulfilling their personal aspirations. The feeling of

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reaching a dead end is what motivates them to make the brave decision of giving up on their

current job and take on the challenge of setting up their own business. Some of these

entrepreneurs were also employees with many years of experience in a certain field that saw the

shortcomings of that industry and decided to introduce innovating ideas on the market and

benefit society.

3. A desire for achievement and self-fulfillmentFor many, having a business of their own is a childhood dream or a lifelong aspiration. The

natural desire to fulfill this ambition will drive some people to pursue their goal of becoming

entrepreneurs. Having your own business can bring a lot of satisfaction and a deep sense of

achievement. This is especially true for people who have an inborn entrepreneurial spirit: they

are excited by the challenge and they enjoy taking risks.

4. A need for having a stable incomeThe current state of the economy has resulted in a dramatic increase in the unemployment rate.

Many of the people who lost their jobs are forced by the circumstances to search for new ways of

earning a living and supporting their family. For some, setting up a business can be the way to

regain their financial stability.

5. A willingness to invest their resourcesPeople who are already wealthy may find that setting up a business can be a good way of

creating more wealth and generating a steady flow of income. Investing in the right business can

be immensely profitable and increase ones net worth.

Entrepreneurs come from all the paths of life. The diversity of reasons to become an

entrepreneur accounts for a large number of businesses being opened at any given time.

However, it also explains why some businesses are a huge success, while others fail. At the same

time, this variety in mentality and motivation is what makes the corporate world so interesting

and unpredictable.

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Myths of entrepreneurship

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How start a new business by entreprenurs

STEP 1 Business Ideas

To start a business you will need to choose or create a business idea. While this is an obviousstep many people who want their own business don't have an idea, just the desire to be an

entrepreneur. For the budding entrepreneur, there are many options; buying a franchise or an

existing business, or looking to others for ideas for a start-up business. Once you have decided

on the business you wish to start, then the real work begins.

STEP 2 Business PlanWriting a business plan is your next and most important step, this is how you and others willevaluate your business. When seeking financing the investors or lenders will want to read yourplan before they supply you with funding. If you're financing the business yourself, you will stillwant to have a written plan to develop business strategies and financial projections. A keyelement within the business plan is the marketing plan, which explains marketing strategies thatwill be used to advertise and promote the products or services. The goal setting steps of the planwill help you to analyze the success of the business in future years and clearly illustrate thecapital needed to operate the company to break-even.

STEP 3 FinancingWith your business plan in hand, you are ready to go find yourself some capital. Most smallbusinesses have three options for financing: friends & family, investors or bank loans. Each ofthese options has different considerations for the business. Investors and even friends & familyusually want ownership and control of their portion of the business. Bank loans burden thebusiness with an additional expense of the loan payment, which can erode the business profits.

STEP 4 Getting startedYou've got the plan, the money and the enthusiasm; you're ready, right? Not yet, as witheverything you need to take the legal issues into consideration. First you should choose a legalstructure: Sole Proprietorship, Partnership, or Corporation. Your financing decisions will have aneffect on what legal structure you choose. Now you can file with the state to incorporate andobtain a federal Identification number.

STEP 5 Opening the DoorsOkay, it's time to get on the road to making some money; this of course means spending money.Where are you going to run your business? Will a home office do or is commercial space needed

to service your customers? Do you need to hire employees to help you run the business? Whatare your bookkeeping needs, do you need an accountant? Finally, who could forget taxes, whattaxes do you have to pay and collect? Now that your business is through the start-up phase, youcan now look forward to the issues ofmanaging a small business.

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Enterpreneur VS Administrator

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