ENTREPRENEUR

1. ENTREPRENEUR INTRODUCTION It is the result of strong mental efforts by thinking clearly, confidently, courageously and proactively. They have won the battle of the mind and made right thinking a way of life. They believe to be pace setter- they are not satisfy with reaping the sweat of others. The are important figure in capitalist society - they are undertakers of activities - they are always optimistic - they are control risk takers.

2. Theories of entrepreneur propounded are: • By Joseph Alois Schumpeter an economist said entrepreneurs are creative destruction. -It occurs when innovation renders old ideas or technologies obsolete. • By Peter Druckerssees the entrepreneur as a person who - searches for change, responds to the change and exploits the change as an opportunist

3. What is intrapreneurship or corporate entrepreneurship? • This is the practice of creating and organizing new business ventures within the framework of an existing organization (secret of multinational companies R&D).

4. Examples of past entrepreneurs Henry Ford (1863-1947) -He pioneered the development of automobile industry as an engineer in Edison illuminating company. -He built a car as a hubby, ten years after he started Ford motor company. Williams Hesketh lever (1851-1925) -He started a grocery business,but because of his innovation his father admitted him as a partner. -They later came up with the name ‘sunlight’ for the family soap, he cut the soap into tablets, wrapped each tablet to preserve the freshness and the smell. He later merge with van de berge to become Unilever. Thomas Edison -He invented electric light bulb and had 1,093 inventions. He keeps receiving patients annually.

5. Definitions • They are individual who has developed an ongoing business activities where none existed. - they could be called agent of change - they are describe as being innovative, imaginative, person of ideas etc. • It is a purposeful activity(including an integrated sequence of decision) of an individual or group of associated individuals undertaken to initiate, maintain or aggrandize/boost a profit oriented business for the production or distribution of economic goods and services – Cole(1946).

6. It is also a daring adventure, a controlled risk taking activity and calculated game that skilled business people play. – Marshall. • Entrepreneur is an initiator and an innovator. • Innovation could be described as- -the creation of a new product or the alteration of the present quality. -the development of the new method of production. -the opening of a new market. -the capture of a new source of supply. -a new organization of enterprises.

7. Summarily • Entrepreneur is an individual who perceives needs, conceives goals or services to satisfy the need and organises the factors of production. The role of entrepreneur is entrepreneural function while the process is called the entrepreneurship.

8. Characteristics of entrepreneur

9. There are five types of entrepreneurs: - the personal achiever - the super sales person - the real manager - the expert idea generator and - the complex entrepreneur

10. The personal achiever- he has a need to achieve or there is an dynamo which drives him to put in long hours. -he wants to be in control of his life and his actions show this. -he has a high desire to set goals and to plan. -he receives feedback to asses performance. -he has strong personal initiative and a strong commitment to the organisation. -he believes that one person can make a difference and that work should be guided by personal goal.

11. The super sales person -they empathize with others and this leads to the desire to help others. -they belief that social processes are important. -they help them to sell without employing persuasion or pressure tactics, they rather develop a strong positive relationship with others which is then depended upon for continuous sales.

12. The real Managers -they are special entrepreneurs The corporate manager has a slim chance of making it as entrepreneur, also the classical entrepreneur is not likely to make it climbing the corporate ladder- the real manager entrepreneur comes to match the two together. –they like to be in charge, they are decisive, competitive and goes along with those in authority enjoying power -they migrates from being a manager in big firms into being in his own business

13. The Expert Idea Generator -these are the people that come up with new products and processes. -they outshine their competitors as they introduce unique products, cutting niches and creating new markets -they always have desire to innovate, they love ideas and good intelligence. -the love for original, novel, creative and innovative approaches stand them out. -they function as initiators and promoters of new idea, concepts and services. -they do not just create ideas but they have the intuition for which ones would sell.

14. The complex entrepreneur -It is the type of entrepreneur that combines two types of entrepreneur together. i.e they might be 78% of super sales and 22% real manager. They know when to concentrate on idea generation and when to sell or manage the idea.

15. New venture creation • Condition that must be satisfy • You must have entrepreneurial traits • Have a desire to start a new business • Have a feasible business venture in view • Two situations can force you into business: viz push and pull. -Push:-it is a factor that force an individual to look for means of survival e.g dissatisfaction with present employment, unemployment and loss of good job. -Pull:- fortuitous/accidental circumstances that encourages individual into business, e.g government incentive programmes and availability of capital to take off.

16. Sources of Business Idea Necessary For A Viable New Venture • Inventions- the invention of entrepreneur can bring up idea to go into business • Modifications-Japan in heir early development engage in modification. They take old ideas, improve on them and come up with modified products • Copying existing ideas- the is similar to modifications but there is no major modifications • Work experience- experience gathered from a career in a big organization can bring up a business idea e.g an engineer may retire to establish an equipment-manufacturing outfit. • Existing hubby- a hubby can be developed into a major business concern. E.g A lady that designs and sews attires and apparels as a hubby may decide to set up a business on the same idea

17. Profession –By the training, professionals like accountants, lawyers, doctors, pharmacist and engineers can set up businesses and consulting outfits • Availability of some natural resources in the environment of the entrepreneur • Literature-the individual may come across ideas in books, trade association reports, journals, magazines, government publications, newspaper adverts, bulletins and newsletters • Perceived gap in the market- there may be a problem to be solved or there is a supply gap or a market waiting for a product or service • Purchase of an existing idea, product or business-this is a cheaper way to go into business where there are existing proprietary right to acquire • Government promotions- trade fairs, trade exhibitions, industrial incentives, etc are government programmes to promote the generation of business

18. Necessary things to check before a business is born • Check on your business readiness -Are u ready to go into business enterprise? -Do you possess the traits? -Which entrepreneurship pattern do you exhibit? -Can you handle the responsibilities? -Can you stand the challenges of the market place? -Do you have the potential to stand out and beat competition?

19. Reconcile your Goals -What are your personal goals? -What are your short-term goals? -What are your long-term goals? -Are your goals realistic? -What if you do not achieve your goals- what will you do? -What are your business goals? -Does the two goals reconcile?

20. Specify your product or service -Have you sold, made or offered these products or services in the past? -How are you different? How will you differentiate your service or product? -Is it different, unique or better than the competitor’s? -Is there a market for these services or products? -How do you fulfill customers’ orders or requests? What is your distribution channel?

21. -Do you have confidence that what you are making, providing, or selling is of good quality? -What compensation will you offer any employee you may have? -how many employees can you afford at different salaries -what sources of help are available to you? -can your local or state government offer start-up assistance?

22. Identify your business location -where will you rent or lease an office, store, warehouse or plant? -can you start with a home office(micropreneur). -what office and computer equipment do you need? -will you need separate phone lines? A post office box? -can you afford office space? -where will you get start-up funding? -where do you want to be (in life) in five, ten, fifteen years time?

23. Know your industry and partners • who are your potential customers? How can you ensure customers are attracted and stay attracted? How will you get these customers? • Who are your competitors? How will you compete with them: price, quality, service, location? Are they too competitive or too entrenched/deep rooted What are their weaknesses? Is the market oversaturated? • Who will be your investors, partner(s),or company officers? Do you need partners? Do you work better alone? can you work alone? How do you pick a partner? Will they be committed to the business?

24. Know your market a)How will you promote your business and/or product/service. -what choice of media should you use for advertising? Should you advertise in the newspaper? b)How much start-up capital will you need? -what are your initial fixed cost? -what will be your eventual fixed and variable costs? -can you get assistance to determine your start-up need?

25. Map out your strategy • When should you start your business? -is the economy-local, regional, state, national good? -should you work your current job while starting the business? b) When will you find time for family and friends? -is it possible to let them work with you in the business?

26. Starting the new business There are six stages you will go through before a business is truly born. • Stage 1: Acquisition of raw idea It requires the following tasks: • Find an idea • generate an idea • Explore personal capability • Motivation for self-employment

27. Stage 2 from raw idea to valid idea. It requires the following tasks: -clarify idea -clarify what needs it meets -see how it works in operating conditions -ensure practicability -satisfactory quality -check for business barriers -identify competition and learn from it

28. Stage 3: From valid idea to scale of operation and resource identification. • It requires the following tasks: -identify market: number, location, type of operation and resource customers. -clarify how to reach the market(promotion). -identify minimum desirable scale for a living. -estimate financial requirements.

29. Stage 4 business plan and negotiation It requires the following tasks: -develop business plan and proposal • negotiate with customers; labour; and suppliers of materials, premises, capital, and land; to ensure physical supply capability. • negotiate with banks and financiers for resources.

30. Stage 5: From negotiation to birth- It requires the following: • Complete all legal requirements for business incorporation. • meet all statutory requirements. • Set up basic business systems.