Entrepreneurship Studies: © Cosmopoint International University College, School of Business

Entrepreneurship studies
Chapter 1
© Cosmopoint International University College, School of

Business
Introduction to Entrepreneurship
The Benefits of Entrepreneurship:

– Opportunity to create your own destiny
Owning a business provides an
entrepreneurs the independence and the
opportunity to achieve what is important to
them.
Entrepreneurs want to decide what they
want in their lives, and they use their
businesses to make their desire a reality
(come true).
The Benefits of Entrepreneurship:
– Opportunity to make a Difference
More and more entrepreneurs are starting
businesses because they see this as an opportunity
to make a difference in a route or way that is
personally important to them.
– Opportunity to reach your full potential.
Many people find their work not challenging and not
exciting.
For entrepreneurs there is little difference between
work and play.
Entrepreneurs see their business as a vehicle of self
expression of personal desire and eventual self
actualization of their personal goals – the pinnacle of
their career success.
The Benefits of Entrepreneurship

Opportunity to reap extraordinary
(luar biasa) profits.
– The profit earned by an
entrepreneur are an important
motivation and indication factor for
further increased performance. Thus
these could spur them to greater
achievement and success.
Benefits of Entrepreneurship.
– Societal Responsibility and Recognition.
Small business owners are among the most
admired, respected and trusted individuals
of society.
Customers have shown their trust and
faithfulness over their years for their
business.
Help to contribute employment, business
opportunity in a particular locality or area.
Benefits of Entrepreneurship.
Opportunity to engage in work of their
choice
– Small business owners tend to engage in
business that gives them personal satisfaction.
– Though they may work long hours and engage
in very industrious work that is beneficial to
their organization and themselves.
– Most of all the work they engage in helps to
benefits the community, society and the
nation.
The Drawbacks of Entrepreneurship:

– Uncertainty of Income
Opening and a running a business provides
no guarantee that an entrepreneur will earn
enough money and survive.
Engaging in the wrong business and not able
gain an advantage in the short run and
eventually in the long run can be disastrous.
Great effort and proper and effective
management need to used in beginning to
ensure the organization success.
The Drawbacks of Entrepreneurship

Risk of losing your entire Investment
– Small business have a high failure rate.
– Though is successful initially it faces financial
difficulty within the next five years.
– Entrepreneurs must be prepared to face the
consequence of failure.
– Entrepreneurs must have acute sense of
observation and be able to detect the early signs
of failure.
– If a business fails the entrepreneur must have a
contingency plan to overcome a bankruptcy or
personal failure.
Drawbacks of Entrepreneurship
– Long Hours and Hard Work
Entrepreneurs tend to be generally
workaholic, and under tremendous pressure
to produce the result they expect.
Entrepreneurs seldom find time to be away
from the business but tend to pour all their
effort and resources to achieve their personal
entrepreneurial objective.
Some even go to extent of making big
sacrifice and deprive themselves of a
personal life, wife and children and social and
family associates.
– Lower Quality of Life until the
business get established.
In order for the business to be successful
the entrepreneur must engage himself to
produce the kind of result he expects.
He cannot rest on his laurels (take it easy)
until and certain the business has stabilized
and established.
– High level of stress
Starting the business can be very rewarding
experience, but it can be stressful.
An entrepreneur have left the comfort and security of
secured job to venture into their own business.
Failure can bring about tremendous personal failure,
and in turn creates intense levels of anxiety and stress.
Financial burden may increase and the entrepreneur
may face difficulty sustaining the business or may
decide to call it for day and wind up the business for
good.
– Complete Responsibility
Must be prepared to make decision that are
unfavorable (swallow the bitter pill).
Must make decision in areas that the
entrepreneur is not familiar at all.
Fear of making decision that can have a
devastating effect on the business and its
people.
Tremendous pressure to perform as the
entrepreneur is too deeply engaged in the
business
– Discouragement
– To undertake a business requires a lot of
dedication, discipline and tenacity.
– During running the business they will face many
difficulties, obstacles which may difficult to
overcome.
– Further difficulties, discouragement and
disillusionment are common emotions.
– Successful entrepreneurs escape through rough
times or difficult times through sheer hard work,
self confidence and full of optimisms.
Ten Deadly Mistakes of Entrepreneurship:

– Business entrepreneurship fail because:-
Management Mistakes
Lack of Experience
Poor financial control
Weak marketing efforts
Failure to develop a strategic and effective plan
Uncontrolled Growth
Poor location
Improper inventory control
Incorrect or unsuitable pricing
The inability of to move into entrepreneurial thinking
mindset
from the previous secured permanent managerial position
held.
How to avoid failure in a Entrepreneurial

business.
– Know your business in depth.
– Develop a good, effective and solid Business
Plan.
– Manage your financial resources effectively.
– Have a thorough and complete financial
statement.
– Learn hire and manage people
effectively.
– Keep physically fit, consume healthy foods,
and avoid addictive consumption

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Entrepreneurship Studies: © Cosmopoint International University College, School of Business

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Entrepreneurship studies

© Cosmopoint International University College, School of

The Benefits of Entrepreneurship:

The Benefits of Entrepreneurship

The Drawbacks of Entrepreneurship:

The Drawbacks of Entrepreneurship

Ten Deadly Mistakes of Entrepreneurship:

How to avoid failure in a Entrepreneurial

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