Entrepreneurship and Ethics M4
Entrepreneurship and Ethics M4
Entrepreneurship and Ethics M4
ENTREPRENEURSHIP
DEVELOPMENT
ENTREPRENEUR
Does things that are not generally done in the ordinary
course of business
Some entrepreneurs become celebrities…others get
ridiculed for their failed dreams.
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EVOLUTION
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CHARMS OF BEING AN
ENTREPRENEUR
You will be your own boss and boss to others.
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CONTD…
Achievement motivation: Entrepreneurs have a high need for achievement
and are guided by their inner self, motivating their behavior towards
accomplishments. Based on this entrepreneurs can be classified as
dreamers, doubters and doers.
Problem solving: Define the problem Gather information Identify
various solutions Evaluate alternatives and select best option Take
action Evaluate the action taken
Goal orientation: It is the achievement of targets and objectives for
successful performance by an entrepreneur. The goal setting process has
three steps: Defining the Goal Specific targets Feedback
Target Oriented
Achievement driven
Specific
Primary Goal
Secondary goals
Long term / Short term
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CONTD..
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FUNCTIONS
Idea generation and scanning of the best suitable idea.
Determination of the business objectives.
Product Analysis and market research.
Determination of form of ownership / organization.
Completion of promotional formalities.
Raising necessary funds.
Procuring machine and material.
Recruitment of people.
Undertaking the business operations.
• Innovation
TYPES OF ENTREPRENEURS
Based on Functional Characteristics
Innovative Entrepreneur: They introduce new goods or new methods of
production or discover new markets or reorganize their markets.
Entrepreneurs in this group have lot of information and trying out a novel
product or process
Imitative or adoptive entrepreneur: They do not innovate but imitate the
techniques and technology of others. Entrepreneurs in this group are
characterized by their readiness to adopt successful innovations by
successful entrepreneurs.
Fabian entrepreneur: Such entrepreneurs display great caution and
skepticism in experimenting with any change in their enterprise. They
change only when there is an imminent threat to the very existence of their
enterprise.
Drone entrepreneur: Such entrepreneurs are characterized by a die-hard
conservatism and may even be prepared to suffer the loss of business.
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CONTD…
Based on Developmental Angle
Prime mover: This entrepreneur sets in motion a powerful
sequence of development, expansion and diversification of
business.
Manager: Such an entrepreneur does not initiate expansion and
is content just staying in business.
Minor innovator: This entrepreneur contributes to economic
progress by finding better use for existing resources.
Satellite: This entrepreneur assumes a supplier’s role and
slowly moves towards a productive enterprise.
Local Trading: Such an entrepreneur limits his enterprise to the
local market.
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CONTD…
Based on types of Entrepreneurial Business
Manufacturing: An entrepreneur who runs such a business
actually and produces the products that can be sold using
resources and supplies. E.g.: Apparel and textile products,
chemical related products etc.
Wholesaling: An entrepreneur with such a business sells
products to the middleman.
Retailing: An entrepreneur with such a business sells
products directly to the people who use or consume them.
Service: An entrepreneur in this business sells service rather
than products.
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CONTD…
Based on Nine Personality types of entrepreneurs
The Improver: If you operate your business predominately in the
improver mode, you are focused on using your company as a
means to improve the world. They run the business with high
integrity and ethics.
The Advisor: The business personality type will provide an
extremely high level of assistance & advice to customers. The
advisor’s motto is customer is right and we must do everything
to please them.
The Superstar: Here the business is centered on the charisma and
high energy of the superstar CEO. This personality often will
cause you to build your business around your own personal
brand. They will be too competitive and workaholics.
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CONTD…
The Artist: The business personality is the reserved but a highly
creative type (E.g.: Web design, Ad agency). As an artist type
you will tend to build your own business around the unique
talents and creativities that you have.
The Visionary: A business built by a visionary will often be
based on the future vision and thoughts of the founder.
Visionaries can be too focused on the dream with little focus on
reality. Action must precede vision.
The Analyst: here your company’s focus is on fixing problems in
a systematic way. These companies excel at problem solving.
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CONTD…
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Based on Schools of Thought on Entrepreneurship:
Model Focus / Purpose Behaviors / Skills Situation
Great Person The entrepreneur has an Intuition, Energy, Start up
School intuitive ability – sixth Persistence, and self-esteem
sense & traits & instincts
he is born with
Psychological Have unique values, Personal values, risk taking, Start up
Characteristics attitudes, and needs need for achievement
School which drive them
Classical School Innovation Innovation, Creativity and Start up &
discovery early growth
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ENTREPRENEUR VS INTRAPRENEUR
Point of Difference Entrepreneur Intrapreneur
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SECRETS FOR BUILDING ENTREPRENEURIAL
CULTURE
Build parallel interests
Be an architect of the future.
Be decisive, multifaceted, and ethical to a fault.
Know the risk – measure the reward.
Communicate to be a show-er not a teller.
Power to the people.
Become a trust builder.
Sharing wealth increases wealth.
Be constant, consistent and concise.
Treat important people like important people.
Do simple things – simply do them. 25
PROCESS
Entrepreneurial Development can be explained in five stages –
Perceiving, identifying and evaluating opportunity.
Creation & scope of opportunity
Competitors analysis
Management Team
Marshalling resources.
Creating the enterprise
Consolidation and management.
Critical factors to success
Management Style
Lack of capacity
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