Foundations of Entrepreneurship

Foundations of Entrepreneurship

An entrepreneur is an individual that takes the risk of investing his or her money into an idea, product and/or service. These individuals usually have “do or die” attitudes. The typical characteristics of an entrepreneur are viewing rules as mere guidelines, low threshold on frustration; they can be very manipulative of others. Another facet they exhibit impulsive behaviors and they are prone to take action. The primary motivation for the entrepreneur is the ability to master his/her destiny and to the have to ability to do something they really enjoy.

They can also be very impatient with discussions and theories. The following illustrates the typical entrepreneurial profile:

Ø Desire for responsibility for their actions.

Ø Preference for moderate risk.

Ø Confidence in their ability to succeed.

Ø Desire for immediate feedback.

Ø High level of energy and enthusiasm.

Ø Future orientation – searching for possible opportunities.

Ø Skilled at organizing and running a successful company.

Ø Value of achievement over money - since of control over their lives.

STRATEGIC MANAGEMENT AND THE ENTREPRENEUR

Strategic ManagementProcess: The process of developing a game plan to guide the company as it strives to accomplish its mission, goals, and objectives, and to keep it on its desired course:1 Develop a clear vision, and translate into a meaningful mission statement2 Define the firm’s core competencies, market segment, and position the business3 Asses the company’s strengths and weakness4 Scan the environment for opportunities and threats facing the business5 Identify the key factors for success in the business.

Competitive Advantage The aggression of factors that sets a company apart from its competitors and gives it a unique position in the market.

Goals The broad, long-range attributes that a business seeks to accomplish, they tend to be general and sometimes even abstract.

Objectives More specific targets of performance, commonly addressing such areas as profitability, productivity, growth, and other key aspects of a business.

Core Competencies A unique set of capabilities that a company develops in key operational areas that allow it to vault past competitors.

Market Segmentation Carving up the mass market into smaller, more homogeneous units and then attacking each segment with a specific marketing strategy designed t...

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...plus the fact that the business may be sold at a bargain price in comparison to starting up from scratch will enable the new owner to start a turn key operation in a fraction of the time. On the other hand there are many disadvantages incorporated in buying an existing business, such as, the previous owner may have orchestrated improper business behavior. The business location and/or the employees may have become unsatisfactory. Another factor to take notice of is the insufficiency of the equipment and inventory. Buying an overpriced business is a major disadvantage; due to the fact the new owner may never be able to recover profits and/or investments.

Product: An item, idea or service that satisfies the need of a consumer

Place: The direct place or method of distribution of the product, any activity involving the movement of the goods

Price: A key factor in a consumers decision to buy, price affects both sales volume and profits, with the right price high sales volume may be achievable

Promotion: Involves both advertising and personal selling, its goal is to inform and persuade current and potential consumers through some mass medium the benefits of their goods or service.