Entrepreneurship

Entrepreneurship

 

 

 

The 80/20 rule as interpreted by Mario

 

80% of our people do not really make things happen. All they want is a well paid SECURE job.

 

20% should but alas 80% of this 20% also do not make things happen.

 

So only 4% of our people really make things happen. Revised to 2%.

 

They are the ENTREPRENEURS that CREATE WEALTH and in the process  create the jobs for the 98%

 

 

 

 

Where do we find these Entrepreneurs?

 

Entrepreneurs are in large, medium and small enterprises in both the public and private sectors

 

It is not too difficult for leaders to survive and prosper in a large enterprise without being very entrepreneurial

 

Not so in a small or medium enterprise (SME)

Owners /managers in SME’s that have been operating successfully for FIVE or more years are all entrepreneurs

 

 

 

 

Entrepreneurship

 

Entrepreneurship is the process of creating value by bringing together a unique package of resources to exploit an opportunity.

 

 

 

 

Myth 1:        Entrepreneurship is about starting and running a small business

Not necessarily. Entrepreneurship represents a growth-oriented outlook on business. It implies an innovative, proactive approach to running a company. Most small businesses are not at all entrepreneurial. Rather they are stagnant, reactive, complacent, status quo operations. And while they do serve an important purpose in the economy, they do not provide much dynamism.

 

Myth 2:        Entrepreneurship is a discrete event

Entrepreneurship does not just “happen”. There is a process involved. The process starts with identifying an opportunity, then developing a business concept, assessing and acquiring resources, and finally, managing and harvesting a venture. As a process, entrepreneurship can be managed on an ongoing basis and can be applied in organisations of all sizes and type.

 

Myth 3:        Entrepreneurship is about taking wild risks

Entrepreneurs are not wild-eyed gamblers. Instead they are calculated risk- takers. They evaluate a situation and systematically  identify the key financial, technical, market and related risk factors. They then go about identifying ways to manage and minimise the likelihood of each of the underlying risk factors occurring.

 

Myth 4:        Entrepreneurs are born

They are not born. Rather, we all have some degree of entrepreneurial potential within us. The ability to develop and realise that potential is very much a function of one’s environment. Ones entrepreneurial instincts are enhanced if one cannot find a job.

 

Myth 5:        Entrepreneurship is about greed

The real motivator behind entrepreneurial behaviour is not money, and it certainly is not power or position. Entrepreneurial individuals tend to be driven by a desire to achieve; to do what others said could not be done, to overcome all the obstacles and naysayers.

 

Myth 6:        Entrepreneurship is about individuals

It is true that entrepreneurial events usually have a driving force behind them in a form of a visionary individual who persists in making change happen. There must be a champion who keeps a new concept alive. But entrepreneurship does not happen without teams. Too much must be done to bring a concept to reality. The obstacles are formidable and the technical, legal financial, marketing and related requirements are complex.

 

Myth 7:        Entrepreneurship requires lots of money

Entrepreneurial individuals are opportunity-driven, not resource-driven. They do not limit the scope of their vision by how much

money, time, staff or related resources they own. Rather, they go after their dream by leveraging resources… by borrowing, begging, partnering, sharing, leasing and recycling resources. And it’s not just money. Studies of entrepreneurial failure suggest that the problem far more often is related to other causes, such as poorly prepared managers, inadequate distribution channels, or ill-conceived-marketing efforts.

 

Myth 8:        Entrepreneurship is about luck.

No, entrepreneurs tend to create their own “luck”. It’s much more about hard work, creative insight, in depth analysis, adaptability, and an openness to opportunity when it comes along. The entrepreneurial individual recognizes a trend, a possibility, an incongruity, an unmet need. He or she comes up with a unique concept for capitalising on the trend or need, and does so while the window of opportunity is open.

 

Myth 9:    Entrepreneurship starts with a new product or service

This is one of the great mistakes many would-be entrepreneurs make. They come up with a novel product concept without even determining whether a need exists, how extensive that need actually is, how satisfied customers are with current products, what their switching cost would be, and whether they will be able to see meaningful advantages in the new product. Entrepreneurship does not start with the product or service one would like to sell. It starts with an opportunity, and opportunities are found in the external environment.

 

Myth 10:        Entrepreneurship is unstructured and chaotic

There is a tendency to think of entrepreneurs as gunslingers…that they shoot from the hip and jump in feet first. The reality is not only that they tend to be well-organised individuals, they tend to have a system, perhaps elaborate, perhaps not, but personally designed to keep things straight and maintain priorities. When doing something entrepreneurial one is dealing with the unknown. Entrepreneurial individuals have to be comfortable with ambiguity, as things are rarely nice and clear-cut.

 

Myth 11:        Most entrepreneurial ventures fail

Many do, but many do not. Failure rates differ widely by industry, and drop off significantly after the first few years of operation. And failure rates rise as the amount of entrepreneurial activity rises.

 

Myth 12:  All unemployed persons are potential entrepreneurs.

Very few are. Most would prefer to be employed.

Little merit in focusing on micro start-up enterprises.

Rather focus on the proven entrepreneurs. Set them free and they will create jobs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TRAITS OF ENTREPRENEURS – How entrepreneurial are you?

Assess each trait on a scale of 1 to 10 (10 is very entrepreneurial).

 

Enthusiasm                                        Opportunity seeker              

 

Versatility                                   Persuasiveness

 

Calculated risk taker                   Self motivated

 

Good positive attitude                     Comfortable with uncertainty

 

Perceptiveness                          Assertiveness

 

Creativity                                   Expertise/experience  

 

Achievement orientated          Hard working

 

Energetic                                   Initiative   

 

Resourcefulness                         Independence 

 

Persistence                                 Well organised                         

 

Self-confidence