Entrepreneurship Introduction

1. What is Entrepreneurship?
Benefits and drawbacks
Cultural Diversity
Ten deadly mistakes
Avoid the Pitfalls
Case Study
Lecture 1

2. Who are Entrepreneurs?
• Entrepreneurs are people that notice opportunities and
take the initiative to mobilize resources to make new
goods and services.
 Original thinkers
 Risk takers
 Take responsibility for own actions
 Feel competent and capable
 Set high goals and enjoy working toward them

3. Successful & Unsuccessful
Entrepreneurs
• Successful
 Creative and Innovative
 Position themselves in
shifting or new markets
 Create new products
 Create new processes
 Create new delivery
• Unsuccessful
 Poor Managers
 Low work ethic
 Inefficient
 Failure to plan and
prepare
 Poor money managers

4. What is Entrepreneurship
Process of designing, launching and running a new
business which is often initially a small business.
The capacity and willingness to develop, organize and
manage a business venture along with any of its risks in
order to make a profit. Entrepreneurship is both the study
of how new business are created as well as the actual
process of starting a new business.

5. Some examples of entrepreneurial
ventures in Pakistan
• Ghar par
• Daraz.pk
• Uber
• Careem
• Zameen .com
• Mangobaaz

6. Major difference between Entrepreneurship and
Formal Business Organizations
Entrepreneurial and Formal Organizations differ in
six business dimensions:
Strategic orientation
Commitment to opportunity
Commitment to resources
Control of resources
Management structure
Compensation policy

7. Business Dimension Entrepreneurial Organization Formal Organization
Strategic orientation Seeks opportunity Controls resources
Commitment to opportunity Revolutionary
Short duration
Evolutionary
Long duration
Commitment to resources
(capital, people, and equipment)
Lack of stable needs and
resource bases
Systematic planning systems
Control of resources Lack of commitment to
permanent ventures
Power, status, financial rewards
for maintaining status quo
Management Structure Flat
Many informal networks
Clearly defined authority and
responsibility
Compensation policy Unlimited; based on team’s
accomplishments
Short-term driven; limited by
investors

8. Benefits
1. The freedom to pursue your own vision.
2. The control and flexibility you have over your own time.
3. The opportunity to learn and gain knowledge.
4. The highs and lows of self-employment.
5. The sense of pride and fulfillment in accomplishing things.
6. The confidence you gain in knowing that you can do it.
7. Potential earnings exceed a salaried employee.
8. Business owner reaps the full rewards.
9. Each new day is a challenge.
10. The chance to share your learning.

9. Drawbacks
1. It requires you to dedicate a huge amount of time.
2. It can be difficult to compete with other businesses.
3. It does not guarantee 100% success.
4. It comes with unpredictable work schedules.
5. Administration.
6. Competition.
7. Loneliness.
8. No regular salary.
9. Work schedule.

10. Cultural Diversity
• Cultural diversity is a group of diverse individuals from
different cultures or societies. Usually, cultural diversity
takes into account language, religion, race, gender, age
and ethnicity.
• Companies started to embrace corporate diversity in the
early 2000s. This was due to many trends in
demographics and a changing workforce.

11. Ten Deadly Mistakes in
Entrepreneurship
1. Avoiding conflicts/clashes
2. Poor financial control and failing to create a business
plan
3. Failure to create and updated business plans
4. Under estimating the sales cycle and how long the sale
takes.
5. Having sufficient working capital will help to avoid this
deadly mistake in business

12. 1. Know your breakeven point
2. Lack of delegation/allocation
3. Stock control and monitoring
4. Back up plan and disaster recovery
5. Not paying for the right advice and not getting a mentor