Transcript THE ENTREPRENEUR - Shepherd University

THE ENTREPRENEUR
Chapter 2
MISCONCEPTIONS
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Several times a year we see
newspapers or t.v. shows
highlights of an individual who
has become a successful
entrepreneur. The most
noteworthy often tell about a
high school or college dropout
who turned a bright idea into a
million dollar business.
More misconceptions…..
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Variation A: the entrepreneur
slaved 20 years to make a
dream come true.
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OR
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Variation B: how the
entrepreneur gambled
everything his or her family
owned on a long shot that came
through.
PROFILE OF THE
ENTREPRENEUR
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PSYCHOLOGICAL PORTRAIT
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CHARACTERISTICS OF
LEISURE SERVICE
ENTREPRENEUR
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THE SPIRIT OF
ENTREPRENEURSHIP
Psychological Portrait
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Self confident and persistent in
the pursuit of their objectives
Are motivated to create
something unique on their own
Dislike someone else having
authority over them
Are impatient and drive
themselves and everyone them
More…..
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Are comfortable in stress
situations and are challenged
rather than discouraged by
setbacks
Are willing to make personal and
family sacrifices in order to
succeed
Are sensitive to good ideas
And more…
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View money as a resource and
as a way of keeping score, but
not as a motivating source.
Are mentally tough and
recognize their own limitations
Are more concerned with
people’s accomplishments than
their feelings
And more….
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Prefer individual sports over
team
Are competitive, but compete
against self-imposed standards
Can comprehend complex
situations and can work on
multiple tasks
Are realistic, calculated risk
takers
Characteristics of Leisure
Service Entrepreneurs
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In a study of sport and leisure
service entrepreneurs, found
that no particular economic
planning preceded their
success. Entrepreneurs of sport
and leisure businesses tended
to de-emphasize growth
potential in favor of remaining a
small, viable operation.
Cont….
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Commitment to the QUALITY of
the product or service was the
“key to success” that the sport
and leisure entrepreneurs most
often emphasized. In addition,
the study suggests that personal
financial rewards were a lower
priority than the intrinsic rewards
of operating a business.
The Spirit of Entrepreneurship
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What is the “bottom line” that all
entrepreneurs must possess?
Many authorities believe that the
energy and spirit is the key
factor. A lot of people have
grand ideas, only few have the
drive to make the dream come
true.
SYSTEMATIC
ENTREPRENEURSHIP AND
SOURCES FOR INNOVATION
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Source 1: The Unexpected Success
or Failure
Source 2: Incongruities
Source 3: The Process Need
Source 4: Industry & Market
Structures
Source 5: Demographics
Source 6: Changes In Perception
Source 7: New Knowledge
Source 8: The Bright Idea
The Unexpected
Success of Failure
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They can point to new opportunities
This method is often neglected,
because it may not be seen, even by
insiders. For example, a sporting
goods store in Texas sold a small
line of ski equipment and sales
increased over a couple of years,
because air fares were cheap so
people could get to ski resorts in
Colorado, Wyoming, etc.
Incongruities
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An incongruity is a discrepancy between an
existing situation and what should logically
be happening. For example, a public
recreation agency has a large youth
football program with over 65 teams, but no
soccer program, because surveys
suggested that soccer was not a popular
fall sport for youth. However, football is an
expensive sport and soccer is not. The
agency was losing money on football so
met the incongruity by offering a soccer
program that more than covered costs and
actually made a profit.
The Process Need
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This is a task-focused
innovation that perfects a
process that already exists by
replacing a weak link or by
redesigning an existing process
around new knowledge.
Example: Movie theaters and
self serve soft drink stations.
Industry and Market
Structures
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This source of innovation
requires that managers of a
company ask themselves:
“What is our business?” The
idea is to search for a flaw in the
basic nature of the industry.
For example: Wal-mart Corp.
The Demographics
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Demographic changes are the
clearest and have the most
predictable consequences. These
shifts have long lead times and
measured by many organizations
from whom data is readily available.
Often times, this data is not available
to all and it becomes a question of
which entrepreneur can interpret and
exploit the data and shifts in the
demographics, ie., women in
business.
Changes In Perception
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When changes in people’s
perception take place, facts do
not change, but meanings do.
For example: fitness used to be
perceived as weight lifting,
distance running, etc. Now it is
more of a lifestyle and social
interaction perception.
New Knowledge
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Innovations based on new
knowledge are the “superstars”
of entrepreneurs.
For example: DVD players,
digital cameras, CD players,
global positioning for boats and
cars, etc.
The Bright Ideas
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This innovation is the riskiest
and the least successful
method.
They are typically unorganized
and out of synch with the market
demand or the demographics
CHALLENGES AS AN
ENTREPRENEUR W/IN AN
ORGANIZATION
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Resistance to change by the
organization
Resentment of the individual
Red tape that makes it difficult to
operate quickly
Discouragement of creative ideas
Little tolerance for risk
Lack of incentives for innovations
Over-emphasis on accountability
HOW TO OVERCOME
THE BARRIERS
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5.
6.
7.
Serve 3 types of needs: the
customer, organization, & the
entrapreneur.
Allow time to develop the idea
Develop a business plan
Find allies and sponsors
Avoid premature publicity
Get small decisions
Recognize your own weaknesses
ENTREPRENEURIAL
MANAGEMENT
1.
2.
3.
4.
Your business should be built
around honesty and integrity
Stick to what you know, but learn
more.
Find a bank or other financial
institution you can rely on, and one
that can rely on you.
Treat your employees well by
caring for people in the totality of
their lives, not just at work.
Cont…
5. Give employees the license to
be themselves and the
opportunity to be entrepreneurs.
6. Earn the trust of your
customers by treating them fairly
and with appreciation. Your
employees will follow this lead if
they feel appreciated.
A little more…
7. Strive for excellence! Being the
best is better than being the
biggest.
8. Always put part of your
earnings back into the business.
9. Plan ahead
10. Watch your business like a
hawk, KNOW YOUR
FINANCES.