Introduction to

Entrepreneurship

COURSE : MGMT2015
Welcome to 2022- 1.
Introducing yourself

Introduce yourself using

either a paragraph or
video. See instructions
under Week 1
Introductory Forum
Section on Moodle.
 Chapter Objectives
Define entrepreneurship and explain the
concepts of entrepreneurial action.

Describe how structural similarities enable

entrepreneurs to make creative mental leaps.

Highlight bricolage as a source of

entrepreneurs' resourcefulness.

Introduce effectuation as a way expert

entrepreneurs sometimes think.

Develop the notion that entrepreneurs

cognitively adapt.

Recognize the importance of sustainable

entrepreneurship
What is entrepreneurship?

 The capacity and willingness to develop,

organize and manage a business venture
along with any of its risks, in order to make
a profit.
Belizean Entrepreneur

Video

 https://fo-fo.facebook.com/BELTRAIDE/videos/4018995981526883/

 Advice from SBDC

https://www.youtube.com/watc
h?v=7wRWzkWyWh8
 Why Become an Entrepreneur?

 The three primary reasons that people become entrepreneurs and start their own firms

Desire to be their own boss

Desire to pursue their

own ideas

Financial rewards
 Characteristics of Successful Entrepreneurs

Four Primary
Characteristics
 Characteristics of Entrepreneurs:

Passion for the Business

Characteristics
• The number one characteristic shared
by successful entrepreneurs is a passion
of •Successful
for the business.
This passion typically stems from the
entrepreneur’s belief that the business
Entrepreneurs
will positively influence people’s lives.
Product/Customer Focus

• A second defining characteristic of

successful entrepreneurs is a
product/customer focus.
• An entrepreneur’s keen focus on
products and customers typically stems
from the fact that most entrepreneurs
are, at heart, craftspeople.
Characteristics of Successful Entrepreneurs

 Tenacity Despite Failure

 Because entrepreneurs are typically trying something new, the
failure rate is naturally high.
 A defining characteristic for successful entrepreneurs is their
ability to persevere through setbacks and failures.
 Execution Intelligence
 The ability to fashion a solid business idea into a viable business
is a key characteristic of successful entrepreneurs.
 Myth

 Myth 1: Entrepreneurs Are Born, Not Made

Common Myths
About This myth is based on the mistaken belief that some people are
genetically predisposed to be entrepreneurs.
Entrepreneurs
 The consensus of many studies is that no one is “born” to be an
entrepreneur; everyone has the potential to become one.
 Whether someone does or doesn’t become an entrepreneur is a function
of their environment, life experiences, and personal choices.
 Common Myths About Entrepreneurs

 Although no one is “born” to be an entrepreneur, there are common traits and

characteristics of successful entrepreneurs

• A moderate risk taker • A networker

• Persuasive • Achievement motivated
• Promoter • Alert to opportunities
• Resource assembler/leverager • Self-confident
• Creative • Decisive
• Self-starter • Energetic
• Tenacious • A strong work ethic
•Visionary • Lengthy attention span
 TERMS
 Entrepreneurial opportunities – situations in which new goods, services,
raw materials, and organizing methods can be introduced and sold at
greater than their cost of production.
The
 nature ofaction – action through the creation of new products/
Entrepreneurial
processes and/or the entry into new markets, which may occur through
entrepreneurshi
a newly created organization or within an established organization.
pEntrepreneurs act on what they believe is an opportunity, however
entrepreneurs must use their judgement about whether to act or not.
 Entrepreneurial thinking – Individuals’ mental processes of overcoming
ignorance to decide whether a signal represents an opportunity for
someone is also an opportunity for them specifically, and/or processing
feedback from action steps taken.
Entrepreneurial Action
 Entrepreneurs must often make decisions
How in highly uncertain environments where
the stakes are high, time pressures are
Entrepreneurs immense, and there is considerable
think emotional investment. So four forms of
decision making:
1. Think Structurally
2. Engage in bricolage
3. Effectuate, and
4. Cognitively adapt
How Entrepreneurs think cont’d
Think Structurally Bricolage Claude Lévi-Strauss in 1962

 A mental leap is caused by one’s

existing knowledge.
 Entrepreneurs make “do by applying
 superficial similarities (same but market
combinations of the resources at hand to
change)
new problems and opportunities.”
Exist when the basic (relatively easy to (Bricoleurs)
observe) elements of the technology
 Taking existing resources (those at hand)
resemble (match) the basic (relatively easy
and experimenting, tinkering,
to observe elements of the market
repackaging, and/or reframing them so
 structural similarities (same but different they can be used in a way for which they
use) were not originally designed or
Exist when the underlying mechanisms of the conceived
technology resemble (or match) the How to cultivate an entrepreneurial mindset
underlying mechanisms of the market. https://www.youtube.com/watch?v=dulBMqkuHes
How Entrepreneurs think cont’d
Effectuate Professor Saras Sarasvathy Cognitively adapt

Entrepreneurs do not always think through a

problem in a way that starts with a desired
 Describes the extent to which
outcome and focuses on the means to
entrepreneurs are dynamic, flexible, self
generate that outcome
regulating, and engaged in the process
 causal process of generating multiple decision
frameworks focused on sensing and
A process that starts with a desired outcome
processing changes in their environments
and focuses on the means to generate that
and then acting on them
outcome at outcome.
***Causal reasoning is often associated with business
 effectuation process
schools and managerial thinking and focuses first on
A process that starts with what one has (who goals and then the set of choices associated with
they are, what they know, and whom they reaching it. Effectuation, on the other hand, looks first
know) and selects among possible at resources and then the goals that can be
outcomes achieved by employing those.
Causal Versus Effectual Reasoning
 Entrepreneurial intentions:

 Entrepreneurial intentions - Motivational factors that

influence individuals to pursue entrepreneurial outcomes.
The Intention
https://www.youtube.com/watch?v=ptD0T-ZcF2M
to Act
 Intention is stronger when an action is perceived to be
Entrepreneuri
feasible and desirable.
ally
 Entrepreneurial self-efficacy - Conviction that one can
successfully execute the entrepreneurial process.
 Perceived desirability - The degree to which an individual
considers an option to become entrepreneur.
Entrepreneur Background and Characteristics

 Education
 Provides a background about starting a business.
 Helps in the development of communication skills and
problem-solving skills.
 Provides individuals with a larger opportunity set.
 Does not determine whether an entrepreneur will create
a new business to exploit the discovered opportunity.
 Age
 Most
entrepreneurs initiate their entrepreneurial
Entrepreneur
careers between the ages of 22 and 45.
Background
 Individuals are more inclined to start an
andentrepreneurial career at milestone ages every
five years (25, 30, 35, 40, and 45).
Characteristi
 Male entrepreneurs tend to start their ventures in
cs (cont.)
their early 30s, while women entrepreneurs do so
in their middle 30s.
 Work History

Entreprene
 The decision to launch a new venture can be
ur
influenced by:
Backgroun
Dissatisfaction with one’s job.
dPrevious
and technical and industry experience.
Characteri
Managerial skills and entrepreneurial experiences are
stics
also important once the venture starts growing.
 Previous start-up experience is a relatively good
(cont.)
predictor of starting subsequent businesses.
 Role models - Individuals influencing an
entrepreneur’s career choice and style
 Can
be parents, family members, or
Role Models
other entrepreneurs.
and Supportentrepreneurs are viewed as
 Successful
Systems
catalysts by potential entrepreneurs.
 Role models can serve in a supportive
capacity as mentors by providing
information, advice and guidance.
 Moral-Support Network
 It is
important for entrepreneurs to
have a cheering squad—
individuals who provide
Role Models support.
psychological
and Support
 Friends can provide honest advice,
System
encouragement, understanding,
and assistance.
(cont.)
 Relatives can be strong sources of
moral support, particularly if they
are also entrepreneurs.
 Professional-Support Network

Role
Models
 Entrepreneurs need advice and counsel throughout the
establishment of the new venture which can be obtained from:
and
 Mentors
Support
 Business associates
System
 Suppliers

(cont.)
 Trade associations
 Personal affiliations

 Entrepreneurial activity is embedded in networks of interpersonal

relationships.
  There has been significant growth in:
 Female self-employment, with women starting new
ventures at a higher rate than men.
Minority The number of Asian, African American, Hispanic, and
EntrepreneNative American owned firms.

urs  This growth is likely to be spurred by:

 Encouragement of entrepreneurship among minority
groups.
 Increase in the number of role models.
 Sustainable Entrepreneurship

Sustainable development is important, and entrepreneurial action

Sustainable
can help have a positive impact to sustain and develop an
Entrepreneurshi
economy.
p
Sustainable entrepreneurship :-
Entrepreneurship focused on preserving nature, life support, and
community (sustainability) in the pursuit of perceived opportunities
to bring future products, processes, and services into existence for
gain (entrepreneurial action) where gain is broadly construed to
include economic and noneconomic benefits to individuals, the
economy, and society (development)
Importance of sustainable entrepreneurship

 https://www.youtube.com/watch?v=jfsWI8XgQyo
 Reflect

•Do you see yourself becoming an entrepreneur? Explain why or why not.

•What are three characteristics you think you have that would make you a successful entrepreneur?

•If you can’t think of any, how can you develop the characteristics that are important to have when
owning your own business?
Groupings 2022 – 1 link

 https://docs.google.com/spreadsheets/d/1-
snyRtTBhiDQY1Fg82yV8p33txN7SVd2K6g51Nkta40/edit?usp=sharing

 Do not change anything on this Google Sheet unless you are asked to do
so.