TOPIC 1: ENTREPRENEURSHIP: AN OVERVIEW  To the extent that capitalism is a dynamic profit-and-loss

system, entrepreneurs drive efficient discovery and

WHO IS AN ENTREPRENEUR? consistently reveal knowledge.
 An entrepreneur is an individual who creates a new business,  Established firms face increased competition and challenges
bearing most of the risks and enjoying most of the rewards. from entrepreneurs, which often spurs them toward research
The entrepreneur is commonly seen as an innovator, a and development efforts as well. In technical economic
source of new ideas, goods, services, and business/or terms, the entrepreneur disrupts the course toward steady-
procedures. state equilibrium.
 play a key role in any economy, using the skills and ENTREPRENEURS HELP ECONOMIES
initiative necessary to anticipate needs and bring good new  Nurturing entrepreneurship can have a positive impact on an
ideas to market. economy and a society in several ways. For starters,
 Entrepreneurs who prove to be successful in taking on the entrepreneurs create new business. They invent goods and
risks of a startup are rewarded with profits, fame, and services, resulting in employment, and often create a ripple
continued growth opportunities. Those who fail, suffer effect, resulting in more and more development.
losses and become less prevalent in the markets.  For example, after a few information technology companies
HOW ENTREPRENEURS WORK? began in India in the 1990s, businesses in associated
 Entrepreneurship is one of the resources economists industries, like call center operations and hardware
categorize as integral to production, the other three being providers, began to develop too, offering support services
land/natural resources, labor and capital. An entrepreneur and products.
combines the first three of these to manufacture goods or  Entrepreneurs add to the gross national income. Existing
provide services. businesses may remain confined to their markets and
 They typically create a business plan, hire labor, acquire eventually hit an income ceiling. But new products or
resources and financing, and provide leadership and technologies create new markets and new wealth. And
management for the business. increased employment and higher earnings contribute to a
 Entrepreneurs commonly face many obstacles when building nation’s tax base, enabling greater government spending on
their companies. The three that many of them cite as the public projects.
most challenging are as follows: Overcoming bureaucracy,  Entrepreneurs create social change. They break tradition
hiring talent and obtaining financing. with unique inventions that reduce dependence on existing
THE ENTREPRENEUR AND FINANCING methods and systems, sometimes rendering them obsolete.
 Given the riskiness of a new venture, the acquisition of Smartphones and their apps, for example, have
capital funding is particularly challenging, and many revolutionized work and play across the globe.
entrepreneurs deal with it via bootstrapping: financing a  Entrepreneurs invest in community projects and help
business using methods such as using their own money, charities and other non-profit organizations, supporting
providing sweat equity to reduce labor costs, minimizing causes beyond their own. Bill Gates, for example, has used
inventory, and factoring receivables. his considerable wealth for education and public health
 While some entrepreneurs are lone players struggling to get initiatives.
small businesses off the ground on a shoestring, others take ENTREPRENEURIAL ECOSYSTEMS
on partners armed with greater access to capital and other  There is research that shows high levels of self-employment
resources. In these situations, new firms may acquire can stall economic development: Entrepreneurship, if not
financing from venture capitalists, angel investors, hedge properly regulated, can lead to unfair market practices and
funds, crowdsourcing, or through more traditional sources corruption, and too many entrepreneurs can create income
such as bank loans. inequalities in society.
ENTREPRENEURSHIP DEFINITIONS  Overall, though, entrepreneurship is a critical driver of
 Economists have never had a consistent definition of innovation and economic growth. Therefore, fostering
"entrepreneur" or "entrepreneurship" (the word entrepreneurship is an important part of the economic
"entrepreneur" comes from the French verb entreprendre, growth strategies of many local and national governments
meaning "to undertake"). around the world.
 Though the concept of an entrepreneur existed and was  To this end, governments commonly assist in the
known for centuries, the classical and neoclassical development of entrepreneurial ecosystems, which may
economists left entrepreneurs out of their formal models. include entrepreneurs themselves, government-sponsored
 They assumed that perfect information would be known to assistance programs and venture capitalists.
fully rational actors, leaving no room for risk-taking or  They may also include non-government organizations, such
discovery. It wasn't until the middle of the 20th century that as entrepreneurs' associations, business incubators, and
economists seriously attempted to incorporate education programs.
entrepreneurship into their models.  For example, California's Silicon Valley is often cited as an
 Three thinkers were central to the inclusion of entrepreneurs: example of a well-functioning entrepreneurial ecosystem.
Joseph Schumpeter, Frank Knight, and Israel Kirzner. The region has a well-developed venture capital base, a large
 Schumpeter suggested that entrepreneurs, not just pool of well-educated talent, especially in technical fields,
companies, were responsible for the creation of new things and a wide range of government and non-government
in the search of profit. programs fostering new ventures and providing information
 Knight focused on entrepreneurs as the bearers of and support to entrepreneurs.
uncertainty and believed they were responsible for risk PATHS THAT MAKE SUCCESSFUL ENTREPRENEURS
premiums in financial markets. Common Paths that Make Successful Entrepreneurs:
 Kirzner thought of entrepreneurship as a process that leads 1. Ensure Financial Stability
to a discovery.  This first step is not a strict requirement but is definitely
ENTREPRENEURS IMPACT THE ECONOMY recommended. While entrepreneurs have built successful
 In economist-speak, an entrepreneur acts as a coordinating businesses while being less than financially flush, starting
agent in a capitalist economy. This coordination takes the out with an adequate cash supply and ensuring ongoing
form of resources being diverted toward new potential profit funding can only help an aspiring entrepreneur.
opportunities.  It increases his or her personal runway and give him more
 The entrepreneur moves various resources, both tangible and time to work on building a successful business, rather than
intangible, promoting capital formation. worrying about making quick money.
 In a market full of uncertainty, it is the entrepreneur who can 2. Build a Diverse Skill Set
actually help clear up uncertainty, as he makes judgments or  Once a person has strong finances, it is important to build a
assumes the risk. diverse set of skills and then apply those skills in the real
world. The beauty of step two is it can be done concurrently
with step one.
  Building a skill set can be achieved through learning and abandoned the opera and introduced comfortable chairs
trying new tasks in real-world settings. For example, if an instead.
aspiring entrepreneur has a background in finance, he can 4. Shrewd Money Management
move into a sales role at his existing company to learn the  Through the heart of any successful new business, venture
soft skills necessary to be successful. Once a diverse skill set beats the lifeblood of steady cash flow essential for
is built, it gives an entrepreneur a toolkit that he can rely on purchasing inventory, paying rent, maintaining equipment
when he is faced with the inevitability of tough situations. and promoting the business. The key to staying in the black
3. Consume Content Across Multiple Channels is rigorous bookkeeping of income versus expenses.
 As important as building a diverse skill set is, the need to  And since most new businesses don’t make a profit within
consume a diverse array of content is equally so. This the first year, by setting money aside for this contingency,
content can be in the form of podcasts, books, articles or entrepreneurs can help mitigate the risk of falling short of
lectures. The important thing is that the content, no matter funds. Related to this, it’s essential to keep personal and
the channel, should be varied in what it covers. business costs separate, and never dip into business funds to
 An aspiring entrepreneur should always familiarize himself cover the costs of daily living.
with the world around him so he can look at industries with
a fresh perspective, giving him the ability to build a business
around a specific sector.
4. Identify a Problem to Solve
 An aspiring entrepreneur should always familiarize himself
with the world around him so he can look at industries with
a fresh perspective, giving him the ability to build a business
around a specific sector.
 Through the identification of a problem, an aspiring
entrepreneur is able to build a business around solving that
problem. It is important to combine steps three and four, so
it is possible to identify a problem to solve by looking at
various industries as an outsider. This often provides an
aspiring entrepreneur with the ability to see a problem others
might not.
5. Solve That Problem
 Successful startups solve a specific pain point for other
companies or for the public. This is known as "adding value
within the problem." Only through adding value to a specific
problem or pain point does an entrepreneur become
successful.
 Say, for example, you identify the process for making a
dentist appointment is complicated for patients, and dentists
are losing customers as a result. The value could be to build
an online appointment system that makes it easier to book
appointments.
TRAITS OF SUCCESSFUL ENTREPRENEURSHIP
1. Passion to Action
 Giving credence to the adage, “find a way to get paid for the
job you’d do for free,” passion is arguably the most
important component startup business owners must have,
and every edge helps. While the prospect of becoming your
own boss and raking in a fortune is alluring to
entrepreneurial dreamers, the possible downside to hanging
one’s own shingle is vast.
 Income isn’t guaranteed, employer-sponsored benefits go by
the wayside, and when your business loses money, your
personal assets can take a hit—not just a corporation’s
bottom line. But adhering to a few tried and true principals
can go a long way in diffusing risk.
2. Getting Your Hands Dirty
 When starting out, it’s essential to personally handle sales
and other customer interactions whenever possible. Direct
client contact is the clearest path to obtaining honest
feedback about what the target market likes and what you
could be doing better.
 If it’s not always practical to be the sole customer interface,
entrepreneurs should train employees to invite customer
comments as a matter of course. Not only does this make
customers feel empowered, but happier clients are more
likely to recommend businesses to others.
3. Knowing When to Change Course
 Few successful businesses owners find perfect formulas
straight out of the gate. On the contrary: ideas must morph
over time. Whether tweaking product design or altering food
items on a menu, finding the perfect sweet spot takes trial
and error.
 Former Starbucks Chairman and (Chief Executive Officer)
CEO Howard Schultz initially thought playing Italian opera
music over store speakers would accentuate the Italian
coffeehouse experience he was attempting to replicate. But
customers saw things differently. As a result, Schultz
TOPIC 2: ENTREPRENEURIAL MINDSET AND QUALITIES From accountability to resilience, you will continue to move
forward through failure, mistakes, and upsets.
WHAT IS AN ENTREPRENEURIAL MINDSET?  This is accomplished with humility. Along with humility
 It is a way of thinking that enables you to overcome comes coachability (the ability to be coached). If you want
challenges, be decisive, and accept responsibility for your to accomplish big things in life, you need to be willing to
outcomes. It is a constant need to improve your skills, learn learn from others and nourish a growth mindset. To do big
from your mistakes, and take continuous action on your things, you need to grow. To grow, you need to learn.
ideas. Anyone willing to do the work can develop an  No matter what you are trying to accomplish, someone
entrepreneurial mindset. already has done it before you. Thinking like an
CHARACTERISTICS THAT MAKE A STRONG entrepreneur means seeking out mentors and coaches who
ENTREPRENEURIAL MINDSET have been where you are trying to go and having the
1. Decisiveness humility to accept their guidance.
 To succeed as an entrepreneur, you must gain the ability to QUALITIES OF SUCCESSFUL ENTREPRENEURS
look at a problem or situation, digest all available data at that 1. Passion
point in time, and make a confident decision to move  This is the most significant characteristic that every
forward. Your ability as a decision-maker will make or entrepreneur has, and for obvious reasons. They are
break your future successes. successful because they love what they do. These
 In fact, at the opposite end, indecision is one of the greatest entrepreneurs put all the extra hours they have into the
causes of business failure. When you can’t decide what to business to make it successful and flourish.
do, you delay taking action. In other words, you do nothing. 2. Strong Work Ethic
Think about how many dreams and businesses that failing to  Entrepreneurs who are successful make sure that they are
take action has killed. always the one who is first to the office and the last one to
2. Confidence leave. These people are those who ensure that they come to
 There are many skills you will need to learn to accomplish the office during their off days, if needed, just to ensure that
everything you want in life. But how do you act confidently the outcomes meet their expectations.
when you don’t know what you are doing? You learn to act  Successful entrepreneurs are those who always have their
with confidence, the second characteristic of the mind in their work, even if they are not in their workplace.
entrepreneurial mindset. And one the of the most important 3. Strong People Skills
qualities of an entrepreneur.  A successful entrepreneur is someone who has excellent
 It is essential that you get used to the uncomfortable feeling communication skills for selling the products to customers
of knowing that you don't know what you’re doing. Whether and motivating the employees. Yes, most entrepreneurs who
it's getting on stage to speak, launching your product, or have the power to motivate their employees can see their
learning how to start a blog and publishing your ideas to the business grow within no time.
world, we tend to see others doing it and incorrectly assume  These entrepreneurs are also great at instructing others to be
they've always been good at it. successful and highlighting the advantages of any situation.
3. Accountability 4. Determination
 The entrepreneurial mindset comes from taking  The successful entrepreneurs are never greatly impacted by
responsibility for your actions and outcomes. You need to the defeats they encounter. For them, failure is like an
internalize and accept that: Everything that happens at work opening for a success story, and hence, they try again and
you are responsible for. Everything that happens to your again just till they get the success they are expecting.
business YOU are responsible for. And whether you succeed Moreover, these entrepreneurs are not wired to believe that
or fail, it is YOUR responsibility. some things are not possible and cannot be done.
 From this moment forward, you must accept responsibility 5. Creativity
for everything in your life and hold yourself accountable to  One of the main aspects of creativity is the ability to find a
it. Sorry to tell you, but nobody cares how little time, relationship between two unrelated situations or events.
money, or external support you have to accomplish your They usually come up with the solution of these problems
goals. Your circumstances may not be your fault, but they that are a combination of other things. These people
are your responsibility. All that matters is what you are normally re-purpose the items for marketing them to new
doing RIGHT NOW to find your success. industries.
 There are no more excuses. Accountability is required of 6. Competitiveness
entrepreneurs as well as successful employees. Stop passing  The number of companies formed are increasing every
the buck and blaming others. Hold yourself accountable – month and every year, as every entrepreneur feels that they
even when you aren’t to blame – and take action to fix the can do a much better job than others. They run with the aim
problem. that they need to win at the sport they play and win the
 The entrepreneurial mindset requires you to take complete business that they are creating or have created. It is an
control and hold yourself accountable to your outcomes – entrepreneur that highlights the track record of success of
both good and bad. As James Altucher said on the podcast, their company.
life is a sentence of failures punctuated with brief successes. 7. Self-Starter
4. Resilience  Every successful entrepreneur knows that if something has
 As an entrepreneur, you will need to learn to deal with to be done, it needs to be done by themselves. Parameters
making mistakes and failing. They are inevitable and a part are set by them, and they ensure that the projects are
of your growth. If every misstep plummets you into self- following that path. They do not wait for someone to permit
doubt, you have to change the way you look at being wrong. them and are highly proactive.
This mindset shift takes resilience and is foundational to the 8. Open Minded
entrepreneurial mindset.  For those entrepreneurs that are successful or are following
 Success rarely happens in a straight line. Taking wrong turns others who have been successful, understand that each
and making mistakes is something that happens to everyone. situation and event is a business opportunity. There are new
Resilience isn’t only helpful when dealing with catastrophic ideas that continually come out regarding new potential
mistakes. It’s a way to handle the small, simple decisions businesses, people skills, efficiency, and workflows. These
you’ve made that didn’t turn out right. Resilience enables people have the capability to see all that is around them and
you to think, act, and move iteratively making small, direct the focus towards their objectives and goals.
incremental corrections along the way. 9. Confidence
5. Humility  A successful entrepreneur never asks the question or keeps
 Humility is freedom from pride or arrogance, and it ties all doubts in their mind about if they can succeed or if they are
of the characteristics of entrepreneurship. From decisiveness even worthy of success. They are normally confident enough
to confidence, humility will keep you focused and centered. that their knowledge and their know-how will help them
 make their business idea a success. And they radiate this
confidence in everything that they do for the business.
10. Disciplined
 Successful entrepreneurs always focus their energy on
making the business work, and for eliminating the
distractions or obstacles to their goals. Their overarching
strategies help them to reach the goals they have while they
outline the plan to achieve the final outcome.
 Moreover, entrepreneurs become successful as they are
disciplined to always make new steps every day towards
the accomplishment of their goals.
ONGOING LEARNING
 Other than these traits, every successful entrepreneur just
wants to see what is at the top of the business mountain and
they will pick up everything they get on the path while on
their way up. But that is not where their determination ends.
As soon as they see it, they want to move ahead and see
more.
 TOPIC 3: ENTREPRENEURSHIP AND OPPORTUNITIES  Very similar to rack jobbing. The investment is usually
greater for this type of business opportunity venture since
Definition of Business Opportunity the businessperson must buy the machines as well as the
 A business opportunity, in the simplest terms, is a packaged merchandise being vended, but here the situation is
business investment that allows the buyer to begin a reversed in terms of the pay procedure.
business. Technically, all franchises are business  The vending machine operator must pay the location owner
opportunities, but not all business opportunities are a percentage based on sales. The big secret to any route
franchises. deal is to get locations in high-foot-traffic areas, and of
 Unlike a franchise, however, the business opportunity seller course, as close to one another as possible. If your locations
typically exercises no control over the buyer's business are spread far apart, you waste time and traveling expenses
operations. In fact, in most business opportunity programs, servicing them.
there's no continuing relationship between the seller and the 4. Dealer
buyer after the sale is made.  Similar to a distributor but while a distributor may sell to a
 Although business opportunities offer less support than number of dealers, a dealer will usually sell only to a
franchises, this could be an advantage for you if you thrive retailer or the consumer.
on freedom. Typically, you won't be obligated to follow the 5. Trademark/product Licenses
strict specifications and detailed program that franchisees  Under this type of arrangement, the licensee obtains the
must follow. right to use the seller's trade name as well as specific
 With most business opportunities, you would simply buy a methods, equipment, technology or products. Use of the
set of equipment or materials, and then you can operate the trade name is purely optional.
business any way and under any name you want. There are 6. Network Marketing
no ongoing royalties in most cases, and no trademark rights  This is a generic term that covers the realm of direct sales
are sold. and multilevel marketing. As a network marketing agent,
Parameters that may be Included in Business Opportunities you would sell products through your own network of
 A business opportunity involves the sale or lease of any friends, neighbors, co-workers and so on. In some
product, service, equipment and so on that will enable the instances, you may gain additional commissions by
purchaser-licensee to begin a business. recruiting other agents.
 The licenser or seller of a business opportunity declares that 7. Cooperatives
it will secure or assist the buyer in finding a suitable  This business is similar to a licensee arrangement in which
location or provide the product to the purchaser-licensee. an existing business, such as a hotel or hardware store, can
 The licenser-seller guarantees an income greater than or affiliate with a larger network of similar businesses, often
equal to the price the licensee-buyer pays for the product for the sole purpose of advertising and promoting through a
when it's resold and that there's a market present for the common identity.
product or service.
 The initial fee paid to the seller to start the business Entrepreneurial Opportunities for Business Expansion
opportunity may be set by a government policy. 1. Invest in Multiple Businesses
 The licenser-seller promises to buy back any product 2. Angel Investors
purchased by the licensee-buyer in the event it can't be sold 3. Crowdfunding
to prospective customers of the business. 4. Startup Incubators
 Any product or service developed by the seller-licenser will 5. Quality Content
be purchased by the licensee-buyer. 6. The Social Power of the Internet
 The licenser-seller promises to buy back any product 7. Foreign Markets
purchased by the licensee-buyer in the event it can't be sold
to prospective customers of the business. 1. Invest in Multiple Businesses
 The licenser-seller of the business opportunity will supply a  Most self-made billionaires are people who invested in
sales or marketing program for the licensee-buyer that many different business opportunities at once instead of
many times will include the use of a trade name or focusing on just one idea. While there are also plenty of
trademark. business owners who have focused on one idea and
Types of Entrepreneurial Opportunities succeeded, it is harder to do this and if you fail, many more
1. Distributorship of your resources are lost.
2. Rack Jobber  For the first-time entrepreneur, instead of taking an idea
3. Vending Machine Routes from the ground up, it may be more appealing to run other
4. Dealer businesses and be a part of their inception, limiting your
5. Trademark/product Licenses risk without limiting your opportunity for profit.
6. Network Marketing 2. Angel Investors
7. Cooperatives  These investors are becoming more popular than venture
capitalists in some industries, and the money that comes
1. Distributorship from them generally has far fewer strings attached or
 It refers to an independent agent that has entered into an expectations than bank loans and money from venture
agreement to offer and sell the product of another but is not capitalists.
entitled to use the manufacturer's trade name as part of its  These investors can be great resources for the entrepreneur
trade name. looking to stress less about funding and focus on product
 Depending on the agreement, the distributor may be limited and customer loyalty and service, and angel investors are
to selling only that company's goods or it may have the backing the market in a way that has not been seen before.
freedom to market several different product lines or 3. Crowdfunding
services from various firms.  Another funding method that is changing the landscape of
2. Rack Jobber all industries' markets is crowdfunding. Sites like
 Involves the selling of another company's products through Kickstarter have made it possible for entrepreneurs to
a distribution system of racks in a variety of stores that are circumvent the need for traditional loans and investors and
serviced by the rack jobber. Typically, the agent or buyer instead go straight to their customers to inquire about
enters into an agreement with the parent company to market interest level and garner the funds necessary to produce
their goods to various stores by means of strategically their wares and distribute them to interested parties.
located store racks.  This has encouraged more innovation and diversity in the
 The parent company obtains a number of locations in which marketplace, and has done quite a bit to level out the
the racks are placed on a consignment basis. It's up to the playing field between competitors--and help to negate the
agent to maintain the inventory, move the merchandise edge that comes with being well connected versus starting a
around to attract the customer, and do the bookkeeping. business from next to nothing.
 The agent presents the store manager with a copy of the 4. Startup Incubators
inventory control sheet which indicates how much  The founders of startup incubators function similarly to
merchandise was sold, and then the distributor is paid by angel investors in that they provide many resources for a
the store or location which has the rack-less the store's startup to begin its journey with very few strings attached
commission. and kickback expected in return. Though not all startup
3. Vending Machine Routes incubators operate in terms of funding, they can provide
 other much-needed services like office space, professional
seminars, access to industry professionals, or access to the
means of production to give startups of all kinds an
opportunity to accomplish their mission. These programs
are highly competitive, however, and your startup will need
to apply to take advantage of them.
5. Quality Content
 Producing quality content will always set your business
ahead of the curve. Good content can be found everywhere
nowadays, and providing great content has become easier
with the proliferation of ghostwriting networking websites
that also allow for quality designers and filmmakers to sell
their work to businesses looking to creatively reach out and
connect with their customers. Making good content is going
to be your biggest in to making new sales, which means
that producing good content is an opportunity that every
startup owner should be jumping on to give his or her
business an edge.
6. The Social Power of the Internet
 Strategically placing your business and brand in the center
of conversations and creating a culture around your brand
will effectively separate your business from your
competition's by truly connecting to customers on issues
they care about.
7. Foreign Markets
 Foreign markets, especially the Chinese one, have seen
exponential growth in the past few years. Any startup
owners that know how to recognize this opportunity for
what it truly is--access to the largest market on earth--will
be thanking themselves all the way to the bank.