MGT602 Handouts by VUBuddy

Table of Contents

Lesson

Page No.

Title / Topic

1 Introduction 2 The Nature and Importance of Entrepreneurship 3 Entrepreneurial Process/ Start up 4 The Entrepreneurial and Intrapreneurial Mind 5 The Entrepreneurial and Intrapreneurial Mind (Contd...) 6 The Entrepreneurial and Intrapreneurial Mind (Contd...) 7 The Entrepreneurial and Intrapreneurial Mind (Contd...) 8 The Individual Entrepreneur 9 The Individual Entrepreneur (Contd...) 10 The Individual Entrepreneur (Contd...) 11 International Entrepreneurial Opportunities 12 International Entrepreneurial Opportunities 13 International Entrepreneurial Opportunities (Contd...) 14 International Entrepreneurial Opportunities (Contd...) 15 International Entrepreneurial Opportunities (Contd...) 16 Creativity and Business Idea 17 Creativity and the Business Idea 18 Legal Issues for the Entrepreneur 19 Legal Issues for Entrepreneur (Contd...) 20 Legal Issues for the Entrepreneur (Contd...) 21 Creating and Starting the Venture 22 Creating and Starting the Business Venture (Contd...) 23 Creating and Starting the Venture (Continued) 24 Creating and Starting the Business Plan Continued) 25 The Marketing Plan 26 The Marketing Mix 27 The Organizational Plan 28 The Organizational Plan (Continued) 29 The Organization Plan (Contd...) 30 The Financial Plan 31 The Financial Plan (Continued...) 32 Pro Forma Sources and Uses of Funds 33 Pro forma Sources and Uses of Funds 34 Bank Lending Decision 35 Sources of Capital 36 Sources of Capital (Contd...) 37 Capital Sources in Pakistan Preparing for the New Venture Launch: Early Management Decisions 38 (Contd...) No. 39 Preparing for the New Venture Launch: Early Management Decisions (Contd...) 40 Preparing for the New Venture Launch: Early Management Decisions (Contd...) 41 Preparing for the New Venture Launch: Early Management Decisions (Contd...) 42 Preparing for the New Venture Launch: Early Management Decisions (Contd...) 43 New Venture Expansion Strategies and Issues 44 New Venture Expansion Strategies and Issues (Contd...) 45 Entrepreneurship and Pakistan

INTRODUCTION Lesson 01

1. 2. 3. 4. 5.

1. To introduce the concept of entrepreneurship and its historical development.
2. To explain the entrepreneurial decision process.
3. To identify the basic types of start-up ventures.
4. To explain the role of entrepreneurship in economic development.
5. To discuss the ethics and racial responsibility of entrepreneurs.

NATURE AND DEVELOPMENT OF ENTREPRENEURSHIP

The term entrepreneur comes from the French and translates "between-taker" or "go-between."

Earliest Period

In this period the money person (forerunner of the capitalist) entered into a contract with the go-between to sell his goods. While the capitalist was a passive risk bearer, the merchant bore all the physical and emotional risks.

Middle Ages

In this age the term entrepreneur was used to describe both an actor and a person who managed large production projects. In such large production projects, this person did not take any risks, managing the project with the resources provided. A typical entrepreneur was the cleric who managed architectural projects.

17th Century

In the 17th century the entrepreneur was a person who entered into a contract with the government to perform a service Richard Cantillon, a noted economist of the 1700s, developed theories of the entrepreneur and is regarded as the founder of the term. He viewed the entrepreneur as a risk taker who "buy[s] at certain price and sell[s] at an uncertain price, therefore operating at a risk."

18th Century

In the 18th century the person with capital was differentiated from the one who needed capital. In other words, entrepreneur was distinguished from the capital provider. Many of the inventions developed during this time as was the case with the inventions of Eli Whitney and Thomas Edison were unable to finance invention themselves. Both were capital users (entrepreneurs), not capital providers (venture capitalists.) Whitney used expropriated crown property. Edison raised capital from private sources. A venture capitalist is a professional money manager who makes risk investments from a pool of equity capital to obtain a high rate of return on investments.

19th and 20th Centuries

In the late 19th and early 20th centuries, entrepreneurs were viewed mostly from an economic perspective. The entrepreneur "contributes his own initiative, skill and ingenuity in planning, organizing and administering the enterprise, assuming the chance of loss and gain." Andrew Carnegie is one of the best examples of this definition, building the American steel industry on of the wonders of industrial world, primarily through his competitiveness rather than creativity. In the middle of the 20th century, the notion of an entrepreneur as an innovator was established.