Lecture 08b GEB 1011 Chapter 5 Entrepreneur (the person)

Rev. 01/28/2011

1.0 Personal tra ts an! character st cs o" success"ul entrepreneurs. !r ven b# !eter$ nat on to ach eve a v s on ab l t# to see opportun t# %here others see noth n& loves the en'o#$ent o" overco$ n& r s( s a sel" starter loves to co$pete s able to !eter$ ne r s( an! has the coura&e/con" !ence to ta(e a calculate! r s( but s not a &a$bler s n!epen!ent an! sel")con" !ent* #et (no%s %hen an! %here to &et help s able to !o $an# th n&s at once l (es a challen&e s creat ve* an! has !rea$s an! &oals har!%or( n& an! % ll n& to st c( % th a pro'ect to the en! s not eas l# ! scoura&e! s n &oo! health* has lots o" ener&# an! can han!le stress has a stron& sense o" sel")%orth s $ot vate! b# a stron& !es re to ach eve an! atta n " nanc al success s a pos t ve th n(er %ho !oes not !%ell on setbac(s "ocuses on the chance o" success rather than the chances o" "a lure o"ten has a close "r en! or relat ve %ho o%ns a bus ness s o"ten a recent $$ &rant to the +n te! ,tates (% th n t%o &enerat ons) has nterpersonal s( lls* lea!ersh p s( lls* an! persuas on s( lls to &et people to "ollo% the$ part cularl# nvestors s not constra ne! b# lac( o" resources but !ent " es ho% to ac-u re the$ 2.0 .he entrepreneur/s tas( reco&n 0e an! e1plo t opportun t es the relentless pursu t o" opportun t# sees opportun t# as the reco&n t on o" a !es re! "uture state nvolv n& chan&e an! &ro%th an! bel eves that ach eve$ent o" that state s poss ble sources o" opportun t# a. the une1pecte!2 ncon&ru t es n the relat onsh p a$on& n!ustr# " r$s an! custo$ers b. the process2 chan&es n n!ustr# or $ar(et structure* !e$o&raph c sh "ts* an! co$pet t ve pressures c. the technolo&#2 ne% technolo&# can create ne% pro!ucts* ne% processes* an! ne% $ar(ets

!. the &overn$ent re&ulat ons2 chan&es n !o$est c re&ulat ons* an! chan&es n nternat onal relat ons the entrepreneur $ust be an $ple$enter* that s* the# $ust be able to $ove "ro$ concept to real t# b# be n& respons ve to ob'ect ve (no%le!&e !er ve! "ro$ the env ron$ent* n essence balanc n& the r personal or ntu t ve (no%le!&e % th the e1ternal or ob'ect ve (no%le!&e althou&h creat ve people an! success"ul entrepreneurs share certa n character st cs * not all creat ve people are entrepreneurs nor are all entrepreneurs creat ve

3.0 Co$par n& the entrepreneur an! the a!$ n strat ve $ana&er. ,tatus 4uo )) the entrepreneur s ntereste! n chan& n& the status -uo* %hereas the a!$ n strat ve $ana&er s ntereste! n protect n& an! $a nta n n& the status -uo Personal ,( lls )) the entrepreneur s s( lle! n ntu t on (env s on n& poss b l t es) an! e$ot on ( appeal n& to others to 'o n the cause)* %hereas* the a!$ n strat ve $ana&er s s( lle! n us n& rat onal th n( n& an! "ollo% n& ver# !eta l or entate! account n& pract ces 5ana&e$ent ,t#le )) entrepreneurs pre"er loosel# structure! part c pat ve or&an 0at ons* %hereas* a!$ n strat ve $ana&ers pre"er "or$al structure! or&an 0at ons %here there are no surpr ses 6verlap )) the roles o" entrepreneur an! the role o" a!$ n strat ve !o overlap. Entrepreneurs %ho start co$pan es $ust use $ana&er al s( lls to $ple$ent the r v s ons* %hereas* a!$ n strat ve $ana&ers $ust use entrepreneur al s( lls to $ana&e chan&e an! to nnovate. .he ssue nvolves the co$b nat on o" $ana&er al an! entrepreneur al tra ts n response to a & ven personal t#* env ron$ent* an! set o" opportun t es. 7.0 8hat s 6pportun t#9 6pportun t es are about creat n& value "or the custo$er. : n! an un"ul" lle! nee! an! suppl# t at a pro" t. ;ot ever#one s e-uall# e-u ppe! to perce ve or capture an opportun t#. .he e1per ence o" each n! v !ual $a(es the$ $ore or less able to !ent "# an! capture opportun t#. <n the en! an# $easure o" %hether so$eth n& s a real opportun t# $ust ta(e nto account %hether #ou can $ple$ent t. 5ost people an! co$pan es !o not pursue opportun t# " the# are reasonabl# sat s" e! % th the status -uo. .he $ore co$ple1 an opportun t# s the $ore t s unl (el# to co$e to "ru t on or to %or( n the lon& run. 6pportun t# nee!s to be rare. .oo $an# %ant)to)be entrepreneurs have been lure! nto e""ort an! nvest$ent pursu n& opportun t es that ever#one else has seen too. Re$e$ber "ro$ econo$ cs= the $ore co$pet t ve a $ar(et beco$es* the less >econo$ c pro" t? e1 sts n that

$ar(et. Purel# co$pet t ve $ar(ets* n the lon& run* have 0ero >econo$ c pro" t?. 6pportun t es are not necessar l# the result o" nvent ons b# the entrepreneur. (e1a$ple B ll Gates) 6pportun t es are usuall# !ent " e! b# entrepreneurs throu&h connect on to past e1per ences. 5ost success"ul entrepreneur al opportun t es nvolve the pursu t o" relat vel# s $ple !eas. @o% o"ten !o %e hear= >%h# ! !n/t < th n( o" that?A <n loo( n& "or opportun t#* cons !er not onl# the r s(/return relat onsh p* but also an! probabl# $ore $portantl# pursue #our o%n ob'ect ves. Be prepare! "or har! %or( an! !r ve n or!er to see #our opportun t# throu&h to real t#.