Becoming An Entrepreneur

Becoming an Entrepreneur

Reel Classics

Vintage Movies Memorabilia

Coordinator: Prof. Anca MÐ"Ñžndruleanu

Student: Chioibasu Cristina

Series A, Group 112

TABLE OF CONTENTS

PART I. Theoretical Support

What is entrepreneurship? .................................................................... p. 2

Reasons for becoming an entrepreneur .................................................. p.2

Entrepreneurship’s importance .............................................................p.3

The entrepreneurial process ....................................................................p.4

PART II. Implementing the business idea

Business opportunity recognition ..........................................................p.6

Business Profile ....................................................................................p. 7

Feasibility Analysis ..............................................................................p.8

Plans for further growth and development ..........................................p. 16

REFERENCES ..................................................................................p. 19

PART I. THEORETICAL SUPPORT

What is entrepreneurship?

Entrepreneurship is the process by which individuals pursue opporutnities without regard to resources they currently control. The essence of entrepreneurial behaviour is identifying opportunities and putting useful ideas into practice. The tasks called for by this behaviour can be accomplshed by either an individual or a group and typically requires creativity, drive, and willingness to take risks.

Reasons for becoming an entrepreneur

There are three main reasons that generate the impulse for people to want to become entrepreneurs and start their own firms are being their own boss, pursue their own ideas, and acquire financial rewards.

Be their own boss. The first of these three reasons вЂ" being one’s own boss вЂ" is encountered most commonly. This doesn’t mean, however, that entrepreneurs are difficult to work with or that they have trouble accepting authority. Instead, entrepreneurs want to be their own boss because either they have had a long-time ambition to own their own firm or because they have become frustrated working in traditional jobs.

Pursue their own ideas. The second reason people start their own business is to pursue their own ideas. Some people are naturally alert, and when they recognize ideas for new products or services, they have the desire to see those ideas materialized. Corporate entrepreneurs who innovate within the context of an existing firm typically have a mechanism for their ideas to become known. Established firms, however, often resist innovation. When this happens, employees are left with good ideas that go unfulfilled. Because of their passion and commitment, some employees choose to leave the firm employing them in order to start their own business as the means to develop their own ideas.

Pursue financial rewards. Ultimately, people start their own business to pursue financial rewards. This motivation, however, is typically secondary to the first two and often fails to live up to its hype. The average entrepreneur does not make more money than someone with a similar amount of responsibility in a traditional job. Some entrepreneurs even report that the financial rewards associated with entrepreneurship can be bittersweet if they are accompanied by losing control of their firm.

Characteristics of Successful Entrepreneurs

Although many behaviors have been ascribed to entrepreneurs, several are common to those who are successful. Those in new ventures and those who are already part of an entrepreneurial firm share these qualities, which I am going to enlarge upon within the next section.

Passion for the business. The number-one characteristic shared by successful entrepreneurs is the passion for their business, whether it is in the context of a new firm or an existing business. The passion typically stems for the entrepreneur’s belief that the business will positively influence people’s lives. This passion explains why people leave secure jobs to start their own firms and why billionaires such as Bill Gates, Michael Dell of Dell Inc., and Larry Page and Sergei Brin of Google continue working after they are financially secure. Passion is particularly important for entrepreneurs because although rewarding, the process of starting and building a new firm is demanding. Entrepreneurship isn’t for the person who us only partially committed.

Product/Customer focus. This concept underscores an understanding of the two most important elements in any business вЂ" products and customers. While it is important to think about management, marketing, finance, and the like, none of those functions makes any difference if a firm does not have good products with the capability to satisfy customers. An entrepreneur’s keen focus on products and customers typically stems from the fact that most successful entrepreneurs are, at heart, craftspeople. They are obsessed with making products that can satisfy customer’s need. This is an important point to remember , particularly in an era when it is tempting to envision new businesses resulting from every advance in technology.

Tenacity despite failure. Because entrepreneurs are typically trying something new, the failure rate associated with their efforts is naturally high. In addition, the process of developing a new business is somewhat similar to what a scientist experiences in the laboratory. Developing a new business idea may require a certain degree of experimentation before success is attained. Setbacks and failures inevitably occur during this process. The ultimate test for entrepreneurs is their ability to persevere through setbacks and failures. Furthermore, tenacity