ENTREPRENEURSHIP SAT

1. What Is Entrepreneurship?
The concept of entrepreneurship was first established in the 1700s, and the meaning has evolved ever
since.

 Many simply equate it with starting one’s own business.
 The entrepreneur is one who is willing to bear the risk of a new venture if there is a significant
chance for profit.
 Others emphasize the entrepreneur’s role as an innovator who markets his innovation.
 Still other economists say that entrepreneurs develop new goods or processes that the market
demands and are not currently being supplied.



2. PROBLEM SOLVING CYCLE
 Contact with problem
 Clear understanding of the problem
 Definition of the objective
 Elaboration of strategies
 Allocation of resources
 Action
 Evaluation
 Success/ failure
Note the above problem should be in a circle form and in the center is information seeking and
creativity

3. PERSONAL ENTREPRENEURIAL QUALITIES

What Makes Someone an Entrepreneur?

Successful entrepreneurs usually possess some or all of the following qualities

 Information seeking
 Creativity
 Opportunity seeking
 Internal Locus of control
 Self confidence
 Ambiguity tolerance
 Decision taking
 Moderate Risk Taking
 Responsibly / Acceptance
 Persistence
 Learning from failure

Personal attribute of an entrepreneur includes:

,  Creativity is the spark that drives the development of new products or services or ways to do
business. It is the push for innovation and improvement. It is continuous learning, questioning,
and thinking outside of prescribed formulas.
 Dedication is what motivates the entrepreneur to work hard, 12 hours a day or more, even
seven days a week, especially in the beginning, to get the endeavor off the ground. Planning and
ideas must be joined by hard work to succeed. Dedication makes it happen.
 Determination is the extremely strong desire to achieve success. It includes persistence and the
ability to bounce back after rough times. It persuades the entrepreneur to make the 10 th phone
call, after nine have yielded nothing. For the true entrepreneur, money is not the motivation.
Success is the motivator; money is the reward
 Flexibility is the ability to move quickly in response to changing market needs.
 Leadership is the ability to create rules and to set goals. It is the capacity to follow through to
see that rules are followed and goals are accomplished.
 Passion is what gets entrepreneurs started and keeps them there. It gives entrepreneurs the
ability to convince others to believe in their vision.
 Self-confidence comes from thorough planning, which reduces uncertainty and the level of risk.
It also comes from expertise. Self-confidence gives the entrepreneur the ability to listen without
being easily swayed or intimidated.
 Smarts” consists of common sense joined with knowledge or experience in a related business or
endeavor.

Personal entrepreneurial characteristics (PECs)

These are Personal Entrepreneurial Characteristics (PECs)

1. Achievement group
 OPPORTUNITY SEEKING
 PERSISTANCE
 COMMITMENT TO WORK CONTRACT
 DEMAND FOR QUALITY AND EFFICIENCY
 (Calculated) RISK TAKING

2. Planning group
 INFORMATION SEEKING
 GOAL SETTING
 SYTEMATIC PLANNING & MONITORING
2. Power group
 PERSUASION AND NETWORKING
 SELF CONFIDENCE

4. GOAL SETTING
Goals should be smart:
 Specific
 Measurable
 Ambitious
 Realistic