Presented by

Group 1



ENTREPRENEUR: The term entrepreneur has
been derived from the French word
entreprenere means to undertake a business
venture. Entrepreneurs are simply those who
understand that there is little difference
between obstacle and opportunity and are able
to turn both their advantage. Niccolo
Machiavelli.

ENTREPRENEURSHIP: It is the process of
creating something new, with value, by
devoting the necessary time and effort,
assuming the accompanying financial,
psychic, and social risk, and receiving the
resulting rewards monetary and personal
satisfaction and independence.

The new venture process begins with an idea for a
product, service, or business.

The environment is the most comprehensive
component in the venture creation process. It
includes all the factors that affect the decision to
start a business. for example government
regulation, competitiveness, and life cycle stage.


There are static and dynamic forces which
need a special attention of the entrepreneur.
Entrepreneur needs to manage for changes
and not changes. The growth stage of the
venture is more sophisticated with
competition and dilemmas. At a certain
stage, you need to decide whether to do
more innovation or allow decline.

Life cycle of entrepreneurial firms: Birth stage
Breakthrough stage, Maturity stage, decline
stage. Each stage poses different managerial
challenges and requires different managerial
competencies.


New venture development stage
Start up stage
Growth stage
Stabilization stage
Innovation or decline stage.
Creativity and assessment, Resource base
analysis, Networking including marketing,
developing Vision, Mission, Objectives,
Strategies & Tactics.
Formal Business plan ,Searching for capital
(Analyze the risks), marketing research,
Developing a working team, Identifying any
core competencies for Competitive
Advantage.
Any modification on the operating strategy
Positioning and re-positioning Knowing more
details about the competitors (Survival of the
fittest).
Increased competition, High bargaining
power of customers, Saturation of the
market.
The entrepreneur needs to think where will
the business be in the near future It is a
stage preceding a great dilemma: to innovate
or exit the business.
Without innovation the clear option is
death Possibility of acquiring or being
acquired Might design new products for new
markets (Diversification).


. It is more likely to represent spikes of
growth and contraction rather than rounded
peaks. For example many small businesses
have relatively few customers, so that the
addition of one new significant client will
lead to a sudden growth spurt. Conversely,
the loss of one large client can significantly
shrink the size of the business.

The transition from one stage to another
does not necessarily take place in the order
predicted by the model. Economic or trade
cycles outside the control of the firm may
contribute substantially to the growth or
decline of an enterprise at any time
irrespective of the stage of development.
The contention that the transition from one
stage to the next is triggered by a particular
kind of crisis has not been tested through
empirical research. The development of an
enterprise is likely to be subject to many
different internal and external variables so
that isolating one primary cause for the
evolution of a firm from one stage to another
is an over simplification of a very complex
process.


Many enterprises reach a stable size and
never make the transition out of this phase.
Once they have developed a business to a
stage of survival, life-style entrepreneurs will
have little motivation to grow it further.
Some take deliberate steps to avoid growth
which they see as threatening the very
independence they sought when they created
the enterprise.