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1
Learning Objectives
1. Explain the role of entrepreneurs and how
external factors impact their ventures.
2. Describe the personal attributes that contribute
to entrepreneurs’ success.
3. Outline the planning essentials for potential
entrepreneurs.
4. State the role of intrapreneurs and how
organizations can foster intrapreneurship.

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2
Learning Objective 1. Explain the role of
entrepreneurs and how external factors impact
their ventures.
1. Who are Entrepreneurs?
2. How do external factors Affect
Entrepreneurs
3. Is a small Business Owner an Entrepreneur?
]

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Entrepreneurs and External Factors
• Entrepreneurs create something for the purpose
of gain while accepting the risk and
uncertainty associated with their ventures.
• Entrepreneurs typically incorporate at least one
of the following:
– Something new
– Something better
– An underserved or new market
– New delivery system or distribution channel

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Entrepreneurs and External Factors (Cont)
Factors unique to Entrepreneurship
– Highly regulated governmentally controlled
markets severely limit entrepreneurship
– Rates of entrepreneurship rise and fall with
changes in economic conditions
– Support system affects rate of entrepreneurship
(availability of investment capital, loans, tax rates
and policies and support services

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Entrepreneurs and External Factors (cont.)
• Business incubators are organizations designed to
accelerate the growth and success of entrepreneurial
companies through an array of business support
resources and services.
• Common features found in business incubators
include:
– An existing building is used to accommodate tenants
– Tenants are offered below-market rent and flexible lease
arrangements
– Incubator provides shared services
– Incubator fosters psychological or moral support

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6
Entrepreneurs and External Factors (cont.)
• Small business owners refer to anyone who
owns a major equity stake in a company with
fewer than 500 employees.
• A family business is one owned and managed
mostly by people who are related by blood
and/or marriage.
– Each of these may or may not be considered an
entrepreneur

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Common Attributes of Successful Entrepreneurs
(adapted from Figure 5.1)
Personal
Attributes
• Need for Achievement
• Desire for Independence
• Self-Confidence
• Self-Sacrifice
Technical Proficiency
Attributes
• Strong Technical Skills are
Usually Demonstrated by
Entrepreneurs
Managerial
Competencies Attributes
• Strategic Action Competency
• Planning and Administration
• Teamwork Competency
• Communication Competency
• Self-Management Competency
Successful
Entrepreneurs

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Learning Objective 3. Outline the planning
essentials for potential entrepreneurs.
1. The Business Plan
2. Starting Business Strategies
3. Assessing Affordable Loss
4. Finding Funds
5. Going Global
6. Managing a family business

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Planning Essentials for Entrepreneurs
• A business plan describes the basic idea that is
the foundation for the start-up and outlines
how that idea can be turned into reality.

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Business Plan
1. Executive Summary – What, How, Why and When must be summarised
2. Business Description Component –
a. The name of the business,
b. The potential and uniqueness of the new venture
3. Production Operations Component –
a. Description of the products
b. How the products are produced (Input – Output)
c. Machineries needed to produce the products
3. Marketing Component –
a. Convince investors that sales projections and competition can be met
b. Identify target market, market position, market share, pricing strategy
c. Evaluate all competition and state why and how you will be better than your
competitors
d. Identify advertising plans with cost estimates

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Business Plan (Cont)
4. Location Component:
a. Describe the advantages of your loc (zoning, tax laws, wage rate)
b. List the production needs (plant, storage, office space etc) and
equipment (machinery, furnishings and supplies)
c. Describe the access to transportation and labour
d. Indicate proximity to your supplier
5. Management Component
a. Supply resumes’ of all key people in the management of your
venture
b. Describe the legal structure of your venture (partnership or
corporation)
c. Give information on how and how much everyone is to be
compensated

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Business Plan (Cont)
6. Financial Component:
a. Describe the needed sources for your funds
and the uses you intend for the money
b. Develop an estimated budget, cash flow
statement, profit and loss statement
c. Create stages of financing for purposes of
allowing evaluations by investors at various
points

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Business Plan (Cont)
7. Potential Critical Risk Component:
a. Any potentially unfavourable industry-wide
trends e.g price cutting by competitors
b. Design or manufacturing costs in excess of
estimates
c. Sales projection not achieved
d. Product development schedule not met
e. Provide some alternatives courses of action

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Business Plan (Cont)
8. Milestone Schedule Component:
a. Develop a timetable or chart to demonstrate when
each phase of the venture is completed
9. Appendix or Bibliography

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15
Questions for Discussions Kink BMX
1. How did external forces play a role in the
success of Kink BMX?
2. What Personal Attributes of Aaron Philips
appeared to contribute to the start up success
of Kink BMX?
3. What competencies does Philips appear to
possess?
4. What factors were probably important in the
decision to sell Kink BMX products abroad?

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Q & A

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