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What is entrepreneurship

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by CONSULT, Apr 20, 2012.

  1. CONSULT

    CONSULT JF-Expert Member

    #1
    Apr 20, 2012
    Joined: May 8, 2011
    Messages: 221
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    [FONT=&amp]What is entrepreneurship[/FONT]

    [FONT=&amp]•Is creating something different with value by devoting time and efforts, and assuming risks for success.[/FONT][FONT=&amp]
    [/FONT][FONT=&amp]•Is a dynamic process of creating incremental wealth [/FONT][FONT=&amp]
    [/FONT][FONT=&amp]•Is the ability to create and build a vision practically from nothing[/FONT]
    [FONT=&amp]Taking risks requires willingness to take both financial and personal risks.[/FONT]
    [FONT=&amp]Behaving "Entrepreneurially" in any endeavour, displaying General Enterprising Tendencies (GETs[/FONT]
    [FONT=&amp]•Commitment and determination •Achievement oriented •Opportunistic •Initiative •Pro-active •Growth oriented •Calculated Risk-taking •Strategic[/FONT][FONT=&amp]
    [/FONT][FONT=&amp]•Creativity and Innovative •Problem solving •Tolerance for failure •Aggressiveness •Hard working •Perseverance •Independent[/FONT]
    [FONT=&amp]•Internal locus of control •Tolerance for ambiguity •Vision •High energy level •Self confidence[/FONT]

    [FONT=&amp]Corporate Intrapreneurship[/FONT]
    [FONT=&amp]•[/FONT][FONT=&amp]Corporate intrapreneurship[/FONT][FONT=&amp] refers to the fostering of entrepreneurial behavior within established companies to product growth and profits.[/FONT]
    [FONT=&amp]•[/FONT][FONT=&amp]Corporate entrepreneurship centers on re-engineering the firm's ability to acquire innovative skills and capabilities [/FONT]
    [FONT=&amp]•[/FONT][FONT=&amp]An [/FONT][FONT=&amp]intrapreneur[/FONT][FONT=&amp] is someone in an organization who champions turning new ideas in profitable realities.[/FONT]
    [FONT=&amp]•[/FONT][FONT=&amp]Is the one who behaves as an entrepreneur within an established organization[/FONT]
    [FONT=&amp]•[/FONT][FONT=&amp]In Pinchot's view intraprenurs make things happen [/FONT]

    [FONT=+mj-ea]What is family Business[/FONT]

    • [FONT=+mn-ea]An organization, which is owned, managed and controlled by family members[/FONT] • [FONT=+mn-ea]It involves[/FONT] [FONT=+mn-ea] - Family ownership and control family[/FONT] [FONT=+mn-ea] - Family influence in decision making[/FONT] [FONT=+mn-ea] - Family members as employees [/FONT] [FONT=+mn-ea] - Intention to transfer the family firm to the next generation[/FONT] • [FONT=+mn-ea]The 'family' factor of a family business is an important characteristic that distinguishes family from non-family firms. [/FONT] • [FONT=+mn-ea]The family factor - family members (spouse, child, nuclear and extended family members) who are involved in ownership, control and management of the business. [/FONT] • [FONT=+mn-ea]Ownership and control -the family has legal control over ownership of the business and majority (over 50%) of financial control lies within the family members.

    [/FONT]
    [FONT=+mj-ea]Advantages of family businesses[/FONT]
    • [FONT=+mn-ea]Focusing on long-run objectives. [/FONT]
    • [FONT=+mn-ea]Less bureaucratic and impersonal. [/FONT]
    • [FONT=+mn-ea]Preserving the humanity of the working environment. [/FONT]
    • [FONT=+mn-ea]Greater independence of action. [/FONT]
    • [FONT=+mn-ea]Leadership stability. [/FONT]
    • [FONT=+mn-ea]Family culture creates strong ties and allows shared vision in the business. [/FONT]
    • [FONT=+mn-ea]Information sharing. [/FONT]
    • [FONT=+mn-ea]Financial benefits [/FONT]

    [FONT=+mj-ea]Disadvantages of Family Businesses[/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Less access to capital market [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Confusing organization [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Lack of succession plan [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Financial strain [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Nepotism[/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Conflicts among family members may affect business[/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Pursuance of non economic goals [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Autocratic leadership [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Altruism [/FONT]

    [FONT=+mj-ea]SUCCESSION PRACTICES IN FAMILY FIRMS[/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Research shows that most family businesses die after death of the owner[/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Only 30% of family businesses survive into a second generation [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Only 16% of them make it to a third generation [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]The life expectancy of family business is 24 years [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]One of the major problems of family business is the lack of proper succession plan. [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Succession is transition of ownership/ managerial decision making in a firm [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Replacement of decision is critical to continued success [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Choosing of a successor should be done when the entrepreneur is in charge [/FONT]
    [FONT=&amp]Qualities of a good successor[/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Has necessary technical knowledge of the business [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Has the right business skills [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Has ability to manage and maintain relationships [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Has the ability to lead business [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Will be acceptable to all stakeholders [/FONT]
    [FONT=&amp]Developing an effective succession plan[/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Select the successor [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Create a survival kit for successor [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Groom the successor [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Promote the environment of trust and respect [/FONT]
    [FONT=&amp]• [/FONT][FONT=&amp]Let it go [/FONT]
     
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