Entrepreneurship
Introduction to Entrepreneurship
Many people define entrepreneurship as the act of starting a business. But it is so much more than this one act; at its essence, entrepreneurship is about value creation.
Value that can be created or added....
In small business
In corporations
In startups
In growth companies
In nonprofits
In our lives
Entrepreneur
What does this word "entrepreneur" mean to you?
The etymology of entrepreneur comes from the French, entreprendre, a verb meaning to undertake (Merriam-Webster). When we think of a person undertaking something, then we have someone who does something and takes action.
Definitions:
entrepreneur - one who organizes, manages, and assumes risks, mostly the risks of an enterprise (an enterprise can be for-profit or nonprofit)
entrepreneurial - having to do with relating to, characteristic of, or suited to an entrepreneur
entrepreneurial mindset- "a set of skills that enable people to identify and make the most of opportunities, overcome and learn from setbacks, and succeed in a variety of settings. Research shows that an entrepreneurial mindset is valued by employers, boosts educational attainment and performance, and is crucial for creating new businesses."
intrapreneurial - Intrapreneurship is the act of behaving like an entrepreneur while working within a large organization
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Entrepreneurship
What does this word "entrepreneurship" mean to you?
Definitions:
entrepreneurship - the process by which one organizes, manages, and assumes risks
innovation - improving, changing, and making something work better or creating something totally new
Entrepreneurship is a process that involves innovation. Many innovative processes, products, and ideas come from entrepreneurial people who are looking to act and to do something... to improve and make the world better.
Enterprise
What does this word "enterprise" mean to you?
An enterprise can be any of the following outcomes:
for-profit - a business or enterprise created for the purpose of making profit and creating wealth
nonprofit - not conducted or maintained for the purpose of making a profit, but organized to operate to achieve specific goals and/or provide services; usually these are community focused or based in specific areas.
Examples
Boys & Girls Club, a youth-based group dedicated to providing support services to supplement school, they offer after school activities, sports, and homework assistance. Youth go to them after the school day ends. While this is a national organization, they have independent offices in many cities. Check to see if there is one in your city HERE.
The Red Cross, a health and emergency organization dedicated to helping those facing disasters.
Non-Governmental Organization (NGO) is also a nonprofit organization, but here in America, we tend to identify those organizations that have a more international focus as this and continue to refer to our own community, state, and national organizations as nonprofits. But, they are essentially the same.
microbusiness - a small business
intrapreneurial - Intrapreneurship is the act of behaving like an entrepreneur while working within a large organization
How are entrepreneurs different than small business managers?
Our focus for this class will be on the entrepreneur side of the process, not the manager side... so think of the creation, innovation side of an enterprise.
Image borrowed from The Gritti Fund
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The Entrepreneurial Mindset ...
Curiosity
Initiative
Flexibility
Creativity
Critical Thinking
Problem Solving
Collaboration
Communication
Resilience
Comfort with Risk
Interested in More?
Further Reading:
Further Reading:
"Are You Cut Out to Be an Entrepreneur?" by Shirish Nadkarni, Harvard Business Review
"4 Ways to Nurture the Entrepreneurial Spirit" an article by Amy Osmond Cook, Founder, Osmond Marketing
Entrepreneurs use an entrepreneurial mindset to solve problems.
Problems
Entrepreneurs solve problems. They provide solutions to meet people's needs and wants. Solutions help ease the "pain" someone is experiencing. The way in which that pain is solved, creates value. When someone's problem (or need is met), they find value in this and may be willing to pay money, although it does not always have to be a monetary exchange.
Solutions
Solutions are what fixes the problem or meets the need. Solutions start as ideas. Ideas can come and go. As Richard Branson, founder of Virgin Records says, “Ideas are like buses, there is another one coming down the street.”
But, a solution isn't just an idea. A solution is an idea developed over time that brings enough value to people to become an opportunity.
Key Takeaway
- Entrepreneurs solve problems or meet needs.
- When an entrepreneur solves a problem, value is created.
At its most simple explanation, you aren't a business (or enterprise or nonprofit) until someone is willing to pay for (or use) what you offer.
Why is someone willing to pay for or use what you are offering?
Because they understand a value in what is being offered.
For example:
What did you stop and buy this week at a store? Why did you stop?
Think for a minute, was it something you needed or just wanted?
I went to the grocery store today for milk. I stopped at the store on the corner which cost a little more than Market Basket because it was closer to me. This saved me time.
Need: milk
Solution: convenience store
Value: convenience, time saved
I went to Mill No 5 this weekend to get a present for my sister. I drove further and went out of my way because I knew I would find a cool necklace she would like at one of the local shops. I was willing to do this because I knew I would get something unique for her and that would make her happy.
Problem: need a cool gift
Solution: local shop
Value: unique
Where do Entrepreneurs Find Problems?
Absorb
No matter how an idea is generated, critical thinking skills are essential to understanding the breadth and depth of the problem.
Where can you find problems to solve?
Find inefficiencies in the marketplace - are there things out there that don’t work well? How could you improve them? How could you take a product or service and make it better?
Find gaps in the marketplace - what is missing out there in the world? What do you find on a day to day basis to be missing?
Can you improve upon an existing idea?
Talk with people who have a particular problem. Listen. How could their problem be solved? Could you come up with a way to solve their problem? *NOTE: We call this customer discovery.
Talk with people already trying to solve their problems. They could be early adopters to your future solution. Could this way in which they are solving their problem be a gap in the marketplace or an improvement on something already out there? Could you brainstorm more solutions?
Could you take a unique spin off of other ideas out there? Could you make it even better?
Could you focus on social problems that mean something to you and figure out a way to help solve the problem by focusing on one aspect of it and trying to come up with a solution for that one part? Not sure what a social problem is? Read “What is a Social Problem?” from the University of Minnesota's open source book "Social Problems, Continuity and Change" here
Keep up with news and read articles, ideas can always pop up while understanding the problems, pains, and issues people face from all aspects of life.
Explore great example problems:
Leftover hotel soaps
Excess of swimming pools going unused
Lack of access to basic medical supplies, equipment, and assistance for older adults
Dangerous microplastics are polluting our water supply, most of these come from washing our clothing
Too many cosmetics on counter while getting ready
Difficulty finding a variety of wigs
Fathers not knowing how to braid hair