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Entrepreneurship
ChessMaster
#1 Posted : Tuesday, February 26, 2013 11:10:28 PM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
I think we need entrepreneurs now more than ever.This applies to Kenya and the world in general. I shall share my thoughts on this subject and my hope is that it will not only bring you profits but help make the world a better place.Keep in mind,we have to try and start living sustainably because time is running out.

We Do Not Inherit the Earth from Our Ancestors; We Borrow It from Our Children.

by

Amish Saying? Ralph Waldo Emerson? Native American Proverb? Chief Seattle? Moses Henry Cass? Dennis J. Hall? Helen Caldicott? Lester Brown? David R. Brower? Taghi Farvar? Anonymous?Who knows.

Lets get started.
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Uncertainty is certain.Let go
ChessMaster
#2 Posted : Wednesday, February 27, 2013 12:14:51 AM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
I'll begin with describing entrepreneurship using Joseph Schumpter's definition of what entrepreneurship is.His focus was on the innovative nature of an entrepreneur.Below is his description.

An entrepreneur:

1. Introduces a new product. This is a new good/service.Most of the things we take for granted today were at some point new products some even revolutionary.A good example is the personal computer and laptops.

2.Introduces a new production method. A production method is the process of creating goods/services. The best example for this would be the industrial revolution where manufacturing shifted from hand made to machines. A current example is the digital shift which we are experiencing. The production method doesn't necessarily change the product just the means of creating it.

3.Finds new markets. This is when you use the same product for different uses and/or different markets than the original market.A great example for this is the story of the shoe salesmen in Africa.

"Two shoe salesmen were sent to Africa to see if there was a market for their product.

The first salesman reported back, "This is a terrible business opportunity, no-one wears shoes."

The second salesman reported back, "This is a fantastic business opportunity, no-one wears shoes."

A good example for different uses of the same products would be engines. You find engines in a lot of equipment(although there can be a big difference) but the same concept was spread to accommodate different uses.

4.Uses a new source of raw material.You still make the same product but utilize different raw materials.Like how car manufacturers have and continue to rethink car bodies.

5.A new form of organization. The most common being article writers and other work at home organizations. Or how Apple changed the music industry by reshaping product delivery. But lets not forget our own telecommunication companies and how they are helping to redefine industries as well as their own.Another clear example is pizza companies adding deliveries into their organizations.

It is important to note that there is a difference between an entrepreneur and an investor. An investor commits capital(it could be money or assets) to a venture and expects returns on his investment. I have not intentional excluded business owners as entrepreneurs but focused on defining one in innovative terms.Next up the entrepreneurial spirit.

Uncertainty is certain.Let go
ChessMaster
#3 Posted : Thursday, February 28, 2013 12:00:22 AM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
Having covered what an entrepreneur does,lets discuss who an entrepreneur is. There are many templates by which we can use to describe one and even more practical examples we can utilize,but that's not how I will approach this.

To understand successful entrepreneurs we have to look at their environments. They all face an unpredictable future with a myriad of challenges stemming from the political arena,social,economical and so on.

Below are the five essential attributes that I believe all entrepreneurs have and utilize to conquer this daunting task called entrepreneurship.

1.Passion
Passion is one of the most important things in an entrepreneur and his/her passion should exceed the desire for monetary gratification. Everyone has a passion for something but successful entrepreneurs have learnt to leverage their passions to achieve success. It is their engine,burning hot and ever pushing them forward.The quest for you is to find out your passion.

2.Resilience
It's not about winning every battle you face.Its about facing the outcome(whatever it may be) and moving forward.Roll with the punches but take time to deal with situations your own way.As an entrepreneur you are not in control of a lot of things but you can learn to be in control of yourself.

3.Adaptive
Change is the only constant in the world!To believe otherwise is detrimental not only to your personal growth and but to your success.When you set out to achieve something always remember this.

As an entrepreneur you will face many a things that will challenge you and your venture.Take time to reflect and you will be surprised at how much you will learn about yourself.Understand your priorities,guiding principles and values.Then evaluate,refine and strengthen your goals towards what you want to achieve.Even if your venture doesn't succeed,you will still come out a better person!

4.Solution Oriented
The mind is a muscle.It becomes good at what you expose it to.The world is filled with problems and very few people want to solve them.Entrepreneurs don't see opportunities,they see solutions.When you focus on solutions you will soon discover opportunities aren't that far behind.Ask yourself this,are you busy seeing problems or pondering solutions?

5.Focus
If passion is the engine then focus is the steering wheel.Build upon your passion with an objective(even if your objective is to find an objective),be resilient when you encounter roadblocks,adapt to the terrain and keep your eyes open.You might be closer to destination than you think.

"A traveler in ancient Greece had lost his way and, seeking to find it, asked directions of a man by the roadside who turned out to be Socrates. "How can I reach Mt. Olympus?" asked the traveler. To this Socrates is said to have replied, "Just make every step you take go in that direction."
Uncertainty is certain.Let go
Lolest!
#4 Posted : Thursday, February 28, 2013 6:55:39 AM
Rank: Elder

Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
Good one @chessmasterApplause
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
new
#5 Posted : Thursday, February 28, 2013 7:39:32 AM
Rank: New-farer

Joined: 1/4/2013
Posts: 22
ChessMaster wrote:
I'll begin with describing entrepreneurship using Joseph Schumpter's definition of what entrepreneurship is.

An entrepreneur:

1.
Quote:
Introduces a new product. This is a new good/service.Most of the things we take for granted today were at some point new products some even revolutionary.A good example is the personal computer and laptops.

I think that innovators are the ones who introduce new things, entrepreneurs see the value in this new things/services, and bring the new idea to market. an entrepreneur has to innovate because he is in competition : either with others or with himself. He must invent a product or a a product/service that is better than what is in the market, how value is delivered to his target customer segment

Quote:
2.Introduces a new production method. A production method is the process of creating goods/services. The best example for this would be the industrial revolution where manufacturing shifted from hand made to machines.


Again i think this happens as an entrepreneur seeks to survive in a competitive market. s/he must find "efficient" ways of ensuring they deliver value to their target market segment or maximize profits by reducing the operational costs. Perhaps mechanization, took off as rapidly as it did because it was more efficient, and "cheaper" in the long run compared to human labour? Best example I would give is Dell, Dell made computers, but the value proposition for their customers was, highly customized service/products. A client got what they wanted, how they wanted it.

Quote:
A current example is the digital shift which we are experiencing..


the internet and its rapid uptake by the masses provided a new distribution, marketing, customer support and value delivery channel. The product may have remained the same but the method of delivering the value, and maintaining a relationship with the customer, changed.

Quote:
3.Finds new markets. This is when you use the same product for different uses and/or different markets than the original market



true. Competition is very expensive, for any firm/individual. It may be good for the buyer, but it ruins the bottom line for the seller. ( 9/10 times, this is true) he who is able to create a new market and avoid competition, albeit for a while, wins. After all the ( secret and mostly unsaid )aim of any business is to create a market monopoly . To be dominant player.


Quote:
It is important to note that there is a difference between an entrepreneur and an investor. An investor commits capital(it could be money or assets) to a venture and expects returns on his investment.




Hey @Chessmaster, great points and break down. I am from an investor/finance background, and i think the same principles used in decision making in the finance field, can be used in entrepreneurial decision making. I agree with the above points. Money in itself is an idea, hence it can only be multiplied if/when invested in an idea that creates/captures value in society. That said, i look forward to having an interesting and enlightening conversation on this topic.
Dum vivimus, vivamus.
ChessMaster
#6 Posted : Thursday, February 28, 2013 9:37:32 AM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
@Lolest! & new - Thank you.

I welcome the discussion.I agree finance is heavily relied on when it comes to decision making. Its one of the three pillars of an enterprise that I'll be covering.New production methods and products are entrepreneurial. Even in an organization,the employee who comes up with such is exercising the entrepreneurial spirit of not only surviving but thriving.
Uncertainty is certain.Let go
ChessMaster
#7 Posted : Thursday, February 28, 2013 3:21:07 PM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
So you think you've got what it takes to be an entrepreneur and your wondering where to start? Well that depends on you and your situation. I will guide you on how to use a SWOT analysis to chart your way forward.This is a critical stage and the concepts herein will be a guide for you through all the stages of your venture.

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. The aim is to identify you and your ventures strengths and weakness and the opportunities and threats that your environment presents.

The ideal situation is when you utilize your strengthens to take advantage of the opportunities present.You should also try use your strengths to subdue threats while also trying to work on your weaknesses. Strengths and weakness are internal factors(within your control) while opportunities and threats are external factors.

Starting with strengths and weaknesses can be misleading,so we will start with opportunities and threats. The reason for this is because you might not be really sure if what you have are really strengths/weaknesses till you have a grasp of the environment.

For this we shall use two time tested frameworks.One for the macro-environment(the bigger picture) and the other for micro-environment(the industry view).We shall use PESTEL analysis for the macro-environment and Porter's five forces for the micro-environment.
Uncertainty is certain.Let go
Chaka
#8 Posted : Friday, March 01, 2013 4:43:55 PM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
@Chessmaster,
Your points on who an entrepreneur is reminds me of Sir Richard Branson of the Virgin Group who is a self made
billionaire.
Many other wealthy entrepreneurs are also self made and actually college dropouts.So, the question is this..If I am not yet an entrepreneur and am not inclined as such,can I be taught/encouraged to become one?
Mukiri
#9 Posted : Friday, March 01, 2013 9:15:43 PM
Rank: Elder

Joined: 7/11/2012
Posts: 5,222
Applause Applause Applause @Chessmaster
Which would be the way forward/easier? To delete the current mindset then paste a new one... or just paste the new one on top of the old?

The way we were/are educated influence who we are. Ours is a generation of zombies, whose dream is employment and a happily-ever-after! 'Thinking' here can be translated to finding the best method of implementing instructions.Sad These I would call 'noise'. Maybe you should seek to get rid of this 'noise', before you endeavor to impart wisdom, otherwise it may be an exercise in futility.

Proverbs 19:21
ChessMaster
#10 Posted : Saturday, March 02, 2013 8:13:07 AM
Rank: Elder

Joined: 2/23/2009
Posts: 1,626
@Chaka - Thank you,you've brought up something very important.First of all,books are written about entrepreneurs not about degrees.People tend to forget that.Secondly,even though they are dropouts(obviously not all of them) they are very vigilant when it comes to educating and bettering themselves beyond the class.One can be nurtured and supported to become an entrepreneur but if you don't desire to be one it is futile because you won't have the will to keep moving forward.

@Mukiri - Thank you.It relates to what @Chaka brought up.The noise will always be there and one of the first steps an entrepreneur does is realize that self-employment is the path for them. If someone doesn't have that conviction in them,I doubt anyone can instil it.Education does influence us but there are still individuals who manage to change their minds irrespective of all the influence.But if I was to try and change the mindsets of people,then I would first have to finish what I've started so that someone can have a clear picture of the benefits and hardships that entrepreneurship offers.From there one can make an informed decision but I will cover something on that.
Uncertainty is certain.Let go
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