EntrepreneurshipLecture OutlineWhat is entrepreneurship?Who is an entrepreneur?The entrepreneurial mindsetSees needs as opportunitiesCoca-Cola AdvertisementInnovative ways to solve problemsJeff Bezos, Founder of Amazon.comEntrepreneurs create valueHow Amazon.com creates valueAmazon.com vs. a BookstoreA forward thinkerA Can-Do attitudeA visionary and a leaderEntrepreneurs as leaders (TIE)Entrepreneurs are risk takersEntrepreneurs as visionariesMichael Dell - ComputersP. Diddy – Entertainment etc.Kase Lawal – Oil industryOprah Winfrey – Harpo ProductionsWarren Buffett - InvestorGroup AssignmentPersonal AssignmentEntrepreneurshipLecture 2: The Entrepreneurial Mindset©2005MIT-Africa Internet Technology InitiativeLecture Outline• Entrepreneurship defined• The traits of an entrepreneur…z Based on Jeff Bezos, the founder of the online bookstore, Amazon.com• Brief profiles of entrepreneurs• Group assignment• Personal assignment©2005MIT-Africa Internet Technology InitiativeWhat is entrepreneurship?• The process of creating a business enterprise capable of:Entering new or established markets by deploying resources and people in a unique way©2005MIT-Africa Internet Technology InitiativeWho is an entrepreneur?• A person who creates and manages change by the recognition of opportunities (needs, wants, problems, and challenges) • and manages resources …in order to take advantage of the opportunity and create a venture.©2005MIT-Africa Internet Technology InitiativeThe entrepreneurial mindset• An entrepreneur views needs, problems and challenges as opportunities.• An entrepreneur comes up with innovative ways to deal with challenges/problems.• An entrepreneur realizes that he/she is in the business of creating value.• An entrepreneur thinks/learns ahead and consolidates opportunities before they become obvious.• An entrepreneur is a visionary and a leader©2005MIT-Africa Internet Technology InitiativeSees needs as opportunities• An entrepreneur sees the problems/needs around her and sees opportunities to make profits or create value.• Needs and problems are a blessing to the entrepreneur!• Examplez Your thirst is Coca-Cola’s opportunity to sell you Coke©2005MIT-Africa Internet Technology InitiativeCoca-Cola AdvertisementFigure removed for copyright reasons.©2005MIT-Africa Internet Technology InitiativeInnovative ways to solve problems • An entrepreneur is a skilled problem solver and uses the resources around him to solve problems.• Examplez Jeff Bezos, the founder of Amazon.com solved a problem for people who have used books but don’t know what to do with them. He created a website that allowed such people to meet online and sell used books to each other and in the process created a billion dollar company.©2005MIT-Africa Internet Technology InitiativeJeff Bezos, Founder of Amazon.comPhoto removed for copyright reasons.©2005MIT-Africa Internet Technology InitiativeEntrepreneurs create valueEntrepreneurs create value to society by: • Increasing the number of customers served by a product/service• Reducing the costs of a business• Improving on the quality of products and services• Inventing a new product or service!©2005MIT-Africa Internet Technology InitiativeHow Amazon.com creates value• Because it can be accessed online, anyone with internet access can use it• After initial success with book swapping it began providing more services to members by selling new books, movies, electronics, etc.• It has continually improved its website to make it as customer friendly as possible©2005MIT-Africa Internet Technology InitiativeAmazon.com vs. a Bookstore• Amazon.com is online and open 24/7.• Anyone who has access to the internet and a credit card is a potential customer. • Amazon has automated customer handling processes – needs less employees and therefore has lower costs• Amazon has millions of book titles and you can find any book you’d want from them©2005MIT-Africa Internet Technology InitiativeA forward thinker• Before opportunities become obvious, an entrepreneur quickly moves in and consolidates his position:• In 1994, Jeff Bezos read that the web was growing at a rate of 2,300% a year.• He quit his job on Wall Street and started looking for a way he could benefit from the phenomenal growth• Decided to sell books online since he noted that there were 3 million books in print in the world and there was a need to be able to organize them, search them and sell them electronically.• He realized that it was only a matter of time before the internet spread world wide and knew he had to take a chance immediately©2005MIT-Africa Internet Technology InitiativeA Can-Do attitude• An entrepreneur is a visionary, an optimist, a strategist, confident and very hard working.• He/She is willing to go where others have not been and will not give up on his/her dream when others say it can’t be done.• If an entrepreneur can’t win the game he will change the rules of the game to come up with a new solution to a problem!• He/She is challenged by the words- “It can’t be done.”©2005MIT-Africa Internet Technology InitiativeA visionary and a leader• Entrepreneurs lead and others follow.• In the process they generate value for themselves and others.• Amazon.com has created value for the millions of customers since it makes it easy for them to find books they need from the comfort of their home• It has also helped authors sell their books• In the process, Jeff becomes $4.8 Billion richer. This is equivalent to 365 Billion Ksh!©2005MIT-Africa Internet Technology InitiativeEntrepreneurs as leaders (TIE)• Entrepreneurship is the ONLY source of new wealth and new productive jobs in society.• It only takes a small part of the population, 1-2%, to become successful entrepreneurs in order to pull the whole society along. • Throughout history, countries that have nurtured entrepreneurialculture have been the most successful and dynamic.• Entrepreneurs are at the heart of success of modern economies.• Society must encourage and reward entrepreneurial activitiesSource: TIE: The Indus Entrepreneurs©2005MIT-Africa Internet Technology InitiativeEntrepreneurs are risk takers• Successful entrepreneurs are not afraid of failure. • They acknowledge failure but prepare for it.• However, if they fail they can quickly learn from their mistakes and try again!• Jeff Bezos quit his well-paying job in