Transportation City of Boston Essay Example for Free

Transportation City of Boston Essay Internet practices in the year 2000 were the elements that brought new challenges to the field of logistics. People started to expect more from the customer service field and from the quality and value that corporations provided. With these high expectations, the importance of transportation and logistics became a way to make firms more competitive by understanding their customers’ needs and the additional value that they are looking for. At this time, logistics continued to develop elements such as electronic-businesses; globalization; business alliances; and technological advancements. Technology is a logistical core competence with increasing importance, especially for the service providers. Most companies nowadays conduct their businesses through the internet. They use different Internet applications including websites for marketing purposes, tracking and tracing tools, information gathering, procurement, order entry and credit management. With the use of technology, companies even have the possibility of automating the logistics system; â€Å"a customer’s order can be generated automatically, transmitted via electronic data interchange (EDI) to a supplier’s computer, which then directs the required amount of the needed product be pulled automatically from the warehouse and shipped to the customer† (Gourdin, 2001, p.13). Furthermore, Gourdin (p.14) states that technology makes processes â€Å"without human intervention and with virtually no waiting time.† In addition, Internet and electronic-commerce are also important factors in developing the logistics system. The Internet has quickly become the easiest method for supplying information for both companies and customers. It has also become the choice of transmission device for exchanging forecasts, orders, inventory status, products updates and shipment information. Logistics is an important element in the field of electronic-commerce because firms have to reassess their logistics systems to make sure that their clients can get their products in an expeditious manner. Globalization, on the other hand, has also hastened the growth of logistics, especially in the areas of national, political and economic settings. Global operations need information technology integration to route orders and manage inventory requirements around the world and will need alliances that are essential in international commerce. This is also essential in providing market access and expertise to reduce the inherent risks of global operations associated with distance, demand, diversity, and documentation of international commerce. What role did transportation play in the economic development of the United States? Is this role of transportation still important today? The role that transportation played in the economic development of the United States economy was immense. The transportation revolution in the first decade of the 19th century halted the western isolation, during the period wherein United States experienced an economic growth known as â€Å"Era of Good Feelings†. During the 1800s, natural waterways were the only trade route for the Americans. After a century and with years of development, railroads and tracks were established. In the late 1920s, regional airlines opened and began regular operations for scheduled passenger flights. By the dawn of 1960s, the introduction of transportation through containers changed the way freights were traveled towards different countries and around the globe. Improvements and innovations in the transportation system developed through the years. Having a good transportation system meant economic and social opportunities for the people and such opportunities are later transmitted to benefits that are reflected in the economy. Transportation is a very visible element of logistics. The economy is largely dependent on the state of transportation in every nation. As such, without a reliable system of transportation, most commercial activities could not function. In the United States alone, more than 60 percent of total logistic cost is related to transportation services. Efficient transportation systems render economic and social opportunities that could benefit the society and give people the opportunity to penetrate into larger markets and also save time and costs. Mobility and the development of a good system of transportation have already created numerous opportunities to the people in the United States that were later translated to economic benefits by generating employment and boosting the national income. The transportation sector alone provided jobs for about 7.5 percent of the American workforce. With the development of the country’s infrastructure, the transportation system and its services must also be supported and maintained. For example, the federal government, through the taxes paid by the people, must allot funds to build and maintain railroad tracks, roads, bridges and highways. The transportation system in the United States has indeed developed over the years. People are now equipped with a number of alternatives of transportation methods to choose from that they find the most effective in terms of their necessities. However, even with these developments, people have not yet stopped on devising new transportation methods that will better cater the needs of the people in the future. Technology plays an important role in the transportation system. People rely on technology in order to enhance the efficiency of the existing transportation system. References Ballou, D. H. (1999). Business Logistics/Supply Chain Management. New Jersey: Pearson Education. Bowersox, D. J., Closs, D. J., Cooper, M. B. (2007). Supply Chain Logistics Management. New York: McGraw Hill International. Coyle, J. J., Bardi, E. J., Novack, R. A. (2005). Transportation. Ohio: Thomson South-Western. Gourdin, K. N. (2001). Global Logistics Management. Boston: Blackwell Publishing. Williams, A. ( 2001). The Role of Logistics in Internet Commerce. Retrieved August 08, 2008, from http://findarticles.com/p/articles/mi_qa3766/is_200110/ai_n8958764/pg_1?tag=artBody;col1

Target Market And Projection Marketing Essay

Target Market And Projection Marketing Essay Ikatan Sdn Bhd that provide technology measured will be officially register and Headquarters is in Shah Alam, Selangor. Ikatan Sdn Bhd aims to be the most competitive and reliable company in provide technology product. Our business concept is basically to provide technology devices that mainly focus on ultrasonic distance measures. Besides that, we also provide services for the products especially for maintenance. Warranty for 1 year will be issued to the customer. To get to us, the customer can contact us directly to our office number, fax or by internet. Our customer services are ready to help you with accurate information. 1.1.2 Product Concept Our product is low cost, simple to use, heavy duty and environment friendly. Once an order is confirmed, we will send our staff to go over costumers place to deliver our product. All prices quoted are inclusive of relevant taxes in Malaysia. The customer may pay some amount of deposit before completing the payment. Transportation fees will be charge. Our product will base according to the customers land area. Our product also can be adjusted to the customers information on how frequent they can measure the distance. 1.1.3 We have already classified our target market which we think could bring a very high profit monthly. In our case, we had agreed to divide the target market into some categories which are target customers and target places. For the target customer, we have three types of people which are contractor, university and retailer. For different type of people, there would be different rate of charge since we consciously consider their economic ability and stability. 1.1.4 The Competitive Advantages As part of the marketing n business world, we cannot run and avoid from competitors. This is the challenge that we have to face. So in order to be constantly competitive, we decided to innovate the current availability of technology in measuring and making it for easier, user friendly, low cost and the most important thing is environmental friendly. Our product intelligent system will be developed by our research department which uses up to date technology and easy maintenance. With that, we are sure that our company can compete with other competitors at the highest level in technology. 2.0 PRODUCT DESCRIPTION A measuring tape is the common tool in measuring length and distance. However, the nature of the tool requires the user to pull out the tape according to the length that wanted to be measured. This can be problematic when the length is quite long or when measuring height and difficult places.    By replacing the tape with an ultrasonic pulse, the inconvenience can be overcome. Ultrasonic pulse greatly simplifies the process of straight line measurement. This ultrasonic pulse give benefit to user who want to measure at difficult place such as behind the cabinet that the tape cannot reach or measuring the height of ceiling Figure 2.1 : front view of Ultrasonic Distance Measure Figure 2.2 : Picture of Ultrasonic Distance Measure 2.1 Product specification Auto stop: switches off if you do not press any key for 4 min.   LCD screen on a luminous background. Memory: allows you to measure and to store 3 different measures Calculation of area and volume.   Addition and Subtraction function: allows you to add or subtract 2 measures.   Clearing of memory function: allow you to delete quickly all the measures stored.   Correction of errors: the distance measurer indicates that a distance measured is either too long, or too short.   Power supply: 1 x 9V Alkaline type Battery (Not included)   Units of Measure: Feet/Meters   Accuracy: +/-0.5%   Frequency: 40 kHz (ultrasonic pickup)   Range: 0.91m to 20m   Dimensions (H-P-l): 142 x 73 x 47mm   Weight (without battery): 144.6g   3.0 TECHNOLOGY DESCRIPTION Uses ultrasonic wave(40kHz) Generated in a particular direction. If there is an object in the path of this pulse, part or all of the pulse will be reflected back to the transmitter as an  echo  and can be detected through the receiver path. By  measuring the difference between the pulse being transmitted and the echo being received, it is possible to determine how far away the object is. The input of the product is the time of taken for the ultrasonic pulse bounce back from an object. Uses LCD to display measurement. Have backlight for easy reading of the measurement MARKET RESEARCH AND ANALYSIS Market size is the estimation how big our market can be in our market area. In order to determine the market size in the area, we might have one of our staff to stand with a clipboard and a sample menu in front of the space and ask pedestrians if they would frequent such an establishment. He will park himself on the corner one early morning and do the same at noon, evening and on a weekend to determine how many customers we can expect on a daily basis. This also will be particularly important when planning a budget. For every company, marketing plan is the most important part of the business. There are no uses of good quality product if the company fails to sell the product maximally. The good marketing plan should study about the customer behavior, what the customers needs and wants, which are the potential buyers and how to satisfy the customers. Customer For our business, we did some research for the targeting customers. We have classified our customers in some categories. They are contractors, university and retailer. Because of limited resources and competition in our market, we hesitant that we are able to sell our product with equal efficiency and services to the entire market. Therefore, before we decide which market to enter, we analyze the best potential buyers using market segmentation. We divided our market segmentation into three groups to offer our product with different market mix: Group 1: contractors. Group 2: university/college Group 3: retailer A contractor is a group or individual that contracts with another organization or individual (the owner) for the construction, renovation or demolition of a building, road or other structure. A general contractor is defined as such if it is the signatory as the builder of the prime construction contract for the project. Contractors conducting work for government agencies are typically referred to as prime contractors. The responsibilities of a prime contractors working under a contract are essentially identical to those outlined above. So that why we target our market to contractor, so that we can get many benefit from them. Our secondary customer is university/college. A university is an institution of higher education and research, which grants academic degrees in a variety of subjects. A university is a corporation that provides both undergraduate education and postgraduate education. We target university because their student maybe will use electronic devices for the certain courses such as engineering, architecture and many more. Next costumer is retailer. For retailer, we will deliver our products at them and they will promote and display it at costumer like civilian, student and anyone who wants to buy it. Primarily, we have planned a fine and efficient services to offer our customers. Our service is with respect to the customers demand. Customers can directly reach us by dropping by to our company at Shah Alam. We will strive in order to improve our services and meet our customers needs and satisfaction. 4.2 Market Size and Trends Figure 4.2 : Current Total Market Size for Three Consecutive Most Previous Years The size of the current total market is thoroughly taken consecutively since year 2008 until year 2010 and represented in a bar chart as above. As visualized, the size of the current total market in 2008 is 2850 units. For year 2009 and 2010, total market size is slightly increases to 2904 units. In the following year, the total size is much better among those after year 2008 when achieved to 2904 units. Competitors Strengths Weaknesses Techshop Enterprise high quality of materials most expensive Not have too much experience Kurnia Tech one year warranty most expensive Juana Sdn Bhd cheapest product among all no warranty iRaybull Enterprise good service They have many competitors even the location are strategicTable 4.2 : Major Competitors 4.3 Competition and Competitive Edge As we can see from comparison table above, there are four (4) main competitors with the same interest. The four main competitors are Techshop Enterprise, Kurnia Tech, Juana Sdn Bhd and iRaybull Enterprise. Many costumers are preferably to go among these four companies due to their strengths in marketing. However, there are some weaknesses for these companies. We successfully encountered their strengths and weaknesses as shown in the table above. This is to ensure that our company is different and far better than them. As for us we provide quality, affordable and reasonable price, on time schedule of installation, simple yet new and advanced technology, good service, friendly workers, and maintenance free. By providing all these features, we are not only giving benefits to our business but also to customers. They will find our new programmed product and service is better than others could offer. We do not need to hire foreign employees to work with us our own native is better than them. This will help to improve and to show others that we are also competent as we successfully create such technology which is the first in country. This will shake our competitors a bit. The fundamental value that had been added to our service is the main thing about customer satisfaction and guarantee. Customers are always right, that what we use. To make sure customer is always right, the review of our service and product is continuously. This can ensure customer feel good and happy with service given and product sell, also, increase marketing of company. 4.4 Estimated Market Share and Sales 4.4.1 Market Share Market share before Ikatan Sdn Bhd Market share after tree month Ikatan Sdn Bhd enter 4.5 Marketing Strategy 4.5.1 Strengths and Weakness of Competitors Our product has several competitors such as Techshop Enterprise, Kurnia Tech, Juana Sdn Bhd , iRaybull Enterprise and others. All competitors have their own strengths and weaknesses. In general, all the competitors strengths are: They have a stable financial with a good reserve of equity due to their amount of years the company has established in the market. Their company is well-known. They have regular customers. The qualities of their products are proven. They have good promotion strategies. They provide good services. They have good in take over the customer The competitors weaknesses are: They sell their product with higher price. They dont have any market plan for their customers. The location is not suitable. The working hours is not flexible From our researched, we decide that our marketing strategy is based on marketing mix. Below are the results of the research: Product Ikatan Sdn Bhd provides the product where the customers can get many benefit from using our product. Price We promote the product in a lower price compare to other competitor Location We locate our company at the strategic place that easily for customer to come and buy it. Promotion For the promotion, we use the pamphlet to approach our market target. Apart from that, we also uses our communication skills to persuade the customers and convince them that our product can give more benefit to them. 4.5.2 Overall Marketing Strategy For our product ultrasonic distance measurer, we have come out with some business strategies in order to deliver a convincing promotion: Signboard or signage at appropriate place and clearly visible. Provide delivery services to the costumer who has order the product and that will make easier for customer to take order. We will spread widely the pamphlet to the retailer and other customer to promote our product 4.5.3 Sales Tactics Ikatan Sdn Bhd sales tactics are enforced by its sales forces and direct mail. Marketing department has already assisted by sales forces hired by top management in order to distribute company information and to promote product specialties to customers. Moreover, Ikatan Sdn Bhd has developed its own website which initiated by those sales forces and company software engineers from Engineering Department. Through mail, it will be more convenience for customers to reach companys products and thus own them via internet purchasing which is easier, faster, and most importantly secured. 4.5.4 Advertising and Promotion à ¢Ã¢â€š ¬Ã‚ ¢ Business Card All the board of company directors will be provide with business card as an advertising method when dealing with the customers. Pamphlet We use high quality and attractive pamphlets to give good perception to our customers together with the information about our company. Signboard We used high quality and coloring signboard at nearest area to attractive customers assumes them to visit and gain to try in our company. Website 4.5.6 Distribution 1. Distribution to Contractor 2. Distribution to University/College 3. Distribution to Retailer 5.0 MANAGEMENT TEAM Chief Executive Officer (CEO) MOHD ZULHIMI BIN ZAILANI 860605-56-6905 Administration Executive MUHAMMAD REDHUWAN BIN ZAINI 870120-10-5667 Operation Executive ABDUL MUID BIN MOHD SALEH 870103-03-5185 Finance Executive MOHAMAD ZULFADLI BIN MOHD ALI 870729-10-5333 Marketing Executive MOHD IZZUDDIN BIN MOHD YUNAN 860410-56-6163 5.1 Position Description Position Description 1 Chief Executive Officer (CEO) Provide leadership to ensure that the mission, ethical values and core guiding principles of the Company are put into practice. Lead the executive management team to be effective developers of solutions to business challenges thereby establishing credibility throughout the organization and with the Board. Responsible for driving the Company to achieve and surpass sales, profitability, cash flow, business goals and objectives. Motivate and lead a high-performance management team; attract recruit members of the executive team not currently in place and retain the executive leadership team; provide mentoring as a cornerstone to the management career development program. Represent the Company and its values with customers, vendors, shareholders, government and regulatory bodies, other stakeholders and the public generally. Support the recruitment, selection, individual development and monitoring of the executive management team and other senior management personnel to ensure the Company maintains a strong succession plan. Spearhead the development, communication and implementation of effective growth strategies and processes. Collaborate with the executive management team to develop and implement plans for the operational infrastructure of systems, processes and personnel designed to accommodate the growth objectives of the Company. 2 Administration Executive Provide secretarial / administrative support to the Company Senior Management Reporting to Operations Manager on the day to day operations related issues. Preparing operations reports and analyzing the effectiveness and efficiency of the overall operations functions Responsible for requisition and maintenance of office equipment including furniture and fixture, telephone system, keys Responsible for printing of office stationeries, including envelopes, letterhead, name card Coordinate documents for approval Communicate with internal and external parties on matters related to administration / office management activities Liaise with the building management on building management matters e.g. car park, maintenance, safety etc. Renewal of License, Insurance, Contract, Advertisement 3 Finance Executive Provides leadership for the entire sales and sales support organization in the sales, support and implementation of Company products and services. Develop and manage account plans/profiles Create and develop customer solutions and sales proposals. Lead in the negotiation of long-term contracts. Attain and exceed forecast sales objectives for Company products and services. Identify, understand and analyze product sales applications, new product opportunities and innovative new sales ideas. Develop sales forecasts and manage them on a bi-monthly basis and submit to management. 4 Marketing Executive Create marketing plans geared toward end users for each key product within portfolio, in line with strategy and targets and within budget. Work with the in-house designer to produce materials of visual impact and within brand guidelines. Work with the business innovations department to develop new ideas for reaching end user markets using the latest in electronic technologies. Communicate to rest of marketing team about new innovations and how they can be used to leverage marketing efforts. Write copy for each product, reflecting key messages, features and benefits. Involve key stakeholders for product at each stage of campaign, and report results once completed. Preparation delivery of marketing plan within key objective. Events planning, organization and execution. Copy writing of articles, marketing materials etc. Liaison with media and publishers as required Ensuring that all marketing materials do no deviate from the established Brand image of the business. Market research and competitor analysis. Maintains up to date with professional sector news. Supporting the development of the website. Focus on both business growth and client retention. Use email, ad words and other electronic marketing techniques to inform customers of new products and generate sales. 5 Operation Executive Responsible for smooth execution of training programmers and events Responsible for providing administrative support Accountable and responsible for the entire events and programmers from initiation to closing Willing to work flexible hours whenever necessary including weekends. 6.0 FINANCIAL PLAN The administration, marketing and operational is important in a business plan. However without any proper financial planning the implementation of a business is net worth it. From the data and information that included in the financial plan, it will help the company to evaluate their ability in managing their financial in order to run the business. Financial plan is the plan that shows the short term financial requirement in order to start a new business. It also shows how the requirement can finance the business using internal and external source. Beside that it can prove the reliable information about changes ion net resource resulting from profit directed activities. Financial planning is the last thing to prepare in this project to complete the business plan. It consists of total expenditure and budget to establish a good business. All the expenditure is such as administration, marketing, and operation budget. Actually, the basic objective of financial plan is to provide financial information which is important in determining some economic decision. Financial information is not information which is needed to be considered in making decision, but it is more important than that. We can say that, every decision make will base on financial information. 6.1 Purpose of financial plan To analyze the project and financial plan To ensure the initial capital are adequate, ability and sufficient To identify the purpose and relevant source of fund To determine the amount of loan re-payment and depreciation of fund fixed asset To appraise availability before actual investment is committed To evaluate how far or potential return on investment To make a party such as a financial institution to be confidence with the financial of the company in order to make a business loan 6.2 Strategies of financial plan Makes sure that company have sufficient amount of cash in order to take trade discount, to maintain credit rating and to meet unexpected cash needs Give advice and opinion to other department such as administration, marketing and operation in order to reach the business purpose Make sure the increase in business profit at the good stage and better performing Make sure that cash was used efficient and effectively without wastage in expenses Try to seek business opportunity in order to increase the financial strength or wealth of economy SALES AND PURCHASE PROJECTION PROJECT IMPLEMENTATION COST SCHEDULE ADMINISTRATIVE, MARKETING, AND OPERATION BUDGET Activities Start Deadlines Business registration 15 Oct 2010 2 Nov 2010 Trade mark registraton 20 Oct 2010 5 Nov 2010 Labours intake 15 December 2009 25 Feb 2010 Start production 1 Nov 2010 28 Nov 2010 Product promotion 15 Dec 2010 2 March 2011 Trial product 15 Dec 2010 1 Jan 2011 First sale 2 Feb 2011 31 August 20117.0 PROJECT MILESTONES Here are the project milestones for our company. 7.0 CONCLUSION It can be conclude that Ultrasonic Distance Measure has great potential to penetrate into the market due to low prize and high efficient usage. This was confidently proven by our experts through researches, surveys and development for more than two years. I believe this product will be successfully achieves our target sales. As a management team of Ikatan Sdn Bhd, we need to fulfill our customer needed. So, the good relationship between supplier and customer are very important. We are promise to give 100% commitment to our company. 9.0 APPENDICES Figure 9.1 Picture of Ultrasonic Distance Measure Figure 9.2 Technology used of our product Figure 9.3 Maps of our company located

Comparing the Ideology of Lenin and Stalin Essay examples -- Lenin vs

Compare and contrast the ideologies and the political and economic practice of Lenin and Stalin. Every state is based upon and driven by some ideology. Imperial Russia was based upon autocratic absolutism for over 400 years. Following the Bolshevik seizure of power in 1917, a new era dawned upon Russia. For the next 36 years she would be in the hands of two men that would attempt to apply a new, vastly different creed in ruling and transforming this country. Vladimir Ilich Lenin, as the leader of the Bolshevik party, ruled Russia from October 1917 till his death in January 1924. He was succeeded by Joseph Vissarionovich Stalin, who also ruled until his death in March 1953. Both men claimed to ascribe to the broad ideology of Socialism and Marxism; both were to develop their own versions -- later to be called Leninism and Stalinism; both were to attempt to practically apply their respective ideologies whilst attempting to deal with a plethora of prevailing conditions such as internal resistance and civil war, economic collapse and foreign invasion. This paper will examine the sim ilarities and differences between both the ideologies, and the actual economic and political practice, of Lenin and Stalin's beliefs. A significant historiographical issue to be aware of in the comparison of Lenin and Stalin is that between the two, Lenin was by far the greater political theorist and ideologue and yet had much less effective time, 6 years, to put his ideas into practice . Stalin on the other hand, was much more a man of action who produced comparatively far less written material, but who exercised his power for almost 30 years. Also Lenin had the unique opportunity to oversee the installation of a new order from scratch whereas Stalin... ...actice were the 5 year plans, collectivization and industrialization. In November 1929, Stalin published an article called The Great Turn. His main argument was that for the USSR to move into the modern age she had to industrialize and the agrarian problem had to be solved once and for all. His solution was to collectivize all agriculture and to destroy the "kulaks" as a class. Over the next six years the Russian and Soviet peoples endured a holocaust comparable to that suffered by the Jews in World War 2, one that would cost over 5 million lives. The language Stalin used was as evil as any denunciation of the Jews by Hitler: "To take the offensive against the kulaks means to deal the kulak class such a blow that it will no longer rise to its feet†¦Of course the kulak can't be admitted to a collective farm. He can't because he's an accursed enemy†¦"

Socrates Essay examples -- essays research papers fc

In Crito, Plato recounts the last days of Socrates, immediately before his execution was to take place in Athens. In the dialogue, Socrates’ pupil, Crito, proposes that Socrates escape from prison. Socrates considers this proposal, trying to decide whether escaping would be â€Å"just† and â€Å"morally justified.† Eventually, Socrates concludes that the act is considered â€Å"unjust† and â€Å"morally unjustified.† Socrates then decides to accept his fate and proceeded with his execution. Socrates was a man who was in pursuit of the truth (Durant). In his refusal to accept exile from Athens or a commitment of silence as a penalty, he chooses death and is thrown into prison. While Socrates is awaiting his execution, many of his friends, including Crito, arrive with a foolproof plan for his escape from Athens to live in exile voluntarily. Socrates calmly debates with each friend over the moral value and justification of such an act. â€Å"...people who do not know you and me will believe that I might have saved you if I had been willing to give money, but that I did not care.† -Crito (Wolff 37). Crito believed that by helping Socrates to escape, he could go on to fulfill his personal obligations. Also, if Socrates does not follow the plan, many people would assume that his friends did not care about him enough to help him escape or that his friends are not willing to give their time or money in order to help him. Therefore, Crito goes on to argue that Socrates ou ght to escape from the prison. After listening to Crito’s arguments, Socrates dismisses them as irrelevant to a decision about what action is truly right. â€Å"Now you, Crito, are not going to die to-morrow-...-and therefore you are disinterested and not liable to be deceived by the circumstances in which you are placed.† -Socrates (Wolff 40). In the arguments that Socrates makes, he emphasizes that what other people think does not matter. The only opinions that should matter are the ones of the individuals that truly know. â€Å"The truth alone deserves to be the basis for decisions about human action, so the only proper approach is to engage in the sort of careful moral reasoning by means of which one may hope to reveal it† (Wolff 43). According to Socrates, the only opinion that he is willing to consider would be that of the state. â€Å"...if you go forth, returning evil for evil, and injury for injury,...we shall be angry with you ... ... state of Athens, constitutes disobedience against the state. He argues that obeying the state is a requirement right up until death. He says that by not obeying the state that he was raised in, it's like not obeying his parents that raised him. Socrates was a man who stuck to his commitment to truth, morality and philosophy over life. He had a great commitment to his state, therefore by disobeying it, he would be committing suicide in a sense. If Socrates had disobeyed his state, he would never be allowed to enter it again, nor would any other allow him to live peacefully. His arguments throughout the whole dialogue were very strong. Socrates looked out for his state, while Crito’s arguments were based on himself and how others would view him. Socrates’ conclusion to stay in the prison may have cost him his life, but his act saved the morality and truth of Athens. Works Cited Wolff, Robert Paul. â€Å"Ten Great Works of Philosophy†. New York: Penguin Group, 1969. Durant, William. â€Å"The Story of Philosophy†. New York: Washington Square Press Publications, 1961. Volume I, Ninth Edition. â€Å"Civilization: Past & Present†. New York: Addison-Wesley Longman, Inc., 2000. Socrates Essay examples -- essays research papers fc In Crito, Plato recounts the last days of Socrates, immediately before his execution was to take place in Athens. In the dialogue, Socrates’ pupil, Crito, proposes that Socrates escape from prison. Socrates considers this proposal, trying to decide whether escaping would be â€Å"just† and â€Å"morally justified.† Eventually, Socrates concludes that the act is considered â€Å"unjust† and â€Å"morally unjustified.† Socrates then decides to accept his fate and proceeded with his execution. Socrates was a man who was in pursuit of the truth (Durant). In his refusal to accept exile from Athens or a commitment of silence as a penalty, he chooses death and is thrown into prison. While Socrates is awaiting his execution, many of his friends, including Crito, arrive with a foolproof plan for his escape from Athens to live in exile voluntarily. Socrates calmly debates with each friend over the moral value and justification of such an act. â€Å"...people who do not know you and me will believe that I might have saved you if I had been willing to give money, but that I did not care.† -Crito (Wolff 37). Crito believed that by helping Socrates to escape, he could go on to fulfill his personal obligations. Also, if Socrates does not follow the plan, many people would assume that his friends did not care about him enough to help him escape or that his friends are not willing to give their time or money in order to help him. Therefore, Crito goes on to argue that Socrates ou ght to escape from the prison. After listening to Crito’s arguments, Socrates dismisses them as irrelevant to a decision about what action is truly right. â€Å"Now you, Crito, are not going to die to-morrow-...-and therefore you are disinterested and not liable to be deceived by the circumstances in which you are placed.† -Socrates (Wolff 40). In the arguments that Socrates makes, he emphasizes that what other people think does not matter. The only opinions that should matter are the ones of the individuals that truly know. â€Å"The truth alone deserves to be the basis for decisions about human action, so the only proper approach is to engage in the sort of careful moral reasoning by means of which one may hope to reveal it† (Wolff 43). According to Socrates, the only opinion that he is willing to consider would be that of the state. â€Å"...if you go forth, returning evil for evil, and injury for injury,...we shall be angry with you ... ... state of Athens, constitutes disobedience against the state. He argues that obeying the state is a requirement right up until death. He says that by not obeying the state that he was raised in, it's like not obeying his parents that raised him. Socrates was a man who stuck to his commitment to truth, morality and philosophy over life. He had a great commitment to his state, therefore by disobeying it, he would be committing suicide in a sense. If Socrates had disobeyed his state, he would never be allowed to enter it again, nor would any other allow him to live peacefully. His arguments throughout the whole dialogue were very strong. Socrates looked out for his state, while Crito’s arguments were based on himself and how others would view him. Socrates’ conclusion to stay in the prison may have cost him his life, but his act saved the morality and truth of Athens. Works Cited Wolff, Robert Paul. â€Å"Ten Great Works of Philosophy†. New York: Penguin Group, 1969. Durant, William. â€Å"The Story of Philosophy†. New York: Washington Square Press Publications, 1961. Volume I, Ninth Edition. â€Å"Civilization: Past & Present†. New York: Addison-Wesley Longman, Inc., 2000.

Enterperneurship and Notes

Entrepreneurship—MGT602 VU Table of Contents Lesson No. Title / Topic 1 Introduction 2 The Nature and Importance of Entrepreneurship 3 Entrepreneurial Process/ Start up 4 The Entrepreneurial and Intrapreneurial Mind 5 The Entrepreneurial and Intrapreneurial Mind (Contd†¦ ) 6 The Entrepreneurial and Intrapreneurial Mind (Contd†¦ ) 7 The Entrepreneurial and Intrapreneurial Mind (Contd†¦ ) 8 The Individual Entrepreneur 9 The Individual Entrepreneur (Contd†¦ ) 10 The Individual Entrepreneur (Contd†¦ 11 International Entrepreneurial Opportunities 12 International Entrepreneurial Opportunities 13 International Entrepreneurial Opportunities (Contd†¦ ) 14 International Entrepreneurial Opportunities (Contd†¦ ) 15 International Entrepreneurial Opportunities (Contd†¦ ) 16 Creativity and Business Idea 17 Creativity and the Business Idea 18 Legal Issues for the Entrepreneur 19 Legal Issues for Entrepreneur (Contd†¦ ) 20 Legal Issues for the Entr epreneur (Contd†¦ ) 21 Creating and Starting the Venture 22 Creating and Starting the Business Venture (Contd†¦ 23 Creating and Starting the Venture (Continued) 24 Creating and Starting the Business Plan Continued) 25 The Marketing Plan 26 The Marketing Mix 27 The Organizational Plan 28 The Organizational Plan (Continued) 29 The Organization Plan (Contd†¦ ) 30 The Financial Plan 31 The Financial Plan (Continued†¦ ) 32 Pro Forma Sources and Uses of Funds 33 Pro forma Sources and Uses of Funds 34 Bank Lending Decision 35 Sources of Capital 36 Sources of Capital (Contd†¦ ) 37 Capital Sources in Pakistan Preparing for the New Venture Launch: Early Management Decisions 38 (Contd†¦ ) Page No. 3 06 08 13 15 18 20 22 24 26 29 33 35 37 39 40 43 46 49 52 54 56 58 60 62 65 68 70 72 75 77 81 83 85 87 89 91 95  © Copyright Virtual University of Pakistan 1 Entrepreneurship—MGT602 VU 39 Preparing for the New Venture Launch: Early Management Decisions (Contdâ € ¦ ) 40 Preparing for the New Venture Launch: Early Management Decisions (Contd†¦ ) 41 Preparing for the New Venture Launch: Early Management Decisions (Contd†¦ ) 96 97 99 42 Preparing for the New Venture Launch: Early Management Decisions (Contd†¦ ) 43 New Venture Expansion Strategies and Issues 44 New Venture Expansion Strategies and Issues (Contd†¦ 45 Entrepreneurship and Pakistan 102 103 105 108  © Copyright Virtual University of Pakistan 2 Entrepreneurship—MGT602 INTRODUCTION Lesson 01 LEARNING OBJECTIVES 1. 2. 3. 4. 5. VU 1. To introduce the concept of entrepreneurship and its historical development. 2. To explain the entrepreneurial decision process. 3. To identify the basic types of start-up ventures. 4. To explain the role of entrepreneurship in economic development. 5. To discuss the ethics and racial responsibility of entrepreneurs. NATURE AND DEVELOPMENT OF ENTREPRENEURSHIP The term entrepreneur comes from the French and translates â€Å" between-taker† or go-between. † Earliest Period In this period the money person (forerunner of the capitalist) entered into a contract with the go-between to sell his goods. While the capitalist was a passive risk bearer, the merchant bore all the physical and emotional risks. Middle Ages In this age the term entrepreneur was used to describe both an actor and a person who managed large production projects. In such large production projects, this person did not take any risks, managing the project with the resources provided. A typical entrepreneur was the cleric who managed architectural projects. 7th Century In the 17th century the entrepreneur was a person who entered into a contract with the government to perform a service Richard Cantillon, a noted economist of the 1700s, developed theories of the entrepreneur and is regarded as the founder of the term. He viewed the entrepreneur as a risk taker who â€Å"buy[s] at certain price and sell[s] at an uncertain price, t herefore operating at a risk. † 18th Century In the 18th century the person with capital was differentiated from the one who needed capital. In other words, entrepreneur was distinguished from the capital provider.Many of the inventions developed during this time as was the case with the inventions of Eli Whitney and Thomas Edison were unable to finance invention themselves. Both were capital users (entrepreneurs), not capital providers (venture capitalists. ) Whitney used expropriated crown property. Edison raised capital from private sources. A venture capitalist is a professional money manager who makes risk investments from a pool of equity capital to obtain a high rate of return on investments. 19th and 20th Centuries In the late 19th and early 20th centuries, entrepreneurs were viewed mostly from an economic perspective.The entrepreneur â€Å"contributes his own initiative, skill and ingenuity in planning, organizing and administering the enterprise, assuming the chance of loss and gain. † Andrew Carnegie is one of the best examples of this definition, building the American steel industry on of the wonders of industrial world, primarily through his competitiveness rather than creativity. In the middle of the 20th century, the notion of an entrepreneur as an innovator was established.  © Copyright Virtual University of Pakistan 3 Entrepreneurship—MGT602Innovation, the act of introducing something new, is one of the most difficult tasks for the entrepreneur. VU Edward Harriman and John Pierpont Morgan are examples of this type of entrepreneur. Edward reorganized the Ontario and southern railroad through the northern pacific trust and john developed his large banking house by reorganizing and financing the nation’s industries. This ability to innovate is an instinct that distinguishes human beings from other creatures and can be observed throughout history. DEFINITION OF ENTREPRENEUR The concept of entrepreneurship from a person al perspective has been explored in this century.This exploration is reflected in the following three definitions of an entrepreneur: In almost all definitions of entrepreneurship, there is agreement that we are talking about a kind of behavior that includes: 1. Initiative taking 2. The organizing and reorganizing or social/economic mechanisms to turn resources and situations to practical account. 3. The acceptance of risk or failure. To an economist, an entrepreneur is one who brings resources, labor, materials, and other assets into combinations that make their value greater than before, and one who introduces changes, innovations, and a new order.To a psychologist, such a person is typically driven by certain forces- the need to obtain something, to experiment, to accomplish or perhaps to escape the authority of others. Entrepreneurship is the dynamic process of creating incremental wealth. Our definition of entrepreneurship involves four aspects: 1. Entrepreneurship involves the creation process. 2. It requires the devotion of the necessary time and effort. 3. It involves assuming the necessary risks. 4. The rewards of being an entrepreneur are independence, personal satisfaction, and monetary reward.For the person who actually starts his or her own business there is a high failure rate due to poor sales, intense competition, lack of capital or lack of managerial ability. THE ENTR EPRENEURIAL DECISION PROCESS (Deciding to become an entrepreneur by leaving present activity ) Many individuals have difficulty bringing their ideas to the market and creating new venture entrepreneurship and the actual entrepreneurial decisions have resulted in several million new businesses being started throughout the world.Although no one knows the exact number in the United States. Indeed, millions of ventures are formed despite recession, inflation, high interest rates, and lack of infrastructure, economic uncertainty and the high probability of failure The entrepreneurial decision process entails a movement from something to something— a movement from a present life style to forming a new enterprise. To leave a present live-style to create something new comes from a negative force–disruption. Many companies are formed by people who have retired, moved, or been fired.Another cause of disruption  © Copyright Virtual University of Pakistan 4 Entrepreneurship—MGT602 is completing an educational degree. The decision to start a new company occurs when an individual perceives that forming a new enterprise is both desirable and possible. VU KEY TERMS Breakthrough innovations A new product with some technological change Business ethics The study of behavior and morals in a business situation Desirability of new venture formation Aspects of a situation that make it desirable to start a new company.Entrepreneur Individual who takes risks and starts something new Entrepreneur as an innovator An individual developing something unique Entrep reneurial decision process Deciding to become an entrepreneur by leaving present activity Entrepreneurship Process of creating something new and assuming the risks and rewards  © Copyright Virtual University of Pakistan 5 Entrepreneurship—MGT602 THE NATURE AND IMPORTANCE OF ENTREPRENEURSHIP Lesson 02 VU LEARNING OBJECTIVES 1. To introduce the concept of entrepreneurship and its historical development. . To explain the entrepreneurial decision process. Desirability of New Venture Formation (Aspects of a situation that make it desirable to start a new company) The perception that starting a new company is desirable results from an individual’s culture, subculture, family, teachers and peers. American culture places a high value on being your own boss, being a success and making money therefore, it is not surprising to find a high rate of company formation in the United States.On the other hand in some countries making money is not as valued and failure may be a disgrac e. The rate of business formation in these countries is not as high. Many subcultures that shape value systems operate within a cultural framework. Studies indicate that a high percentage of founders of companies had fathers and/or mothers who valued independence. Encouragement to form a company is also gained from teachers, who can significantly influence individuals. An area having a strong educational base is also a requirement for entrepreneurial activity.Peers are important, also, as is an area with an entrepreneurial pool and peer-meeting place. Possibility of New Venture Formation (Factors making it possible to create a new venture) Although the desire of new venture formation derived from the individual’s culture, subculture, family, teachers and peers needs to be present before any action is taken, the second feature necessary centers around this question â€Å"What makes it possible to form a new company? † Formal education nd previous business experience giv e a potential entrepreneur the skills needed to form and manage a new enterprise. Although educational systems are important in providing the needed business knowledge, individual will tend to be more successful in forming in fields in which they have worked. The government also contributes by providing the infrastructure to help a new venture. The market must be large enough and the entrepreneur must have the marketing know-how to put together the entire package. Finally, financial resources must be readily available.Although most start-up money comes from personal savings, credit, and friends, but there is often a need for additional capital. Riskcapital availability plays an essential role in the development and growth of entrepreneurial activity.  © Copyright Virtual University of Pakistan 6 Entrepreneurship—MGT602 VU KEY TERMS Foundation companies A type of company formed from research and development that usually does not go public. Gazelles Very high growth ventures. Government as an innovator A government active in commercializing technology High-potential ventures.A venture that has high growth potential and therefore receives great investor interest Entrepreneurship Entrepreneurship within an existing business structure Iterative synthesis The intersection of knowledge and social need that starts the product development process Lifestyle firm A small venture that supports the owners and usually does not grow Ordinary innovation Z new product with little technological change Possibility of new venture formation Factors making it possible to create a new venture Copyright Virtual University of Pakistan 7 Entrepreneurship—MGT602 ENTREPRENEURIAL PROCESS/START UPS Lesson 03 LEARNING OBJECTIVES 1. To identify the basic types of start-up ventures. 2. To explain the role of entrepreneurship in economic development 3. To discuss the ethics and racial responsibility of TYPES OF START-UPS Life-Style Firms A life-style firm exists primarily to su pport the owners and usually has little growth opportunity.This type of firm may grow after several years to 30 or 40 employees. Foundation Companies VU A type of company formed from research and development that usually does not go public. This firm can grow in five to ten years from 40 to 400 employees. High-Potential Venture A venture has high growth potential and therefore receives great investor interest. The company may start out like a foundation company, but its growth is far more rapid. After five to ten years the company could employ around 500 employees.These firms are also called gazelles and are most important for the economic development of an area ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT The role of entrepreneurship in economic development involves initiating change in the structure of business and society. One theory of economic growth depicts innovation as the key, not only in developing new products, but also in stimulating investment interest. The new capi tal created expands the capacity for growth (supply side), and new spending utilizes the new capacity and output (demand side. In spite of the importance of investment and innovation in the economic development of an area, there is still a lack of understanding of few factors which are as follows: †¢ The product-evolution process is the process through which innovation develops and commercializes through entrepreneurial activity, which in turn stimulates economic growth. It begins with knowledge in the base technology and ends with products or services available in the marketplace. †¢ The critical point in the process is the intersection of knowledge and a recognized social need, called the iterative synthesis.This point often fails to evolve into a marketable innovation. Most innovations introduced in the market are ordinary innovations, with little uniqueness. Technological innovations refer to new products with significant technological advancements. †¢ †¢ â⠂¬ ¢ Breakthrough innovations mean the development of new products with some technological change. Regardless of the level of uniqueness or technology, each innovation evolves into and develops towards commercialization through one of three mechanisms: the government, entrepreneurship, or entrepreneurship.Entrepreneurship has assisted in revitalizing areas of the  © Copyright Virtual University of Pakistan 8 Entrepreneurship—MGT602 VU inner city. Individuals in inner-city areas can relate to the concept and see it as a possibility for changing their present situation. GOVERNMENT AS AN INNOVATOR A government active in commercializing technology is known as an innovative government. Commercializing technology is frequently called technology transfer. However, few inventions resulting from government-sponsored research have reached the commercial market.Most of the by-products from scientific research have little application to any social need. The government lacks the busines s skills needed for successful commercialization. Government bureaucracy and red tape also often inhibit the timely formation of the business. Recently, federal labs have been required to commercialize some of their technology each year and some are providing entrepreneurial training Intrapreneurship Intrapreneurship refers to entrepreneurship within an existing organization or business structure. Existing businesses have the financial resources, business skills, and arketing and distribution system to commercialize innovation successfully. Often the bureaucratic structure, emphasis on short-term profits, and structured organization inhibit creativity. Some corporations have tried to establish an Entrepreneurial spirit in their organization, some in the form of strategic business units (SBUs. ) Intrapreneurship can also bridge the gap between science and the marketplace. It is the practice of using entrepreneurial skills without taking on the risks or accountability associated with entrepreneurial activities.It is practiced by employees within an established organization using a systemized business model. Employees, perhaps engaged in a special project within a larger firm are supposed to behave as entrepreneurs, even though they have the resources and capabilities of the larger firm to draw upon. Capturing the dynamic nature of entrepreneurial management (trying things until successful, learning from failures, attempting to conserve resources, etc. ) adds to the potential of otherwise static organizations without exposing those employees or self mployed people to the risks or accountability normally associated with entrepreneurial failure. Employee Intrapreneur An employee Intrapreneur is the person who focuses on innovation and creativity and who transforms a dream or an idea into a profitable venture, by operating within the organizational environment. Thus, Intrapreneurs are inside entrepreneurs who follow the goal of the organization. Employees, perhaps e ngaged in a special project within a larger firm are supposed to behave as entrepreneurs, even though they have the resources, capabilities and security of the larger firm to draw upon.Capturing a little of the dynamic nature of entrepreneurial management (trying things until successful, learning from failures, attempting to conserve resources, etc. ) adds to the potential of an otherwise static organizations without exposing those employees to the risks or accountability normally associated with entrepreneurial failure Entrepreneurship The third method for bridging the gap between the science and the marketplace is via  © Copyright Virtual University of Pakistan 9 Entrepreneurship—MGT602 VU entrepreneurship. Many entrepreneurs have difficult time bridging this gap and creating new ventures.They may often lack managerial skills, marketing capabilities, or financial resources. They frequently do not know how to interface with banks, suppliers, customers, and distributors. Ye t, entrepreneurship is the most effective method for bridging the gap and creating new enterprises, these activities affect an areas economy by building the economic base and providing jobs. ENTREPRENEURIAL CAREERS AND EDUCATION Since 1985 there has been an increased interest in entrepreneurial careers fostered by factors such as increased media coverage of entrepreneurs and employment shifts.A conceptual model for understanding entrepreneurial careers views the career stages as interacting with other stages and events in the individual’s life, the life-cycle approach. This approach conceptualizes entrepreneurial careers in nine categories. 1. Educational environment 2. The individual’s personality 3. Childhood family environment 4. Employment history 5. Adult development history 6. Adult family/non-work history 7. Current work situation 8. The individual’s current perspective 9.The current family situation Although there exist a common perception that entrepren eur are less educated than the general population however studies have found entrepreneurs overall and female entrepreneurs in particular, are far more educated than the general population. However, this education sometimes does not develop the specific skills needed in the venture, especially for women entrepreneurs. Childhood influences have been explored, particularly in terms of values and the individual’s personality . The traits most frequently researched are the need for achievement, locus of control, risk-taking, and gender identity.The research on the childhood family environment of the entrepreneur has had more definite results. Entrepreneurs tend to have self-employed fathers, and many also have entrepreneurial mothers. The family plays an important role in establishing the desirability of entrepreneurship as a career. Employment history also has an impact on entrepreneur careers in both positive and a negative sense. Entrepreneurs tend to have a higher probability of success when the venture created is in their field of experience. Negative displacement (such as dissatisfaction with various aspects of ones job) also encourages entrepreneurship.Although no definite research has been done on the adult development history of entrepreneurs, it appears to also affect entrepreneur’s careers. One’s development history has somewhat more of an impact on women, since they tend to start businesses at a later stage in life. There is a lack of data on adult family/non-work history and the available data adds little understanding towards entrepreneurial career development. Entrepreneurs are known for their strong work values, their long workdays, and their dominant management style. They tend to fall in love with the organization and will sacrifice almost Copyright Virtual University of Pakistan 10 Entrepreneurship—MGT602 VU anything in order for it to survive. While in college, few future entrepreneurs realize that they will pursue e ntrepreneurship as their major life goal. Relatively few individuals will start a business immediately after graduation. Entrepreneurship education is a fast growing area in colleges and universities. While the courses vary by university, there is a great commonality, especially in the initial few courses. The skills required by entrepreneurs can be classified in to three main areas: 1.Technical skills involve such things as writing, listening, oral presentations, coaching, and technical know-how. 2. Business management skills include those areas involved in starting, developing and managing any enterprise. 3. Personal entrepreneurial skills differentiate an entrepreneur from a manager and include inner control (discipline), risk taking, innovativeness, persistence, visionary leadership, and being change oriented. These skills and objectives form the basis of the modular approach to an entrepreneurship curriculum.Today entrepreneurs are recognizing the need to learn some of the scie nce of management in an MBA program in order to grow their businesses effectively in the global environment. ETHICS AND SOCIAL RESPONSIBILITY OF ENTREPRENEURS The entrepreneur must establish a balance between ethical exigencies, economic expediency, and social responsibility. A managers attitudes concerning corporate responsibility tend to be supportive of laws and professional codes of ethics. Entrepreneurs have few reference persons, role models, and developed internal ethics codes.Entrepreneurs are sensitive to peers pressure and social norms in the community as well as pressures from their companies. While ethics refers to the â€Å"study of whatever is right and good for humans,† business ethics concerns itself with the investigation of business practices in light of human values. The word â€Å"ethics† stems from the Greek ethos, meaning custom and usage. Development of Our Ethical Concepts Socrates, Plato, and Aristotle provide the earliest writings dealing with ethical conceptions; earlier writings involving moral codes can be found in both Judaism and Hinduism.American attitudes on ethics result from three principle influences: Judeo-Christian heritage, a belief in individualism and opportunities based on ability rather than social status. Research on business ethics can be broken down into four broad classifications: 1. Pedagogically-oriented inquiry 2. Theory-building without empirical testing 3. Empirical research, measuring the attitudes and ethical beliefs of students and academic faculty 4.Empirical research within business environments THE FUTURE OF ENTREPRENE URSHIP In spite of the differences in definition of entrepreneurship, there are common aspects such as risk taking, creativity, independence, and rewards. Entrepreneurship is currently being embraced by educational institutions, governments, societies, and corporations. Schools are increasing their emphasis on entrepreneurship in terms of courses and academic research. In Eu rope many universities have started programs in entrepreneurship. There has also been an increase in academic research, endowed chairs and centers of Copyright Virtual University of Pakistan 11 Entrepreneurship—MGT602 VU entrepreneurial activity. Governments have also promoted the growth of entrepreneurship. Individuals are encouraged to form new businesses and provided tax incentives, roads, and a communications system to facilitate this creative process. Some state governments are developing strategies for fostering entrepreneurial activity. The venture capital industry has benefited from lowering of capital gains tax rates and more relaxed rules regarding pension fund investment. Society’s support of entrepreneurship is critical in providing motivation and public support.The media has played a powerful role in developing public support. Media coverage uplifts the image of the entrepreneur and growth companies. Articles have appeared in newspapers such as New York Ti mes, The Wall Street Journal, and the Washington Post. Business magazines such as Barrons, Business Week, Forbes, and Fortune have provided coverage. Magazines such as Black Enterprise, Entrepreneur, Inc. , and Venture focus on issues of the entrepreneurial process. Television on both a national and local level has highlighted entrepreneurship. Large companies will continue to have a special interest in Entrepreneurship in the future.The largest 15 companies account for over 20 percent of the total U. S. research and development. Other companies will create more new businesses through Entrepreneurship. KEY TERMS Product-evolution process Process for developing and commercializing an innovation Risk taking Taking calculated chances in creating and running a venture. Technological innovation A new product with significant technological advancement Technology transfer Commercializing the technology in the laboratories into new products  © Copyright Virtual University of Pakistan 12 E ntrepreneurship—MGT602THE ENTREPRENEURIAL AND INTRAPRENEURIAL MIND LEARNING OBJECTIV ES 1. To explain the aspects of the entrepreneurial process. 2. To explain the differences between entrepreneurial and managerial domains. 3. To explain the organizational environment conducive for entrepreneurship. 4. To identify the general characteristics of an Entrepreneur. 5. To explain the process of establishing entrepreneurship in an organization. VU Lesson 04 ENTREPR E NEURIAL PROCESS The entrepreneurial process involves finding, evaluating, and developing an opportunity by overcoming the strong forces that resist the creation of something new.Phase 1: Identifying and Evaluating the Opportunity Most good business opportunities result from an entrepreneur being alert to possibilities. Some sources are often fruitful, including consumers and business associates. Channel members of the distribution system-retailers, wholesalers or manufacturer’s reps-are also helpful. Technically -oriented individuals often identify business opportunities when working on other projects. Each opportunity must be carefully screened and evaluated-this is the most critical element of the entrepreneurial process. . The evaluation process involves looking at b. The creation and length of the opportunity c. Its real and perceived value d. Its risks and return. e. It’s fit with the skills and goals of the entrepreneur f. Its differential advantage in its competitive environment It is important to understand the cause of the opportunity, as the resulting opportunity may have a different market size and time dimension. The market size and the length of the window of opportunity are the primarily bases for determining risks and rewards.The risks reflect the market, competition, technology, and amount of capital involved. The amount of capital forms the basis for the return and rewards. The return and reward of the present opportunity needs to be viewed in light of any possible s ubsequent opportunities as well. The opportunity must fit the personal skills and goals of the entrepreneur. The entrepreneur must be able to put forth the necessary time and effort required for the venture to succeed. One must believe in the opportunity enough to make the necessary sacrifices.Opportunity analysis, or an opportunity assessment plan, should focus on the opportunity and provide the basis to make the decision, including: a. A description of the product or service b. An assessment of the opportunity c. Assessment of the entrepreneur and the team d. Specifications of all the activities and resources needed e. The source of capital to finance the initial venture The most difficult aspect of opportunity analysis is the assessment of the opportunity. Phase 2: Develop a Business Plan A good business plan must be developed in order to exploit the opportunity defined.A good business plan is important in developing the opportunity and in determining the resources required, obta ining those resources and successfully managing the venture.  © Copyright Virtual University of Pakistan 13 Entrepreneurship—MGT602 VU Phase 3: Determine the Resources Required. Assessing the resources needed starts with an appraisal of the entrepreneur’s present resources. Any resources that are critical must be distinguished from those that are just helpful. Care must be taken not to underestimate the amount and variety of resources needed. Acquiring needed resources, while giving up as little control as possible, is difficult.The entrepreneur should try to maintain as large an ownership position as possible, particularly in the start-up stage. As the business develops, more funds will probably be needed, requiring more ownership be relinquished. Alternative resource suppliers should be identified, along with their needs and desires, in order to structure a deal with the lowest cost and loss of control. Phase 4: Manage the Enterprise. The entrepreneur must employ t hese resources through implementation of the business plan. This involves implementing a management structure, as well as identifying a control system.KEY TERMS Administrative domain The ways managers make decisions Business plan The description of the future direction of the business Corporate culture The environment of a particular organization Entrepreneurial domain The ways entrepreneurs make decisions Entrepreneurial process The process through which a new venture is created by an entrepreneur Entrepreneurial culture The environment of an entrepreneurial-oriented organization Entrepreneurship Entrepreneurship within an existing business organization Opportunity identification The process by which an entrepreneur comes up with the opportunity for a new venture Opportunity parameters Barriers to new product creation and development Top management commitment Managers in an organization strongly supporting entrepreneurship Traditional managers Managers in a non-entrepreneurial-orie nted organization Window of opportunity The time period available for creating the new venture  © Copyright Virtual University of Pakistan 14 Entrepreneurship—MGT602 VUTHE ENTREPRENEURIAL AND INTRAPRENEURIAL MIND (continued†¦) Lesson 05 LEARNING OBJECTIVES 1. To explain the aspects of the entrepreneurial process. 2. To explain the differences between entrepreneurial and managerial domains. 3. To explain the organizational environment conducive for entrepreneurship. 4. To identify the general characteristics of an entrepreneur. 5. To explain the process of establishing entrepreneurship in an organization. MANAGERIAL VERSUS ENTREPRENEURIAL DECISION MAKING The difference between the entrepreneurial and managerial styles involves five business dimensions. Strategic Orientation The entrepreneur’s strategic orientation depends on his or her perception of the opportunity.This orientation is most important when other opportunities have diminishing returns accompanied by rapid changes in technology, consumer economies, social values or political rules. When the use of planning systems is the strategic orientation, there is more pressure for the administrative domain to be operant. Commitment to Opportunity The entrepreneurial domainis pressured by the need for action and has a short time span in terms of opportunity commitment. The administrative domain (the ways mangers make decisions) is not only slow to act on an opportunity, but the commitment is usually for a longer time span. Commitment of Resources An entrepreneur is used to having resources committed at periodic intervals, often based on certain tasks or objectives being reached.In acquiring these resources the entrepreneur is forced to achieve significant milestones using very few resources. In the administrative domain, the commitment of resources is for the total amount needed. Administrative-oriented individuals receive personal rewards by effectively administering the resources under t heir control. Control of Resources The administrator is rewarded by effective resource administration and has a drive to own or accumulate as many resources as possible. The entrepreneur, under pressure of limited resources, strives to rent resources on an as-needed basis. Managerial Structure In the administrative domain, the organizational structure is formalized and hierarchical in nature.The entrepreneur employs a flat organizational structure with informal networks. CAUSES FOR RECENT INTEREST IN INTRAPRENEURSHIP  © Copyright Virtual University of Pakistan 15 Entrepreneurship—MGT602 VU Interest in intrapreneurship has resulted from events occurring on social, cultural, and business levels. There is an increasing interest in â€Å"doing your own thing. † Individuals frequently desire to create something of their own. They want responsibility and want more freedom in their organizations. Frustration can develop and result in the employee becoming less productive or leaving the organization. This has recently caused more discontent in structured organizations.When meaning is not provided within the organization, individuals often search for an institution, such as entrepreneurship, that will provide it. Intrapreneurship is one method for stimulating and capitalizing on those who think that something can be done differently and better, such as Xerox Corporation’s commitment to Xerox Technology Ventures. It is important to instill the intrapreneurial spirit in an organization in order to innovate and grow. In a large organization problems occur that thwart creativity and innovation. This growth and diversity that can result are critical, since large corporations are more efficient in a competitive market than are smaller firms.The resistance against flexibility, growth, and diversification can be overcome by developing a spirit of entrepreneurship, called Intrapreneurship, within the existing organization. There are social, cultural, and business pressures for Entrepreneurship. Hyper competition has forced U. S. companies to focus on new product development and increased productivity. Reductions in large corporation’s staff are being absorbed in the workforce, particularly in small businesses. Entrepreneurial endeavors consist of four key elements. 1. New business venturing refers to the creation of new business within an existing organization. 2. Organizational innovativeness refers to product and service innovation with an emphasis on development and innovation in technology. 3.Self-renewal reflects the transformation of organizations through the renewal of the key ideas on which they are built. 4. Proactiveness includes initiative and risk taking, as well as competitive aggressiveness KEY TERMS Administrative domain The ways managers make decisions Business plan The description of the future direction of the business Corporate culture The environment of a particular organization Entrepreneurial domain The ways entrepreneurs make decisions Entrepreneurial process The process through which a new venture is created by an entrepreneur Entrepreneurial culture The environment of an entrepreneurial-oriented organization Entrepreneurship  © Copyright Virtual University of Pakistan 16 Entrepreneurship—MGT602Entrepreneurship within an existing business organization Opportunity identification The process by which an entrepreneur comes up with the opportunity for a new venture Opportunity parameters Barriers to new product creation and development Top management commitment Managers in an organization strongly supporting Entrepreneurship Traditional managers Managers in a non-entrepreneurial-oriented organization Window of opportunity The time period available for creating the new venture VU  © Copyright Virtual University of Pakistan 17 Entrepreneurship—MGT602 VU THE ENTREPRENEURIAL AND INTRAPRENEURIAL MIND (continued†¦) Lesson 06 LEARNING OBJECTIVES 1. 2. 3. 4. 5. To expl ain the aspects of the entrepreneurial process. To explain the differences between entrepreneurial and managerial domains. To explain the organizational environment conducive for entrepreneurship. To identify the general characteristics of an entrepreneur. To explain the process of establishing entrepreneurship in an organization.CORPORATE VERSUS INTRAPRENEURIAL CULTURE Smaller, aggressive, entrepreneurial firms are developing more new products and becoming dominant in certain markets. Many companies are attempting to create the same spirit, culture, and rewards of entrepreneurship in their organizations. The typical corporate culture has a climate and reward system that favors conservative decision making. Emphasis is on gathering large amounts of data as the basis for a rational decision. Risky decisions are often postponed until hard facts are gathered or a consultant is hired. Often there are so many approvals required that no individual feels personally responsible for the proj ect. The guiding principles in a traditional corporate culture are: 1. 2. 3. 4. 5. 6.Follow instructions given Do not make mistakes Do not fail Do not take initiative Stay within your turf and protect your backside This restrictive environment is not conducive to creativity, flexibility, and risk taking The guiding principles of intrapreneurs Aspects of an Entrepreneurial culture are quite different: 1. 2. 3. 4. 5. Develop visions, goals, and action plans Be rewarded for actions taken Suggest, try, and experiment Create and develop Take responsibility and ownership There are differences in the norms of the two cultures. The traditional culture is hierarchical in nature, with established procedures, lines of authority, and control mechanisms. These support the present corporate culture, and do not encourage new venture creation.The culture of an intrapreneurial firm has a flat organizational structure with networking, teamwork, sponsors, and mentors. Close working relationships help establish an atmosphere or trust that facilitates accomplishment of visions. Individuals make suggestions across functional areas, resulting in cross-fertilization of ideas. The two cultures produce different types of individuals and management styles.  © Copyright Virtual University of Pakistan 18 Entrepreneurship—MGT602 VU Motivation Traditional managers are motivated primarily by promotion and typical corporate rewards. Entrepreneurs and intrapreneurs thrive on independence and the ability to create.Intrapreneurs expect their performance to be suitably rewarded. There are also time orientation differences. Managers emphasize the short run, entrepreneurs the long run, and intrapreneurs somewhere in between. Intrapreneurs use a midpoint mode between delegation of managers and direct involvement of entrepreneurs. Entrepreneurs and intrapreneurs are moderate risk takers; managers are much more cautious. Most entrepreneurs fail at least once, and Intrapreneurs learn to concea l risky projects from management until the last possible moment. Traditional managers tend to be most concerned about those at higher levels, entrepreneurs serve self and customers, and intrapreneurs add sponsors.CLIMATE FOR INTRAPRENEURSHIP In establishing an Intrapreneurial environment, certain factors and leadership characteristics need to be present. The first of these is that the organization operates on the frontiers of technology. Since research and development are key sources for new product ideas, the firm must operate on the cutting edge of technology and encourage and supporting new ideas instead of discouraging them. Second is experimentation, or trial and error, is encouraged. Successful new products usually do not appear fully developed; instead they evolve. A company wanting to establish an intrapreneurial spirit has to establish an environment that allows mistakes and failures.Without the opportunity to fail, few corporate intrapreneurial ventures will be developed. Third an organization should make sure that there are no initial opportunity parameters, such as turf protection, inhibiting creativity in new product development. Fourth, the resources of the firm need to be available and easily accessible. Often, insufficient funds are allocated not to creating something new but instead to solving a problem that have an immediate effect on the bottom line. Some companies, such as Xerox, 3M, and AT&T have established separate venture capital areas for funding new internal ventures. Fifth a multidisciplinary team approach needs to be encouraged.One key to Intrapreneurial success is the existence of â€Å"skunkworks† involving key people. Developing the needed team work for a new venture is further complicated by the fact that a team member’s promotion within the corporation is related to performance in the current position, not in the new venture. The corporate environment must establish a long time horizon for evaluating the success o f the overall program. Sixth the spirit of intrapreneurship cannot be forced on individuals; it must be voluntary. Most managers in a corporation are not capable of being successful intrapreneurs. Those who do emerge from this self selection process must be allowed the latitude to carry a project through to completion.An intrapreneur falls in love with the new venture and will do almost anything to ensure its success. The seventh characteristic is a reward system. The intrapreneur needs to be appropriately rewarded for the energy and effort expended on the new venture. An equity position in the new venture is one of the best motivational methods. Eight a corporate environment favorable for intrapreneurship has sponsors and champions throughout the organization that supports the creative activity and resulting failures. Finally the intrapreneurial activity must be whole-heartedly supported by top management.  © Copyright Virtual University of Pakistan 19 Entrepreneurship—MGT 602 VUTHE ENTREPRENEURIAL AND INTRAPRENEURIAL MIND (continued†¦) Lesson 07 LEARNING OBJECTIVES 1. 2. 3. 4. 5. To explain the aspects of the entrepreneurial process. To explain the differences between entrepreneurial and managerial domains. To explain the organizational environment conducive for entrepreneurship. To identify the general characteristics of an Entrepreneur. To explain the process of establishing entrepreneurship in an organization. INTRAPRENEURIAL LEADERSHIP CHARACTERISTICS There are certain individual characteristics needed for a person to be successful Entrepreneurs, including: 1. Understanding the environment 2. Being visionary and flexible 3. Creating management options 4.Encourage teamwork while employing a multi-disciplined approach 5. Encouraging open discussion 6. Building a coalition of supporters, and persisting An Entrepreneur needs to understand all aspects of the environment. Part of this ability is reflected in individual’s level of creativity . Creativity tends to decrease with age and education. The individual must be creative and have a broad understanding of the internal and external environments of the corporation. The intrapreneurial person must be a visionary leader-a person who dreams great dreams. Leadership is the ability to dream great things and communicate them in a way that people say yes to being a part of the dream.To establish a successful new venture, the intrapreneurial leader must have a dream and overcome all obstacles to achieve it. The third necessary characteristic is that the intrapreneur must be flexible and create management options. An intrapreneur is open to and encourages change. By challenging the beliefs and assumptions of the corporation, an intrapreneur can create something new in the organization structure. He or she must possess the ability to encourage teamwork and use a multi-disciplined approach. Every new company formation requires a broad range of business skills. The intrapreneur must be a good diplomat to minimize disruption. Open discussion must be encouraged to develop a good team for creating something new.Many corporate managers have forgotten that frank, open discussion is part of the learning process. A successful venture can be formed only when the team feels the freedom to disagree and to critique an idea. The degree of openness among the team depends on the degree of openness of the intrapreneur. Openness leads to a strong coalition of supporters and encouragers. The intrapreneur must encourage each team member, particularly during hard times. A good intrapreneur makes everyone a hero. Only through persistence will a new venture be created and successful commercialization result. ESTABLISHING INTRAPRENEURSHIP IN THE ORGANIZATION To establish an intrapreneurial environment, the organization must implement a procedure.This can be done internally, but it is easier to use an outsider to facilitate the process. This is particularly true when the environ ment is very traditional. There are some steps involved in it. Step 1: The first step is to secure a commitment to intrapreneurship in the organization by top, upper, and middle management. Without top management commitment, the organization will never be able to make the necessary changes. Once top management has committed to intrapreneurship for a sufficient length of time, the concept is introduced throughout the organization. This is effectively accomplished through seminars. General guidelines need to be  © Copyright Virtual University of Pakistan 20 Entrepreneurship—MGT602 VU stablished for intrapreneurial venture development. Next, intrapreneurial leaders need to be identified, selected, and trained. Step 2: Ideas and general interest areas should be identified, along with the amount of risk money that is available. The overall expectations and target results should be established, specifying time frame, profitability requirements, and impact of the organization. A m entor/sponsor system needs to be established. Step 3: A company needs to use technology to make itself faster and more flexible. Technology has allowed small companies to act like they are big ones. Large companies can use technology to make them responsive and flexible.Step 4: The organization can use a group of managers to train and share their experiences with other members. These sessions should be conducted one day per month for a specified period of time. Information about intrapreneurship and about the company’s specific activities should be well publicized. Step 5: The organization needs to develop ways to get closer to its customers by tapping the data base, hiring from smaller rivals, and helping the retailer. Step 6: An organization must learn to be more productive with fewer resources. With middle management cutbacks, more control has been given to lower levels of the organization. The span of control should be increased. Step 7: The organization needs to establis h a strong support structure.Because they do not immediately affect the bottom line, intrapreneurial activities can be overlooked and receive little funding. These ventures require flexible, innovative behavior, with the intrapreneurs having total authority over expenditures and access to funds. Step 8: The support must involve trying the rewards to the performance of the intrapreneurial unit. This encourages team members to work harder and compete more effectively. The equity portion of the compensation is particularly difficult to handle. Step 9: The organization needs to implement an evaluation system that allows successful units to expand and unsuccessful ones to be eliminated.PROBLEMS AND SUCCESSFUL EFFORTS Intrapreneurship, also called corporate venturing, is not without problems. One study found that new ventures started within a corporation performed worse than those started independently. Independent start-ups tend to outperform corporate start-ups. There are many examples of companies that have successfully implemented intrapreneurship. 3M allows employees to devote 15 percent of their time to independent projects. After failing to recognize the potential of Wozniak’s personal computer, Hewlett-Packard has taken steps to take advantage of future opportunities. Even IBM has developed the independent business unit concept. The problems of ntrapreneurship are not insurmountable, and the concept can lead to new products, growth and the development of an entirely new corporate environment and culture.  © Copyright Virtual University of Pakistan 21 Entrepreneurship—MGT602 THE INDIVIDUAL ENTREPRENEUR Lesson 08 LEARNING OBJECTIV ES 1. To identify some key entrepreneurial feelings and motivations. 2. To identify key elements in an entrepreneur’s background. 3. To discuss the importance of role models and support systems. 4. To identify the similarities and differences between male and female entrepreneurs. 5. To explain the differences between inventors and entrepreneurs. VU ENTREPR E NEURIAL FEELINGS There is no â€Å"true entrepreneurial profile†- entrepreneurs come from many educational backgrounds, family situations, and work experiences.A potential entrepreneur may presently be a nurse, secretary, assembly line worker, sales person, mechanic, home maker, manager or engineer. A potential entrepreneur can be male or female and of any race or nationality. Locus of Control One concern people have when forming is whether they will be able to sustain the drive and energy required to form something new and to manage the new enterprise and make it grow. While research results are inconsistent, internal control seems to be a characteristic of entrepreneurs. Internal beliefs appear to differentiate entrepreneurs from the general public, but not from managers. Managers and entrepreneurs both have an internality tendency. Feelings about Independence and Need for Achievement.The entrepreneur also has the need for i ndependence, to do things in his or her own way and time. Another controversial characteristic is the entrepreneur’s need for achievement. McClelland specified three attributes as characteristics of entrepreneurs: 1. Individual responsibility for solving problems and setting and achieving goals. 2. Moderate risk taking as a function of skill. 3. Knowledge of results of decision/task accomplishment. McClelland concluded that a high need for achievement leads individuals to engage in entrepreneurial behavior, although other studies have been inconsistent. Risk Taking Risk taking seems a part of the entrepreneurial process.However, it has not yet been empirically established whether risk-taking is a distinguishing characteristics of entrepreneurs. ENTREPR E NEURIAL BACKGRO UND AND CHARACT E RIST ICS Only a few background characteristics have differentiated the entrepreneur from the general populace or managers. Childhood Family Environment The impact of birth order and social st atus has had conflicting research results. There is strong evidence that entrepreneurs, both male and female, tend to have self-employed or entrepreneurial fathers. Having a father who is self-employed provides a strong inspiration in the example of independence and flexibility of self-employment.This feeling of independence is often further enforced by an entrepreneurial mother. The overall parental  © Copyright Virtual University of Pakistan 22 Entrepreneurship—MGT602 VU relationship may be the most important aspect of the childhood environment in establishing the desirability of entrepreneurial activity. Parents of entrepreneurs need to be supportive and encourage independence, achievement, and responsibility. This supportive relationship appears to be most important for females. Female entrepreneurs tend to grow up in middle- to upper-class environments, where families are child-centered, and are similar to their fathers in personality.KEY TERMS Departure points The act ivities occurring when the venture is started Inventor An individual who creates something new Locus of control An attribute indicating the sense of control that a person has over life Moral-support network Individuals who give psychological support to an entrepreneur Entrepreneurship – MGT602 VU  © Copyright Virtual University of Pakistan 23 Entrepreneurship—MGT602 VU THE INDIVIDUAL ENTREPRENEUR (continued†¦) Lesson 09 LEARNING OBJECTIVES 1. To identify some key entrepreneurial feelings and motivations. 2. To identify key elements in an entrepreneur’s background. 3. To discuss the importance of role models and support systems. 4. To identify the similarities and differences between male and female entrepreneurs. 5. To explain the differences between inventors and entrepreneurs.ENTREPRENEURIAL BACKGROUND AND CHARACTERISTICS Education Education appears important in the upbringing of the entrepreneur, in the level of education obtained and in playing a majo r role in coping with problems. Although formal education is not necessary for starting a new business, it does provide a good background. In education, female entrepreneurs previously experienced some disadvantage, with few having degrees in engineering, science, or math. The ability to deal with people and communicate clearly in written and spoken work is also important. Personal Values Studies have failed to indicate that entrepreneurs can be differentiated on personal valued from managers, unsuccessful entrepreneurs, or the general public. Leadership, support, aggression, benevolence, conformity, creativity, veracity, and resource seeking may also be important.A successful entrepreneur is frequently characterized as a winner; winning may be a prerequisite for his or her actually becoming one. Age Entrepreneurial age is the age of the entrepreneur reflected in the experience. Entrepreneurial experience is one of the best predictors of success. In chronological age, most entrepren eurs start their careers between ages 22 and 55. Earlier starts in an entrepreneurial career seem to be better than later ones. Generally, male entrepreneurs start their first venture in their early 30s, while women tend to do so in their middle 30s. Work History Dissatisfaction with one’s job often motivates the launching of a new venture. Previous technical and industry experience is also important once the decision to start a business is made.Experience in the following areas is particularly important: financing; product or service development; manufacturing; development of distribution channels; and preparation of a marketing plan. As the venture becomes established, managerial experience and skills become more important. Entrepreneurial experience becomes increasingly important as the complexity of the venture increases. MOTIVATION While motivations may vary, the reason cited most often for becoming an entrepreneur independence-not wants to work for anyone else. Other mo tivating factors differ between male and female entrepreneurs. Money is the second reason for men’s starting a venture. Job satisfaction, achievement, opportunity, and money are the second order reasons for women.  © Copyright Virtual University of Pakistan 24 Entrepreneurship—MGT602 VUKEY TERMS Motivations That causes people to do something Need for achievement An individual’s need to be recognized Need for independence. Being one’s own boss-one of the strongest needs of an entrepreneur Professional-support network Individuals who help the entrepreneur in business activities Role models Individuals influencing an entrepreneur’s career choice and style Social status The level at which an individual in viewed by society Work history The past work experiences of an individual  © Copyright Virtual University of Pakistan 25 Entrepreneurship—MGT602 VU THE INDIVIDUAL ENTREPRENEUR (continued†¦) Lesson 10 LEARNING OBJECTIVES 1. To identify some key entrepreneurial feelings and motivations. 2.To identify key elements in an entrepreneur’s background. 3. To discuss the importance of role models and support systems. 4. To identify the similarities and differences between male and female entrepreneurs. 5. To explain the differences between inventors and entrepreneurs. ROLE MODELS AND SUPPORT SYSTEMS One of the most important factors influencing entrepreneurs in their career choice is role models. Role models can be parents, relatives, or successful entrepreneurs in the community. Role models can also serve in a supportive capacity as mentors during and after the new venture is launched. This support system is most crucial during the start-up phase.It is important that an entrepreneur establish connections to support resources early in the venture formation process. As contacts expand they form a network with density (extensiveness of ties between two individuals) and centrality (the total distance of the entrepreneu r to all other individuals. ) The strength of ties between the entrepreneur and any individual is dependent on the frequency, level, and reciprocity of the relationship. An informal network for moral and professional support benefits the entrepreneur. Moral-Support Network It is important for the entrepreneur to establish a moral support network of family and friends. Most entrepreneurs indicate that their spouses are their biggest supporters.Friends can provide advice that is more honest than that received from others, plus encouragement, understanding, and assistance. Relatives can also be sources of moral support, particularly if they are also entrepreneurs. Professional-Support Network The entrepreneur also needs advice and counsel, which can be obtained from members of a professional support network. A mentor-protege relationship is an excellent way to secure the needed professional advice. The mentor is a coach, sounding board, and advocate. The individual selected needs to be an expert in the field. An entrepreneur can initiate the â€Å"mentor-finding process† by identifying and contacting a number of experts.The mentor should be periodically apprised of the progress of the business so that a relationship can gradually develop. Another source of advice is a network of business associates. Self-employed individuals who have experience in starting a business are good sources. Clients and buyers are also important as they provide word-of-mouth advertising. Suppliers are good components of the professional-support network-they help to establish credibility with creditors and customers, and provide good information on trends in the industry. Trade associations are good network additions, as they keep up with new developments and can provide overall industry data. Affiliations ith individuals developed in hobbies, sporting events, civic involvements and school alumni groups are excellent sources of referrals, advice, and information. Each entrepreneur needs to establish both a moral- and a professional-support network to share problems with and gain overall support. MALE VERSUS FEMALE ENTREPRENEURS Women are now starting new ventures at three times the rate of men. Women form over 70  © Copyright Virtual University of Pakistan 26 Entrepreneurship—MGT602 VU percent of all new businesses. Women now own over 8. 5 million small businesses, an increase of over 45 percent since 1990. In some respects female entrepreneurs possess very different motivations, business skills, and occupational backgrounds.Factors in the start-up process for male and female entrepreneurs are different, especially in such areas as support systems, sources of funds, and problems. Men are motivated by the drive to control their own destinies. Women tend to be more motivated by the need for achievement arising from job frustration. Departure points and reasons for starting the business are similar for both men and women. Both generally have a strong i nterest and experience in the area of their venture. For men, the transition to a new venture is easier when the venture is an outgrowth of a present job. Women often leave a previous occupation with a high level of frustration and enthusiasm for the new venture rather than experience.Start-Up Financing Males often have investors, bank loans, or personal loans in addition to personal funds as sources of startup capital. Women usually rely solely on personal assets or savings. Obtaining financing and lines of credit are major problems for women. Occupations Both groups tend to have experience in the field of their ventures. Men more often have experience in manufacturing, finance, or technical areas. Most women usually have administrative experience, often in service-related fields. Personality Both men and women tend to be energetic, goal-oriented, and independent. Men are often more confident and less flexible and tolerant than women. Backgrounds The backgrounds of male and female entrepreneurs tend to be similar.Women are little older when they embark on their careers. Men often have studied in technical- or business-related areas, while women tend to have liberal arts education. Many women busi