entrepreneurship

Definition
The capacity and willingness to develop, organize and manage a business
venture along with any of its risks in order to make a profit. The most obvious
example of entrepreneurship is the starting of new businesses.
In economics, entrepreneurship combined with land, labor, natural
resources and capital can produce profit. Entrepreneurial spirit is characterized
by innovation and risk-taking, and is an essential part of a nations ability to
succeed in an ever changing and increasingly competitive global marketplace.
Careers in Entrepeneurship
Entrepreneurs start new businesses and take on the risk and
rewards of being an owner. This is the ultimate career in
capitalism - putting your idea to work in a competitive
economy. Some new ventures generate enormous wealth for
the entrepreneur. However, the job of entrepreneur is not for
everyone. ou need to be hard-working, smart, creative, willing
to take risks and good with people. ou need to have heart,
have motivation and have drive.
!ne of the best things about pursuing a career as an
entrepreneur is the wide-open possibilities. There is room in
many economies throughout the globe for entrepreneurship -
such as "ndia, #ra$il, %ubai, the &.S. or 'enya. There are many
industries where wealth creation is possible be it the "nternet
and "T, personal services, media, engineering or small local
business (e.g., dry cleaning, electronics repair, restaurants).
#ut there is a downside of entrepreneurship too. our life may
lack stability and structure. our ability to take time o* may be
highly limited. +nd you may become stressed as you manage
cash ,ow on the one hand and e-pansion on the other. Three
out of .ve new businesses in the &.S. fail within /0 months of
getting started.
"t1s important to be savvy and understand what is and is not
realistic. The web is chock-full of come-ons promising to make
you rich. +void promotions that re2uire you to pay up front to
learn some secret to wealth. &nderstand that the market is
more or less e3cient - which means that if a bunch of people
know a sure way to be a millionaire then the opportunity has
probably already been competed away. !n the other hand, look
for ine3ciencies in markets. 4laces where a better idea, a little
ingenuity or some aggressive marketing could really make a
di*erence. Think about problems that people would pay to
have a solution to. "t helps to know .nance. "t1s a must to really
know your product area well. 5hat do consumers want6 5hat
di*erentiates you from the competition6 How do you market
this product6 + formal business plan is not essential, but is
normally a great help in thinking through the case for a new
business. ou1ll be investing more in it than anyone else, so
treat yourself like a smart, skeptical investor who needs to be
convinced that the math adds up for the business you propose
starting.
Entrepreneurs have many personalities. + number never
.nished college. Some are .ery revolutionaries. Some are
gentle souls with a good idea. Some are driven but di3cult.
Some have grown up in the most di3cult circumstances
imaginable - emerging with enormous determination to strive
for greatness. !thers are pleasant, personable and
compassionate renegades. 7enerally, there will be a life event,
key motivator or a source of inspiration that causes a person to
strike out on their own rather than work inside a larger
company. Sometimes it is cubicle fatigue or, worse, getting
.red. !ther times it is an 8aha moment8 where an insight or
innovation into how an industry or business could be done
di*erently arises. Sometimes it1s a bad boss.
The possibilities in entrepreneurship are endless. The rewards
can be high. +nd the risks are undoubtedly high too. #ut, if you
have drive, creativity and the desire to be your own boss, this
may very well be the career for you. 7ood luck9
EXAMPLE
Michael Dell helped launch the personal computer revolution in the 1980s with the
creation of the Dell Computer Corporation now !nown as Dell "nc#
Born on February 23, 1965, in Houston, Texas, Michael Dell showed an early interest in
technoloy and adets! "t the ae o# 15, he $urchased an early "$$le co%$uter in order
to ta&e it a$art to see how it wor&ed! 'n collee, he started buildin co%$uters and sellin
the% directly to $eo$le, #ocusin on stron custo%er su$$ort and chea$er $rices! Dell
(o%$uter was the world)s larest *( %a&er!
$orn on %e&ruar' () 19*+ in ,ouston -e.as Michael Dell helped
launch the personal computer revolution in the 1980s with the creation
of the Dell Computer Corporation /now !nown as Dell "nc#0 which
&e1an in the founder2s dorm room at the 3niversit' of -e.as and 4uic!l'
&lossomed into a me1awatt computer compan'# $' 199( 5ust ei1ht
'ears after Dell was founded Michael Dell was the 'oun1est CE6 of a
%ortune +00 compan'#
Dell)s success wasn)t entirely sur$risin! +hile his %other, a stoc&bro&er, and his #ather,
an orthodontist, $ushed their son to consider %edicine, Dell showed an early interest in
technoloy and business!
" hard wor&er, Dell landed a ,ob washin dishes at a (hinese restaurant at the ae 12 so
that he could $ut away %oney #or his sta%$ collection! " #ew years later he harnassed his
ability to si#t throuh data to #ind new custo%ers #or news$a$er subscri$tions #or
the Houston Post, which earned the hih school student -1.,/// in one sinle year!
'ntriued by the ex$andin world o# co%$uters and adetry, Dell $urchased an early
"$$le co%$uter at the ae o# 15 #or the strict $ur$ose o# ta&in it a$art to see how it
wor&ed!
"t was in colle1e that Dell found the niche that would &ecome his &oom#
-he PC world was still 'oun1 and Dell reali7ed that no compan' had
tried sellin1 directl' to customers# $'passin1 the middleman and the
mar!ups Dell tapped his savin1s account for 81000 and started
&uildin1 and sellin1 computers for people he !new at colle1e# ,is
emphasis however wasn2t 5ust on 1ood machines &ut stron1 customer
support and cheaper prices# 9oon he had accounts outside of school
and it wasn2t lon1 &efore Dell dropped out and focused all his efforts on
his &usiness#
The nu%bers $ro0ed staerin! 'n 19.1, Dell)s #irst #ull year in business, he had -6
%illion in sales! By 2///, Dell was a billionaire and his co%$any had o##ices in 31
countries and e%$loyee count o# %ore than 35,///! The #ollowin year, Dell (o%$uter
sur$assed (o%$a2 (o%$uter as the world)s larest *( %a&er!
30erall, Dell)s #irst 2/ years $ro0ed to be one o# the %ost success#ul businesses on the
$lanet, sur$risin such titans as +al4Mart and 5eneral 6lectric! Dell)s story is so
co%$ellin that, in 1999, he $ublished a best4sellin boo& about his success, Direct from
Dell: Strategies That Revolutionized the Industry!
Advertisement : Continue readin1 &elow
'ntensely $ri0ate and notoriously shy, Dell has co%e out o# his shell o0er the years, say
those who &now hi%, than&s to his wi#e 7usan, a Dallas nati0e who% he %arried in 19.9!
The cou$le has #our children!
-o1ether the Dells have shown a willin1ness to spread their wealth# "n
1999 the couple started the Michael and 9usan Dell %oundation a
lar1e private charit' that has doled out millions to causes and people
li!e the tsunami victims in southern Asia# "n (00* the foundation
donated 8+0 million to the -o1ether the Dells have shown a willin1ness
to spread their wealth# "n 1999 the couple started the Michael and
9usan Dell %oundation a lar1e private charit' that has doled out
millions to causes and people li!e the tsunami victims in southern Asia#
"n (00* the foundation donated 8+0 million to the 3niversit' of -e.as#
;A &unch of 1u's sittin1 around tr'in1 to decide what we want to have
done with our mone' after we2re dead that2s not a ver' 1ood idea; he
once said e.palin1 his earl' entr' into philanthrop'# ;%or1et all that#
<e2re 1oin1 to do this while we2re still here and 1et it ri1ht#;
'n 2//1 Dell ste$$ed down as (63 o# the co%$any, but he re%ained chair%an o# the
board! He ser0ed on the Foundation Board o# the +orld 6cono%ic Foru% and the
executi0e co%%ittee o# the 'nternational Business (ouncil! He also was on the 8!7!
*resident)s (ouncil o# "d0isors on 7cience and Technoloy and sat on the o0ernin
board o# the 'ndian 7chool o# Business in Hyderabad!
'n recent years, howe0er, not e0erythin has one riht #or Michael Dell or his co%$any!
*oorly built co%$uters resulted in the co%$any ta&in a -3// %illion chare to #ix the
#aulty %achines, a hue issue #or the co%$any that resulted in Dell losin its to$ $erch
ato$ the industry! 'n an e##ort to correct thins, Dell returned in 2//9 as (63, but the
results ha0e been %ixed!
Poor products continued to pla1ue the compan' and despite Dell
Computer2s efforts to pla' down the issue documents later revealed
that emplo'ees were well aware of the issues affectin1 millions of its
computers#
"n =ul' (010 Michael Dell made headlines when he a1reed to pa' more
than 8100 million in penalties in order to settle char1es of accountin1
fraud that had &een filed &' the 9ecurit' and E.chan1e Commission#
Accordin1 to the char1es Dell Computer inflated its earnin1 statements
&' countin1 re&ates from the chip ma!er "ntel that were issued to Dell to
encoura1e the compan' not to use chips from Advanced Micro Devices
in its computers and servers# $' paddin1 its statements investi1ators
claimed Dell Computer had misled investors a&out its actual earnin1s#
"n a move to help re&uild the compan' he founded Dell announced in
%e&ruar' (01) that he would &e ta!in1 his &usiness private a1ain# ,e
reached an a1reement with 9ilver La!e Partners a private e4uit' firm
that speciali7es in technolo1' and computer software 1iant Microsoft to
launch a &u'out of all outstandin1 shares of Dell# -his deal has &een
valued &etween 8() &illion to more than 8(> &illion ma!in1 it one of the
&i11est &u'outs in recent histor'#
Accordin1 a ?euters news report Michael Dell &elieves ;this transaction
will open an e.citin1 new chapter for Dell our customers and team
mem&ers#; Man' anal'sts share some of Dell2s enthusiasm &ut still
thin! the compan' is facin1 serious challen1es# Dell has seen its share
of the PC mar!et drop in recent 'ears as well as increased competition
from ta&let and smartphone ma!ers#