1.
ENTREPRENEURSHIP
Changing the meaning of Innovation

2.
DISCUSSION/AGENDA
• Entrepreneurship
• Introduction
• Historical Background
• Role in Economic Development
• Models/Theories of Entrepreneurship
• Entrepreneurship in Pakistan
• Examples of Some Successful Entrepreneurs

3.
INTRODUCTION
• The act of being an entrepreneur, which can be
defined as "one who undertakes innovations,
finance and business acumen in an effort to
transform innovations into economic goods“
• The capacity and willingness to undertake
conception, organization, and management of a
productive venture with all attendant risks, while
seeking profit as a reward.

4.
HISTORICAL BACKGROUND
• Origins are centuries old
• Marco Polo- the first modern entrepreneur
• Industrial Revolution in 17 th and 18th century saw
many successful entrepreneurs
• 20th century saw the evolution of
entrepreneurial history developing its most
recent form

5.
ROLE IN ECONOMIC DEVELOPMENT
• Dominant role in Economy
• Employment to masses
• Contribution toward research and development
• Creates wealth for nation
• Entrepreneurship provides self sufficiency

6.
MODELS/THEORIES OF
ENTREPRENEURSHIP

7.
Timmons Model
Communication
Opportunity (2) Resources (4)
Ambiguity
Exogenous Forces
Creativity Leadership
Team (3)
Uncertainty Capital Market Context
Founder
(1)

8.
KEY FACTORS OF TIMMONS MODEL
1) Entrepreneur(Founder)
2) Opportunity
3) Team
4) Resources

9.
THEORIES OF ENTREPRENEURSHIP
• Economic Theory
• Sociological Theory
• Psychological Theory
• Innovation Theory
• Achievement Motivation Theory

10.
ECONOMIC THEORY
• Favorable economic conditions
• Economic incentives as motivators
• Incentives include taxation policy, industrial
policy, sources of finance and raw material,
infrastructure availability, investment and
marketing opportunities, technology etc.

11.
SOCIOLOGICAL THEORY
• Society’s values
• Customs & traditions
• Religious beliefs
• Social changes
• Influence the behavior of individuals in a society.

12.
PSYCHOLOGICAL THEORY
• Necessary psychological characteristics
Vision
Foresight
Ability to face opposition
Need for high achievement
Self-Reliance

13.
ACHIEVEMENT MOTIVATION THEORY
• People with high achievement orientation are
more likely to become entrepreneurs
• Not influenced by money or external incentives
• Consider profit to be a measure of success and
competency

14.
ENTREPRENEURSHIP IN
PAKISTAN

15.
ENTREPRENEURSHIP IN PAKISTAN
• Current State in Pakistan
• Factors for poor business environment
• Conclusions and Recommendations

16.
CURRENT STATE OF ENTREPRENEURSHIP
• Inequality between large and small enterprises
• Crippled Innovation
• Rent Seeking and Land Development
• Non-commercial cities

17.
CURRENT STATE OF ENTREPRENEURSHIP
• 22 families control:
• 66% industrial assets
• 70% of the insurance
• 80% banking interests
• Enterprise survey by The world bank:
• Only 17.01% of the 965 firms have ISO certification

18.
Factors for Poor
Business
Environment in Attraction of
Rents
Pakistan
Lack of Trust
Costs of
and Social
Corruption
Capital
Factors for
Poor
Business
Environment
Lack of
Financial Research
Constraints and
Development
Poor Legal
Framework

19.
FACTORS FOR POOR BUSINESS ENVIRONMENT
• Corruption:
• Government departments (15-20) visit enterprises with
various threats and extort small sums
• They collect from 0.2% to 5% of annual sales
• Businesses dedicate 1 -3 people for dealing with
extortion
• Lack of Innovation:
• Only 0.57% capital is spent on R&D.

20.
Top 10 Constraints to Firm
50
Investments in Pakistan
45
40
35
30
25
20
15
10
5
0

21.
Recommendations
Reinventing the Role of
Government
Recommendations
Building Growth Cities
Releasing the Energy of
the Domestic sector
Brand Development and
Management
A New Growth Strategy
Promotion of Guarantees,
Warrantees and Returns

22.
CONCLUSION
• Pakistan has a large market of 180 million
people waiting to be exploited
• Move from current focus of Government
planning to a more market and commerce
based approach.

23.
FAMOUS
ENTREPRENEURS
Innovation distinguishes between a
leader and a follower

24.
Famous Entrepreneurs
Now we will discuss some famous inventors and
entrepreneurs like:
• Thomas Edison
• Michael Dell
• Bill Gates
• Steve Jobs

25.
THOMAS EDISON
• Born in 1847.
• Most famous for inventing electric bulb, but his
first commercial success was actually the
phonograph.
• Introduction of DC power.
• In 1887 there were 121 Edison generating plants
in the U.S.

26.
MICHAEL DELL
• Dell is Chairman and CEO of Dell computers. His
company worth of about $30 billion.
• Born in February 1965.
• In 1984 with just $1,000 and an idea to provide
affordable personal computers to college students.
• Michael Dell revolutionized the personal computer
industry by skipping the middle man and selling directly
to the customer.

27.
STEVE JOBS
• Born in 1955.
• Steve Jobs was the co-founder of Apple
Computers and Pixar Animation Studio. He
became a member of the board of directors of
The Walt Disney Company in 2006.
• In 1984, Steve Jobs founded NeXT computers.

28.
• In 1996, Apple announced that it would buy NeXT for
$429 million. The deal was finalized in late 1996, bringing
Jobs back to the company he co-founded.
• He earned only $1 a year as CEO of Apple,but held
5.426 million Apple shares, as well as 138 million shares
in Disney. Forbes estimated his net wealth at $8.3 billion
in 2010.
• After Steve Jobs return to Apple as CEO in 1997, Apple
Computers has had a renaissance in product
development with the iMac, iPod, iPhone, iPad and more.

29.
BILL GATES
• Bill Gates, founder of Microsoft, was born on October
28, 1955.
• From an early age he had an interest in computers and
started programming them at age 13. He went to study
at Harvard, but dropped.
• He and Paul Allen adapted the BASIC programming
language for use on the Altair 8800 - the first
successful personal computer.

30.
• He ranks as the richest person in the world.
According to 2006 estimate the net worth of his
company was about $50 billion.
• Bill Gates is perhaps the most famous
entrepreneur of this era. He had the vision to
predict the evolving importance of the personal
computer.

31.
REFERENCES
• http://www.brighthub.com/office/entrepreneurs/articles/73336.aspx
• http://www.innovationventures.sg
• http://www.wikipedia.org/
• http://www.internationalentrepreneurship.com/asia/pakistan/
• http://pakistan.wikia.com/wiki/Entrepreneurship