What is entrepreneurship
Entrepreneurship involves identifying what needs to be done taking actions and benefiting from the nation ie.being rewarded
Element of Entrepreneurship
1.Observing one’s environment in such for a business opportunity/Idea.
2.Identifying what one can do and benefit from
3.Gathering the necessary physical and psychological tool needed to accomplished the identified business activity
Physical(Money equipment) hardware.
Psychological.(knowledge,skills attitudes)software
4.Implementing the activity when ready
5.Receiving the rewards(profits satisfication or reputation)
Entrepreneurship is the act of being an entrepreneur.
Entrepreneurship is a person who is able to scan his immediate environment generate business Ideas,and take appropriate actions.
An entrepreneur is a person who assumes financial personal and professional risk of business to pursue an opportunity.
Assume – take responsibility for something.
Pursue – carry something out/to work at something.
An entrepreneur is a person who identifies a market opportunity and exploit it by organising his or her resources to accomplish an out come that changes existing interaction with in a given sector(eg.community, society, country etc.)
Exploit – use something for benefit.
An entrepreneur is Identified with innovations and creativity.
REASONS WHICH COULD LEAD ONE TO START BUSINESS IN A COMMUNITY
Recognition
Self-satisfaction
Get profit
Unemployment
Self motivation
Retrenchment
IN ECONOMICS WE HAVE 4 FACTORS OF PRODUCTION
Land
Labour
Capital
Entrepreneurship
P = f ( land, labor, capital, entrepreneurship)
Entrepreneurship is one of the factor of production which involve creativity and inovation in either modifying existing business or starting a new business in a different way as compared to competitors. This will help exploiting business opportunities.
Economics, for example, focus on the entrepreneurs ability to act as change agents, such that mobilize resources, adopting technologies opening markets and exploiting opportunities.
The abilities associated with inn oration in the technology and management aimed at doing new thing or old things in new way with new combination of resources sociologists and anthropologist.
Concentrate in the way Entrepreneurial activities influenced by group pressure ethnic characteristics or commercial value.
ROLE WHICH ENTREPRENEUR PLAY IN ENTERPRISE
Promoters
Partners
Shareholders
Directors
Organizers
Initiator of idea
Risk takers
Planner
Controller
Coordinators
PROMOTERS
Entrepreneurs are promoters because they can scan/ survey the environment, I dentify the opportunities and implement the business ideas/projects
PARTNERS
Involved in the participation of other persons in a business project because of the following
Degree of success or failure factor involved
Complexity of a business idea that may require more than one person to run
Making use of the influence, experience and capacity of others
Consolidating friendship through joint business association
SHAREHOLDERS
Potential entrepreneurs would participate as shareholders under the following circumstances:
When the enterprise requires too much Investment e.g. When the foreigner want to invest in our country they must involve local people as shareholders.
When they do not want to commit their full time in the enterprise.
By spreading their investment portfolio to reduce risks
When they do not have the capacity to manage such an enterprise
DIRECTORS
Entrepreneurs participate as director by contributing ideas to advance the enterprises objectives.
They make financial decision within an enterprise.
ORGANIZERS
For an entrepreneur to effectively control monitor operation and facilitate communication with workers, It is advisable to have an organization structure for his/her enterprise. Types of possible organization structures can be formal or informal such as:-
Where various members of a family are assigned various positions
Where various employed assistants have been assigned administrative positions in the running of the small business
INITIATING IDEAS
Entrepreneurs come up with new ideas. This is an important area for an entrepreneur as it determines his rate of expansion in business e.g, new designs and use of products
TAKING RISKS
Entrepreneur take risks in business eg, Starting businesses which have the chance of success or failure- Resigning from secure jobs to start business is also risk taking
PLANNING
Entrepreneur should be aware of the importance of planning and limitation of planning in the enterprise.
CONTROLLING:
Entrepreneurs are leader rather than followers
-They make final decisions and control all aspect of business operations
COORDINATING:
The entrepreneurs must coordinate all factors of productions in the business. Eg.
Financial, labor, and land.
TYPES OF ENTREPRENEURS.
Before beginning a business, their is a need to I identify the type of entrepreneur you might choose to be.
Each type should help the country to grow.
SELF EMPLOYED:
Is the type of entrepreneur where by individual perform all the work and keep all profit.
-This includes everything from family run stores, agents repair persons,accountant, to physicians and lawyers.
-It can be full time because no one else involved
( Refer to the advantage of the self employed)
OPPORTUNISTIC ENTREPRENEURS:
Those who start a business and expand as fast as possible in order to be able to hire other employees.
Most the time these additional employees have needed expertise that the owner does not have.
INVENTORS:-
Those with particular inventive abilities who design a better product and then creat companies to develop, produce and sell the item. High Technology companies of this type are a new trend.
PATTERN MULTIPLIERS:
Those who look for an idea someone else has already created and then create their own business based on following another model.
ECONOMY OF SCALE EXPLOITERS:
Those who benefit from a large volume of sales by offering discount prices and operating with very low overhead.
ACQUIRES:-
Those who take over a business started by another and use their own ideas to make it successfully. This often happens when there is financial problem in the current operation. Fresh management ideas may save the business
BUY –SELL ARTISTS
Those who buy a company for the purpose of improving it before selling it for a profit.
SPECULATORS
Those who purchase a commodity and resell it for a profit. Real estate art, antiques and crops are typical speculator items
INTERNAL ENTREPRENEURS [ENTREPRENEUR]
Those who create new ideas and make them into a successful project within an existing business.
SMALL ENTERPRISES
MEANING OF SMALL BUSINESS
Elements that constitute the meaning
Independent Management
Owner supplied capital
Mainly local area of operation
Relatively small size within industry
A business is small if the owner has direct communication with the operating managers.
Individually owned and operated business.
A business employing not more than 50 people
SMALL BUSINESS STATISTICS AND OBSERVATION
Up to 95% of all businesses in most countries are small businesses
Over 40% of most nation’s business employees are employed in small businesses.
Approximately 75% of new jobs are generated by the small business sector.
Approximately 40% of the total business volume in many countries is done by small firms.
50% of all small enterprises fail in the first 2years.
60% of the money used to initiate small business is generated from the private sources such as saving and borrowing from friends.
Poor management is the biggest of failure in small business
Chances of any new business surviving more than 5 years is one to four
Small business is the natural home of entrepreneurship in almost all countries
CHARACTERISTICS OF SMALL BUSINESS.
Few management levels between the top and bottom of the business (low bureaucracy)
Owner makes most decisions
Open communication in personal level.
Difficult to obtain funds, especially for expansion.
Financial matter is a continous problem.
Employees do a variety of tasks.
Low employees turnover
Planning is primary short- term
Indequate quantative data
Family ownership.
Few employees
Tied to local community
STRENGTHS AND WEAKNESS OF SMALL ENTERPRISES
WEAKNESS
Financial limitations
Man power problems
High direct costs
To many eggs
Lack of acceptance
STRENGTHS
Personal touch
Greater motivation
Greater flexibility
Less bureaucracy
Nonabrasive
