Entrepreneurship

• Enterprise


  Any identified idea that is translated into a planned and satisfactorily implemented activity. In its narrower sense, it refers to a business venture or undertaking.
• Steps in an enterprise

  1. Idea identification

  2. Planning

  3. Implementation

  4. Profit motive
• Terms used to classify enterprises

  • Private
  • Public
  • Formal
  • Informal
  • Individual
  • Community
  • Local
  • Foreign
  • Small
  • Large
  • Business
  • Social
  • Manufacturing
  • Service
  • Consumer
  • Industrial
• Successful enterprises


  • They contribute to providing solutions to problems
  • They contribute to satisfying the desired needs and wants
• Difference between business and non-business enterprises

  Business ventures provide financial rewards, while non-business ventures provide other types of rewards (physical or psychological)
• Role of enterprising men and women

  To identify the interests, needs and wants and establish specific enterprises through which these would be satisfied
• Synergistic nature of enterprises in a community

  • It creates an environment with lots of opportunities to be exploited
  • Enterprising men and women need to identify opportunities that can increase this synergy
• Specific enterprises in a community

  They benefit from the existence of all the others (output from one becomes input for others)
• Basis for classifying enterprises


  • Type of products/services
  • Size of the business
• Definitions of enterprise sizes in Nigeria

  • Micro/Cottage: Total investment ≤ ₦1.5 million, workforce ≤ 10
  • Small: Total investment ₦1.5 million - ₦50 million, workforce 11-100
  • Medium: Total investment ₦50 million - ₦200 million, workforce 101-300
  • Large: Total investment > ₦200 million, workforce > 300
• Entrepreneur


  A person who starts a new business, taking the initiative and the risk associated with the new venture, and does so by creating something new or by using resources in an unusual or uncommon ways to provide value to customers
• Characteristics of an entrepreneur

  • Individual, team or entrepreneurial organization
  • Personality rather than system
  • Consistent and just cannot stop being an entrepreneur
  • Starts from scratch and brings into being something new
  • Turns problems into opportunities
  • Conscious course of action to build something of recognized value
• Benefits of self-employment


  • Profit and income generation
  • Job security
  • Status and social recognition
  • Work flexibility
  • Personal satisfaction
  • Independence
• Challenges of self-employment


  • Uncertain or low income
  • Long working hours
  • Possible loss of invested capital
  • Routine assignments
  • Measure of risk
  • Time demand
  • Managing people
• Distinction between theoretical and operational definitions of entrepreneurship


  Theoretical definitions are wide, covering a number of entrepreneurial activities, while operational definitions cover a singular aspect
• Definitions of entrepreneurship by scholars

  • Chandler: Dealing with uncertainty, distinguishing between risk and uncertainty
  • Schumpeter: The undertaking of new ideas and new combinations, that is innovations
  • Drucker: Willingness to risk capital and other resources in a new business venture for substantial rewards
  • Hisrich: The mechanism that creates wealth and development
• Uncertainty


  Dealing with, which cannot be calculated
• Risk


  Dealing with, which can be calculated
• Entrepreneur


  The bearer of the mechanism for change and economic development
• Entrepreneurship


  The undertaking of new ideas and new combinations, that is innovations
• Entrepreneur


  A person who is willing to risk his capital and other resources in new business venture, from which he expects substantial rewards if not immediately, then in the foreseeable future
• Entrepreneurship


  The mechanism that creates wealth and explains economic growth and development
• Entrepreneurship


  The act of envisioning, venturing, generating ideas, translating risk to reality, taking and enrapturing business opportunities, with the ultimate goal of profit making
• Types of Entrepreneurs


  • Business
  • Social
• Different Forms of Enterprises

  • Private
  • Public
  • Profit
  • Non-profit
  • Formal
  • Informal
  • Individual
  • Community
  • Local
  • Foreign
  • Small
  • Large
  • Manufacturing
  • Service
  • Consumer
  • Industrial
• Rewards of enterprises


  Business ventures provide profit rewards, non-business ventures provide other types of rewards, which could be either physical or psychological
• Specific enterprises in a community have the potential to benefit from the existence of all the others. Output from one enterprise normally becomes input for other enterprises, and within the community</b>
• The more money that circulates in the community, the more prosperous the community becomes
• It is up to enterprising men and women to identify the opportunities that can increase this synergy if properly harnessed, to create even more opportunities for everyone
• Types of Entrepreneurs


  • Innovative
  • Imitative
  • Fabian
  • Drone
• Types of Entrepreneurs based on type of business

  • Trading
  • Manufacturing
  • Agricultural
• Types of Entrepreneurs based on use of technology

  • Technical
  • Non-Technical
• Types of Entrepreneurs based on ownership

  • Private
  • State
  • Joint
• Social Entrepreneurship


  The process by which citizens build or transform institutions to advance solutions to social problems, such as poverty, illness, illiteracy, environmental abuses and degradation, corruption, human rights, in order to ameliorate the standard of living and make life better for the generality
• Features of Business and Non-Business Enterprises

  • Business Enterprises: Profits are a primary motive, Product/services must be demanded, Product/services are sold in a market, Product/services must be paid in full
  • Non-Business Enterprises: Various types of human needs are addressed, Product/services people may want, Market situation need not be present, Product/services may not necessarily be paid in full
• Technological Entrepreneurship


  Entrepreneurial endeavours that focus on a technology centred enterprise
• Social Entrepreneurship


  Combines the passion of a social mission with the business-like discipline, innovation, and determination commonly associated with, for instance, the high-tech pioneers of Silicon Valley
• Types of Entrepreneurs based on identified opportunities

  • Opportunistic
  • Self Employed
  • Business Acquirers
  • Inventors
  • Pattern
  • Multipliers
  • Buy-Sell
  • Speculators
  • Franchisee
  • Necessity