Minimize for presentation

1. .
• Entrepreneurship and Enterprise
development.

2. Chapter one
Introduction to Entrepreneurship
Chapter objectives
After completing this chapter, you should be able to
describe ;
 Entrepreneurship, Entrepreneur and
Intrapreneur.
 Role within the economy
 Entrepreneurial creativity and innovation

3. Introduction cont…
 Entrepreneurship is an emerging multi-disciplinary
course in the field of management.
 Is the tendency of person to organize the business of
his own and to run it profitably, using all the qualities
of leadership, decisions making and managerial quality
etc.

4. Definition of Entrepreneurship
Like many other field entrepreneurship also has no
a single definition as different authors defined it
from different perspectives among these;
Entrepreneurship is a dynamic process undertaken
by an entrepreneur to create incremental value by
discovering investment opportunities, organizing an
enterprise, undertaking risk and there by
contributing to economic growth.

5. Cont…
Entrepreneurship is the art of turning an idea into a
business.
Entrepreneurship is the process of creating
something different with value by devoting the
necessary time and effort, to get some economic
benefit.
From the above definition we can see that
entrepreneurship is the function of seeing
investment opportunity with managerial functions.
....linkentre.pptx

6. Types of entrepreneurship
Private Entrepreneur- and groups
 corporate Entrepreneur – leaders and
Employees ** can be considered as
Intrapreneurs.
 Social Entrepreneur- activists

7. 7
Entrepreneurship , Entrepreneur and
Intrapreneur
• Entrepreneurship is a mindset and practice of
looking and acting upon opportunities for economic
and or social benefits through innovation and risk
taking.
• Entrepreneur is any person that continuously
seeks and acts upon opportunities for economic
and or social gains through applying the principle
of creative problem solving.
• Intrapreneurs also notice opportunities and take
initiative to mobilize resources, however they work
in large companies and contribute to the innovation
of the firm.

8. The main elements of entrepreneurships are
• Innovation: It includes introduction of new products,
creation of new markets, application of new process
of production, discovery of new and better sources of
raw materials and developing a new and better form
of industrial organization.
• Vision (Identifying emerging opportunities)
• Risk taking (Assuming different types of risks; financial,
psychological, social) ....linkrisk.pptx
• Organizing (Coordinating resources and creating
enterprise) , ....linktechni.pptx
• Optimism - Entrepreneurs are dreamers and believe
their ideas are possible, even when they seem
unattainable.

9. HISTORICAL ORIGIN OF ENTREPRENEURSHIP
During the ancient period the word entrepreneur was used
to refer to a person managing large commercial projects
through the resources provided to him.
In the 17th Century a person who has signed a contractual
agreement with the government to provide stipulated
products or to perform service was considered as
entrepreneur.
In this case the contract price is fixed so any resulting
profit or loss reflects the effort of the entrepreneur.
In the 18th Century the first theory of entrepreneur has
been developed by Richard Cantillon. He said that an
entrepreneur is a risk taker.

10. Cont..
 In the late 19th and early 20th Century an entrepreneur
was viewed from economic perspectives.
 The entrepreneur organizes and operates an enterprise for
personal gain.
 In the middle of the 20th Century the view of an
entrepreneur as an innovator was established.
 “The function of the entrepreneur is to reform or
revolutionize the pattern of production by exploiting an
invention or more generally untried technological
possibility for producing new commodities or producing
an old one in a new way or opening a new outlet for
products by reorganizing a new industry.”
 From the historical development it is possible to
understand the fact that the perception of the word
entrepreneur was evolved from managing commercial
project to the application of innovation (creativity) in the
business idea.

11. The roles of entrepreneurship in the
economy
Entrepreneurs improves per capita income/wealth
generation
They generates employment opportunities
They inspire others towards entrepreneurship
They help to balance regional development
They enhance the number of enterprise
They provide diversity in firms
They ensures economic independence
They combine economic factors
They provide market efficiency
They accept risk on behalf of other people
They maximize investors’ return

12. Who Becomes an Entrepreneur?
Anyone with the following characteristics can be
an entrepreneur.
The young professional
The inventor
The excluded e.g., Displaced communities and
ethnic and religious minorities

13. Qualities of an entrepreneur
1)Opportunity-seeking
2)Persevering undeterred by uncertainties, risks, obstacles,
etc.
3) Risk Taking- taking calculated risk.
4) Demanding for Efficiency and Quality
Information-seeking
5)Goal Setting
6)Planning:
7)Persuasion and Networking
Persuasion is a way of convincing someone to get something
or make a decision in your favor.
8.Building Self-confidence
9)Listening to Others:
10.Demonstrating Leadership

14. Entrepreneurial Skills
A skill is simply knowledge which is
demonstrated by action. It is an ability to
perform in a certain way. An entrepreneur is
someone who has a good business idea and can
turn that idea into reality.
Turning an idea into reality calls upon two sorts
of skills, these are:
I.General management skills and
II.People management skills

15. Con.t
I)General Management Skills: These are skills required to
organize the physical and financial resources needed to
run the venture. Some of the most important general
management business skills are:
• Strategy Skills – An ability to consider the business as a
whole, to understand how it fits within its market place,
how it can organize itself to deliver value to its
customers, and the ways in which it does this better
than its competitors.
• Planning Skills – An ability to consider what the future
might offer, how it will impact on the business and
what needs to be done to prepare for it now.

16. Marketing Skills – An ability to see past the firm’s
offerings and their features, to be able to see how they
satisfy the customer’s needs and why the customer finds
them attractive.
Financial Skills – An ability to manage money; to be able
to keep track of expenditure and to monitor cash-flow, but
also an ability to assess investments in terms of their
potential and their risks.
Project Management Skills – An ability to organize
projects, to set specific objectives, to set schedules and
to ensure that the necessary resources are in the right
plat of the right time.
Time Management Skills – An ability to use time
productively, to be able to priorities important jobs and to
get things done to schedule.

17. II)People Management Skills
Businesses are made by people.
A business can only be successful if the people who
make it up are properly directed and are committed to
make an effort on its behalf.
An entrepreneurial venture also needs the support of
people from outside the organization such as customers,
suppliers and investors.
Communication Skills – An ability to use spoken and
written language to express ideas and inform others.
Leadership Skills – An ability to inspire people to
work in a specific way and to undertake the tasks that
are necessary for the success of the venture.

18. Motivation Skills – An ability to enthuse people and get
them to give their full commitment to the tasks in hand.
Being able to motivate demands an understanding of what
drives people and what they expect from their jobs.
Delegation Skills – An ability to allocate tasks to
different people. Effective delegation involves more than
instructing. It demands a full understanding of the skills
that people possess how they use them and how they
might be developed to fulfil future needs.
Negotiation Skills – An ability to understand what is
wanted from a saturations, what is motivating others in
that situation and recognize the possibilities of
maximizing the outcomes for all parties.

19. The Process of Entrepreneurship
The decision about whether to start a new business is
best considered in light of an understanding of the
entrepreneurial process.
1. Identifying and evaluating business opportunity
New business opportunity may be the result of
technological change, market shift, government
regulation, or computation.
Each opportunity must be carefully screened and
evaluated, whether the sources are from customers,
business association and or technical people as we
are making decision on our time, money, and energy

20. 2. Develop a business plan
A business plan is a document the entrepreneur
prepares before going to the implementation stage.
It details every aspect of the business the
entrepreneur aspires to establish: description of the
business and the marketing, financial, organizational
and operational plans necessary for the foundation
of the venture.
A good business plan is important in developing
opportunity and also important in determining the
resource required, obtaining those resources and
successfully managing the resulting venture.

21. 3. Determining the Resources required
The resource needed for the opportunity must also
be assessed.
The process started with an appraisal of the
entrepreneur’s present resources.
Care must be taken not to underestimate the amount
and variety of resources needed.
An entrepreneur should strive to maintain as large
an ownership position as possible, particularly in the
start up financing stage.
As the business develops, more funds will probably
be needed to finance the growth of the venture,
requiring more ownership to relinquish.

22. 4. Managing the enterprise
 After resources are acquired the entrepreneur must
employ them trough implementation of business
plan prepared in phase two of the process. .
These involve implementing a management style
and structure, as well as determining the key
variable for success.
 A control system must be identified so that any
problem areas can be carefully monitored.

23. Why do People Want to Become
Entrepreneurs?.. ....linkwhy u start
new b.pptx
• Entrepreneur is the one who translates an idea into a
feasible business and value, so people want to an
entrepreneur by one of the following specific ambitions .
 Freedom to work and independence.
 Satisfaction of being own boss.
 Power to do things as he, she/you likes.
 Retirement assurance.
 Respect of family and friends.
 Challenge: To take risk. People like to take risks to test
themselves and to get the happiness after surpassing those
risks.

24. Key to Become an Entrepreneur
• Knowledge
• Manage your time
• Network
• Passion
• Find a mentor
• Think big
• Do your research
• Value existing and potential customers
18

25. Responsibility of Entrepreneurs
To the Nation To the Enterprise
 Tax timely survival and growth
 Follow rules and regulation profit
 Adding to the national wealth company image
To the Society To their Business Associates
 Using resources properly profit or dividend fairly
 Employment future certainty
 Minimizing toxic levels fair knowledge of company
performance

26. Creativity vs. Innovation
Creativity is the ability to think a new idea. (This
includes the ability to rethink an old idea like, to
think of a new application for an existing
technology).
Creativity is the ability to come up with new ideas
and to identify new and different ways of looking at
a problem and opportunities.
• The reason for creativity is;
 Need to solve problem
 Need to communicate ideas and value
 Need for novel, varied and complete inspiration

27. Conti…
Innovation is the process by which the new idea is
put into practice or implementation of the new ideas
at individual or group level.
Innovation is the ability to apply creative solutions
to those problems and opportunities in order to
enhance people's lives or to enrich society.
So therefore Entrepreneurship = creativity +
innovation, with full understanding the environment

28. Entrepreneurs Vs Managers
An entrepreneur is different from a manger. But it
doesn’t mean that they are entirely different from
each other. That means they also have their own
intersection points.
Similarities
Both make decisions
Both are visionary
Both are accountable for their actions
Both work under constraint
Both perform management functions

29. You should consider the ff in your
life
• Care more than others think wise.
• Risk more than others think safe.
• Dream more than others think practical.
• Expect more than others think possible
it is all about individuals who can see the future with out
having nothing on hand today!