MEANING AND SCOPE OF ENTERPRISE AND ENTREPRENEURSHIP

WHAT IS ENTREPRENEURSHIP?
Entrepreneurship has been defined differently by different authors and individuals because “Entrepreneurship
means different things to different people” (Casson, 2002). Some of them include:
Gartner (1989), and Low and Macmillan (1988), see entrepreneurship as the creation of new enterprise.
Entrepreneurship is a process that has to do with the conceptual approach to doing new things, within a new
philosophy of value, purpose, utility, quality and use which satisfies needs (Abraham, 1999).
Entrepreneurship is the process of creating something new with value, by devoting the necessary time and efforts,
assuming the accompanying financial, psychological and social risks, and receiving the monetary rewards for
monetary and personal independence (Hisrich and Brush, 2005). From this definition, four basic aspects were
emphasized
In summary, Entrepreneurship is having a mind-set to start new enterprise or revitalizing the existing ones, in
response to identified opportunities at your own risk after analysing all opportunities and threats. It is concerned
with the identification of gaps and business opportunities in one’s immediate environment and bringing together
the necessary resources in an innovative/creative way to fill these gaps, bearing the risks involved and in the
process gaining personal rewards (profit motives or otherwise).

CLASSES OF ENTREPRENEURSHIP
(i) Business entrepreneurship (ii) Social entrepreneurship (iii) Intrapreneurship
(iv) Techno-entrepreneurship (v) Institutional entrepreneurship

BACKGROUND TO ENTREPRENEURSHIP
The word “entrepreneur” was carried from a French verb entrepreneur, which means to undertake. In the early
sixteenth century, the French man who organized and led military expeditions were referred to as an entrepreneur.
(Ndubuisi 2004).
17th Century: Gradual introduction of entrepreneurial concept into business development. The focus was risk
bearing and profit making
18th Century: Recognition of two profits. The profit of capital went to the fund provider while the residual profit
accrued to the entrepreneur.
19th Century: Economic and managerial perspective was added. The entrepreneur combines the six (6) Ms of
Management (i.e. Man, Machine Material, Market, Management and Method) for profitable reward.

20th Century: Introduction of innovation into entrepreneurship. This means introducing new methods, new machines
etc
21st Century: Definition was expanded to include exhibition of a kind of behaviour which includes taking initiatives,
organizing and re-organizing social and economic mechanisms to turn resources and situations to practical
profitable ends, accepting risk of failure.

MEANING AND SCOPE OF ENTERPRISE

To ensure ideas materialize and sustained, entrepreneur creates an enterprise utilizing the economic and human
resources available to him and controls their realization. In its wider sense, an enterprise is 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. Practically all projects and undertakings can be referred to as enterprises if the five steps are
followed, i.e. idea identification, planning, implementation, successful completion of an activity and accepting the
reward.
To help you become enterprising, you will need the following tools:
E Energy Working hard, but also in a smart way, is germane in entrepreneurship. Lots of both mental and
physical energy is needed to be able to face all the challenges involved in enterprise management
N Need to achieve You have the motivation to achieve success and accomplish all the activities you engage in.
Your attitude and perceptiveness enable you to work towards acceptable results whenever you set out to do
something.

1|Page
T Task oriented Efficiency, effectiveness and time management are important aspects that enable you to complete
tasks. Being able to focus on results helps you to concentrate on whatever you set out to do.
E Empathy Able to mentally put yourself in the position of the person you intend to influence as well as your
customers.
R Resourcefulness You are able to provide the leadership and guidance needed to realize the enterprise.
P Planning Able to see the total picture of the enterprise in terms of why, what, how, who and when.
R Risk-taking The decision to go ahead and start the enterprise or undertake the activity must be made after
certain amount of research, so that in the end you can achieve the results, succeed and receive the rewards.
I Innovation The ability to apply new ideas that will enable you to undertake activities differently is another
hallmark of entrepreneurs. Through individual initiative, imagination, intuition and insight you will be able to
change things around or devise ways of doing things to accommodate whatever new situation you may find
yourself in.
S Skills Entrepreneurs have the ability or know-how that enables them to undertake and complete activities. With
certain amount of knowledge, attitudes and practical skills that can be useful when realizing an enterprise.
Talents and acquired skills have to be constantly utilized and applied, otherwise they can also be forgotten and
wasted.
E Endurance There are many challenges to be faced when trying to set up an enterprise. Some are negative and
discouraging. Patience, persistence and confidence are some of the attitudes you will need to adopt to enable you
to endure the physical and mental challenges you may encounter.
DIFFERENT FORMS OF ENTERPRISE

Classification by Sectoral: Enterprises are classified along the type of products produced. There is an international
code that helps you with this classification. It is called the ISIC code (International Standard Industries Code).
Below is an example of some enterprises simply classified to reflect some of what you may see in your
neighbourhood.

Retail Food and Manufacturing Services Others

Recreation
Newspaper stand Grocery store Machine shop Computer services Distributorship
Clothing store Restaurant Manufacturer's Print shop Auctioneer
Fashion boutique Convenience representative Landscaping Wholesaling
Bicycle shop store Medical equipment Rental service Farming
Antique shop Bar/cocktail Food processing/ Interior decorating Artist
Camera shop lounge home products Warehousing and storage Building contractor
Art and craft gallery Motel Industrial equipment/ Auto repair shop Brokerage
Drugstore Fashion components Accounting and tax Transportation
Gift shop Cosmetic and beauty service Design work Property
Liquor store products Business franchise
Florist services
Pet shop Car wash
Auto dealership Employment agency
Travel/Tours agency
Real estate agency
Cyber café
Banking/Forex Bureaux
Security

Classification by Size
Worldwide this type of classification depends on either of or both of the capital employed or the number of staff
engaged by the enterprise. Below is the definition adopted by the Federal Republic of Nigeria.

2|Page
a. Micro/Cottage industries are defined as those whose total investment does not exceed one million and five
hundred thousand naira (N1,500,000.00) including working capital but exclusive of land. The workforce is not
more than 10.
b. Small scale industries are defined as those with total investment of between one million and five hundred naira
(N1,500,000.00) and fifty million naira (N50,000,000.00) excluding land, but including working capital; and/or a
workforce of between 11 and 100 workers.
c. Medium scale industries are defined as those with a total investment of between fifty million naira ( N
50,000,000.00) and two hundred million naira (N200,000,000.00) excluding land, but including working capital;
and/or labour force of between 101 and 300 workers.
d. Large scale industries are defined as those with a total investment of over two hundred million naira
(N200,000,000.00) excluding land but including working capital; and/or labour force of over 300 workers.

ROLES OF ENTREPRENEURS IN BUSINESS

1.-Promoters-by doing environmental scan, identify opportunities, deploy resources and implement business idea.
2.-Partners-To spread business risk, gain more experience, solve complexity in business
3.-Shareholders-When required investment is high, risk spreading, lack of capacity to manage business
4.-Directors-By contributing positive ideas to advance the enterprise’s objectives, policies, etc to safeguard the
interests of shareholders
5.-Organizers-To effectively control or monitor operations and facilitate communication with workers
6.-Initiating ideas- Entrepreneurs come up with new ideas. Tit determines rate of expansion in business,
7.-Taking Risks-Entrepreneurs take risks in business, e.g Resigning from a secure job to start personal business
8.-Planning-Entrepreneurs are aware of the importance of planning and of the limitations of planning in the context
of the above roles.
9.-Controlling-They are leaders that make the final decisions and control all aspects of business operations.
10.-Coordinating-They coordinate all other factors production needed in the business, i.e. capital, labour and land.

(i)

3|Page