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Lesson I –Introduction to Entrepreneurship

Content of the Module

Lesson 1: ENTREPRENEURSHIP: Definition and Theories

1. Definition of Terms
2. Significance of Entrepreneurship
3. Skills of an Entrepreneur
4. Career Opportunities

I. DEFINITION OF THEORIES

An Entrepreneur is an individual who find opportunities in situation, transforms

it and creates a new business out of it. An innovative mind that sources out ideas, goods,
services, and business. It plays a vital role in the economy as it produces a lot of
opportunities to all.

Entrepreneurship is the process of analyzing, designing, launching and running a

new business. It is both the study of how new businesses should be created and developed
and the actual process of starting the new business to gain profit.

II. SIGNIFICANCE OF ENTPREEURSHIP

1. Economic Growth
The creation of new products and services can produce a cascading effect that
supports new businesses for economic development. It introduces new ideas,
technologies, innovations, products and services. It also increases competition allowing
entrepreneurs to be more innovative.

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2. Create Job Opportunities

Operations can only be further established when an entrepreneur hires worker

to perform certain tasks for the business. Hired employees are given job and career
opportunities.

3. Community Development
Innovation and technology have made it possible for small businesses to expand
from its community into regional and global markets. The community When new
businesses export goods and services to nearby regions, these enterprises contribute
directly to a region’s productivity and earnings. This increase in revenue strengthens
an economy and promotes the overall welfare of a population.

Theories of Entrepreneurship

1. Economic Theory

Economic theories try to clarify the economic phenomena that occurs and interprets
why and how the economy behaves and performs as it does and provides possible solution
to solve the economic phenomena. It gives a comprehensive system of assumptions,
hypotheses, definitions and instructions what should be done in an economic situation.

2. Resource Based Theory

Resource-based theories emphasizes on the way individuals falls or hold on to different
types of resources to get entrepreneurial efforts to operate. Having capital will definitely
improves the chances of getting a new venture started, often the problem is that
entrepreneurs often start a venture with little ready capital so they leverage on other
resources like social networks and the information they provide, as well as human
resources, such as education.

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3. Psychological Theory

Psychological theories of entrepreneurship on the drive of entrepreneurs focusing on

mental or emotional elements of an individual. According to a psychologist and a professor
named David McCLelland, said that entrepreneurs possess a need for achievement that
drives their activity.

Julian Rotter, a professor emeritus at the University of Connecticut, also puts forward
a locus of control theory. People with a strong internal locus of control believe their actions
can influence the external world and research suggests most entrepreneurs possess trait. A
final approach, though unsupported by research, suggests personality traits ranging from
creativity and resilience to optimism drive entrepreneurial behavior.

4. Sociological Theory

The sociological theory centers its explanation for entrepreneurship on the various
social contexts that enable the opportunities entrepreneurs leverage. Paul D. Reynolds, a
George Washington University research professor, singles out four such contexts: social
networks, a desire for a meaningful life, ethnic identification and social-political
environment factors. The anthropological model approaches the question of
entrepreneurship by placing it within the context of culture and examining how cultural
forces, such as social attitudes, shape both the perception of entrepreneurship and the
behaviors of entrepreneurs.

5. Opportunity Based Theory

Entrepreneurs excel at seeing the advantage of possibilities through social,

technological and cultural changes. For example, where a business that caters to senior
citizens might view a sudden influx of younger residents to a neighborhood as a potential
death stroke, an entrepreneur might see it as a chance to open a new club.

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III. SKILLS OF AN ENTREPRENEUR

Characteristics of an Entrepreneur:

An entrepreneur must have these traits in order to excel in their ventures:

1. Aptitude - An aptitude is a natural ability to do a particular type of work or activity

well.
2. Attitude- An attitude is a way of viewing or thinking about something that affects how
you feel about it. Entrepreneurs tend to be people with positive attitudes.

Skills of an entrepreneur:

1. Curiosity

Curiosity is a strong desire to know or learn something new and different, to be

innovative. For an entrepreneur, curiosity is an important skill to discover new problems,
reveal potential niche opportunities, refactor their original business process, and innovate.

2. Time Management

Time Management is the ability of a person to use time effectively, efficiently and
productively. Putting up a new business is not all that easyas it may take up a lot of time
and effort to build something new from scratch. It is important to be careful in prioritizing
the essentials of a business plan starting with planning, execution, and repetition of the
cycle. The business will never progress without the right project management and time
allocation to get things done.

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3. Strategic thinking

Strategic thinking is a thinking process used by an individual in order to achieving a

goal. Figuring out creative solutions. Defining the scope and testing concepts within
limited time and with a low budget.

4. Efficiency

Efficiency is an attribute that a person develops through time, it is the quality of being
organized and productive. You need the highest performance in solving a issues and
problem. Applying the 80/20 rule and other techniques for yielding higher results in less
time. Multitasking between different chores and progressing effectively everyday.

5. Resilience

Resilience is the ability of a person to recover quickly during tough and challenging
situations. An entrepreneur most have the highest resilience in handling rejections, stress,
and slow progress otherwise the business will eventually close when the entrepreneur has
burnt out, loss its composure and just simple given up. It is important to have determination
and be eagerness to fight the challenge of the business to achieve the end goal.

6. Communication

Communication for a person’s ability to imparts information. A clear communication

is essential for each and every interaction with clients and business dealings.

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7. Networking

Social networking is important. It is the interaction with other individuals to exchange

information pertinent to the venture and develop professional or social contacts. Growing
a network facilitates business opportunities, partnership deals, finding subcontractors or
future employees.

8. Finance

Finance is a term that defines activities associated with banking, leverage or debt,
credit, capital markets, money, and investments. It involves money or financial investment
needed. There are different ways to finance a business. Finance management will make or
break a business. Handling resources properly and carefully assessing investments
compared to ROI is a solid requirement for entrepreneurs.

9. Branding

Branding is the promotion of a product or services of the company by means of

advertising. Building a consistent personal and business brand personalized according to
the target audience is a skill needed by an businessperson.

10. Sales

Sales include “operations and activities involved in promoting and selling goods or
services.” Marketing includes “the process or technique of promoting, selling, and
distributing a product or service.” Finding the right sales network that to increase revenue
opportunities for growth.

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Other personal skills and characteristics:

 Courage  Enthusiasm
 Creativity  Flexibility
 Curiosity  Honesty
 Determination  Patience
 Discipline  Responsibility
 Empathy

Skills
 Business Skill  Problem-Solving Skills
 Communication Skill  Mathematical Skill
 Computer Skill  Organizational Skill
 Decision-Making  People Skill

IV. CAREER OPPORTUNITIES

What are the possible career opportunities when study Entrepreneurship?

1. Mid-level Management

a. Middle management is at the center of a ranked in an organization, between the

subordinate to the senior management. Middle managers are responsible and directly
reporting to top management for their department's function at the same time they guide
lower-level managers and inspire them to perform better on their assigned tasks.

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https://courses.lumenlearning.com/boundless-management/chapter/management-levels-and-
types/
2. Business Consultant

A business Consultant is a professional who provides expert advice. They are

people who can go to a client site, identify problems and gives resolution.

2. Sales

The sales represent the product, services and the company. They manage the accounts
of the clients, and follow up on leads.

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3. Research and Development

Research and development is department in charge of the innovative activities of

the business to ensure new services or products, or improving existing services or products
are provided to clients.

4. Not-for-profit fundraiser

This is a good career because you will have experience in studying advanced
concepts that can be used to your advantage on the job. Being able to raise funds needs
understanding the importance of business and networking relationships.

5. Teacher

A teacher is someone in charge in educating learners in school or classroom set up.

You can inspire influence students to be at their most in whatever field they will choose in
life.

6. Recruiter

Recruiters, usually working in a Human Resource Department for companies,

handles tasks from resumes or by actively soliciting individuals qualified for positions. A
recruiter's job includes reviewing candidate's job experiences, expertise and skills,
negotiating salaries, and placing candidates in agreeable employment positions. Having
had courses that cover operations management, leadership, and a variety of others,
companies uses recruiters rely upon someone being not just people perceptive, but having
an in-depth business sense as well.

7. Business Reporter

If you can write articles, or pick up a quick class to learn it, you are in a prime position
to take the lead on covering a local business updates. You will understand the field and

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concepts and can use your knowledge to make the business section that much more
interesting and telling.

References
 https://www.shopify.com/encyclopedia/entrepreneurship
 https://www.investopedia.com/articles/personal-finance/101414/why-entrepreneurs-are-
important-economy.asp
 https://managementmania.com/en/economic-theories
 https://www.forbes.com/sites/quora/2017/09/11/what-are-the-most-important-skills-
entrepreneurs-need/#35e14e0d106c
 https://www.americanexpress.com/en-us/business/trends-and-insights/articles/8-jobs-you-
can-get-with-an-entrepreneurship-degree/
 https://en.wikipedia.org/wiki/Strategic_thinking
 https://courses.lumenlearning.com/boundless-management/chapter/management-levels-
and-types/

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