Basic Entrepreneurship

Learning objectives:

 Define entrepreneurship

 Explain how entrepreneurial ventures differ from small businesses

 Explain why entrepreneurship is important

 Discuss the different types of entrepreneurs

Preliminary activities: Encircle the correct answer.

1. It is derived from the French word “Entreprendre” which is basically called as “to

undertake”.

a. Enterprise b. Entrepreneur c. Entrepreneurship

2. This behavior helps the entrepreneurs to seize the opportunities, which come in their way.

a. Taking Responsibility b. Making Judgement c. Opportunity Seeking

3. An innovator who brings economic development through new combinations of factors of

production.

a. Business man b. Entrepreneur c. Vendor

4. It has a prior ownership experience

a. Nascent Entrepreneur b. Habitual Entrepreneur c. Novice Entrepreneur

5. He/she has no business ownership experiences as a business founder, purchaser, or

inheritor.

a. Habitual Entrepreneur b. Novice Entrepreneur c. Nascent Entrepreneur

Discussion

Lesson 1. Introduction to entrepreneurship

The concept of entrepreneurship has a wide range of meanings. An entrepreneur is a person

of very high aptitude who pioneers change, the other definition is anyone who wants to work for

himself/ herself is considered to be an entrepreneur. For example, you put up a business and you

offer your own innovated product. The word entrepreneur was derived from the French word

“Entreprendre” which means “to undertake”. In business context, it means to start a business.

 Entrepreneur

A person who is able to identify business opportunities and implement actions to maximize on

the opportunities. An entrepreneur initiates enterprise creation, undertakes risks, and manages

resources to establish and operate a business enterprise that is capable of self-sustenance.

 Entrepreneurial characteristics

These are the main characteristics of an entrepreneur to succeed in the modern world of business.

 Entrepreneurial skills are activities, which the entrepreneur follows or an inborn talent

in order to succeed. Examples are:

Creative problem solving: this is one of the main skills to make correct decisions by creatively

solving difficult barriers.

Strategic thinking: an important skill that helps an entrepreneur to think wisely and make

decision strategically for improved success in long run.

Networking: one of the most needed and useful skill for an entrepreneur as to know about the

latest information in the market about product and services.

 Entrepreneurial behaviors are the characteristics, which the successful entrepreneurs

regularly do to acquire a strong position in the tough business situations. Examples are:

Opportunity seeking- an element that helps the entrepreneurs to size the opportunities, which

come in their way.

Taking responsibility: this behavior helps an entrepreneur to be aware of barriers coming in

his/her way and come out on top to take charge of it.

Making judgement: it helps to make wise decisions on buying and selling o products, goods and

services.

 Entrepreneurial attributes are actions taken by entrepreneurs when they are regularly

successful and something’s they’re bound to do.

Hardworking: it is an inborn talent, which is followed by most of the successful

entrepreneurs to make impact in their particular fields of business.

Persistent: an attribute which explains that no matter how many times an entrepreneur fails,

he will come out with success one day for his hard work in business.

Lesson 2. The difference between Entrepreneurial ventures and small businesses

 Many people use the terms “entrepreneur” and “small business owner” synonymously. While

they may have much in common, they are significant differences between the entrepreneurial

venture and small business in these ways:

Amount of wealth creation- rather than simply generating income steam that replaces

traditional employment, a successful entrepreneurial venture creates substantial wealth.

Speed of wealth creation – while successful small business can generate profit over a

lifetime, entrepreneurial wealth creation is rapid.

Risk- the risk of entrepreneurial venture must be high; otherwise, with the incentive of sure

profit many entrepreneurs would be pursuing the idea and the opportunity no longer would exist.

Innovation- it often involves substantial innovation beyond what a small business might exhibit.

The innovation gives the venture the competitive advantages and it might be a product or a

service, or in the business processes used to deliver it.

Lesson 3. Importance of entrepreneurship

 Innovation – the process of creating, changing, experimenting, transforming, and

revolutionizing.

 Number of new start-ups – it contributes economic development through benefits such

as product- process innovation.

 Job creation – vital to the overall long term economic health o communities, regions,

and nations.
 Entrepreneurship is the dynamic need of a developing nation and sustains the process of

economic development in the following ways: employment generation, national income, balance

regional development, innovations in enterprises, improvement of living standards and economic

independence.

Lesson 4. Different types of entrepreneurs

 Novice entrepreneur – has no prior business ownership experiences as a business

founder, inheritor, or purchaser.

 Habitual entrepreneur- has prior business ownership experience

 Nascent entrepreneur-in the process of starting a new business.

 Serial entrepreneur – has sold or closed an original business and establishes another

new business. They continue the cycle of selling/closing and establishing.

 Portfolio entrepreneur- retains an original business and builds a portfolio of additional

business. It is through inheriting, establishing, and purchasing the business.

Exercises

MULTIPLE-CHOICE: Please read the following questions/items carefully. Write in CAPITAL

the letter of your answer before each number.

1. These skills are activities, which the entrepreneur follows or an inborn talent in order to

succeed.

a. Entrepreneurial skills b. Innovation c. Entrepreneurial attributes

2. A person who is able to identify business opportunities and implement actions to maximize on

the opportunities

a. Entrepreneurial attributes b. Opportunity seeking c. Entrepreneur

3. It is vital to the overall long term economic health o communities, regions, and nations.

a. Entrepreneurship b. Job creation c. Number of new start-ups

4. The word entrepreneur was derived from the French word “Entreprendre” which means

______.

a. to rescue b. to sell c. to undertake

5. He/she has prior business ownership experience.

a. Novice entrepreneur b. Serial entrepreneur c. Habitual entrepreneur

6. It often involves substantial innovation beyond what a small business might exhibit.

a. Innovation b. Job creation c. Risk

7. This behavior helps an entrepreneur to be aware of barriers coming in his/her way and come

out on top to take charge of it.

a. Taking responsibility b. Hardworking c. Persistent

8. Followed by most of the successful entrepreneurs to make impact in their particular fields of

business.

a. Hardworking b. Risk c. Innovation

9. An important skill that helps an entrepreneur to think wisely and make decision strategically

for improved success in long run.

a. Persistent b. Strategic thinking c. Making judgement

10. One of the most needed and useful skill for an entrepreneur as to know about the latest

information in the market about product and services.

a. Networking b. Opportunity seeking c. Strategic thinking

Short essay. What is the importance of entrepreneurship? (10 points)

Answer key

1.A 6.A

2.C 7.A

3.B 8.A

4.C 9.B

5.C 10.B.

11.C. Answer may vary.