ENT 301

INTRODUCTION TO
ENTREPRENEURSHIP

LECTURE 1
ENTREPRENEURSHIP/
INTRAPRENEURSHIP

JOMO
 Concept of entrepreneurship
• Entrepreneurship as a concept is a process
of IDENTIFY investment opportunities in
one’s environment and POOLING
RESOURCES TOGETHER for the formation
of an enterprise, taking the RISKS involved,
and maximizing the gains thereof.

• Entrepreneurship is all about VALUE-

CREATION
 Meaning of an Entrepreneur
Entrepreneurship is one of the four mainstream economic

factors ( factors of production) : Land, Labour, Capital and

Entrepreneurship.

Basically, the word entrepreneur is derived from the

French word “enterprendre” which means “to undertake”.

To undertake simply means to start a business/enterprise

 ENTREPRENEURSHIP AS A
PROCESS
Joseph Schumpeter (1934) equated
Entrepreneurship, as a force of
“creative destruction” whereby
established ways of doing things are
destroyed by the creation of new
and better ways to get things done.
Penrose (1963) views

Entrepreneurship as the activity that

involves identifying opportunities

within the economic system.

According to Gana (2001), Entrepreneurship

is the ability to seek investment

opportunities and persisting to exploit that

opportunity.

JOMO
 Key features of
entrepreneurship definitions
• Generation of business ideas
• Innovation
• Identification of investment opportunities
• Putting together resources
• Assuming risk, at personal ,organizational
and even societal levels.
• Assuming the necessary reward.
 Who is an Entrepreneur?
Richard Cantillon (1725)- An entrepreneur is
a person who pays a certain price for a
product to resell it at an uncertain price,
thereby making decisions about obtaining
and using the resources while consequently
admitting the risk of enterprise.
Knight (1921)- views entrepreneurs as
individuals who attempt to predict and act
upon change within markets.
Schumpeter (1934) sees the entrepreneur as the
innovator who implements change within markets
through the carrying out of new combinations such
as introduction of new techniques of production,
reorganization of an industry and innovation. He
further argues that the entrepreneur is an innovator,
one that introduces new technologies into the
workplace or market, increasing efficiency,
productivity or generating new products or services.
Characteristics of an Entrepreneur
1. Self- confidence: somebody who is self-
assertiveness, confidence, independent, optimistic
and has a positive mental attitude.
2. Risk taking: someone who can take up challenges.
3. Task- result oriented: someone with a need for
achievement, profit oriented, persistence,
determine, initiative and hardworking.
4. Leadership and managerial skill: leadership
behaviour gets along well with others, responsible
to suggestions and criticisms.
5. Integrity: must be honest and committed to high
standard
 What Do Entrepreneurs Do?
Entrepreneurial roles can be grouped into the following

Visionary and Innovative Roles

The role of the entrepreneur is to search for and discover

new idea or take the creative concept and launch this idea

into a business operation

JOMO
 SOCIAL ROLES

Transformation of traditional indigenous industry

into a modern enterprise, transform the new ideas

into product, processes and service, provision of

social welfare service of redistributing wealth and

income, and provision of employment to job seeker.

 ECONOMIC ROLES

In performing the economic role, entrepreneurs bear

the ultimate risk of uncertainty. They Mobilize savings

necessary for the enterprise, and provide channel for

the disposal of economic activities. Utilise local raw

materials and human resources for production

process.
 TECHNOLOGICAL ROLES

Motivating the use of indigenous technology in the

production process, modifying traditional

technology to modern system, and developing

technological competence in self and the

workforce through innovation.

 MANAGERIAL ROLES

The entrepreneur is also the business

owner. In this role, the entrepreneur is

responsible for the entire starting up of a

business.

JOMO
 TYPES OF ENTREPRENEURS:
Innovative entrepreneurs: These
entrepreneurs have the ability to think newer,
better and more economical ideas of
business organisation and management.

Imitating entrepreneurs: These entrepreneurs

are people who follow the path shown by
innovative entrepreneurs. They are also
referred to as ‘copy cats’.
Fabian entrepreneurs: The dictionary
meaning of the term ‘fabian’ is ‘a person
seeking victory by delay rather than by a
decisive battle’. These are entrepreneurs that
are very careful and cautious in adopting any
changes.

Drone entrepreneurs: The dictionary

meaning of the term ‘drone’ is ‘a person who
lives on the labor of others’. These are
entrepreneurs that are resistant to change.
They are considered as ‘old school’. They
prefer to stick to their traditional or orthodox
methods of production and systems..
 Reasons for entrepreneurship
• Push factors: These are UNPLEASANT life
experiences that push someone into
becoming his own boss. These include job
dissatisfaction, pay dissatisfaction,
relocation of one’s spouse, unemployment
• Pull factors: These are FAVORABLE EVENTS
that pull someone into entrepreneurship. E.g.
enabling business environment, profitability.
• Supportive factors: These are factors such as
culture, social condition, peer group, working
experience e.t.c.
 Concept of Corporate
entrepreneurship/ intrapreneurship
• Corporate entrepreneurship is defined as a
method by which an individual or a group of
individuals, in association with the existing
organization , create a new organization.
• Corporate entrepreneurship is divided into
two (2):
– Corporate venturing
– Strategic entrepreneurship
 Entrepreneurship Versus
Intrapreneurship

Entrepreneurship within an existing firm

or large organization is referred to as

INTRAPRENEURSHIP
 Factors that encourage
Intrapreneurship
These factors according to Guth-Ginesberg(1990)
• The External environment
• The organizational setting and its
strategies
• Management activities
• Employee’s attitude
Importance of Entrepreneurship
• Economic Development
• Employment opportunities
• Improvement in the standard of living
through innovation
• Reduction in Rural-Urban Drifts
• Development of local technology
 Read up
• Kindly read up the following theories from
the textbook
a) Economic entrepreneurship theory
b) Psychological entrepreneurship
c) Sociological entrepreneurship
d) Opportunity based entrepreneurship
theory
e) Resource based entrepreneurship theory