BE 447 


ENTREPRENEURSHIP

8th November, 2018

Suma Mwaitenda
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WORK PLAN FOR BE 447: ENTREPRENEURSHIP 2 units

Synopsis: The significance of entrepreneurship and enterprising

behaviour is underscored by the role it plays in the creation of wealth and
the provision of employment and income opportunities.

Thus, entrepreneurship issues constitute an essential dimension of

decisions by both the state and non-state actors. Overall, the importance
of entrepreneurship goes far beyond the business sector and affects
virtually every aspect of economic, cultural and social life.

Managers should be exposed to a sufficient understanding of the

meaning, determinants and role of entrepreneurship in both the economic
and non-economic life. They should also be aware of the work
environments, which promote enterprising behaviour.

The objective of the course is to enable students have some knowledge

on establishment and management of small business firms. 2
ACTIVITY DURATION

Introduction: definitional problems (entrepreneurship, intrapreneurship, small 1 and 2nd

business), role of entrepreneurship in the socio-economic development and vitality of Week
society

History of entrepreneurship: understanding of ent’ship from trait, behavioural and 3rd Week
functional perspectives. Fundamentals of business plan.
ISSUE OF ASSIGNMENT NO. 1

Small business environment in Tanzania: macro, meso, and micro, including critical 4th Week
constraints. (Guest lecture)

Entrepreneurial Perspective in Individuals (Characteristics of Entrepreneurs); and Risks

and rewards of the entrepreneurial career 5th Week

TEST NO. 1 6th Week

Initiating Entrepreneurial Ventures (Assessment and Evaluation of Entrepreneurial 7th Week

Opportunities - Guest Lecture)

Business plan ISSUE OF ASSIGNMENT NO. 2 8th Week

Starting a business, Financing & operations of a business 9th Week

Growth of small firms (Guest lecture) 10 &11th Week

(Test No. 2) 12th Week

Forms of businesses/companies (guest lecture)

Family business and succession; and Gender and Entrepreneurship 13th Week

Meet the CEO, Business Plan Presentations (Public lecture, special invitees) 15th Week
(ASSIGNMENT NO.2)
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References
1. Olomi, D. 2009. The context and Process: African Small Business and
Entrepreneurship: Otme publishers, Dar es Salaam.
2. Hisrich, R.D., Peters, M.P. 2002, Entrepreneurship, 5th edn, Boston,
McGraw-Hill Irwin. – you can make a copy from UDEC
3. Rutashobya, L.K. and D. Olomi. 1999. African Entrepreneurship and Small
Business Development. DUP (1996) Ltd. Dar es Salaam. You can buy
from UDSM Bookshop 10,000/=
4. Spring A. & McDade B. E. (1998). African entrepreneurship. University
Press of Florida, Gainesville, USA. – you can copy from UDEC
5. ILO, 2003. Women Entrepreneurs in Tanzania: Going for Growth. ILO:
Geneva - you can copy from UDEC
6. http://www.gtz.de/cefe/products/papers/2143241.htm. A brief history of
entrepreneurship
7. http://www.udec.udsm.ac.tz or www.udsm.ac.tz/udec
8. http://www.babson.edu/entrep/fer/ (for a variety of topics)

Delivery; 15 lecture sessions two hours each

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 Objective

To enable students have some knowledge on
establishment and management businesses
• To examine the evolution of
entrepreneurship
• To define the major terms used in
entrepreneurship
• To appreciate the meaning of ent’ship and its
influence on enterprise dynamics
• To discuss the roles and significance of
entrepreneurship for economic development
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 Introduction
• Entrepreneurs recognize opportunities where others see
chaos or confusion.
• They are aggressive & catalyst for change within the
market place.
• The following characteristics combine into a special
perspective that permeates entrepreneurs:

➢Seeking opportunities

➢Taking risks beyond security

➢Having the tenacity to push an idea through to reality.

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 Introduction
• An entrepreneurial perspective can be
developed in individuals and be exhibited
➢Inside or outside an organization;
➢In profit or not-for-profit enterprises;
➢In business and non- business activities;
for the purpose of bringing forth the
creative ideas.

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 Entrepreneurship - Meaning

There is no clear consensus on the definition of the word

‘entrepreneur’ or that of its derivative ‘entrepreneurship’.
The key problems in defining entrepreneurship lies at two
levels:
➢The term is often used loosely to encapsulate all
business owners

➢It may be used quite narrowly to refer to a subset

of business owners, and at this level the problem is
to identify the distinguishing features.

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 Entrepreneurship - Meaning

• The word ‘entrepreneur’ was used for the first time in

economic theory by Richard Cantilon in late 18th
century where its meaning is ‘to undertake’. He saw
the entrepreneur as one who undertakes to organize,
manage and assume the risks of a business.

• In England during the same period, the industrial

revolution was evolving, with the entrepreneur
playing a visible role in risk taking and the
transformation of resources.

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 Entrepreneurship - Meaning

• Until the 1950s the majority of definitions and references to

entrepreneurship had come from economists e.g.

• Cantilon (1725, just mentioned)

• Jean Baptiste Say (1803), the renowned French economist

• Joseph Schumpeter (1934), a twentieth century economic

genius

• All these wrote about entrepreneurship and its impact on

economic development.

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 Entrepreneurship - Meaning

• In the early 20th century Joseph Schumpeter

presented the most significant meaning of
the term ‘entrepreneur’. He saw the essence
of entrepreneurship as innovative behavior.

• “The essence of entrepreneurship lies in the

perception and exploitation of new
opportunities….it always has to do with
bringing about a different use of national
resources in that they withdraw from their
traditional employment and subject them to
new combinations (Schumpeter 1934).”
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 Entrepreneurship - Meaning

• It is also defined more broadly to

encapsulate a range of behaviors
associated with success in any
endeavor: pro-active, innovative,
ambition, persuasion, perseverance,
drive and determination, calculated
risk-taking, independence, etc

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 As a process, entrepreneurship has been
defined as follows:

The process of creating something

different, with value, devoting the
necessary time and efforts, assuming
the accompanying financial, psychic,
and social risks, and receiving rewards
of monetary and personal satisfaction
and independence (Hisrich and Peters,
1985)

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 An Entrepreneur
Some of definitions of entrepreneurs:-

• A study by Gartiner (1990) found 44 different

definitions some of which shared no common
attributes at all.
• The agent who purchases the means of production
for combination into marketable products
(Cantilon 19th century).
• One who develops new profitable business
opportunities by combining resources in a new
way (Schumpeter 1934).

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 An Entrepreneur
Some of definitions of entrepreneurs:-

• An innovator or developer who recognizes and

seizes opportunities; converts these opportunities
into workable /marketable ideas; adds value
through time, effort, money or skills; assumes the
risks of the competitive marketplace to implement
these ideas; and realizes the rewards from these
efforts (Kuratco and Hodgetts 2004).

• Etc, etc
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 Intrapreneurship
• It is the entrepreneurial activities that receive organizational
sanction and resource commitments for the purpose of
innovative results.

• In other words intrapreneurship is “behaving

entrepreneurially in established organization it is also called
corporate entrepreneurship”

• An intrapreneur is an individual who operates in an

entrepreneurial way, from within an established organization
rather than by founding or building up his or her own firm.
This is also called administrative entrepreneur.

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 Intrapreneurship
• Intrapreneurs are found in all kinds of
organisations

• They are highly valued in today’s world,

because it calls for constant
improvement, aggressiveness, vision,
ability to assess risks and quickly take
action, etc.
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 Small Business Owner/ Manager
• There is a tendency of some people to treat small business
owner managers and entrepreneurs as synonymous.

• He is an individual; who owns and manages a business for

the principal purpose of furthering personal goals.

• The business must be the primary source of income and

will consume the majority of one’s time and resources.

• The owner manager perceives the business as an extension

of his or her personality, intricately bound with family needs
and desires (Carland et al 1984)

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 The Roles of Entrepreneurship

• Increasing per capita output and income

• Initiating and constituting change in the structure of business

and society

• This change is accompanied by growth and increased output,

which allows more wealth to be divided by various participants

• Encourages innovations, which is the key in developing new

products and in stimulating investments interests in the new
ventures

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Significance of Entrepreneurship

• In employment creation
• In income generation
• In economic competitiveness
• Overall growth, leading to
improved standard of living
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 Dimensions of Entrepreneurship

Entrepreneurship can be used both…

• Constructively (POSITIVELY) and

• Destructively (NEGATIVELY)

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Construction Entrepreneurship

Constructive entrepreneurs contribute positively

to wealth creation and social economic
development:, e.g.
➢Converts discoveries into profitable ventures
➢Brings about new products and services to better
address customers/societal needs
➢Brings about convenience through improved products,
distribution systems: internet banking, shopping, etc
➢Is responsible for most business start-ups

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Constructive Entrepreneurship
• Lowers costs through better technology, improved processes of
production, and organization of production: automatic,
computerized manufacturing, self-service, office automation, etc

• Brings about effective and efficient ways of addressing social

problems: poverty, diseases, war and civil strife, environmental
degradation, etc.

• Can bring about new approaches to economic/development

management

• Can contribute to changing laws and regulations which restrict

economic productivity and growth

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Destructive Entrepreneurship

• Destructive entrepreneurs deploy their

entrepreneurial flair to achieve socially
unacceptable goals: Often, their impact on
social-economic vitality and development is
negative

• Examples of destructive entrepreneurial

activities?……………………………

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Entrepreneurial values/ attributes
• Strong sense of independence
• Belief in self/ believe can make things happen
• Strong sense of ownership
• Belief that rewards come with own effort and hard
work brings its rewards
• Strong action orientation
• Strong belief in the value of know-who and trust
• Readiness to take reasonable risks
• Achievement orientation/urge to succeed/conquer
• Tendency to take initiative
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Entrepreneurial skills
• Creative problem solving
• Articulating ideas
• Negotiation/selling/proposing
• Social skills
• Strategic thinking
• Decision making under uncertainty
• Leadership skills
• Assertiveness
• Opportunity identification and deployment skills
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 Motivation/ tendency/ to start and manage
own business

• Pull /Push towards the entrepreneurial career

• Push and pull factors are those factors which either forcefully
push people into something or attract them.

• Ability to see business opportunities

• The will to try/experiment with business and
learn from it

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Business start-up/ management skills

• Ability to see good business ideas

• Ability to appraise an idea

• Awareness of where to look for support/answers

• Ability to start and run businesses

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 Entrepreneurial Management

• Is about managing in an entrepreneurial way and

promoting the entrepreneurial culture throughout
the organization:

• It requires policies and practices in:

➢Receptivity to innovation
➢Systematic measurement or appraisal of performance as
an entrepreneurial and innovator
➢Built in learning to improve performance

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Entrepreneurial Management Requires:

• Specific practices relating to structure, staffing,

managing, compensation, incentive and rewards to
encourage entrepreneurial actions

• Rather than holding on to what already exists,

innovation must be made attractive and beneficial to
managers

• Innovation plans

• Freeing the best people for innovative activity

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 Entrepreneurial Government

• Behaves entrepreneurially:
➢Innovative policies, strategies for economic and social
vitality

➢Alert to opportunities, and responding to exploit them

➢Government facilitates, rather than hamper the

activities of other actors

➢Aggressive and even deliberate protection and

promotion of nationals and their economic interests,
including in trade negotiations

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 Entrepreneurial government

➢Sets right priorities for immediate and long-

term national interests

➢Rewards entrepreneurs and enterprising

behavior

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END

Thank you
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