COURSESTRUCTUREFORGENS202ENTREPRENEURSHI

PANDI
NNOVATI
ON

1.
1 I
NTRODUCTION
Ther
eisundoubt
edl
yagr
owi
ngneedf
orent
repr
eneur
shi
peducat
ionasabasi
c
ski
l
lint
heNi
ger
iaeducat
ionsy
stem.Themostf
undament
alr
easonf
ort
hinki
ng
aboutent
repr
eneur
shi
peducat
ionatt
heuni
ver
sit
ylev
eli
stof
indasust
ainabl
e
sol
uti
on t
otheev
ergr
owi
ng unempl
oymentpr
eval
entamong ouruni
ver
sit
y
gr
aduat
es. I
ntegr
ati
onofent
repr
eneur
shi
pst
udi
esi
ntheUni
ver
sit
yeducat
ion
wi
l
lpr
epar
ethe y
out
hs t
o be r
esponsi
ble ent
erpr
isi
ng i
ndi
vi
dual
s who wi
l
l
becomeent
repr
eneur
sorent
repr
eneur
ialt
hinker
sandcont
ri
but
etoeconomi
c
dev
elopmentandsust
ainabl
ecommuni
ti
es.
Thegoaloft
heent
repr
eneur
ialst
udi
espr
ogr
ammei
stopr
ovi
det
heknowl
edge
and ski
l
ls needed t
o cr
eat
eval
ue t
hrough r
ecogni
zi
ng and dev
elopi
ng
oppor
tuni
ti
es.I
not
herwor
ds,t
hegoali
stoempowergr
aduat
es,i
rr
espect
iveof
t
hei
rar
easofspeci
ali
zat
ion,wi
thski
l
lst
hatwi
l
lenabl
ethem engagei
nincome
y
iel
dingv
ent
uresi
ftheyar
eunabl
etosecur
epai
djobs.I
tisar
e-or
ient
ati
onf
rom
t
het
ake-
a-j
obment
ali
tyt
othemake-a-
jobment
ali
ty.
Cour
sest
atus: Compul
sor
yforal
l200Lev
elunder
graduat
est
udent
s
Lev
elt
obeof
fer
ed -Secondsemest
er200l
evel

Cr
editLoad -Two( 2)credit
s
Management -Ent
repr
eneurial
St udi
esCentr
e,AhmaduBello
Univ
ersit
y ,
Zaria.
Speciali
zat
ion -
LecturesandPract
icals: Byuni versi
tyAcademicStaff,
guestl
ectur
ersand
Successfulbusinesspersonswithi
nthev ici
nit
yof
the
Univ
ersit
y .

Assessment
Student
smustat
tendatl
east75%oft
hepr
escr
ibedl
ect
ures,
semi
nar
s,t
utor
ial
s
andpr
act
icall
essonsoft
hecour
se.Assessmentwi
l
lbebasedont
hef
oll
owi
ng:
40%(
indi
vi
dual
)2000wor
dcr
it
iqueofabusi
nesspl
an.
60%(
Groupbased)–Pr
esent
ati
on(
wri
tt
enandVer
bal
)onbusi
nessoppor
tuni
ty.

1
 AwardsofGrades
A candi
date shal
lbe recorded as having att
ained i
n a cour
se a l
evelof
achi
evementgradedasf
ollows:
A = 70%andabov e - VeryExcell
ent
B = 60-69% - VeryGood
C = 50-59% - Good
D = 45-49% - Sati
sfact
ory
E = 40–44% - Pass
F = 0–39% - Fai
l

2.
0 PHI
LOSOPHYANDOBJECTI
VES
2.
1 Gener
alPhil
osophy
Thegeneralphi
losophyofdev
elopi
ngt
hiscur
ri
cul
um i
stopr
oducegr
aduat
es
wi
thsomev
alueaddi
ti
onov
erandabov
ethei
rfi
eldofst
udyf
ort
hepur
poseof
sel
frel
i
ance.Tot
hisend,t
heEnt
repr
eneur
ialst
udi
escur
ri
cul
um i
sbr
okeni
nto
GENS202andGENS302t
obet
akenat200and300l
evel
srespect
ivel
y.
2.
2 Obj
ecti
vesoftheGSTEntrepreneur
ship
Toredi
recteducat
ion/
trai
ningf orrel
evanceandqual
i
tybydev
elopi
ngi
nthe
under
graduat
e/gr
aduat
eanent
repr
eneur
ial
mindset(
spi
ri
t)andequi
ppi
ng
hi
m/herwi
tht
heski
l
lsnecessar
ytost
artandr
unabusi
nesssuccessf
ull
y.

3.
0 COURSE

3.
1 GENS202: ENTREPRENEURSHI
PANDI
NNOVATI
ON
Cour
seDescr
ipt
ion
TheCour
sepr
epar
esst
udent
swi
thgener
almanagementski
l
ls,encour
aget
hem
t
odev
elopt
hei
rownent
repr
eneur
ialmi
ndset
sandpr
ovi
desbusi
nesst
heor
yand
know-
howt
owar
dscr
eat
ionandr
unni
ngofsmal
ltomedi
um ent
erpr
ises(
SMEs)
.
Thi
scour
sewi
l
lteachy
out
heski
l
lst
oanal
ysebusi
nessoppor
tuni
ti
es,wr
it
ea
compel
l
ing busi
ness pl
an t
o pr
esentt
he busi
ness pl
an t
o an audi
ence at
i
nvest
orssuchasv
ent
urecapi
tal
i
st,banksorf
ri
endandf
ami
l
ymember
siti
sto

2
 br
ingt
her
ealwor
ldi
ntot
hecl
assr
oom.Guestent
repr
eneur
swi
l
lcomet
ocl
ass
andshar
ethei
rexper
iencewi
thst
udent
s.
Cour
seObj
ect
ives
Thi
scour
sei
sani
ntr
oduct
orycour
sef
orst
udy
ingEnt
repr
eneur
shi
pfort
hef
ir
st
t
imewhi
chi
sdesi
gnt
oachi
evet
hef
oll
owi
ngobj
ect
ives:
 Topr
ovi
dest
udent
swi
thanunder
standi
ngofent
repr
eneur
shi
pandi
nnov
ati
on.
 Topr
ovi
deahands– on,pr
act
icalgui
det
ounder
standanddi
scov
ercr
it
ical
aspect
sofEnt
repr
eneur
shi
p;
 To dev
elop compet
enci
es,know-
how,exper
ience,at
ti
tudes r
esour
ces,and
net
wor
krequi
redt
opur
suedi
ff
erentEnt
repr
eneur
ial
oppor
tuni
ti
es;
 Toi
ntr
oduct
ionst
udent
stot
hekeyr
equi
rement
sforst
art
inganent
erpr
ise:
and
 Toexpl
oredi
ff
erentt
ypesofent
repr
eneur
ial
ent
erpr
isei
nNi
ger
ia.
 Toexposest
udent
stot
hemanyoft
hev
itali
ssuesandi
mmer
set
hem i
nthekey
l
ear
ningexper
iences,suchast
het
heor
iesofEnt
repr
eneur
shi
p,t
heNi
ger
ian
busi
nessenv
ironment
,andt
heconceptandmanagementofi
nnov
ati
on.
 Toconsi
derhowcr
eat
ivi
tyt
ransl
atest
oinnov
ati
onandweal
thcr
eat
ion

Lear
ningOut
come
Byt
heendoft
hecour
se,
iti
sexpect
edt
hatt
hest
udentwi
l
lbeabl
eto:
1.Di
scusst
her
oleofent
repr
eneur
sint
heNi
ger
iansoci
ety
2.Ev
aluat
edi
ff
eri
ngper
spect
ivesandcompar
ati
vemodel
sofent
repr
eneur
shi
pand
i
nnov
ati
on
3.Descr
ibeent
repr
eneur
shi
pwi
thi
naNi
ger
iancont
ext
4.Under
standone’
sst
rengt
hsandweaknessasani
nnov
ator
/ent
repr
eneur
5.I
dent
if
ythekeypr
ocessofent
repr
eneur
shi
pandi
nnov
ati
on
6.Dev
elopcr
eat
ivet
hinki
ngandappl
i
cat
ion.

3
Cour
seCont
ent
s
1.
0Modul
e1:Dev
elopmentEnt
repr
eneur
shi
p/I
ntr
apr
eneur
shi
p 5
1.
1TheconceptofOr
gani
zat
ionsandTheor
iesofEnt
repr
eneur
shi
p 5
1.
2TheEnt
repr
eneur
ial
cul
tur
e 10
1.
3Bar
ri
erst
oEnt
repr
eneur
ial
pract
ice 12
1.
4Ther
oleofent
repr
eneur
shi
pint
heeconomyandsoci
ety 14
2.
0Modul
e2:TheNi
ger
ianEnt
repr
eneur
ialEnv
ironment 16
2.1TheBusinessExt
ernal
Env
ironment(
pol
i
tical
,l
egal
,soci
o-cul
tur
al,
economi
c,nat
ural
,
technol
ogi
caletc.
) 16
2.
2Ident
if
yingBusi
nessOppor
tuni
ti
esandThr
eat
s 18
3.
0Modul
e3:Cr
eat
ivi
tyandI
ntel
lect
ual
Right
s 20
3.
1Int
ell
ect
ual
Proper
tyandi
tsDi
mensi
ons 20
3.
2Copy
rightLawsi
nNi
ger
ia 21
3.
3St
rat
egi
esf
orPr
otect
ionofI
ntel
l
ect
ual
Proper
ty(
ori
ginal
ideas,
concept
s,pr
oduct
set
c.)
24
4.
0Modul
e4:Technol
ogi
calEnt
repr
eneur
shi
p 26
4.
1Thei
nter
facebet
weenTechnol
ogyDev
elopmentandEnt
repr
eneur
shi
p 26
4.
2Technol
ogi
cal
Env
ironmentandBusi
ness 27
5.
0Modul
e5:ManagementofI
nnov
ati
on 29
5.
1Innov
ati
onandEnt
repr
eneur
shi
p 29
5.
2Ent
rySt
rat
egi
esf
orNewVent
ures 29
6.
0Modul
e6:WomenEnt
repr
eneur
shi
p 32
6.
1TheConceptofWomenEnt
repr
eneur
shi
p 32
7.
0Modul
e7:Soci
alEnt
repr
eneur
shi
p 36
7.
1TheConceptofSoci
alEnt
repr
eneur
shi
p 36
8.
0Modul
e8:Busi
nessOppor
tuni
tyEv
aluat
ion 44
8.
1Sour
cesofBusi
nessOppor
tuni
ti
esi
nNi
ger
ia 44
8.
2Ent
repr
eneur
ial
ideasandOppor
tuni
ti
es 50

4
 8.
3El
ement
sofVent
ureCr
eat
ion 55

1.
0Modul
e1:Dev
elopmentEnt
repr
eneur
shi
p/I
ntr
apr
eneur
shi
p
1.
1TheconceptofOr
gani
zat
ionsandTheor
iesofEnt
repr
eneur
shi
p

Meani
ngofOr
gani
zat
ion:
Organi
zat
ioni
saPr
ocess

Anor gani
sati
oni
sagr oupofpeopl ethati
sstr
ucturedandmanagedt oachi ev
ea
common goal .Ever
y or gani
sat
ion has a defi
ned structur
et hatdetermines
rel
ati
onshipsbet
weeni t
smember s,andassi
gnst hei
rroles,r
esponsi
bil
i
ties,and
authori
ty.

Organizati
onisapr ocesswhi chintegrat
esdi f
ferenttypeofact i
vi
tiest
oachi eve
organizati
onalgoals and objecti
ves,t o achievet hese goalsthere mustbe
compet entmanagementpr ovidi
ng them allthosef actor
st o perf
orm thei
rj ob
effi
cientl
yandef f
ecti
vel
y .Organi
zati
oni snothingbuti sapr ocessofintegr
ating
andcoor dinat
ingtheeffort
sofmenandmat erialfortheaccomplishmentofset
objecti
ves.

Ever
yt hinkerisoftheopi nionthatanor gani zati
onisapr ocess.Theyf urt
herhav e
addedt hatt hisprocessl eadidentifi
cationofwor ktobeper f
ormedwhi chf or
conveniencesakeshoul dbeobj ecti
velygr oupedanddef ined.Thent hewor kshould
beassi gnedt oindivi
dualsaccor di
ngt ot heirapti
tude,technicalknowledge,skil
l
andefficiency.Forsati
sfactoryworkingt hei ndivi
dualsshouldbegi vensomer ight
andaut horit
y.Amut ualrelati
onshipbet weenj obs(whatt obedone)dut ies(tobe
perf
ormed)andaut hori
ty(tobeexer ci
sed)shoul dbeestablished.

Organi
zat
ioni
sjustl
i
keat ooli
nthehandsofmanagement
.Netr
esul
tswi
l
lbe
perf
ecti
fthet
ooli
swell
desi
gnedandhandedpr
oper
ly.

Char
act
eri
sti
csofOr
gani
zat
ion

Or
gani
zati
on is an ef
fect
ive and necessar
yi nstr
umentforthe at
tai
nmentof
pr
edet
erminedgoal
s.Thefoll
owingaremai ncharact
eri
sti
csofor
gani
zati
on.

 Organi
zat
ionisani
nst
rumentusedbyt
hemanagementf
ort
heat
tai
nmentof
pl
annedobj
ecti
ves.

5
 Managementguidesanddir
ectstheorgani
zati
on.
 A setofrul
esandi nst
rumentar ecommuni catedtoallconnect
edwi ththe
or
gani
zati
on.
 I
tprefer
stoagr oupofpersonnelwhoseposi t
ions,r
ight
s,r
esponsi
bil
i
tiesare
wel
ldefi
nedandclassi
fi
edaccor
dingtothenatureofassignment
s.

Nat
ureofOr
gani
zat
ion

Asetoffiv
eprocessesincommonlyacceptedasf
ivef
unct
ionsofor
gani
zat
ion
whi
chrepr
esent
snatureofor
gani
zat
ion,
theyare

 Subdiv
isionofmai nworkint
osmal lgroups
 Basedonpr i
nci
plesofequal
it
ydivisionofdiff
erentact
ivi
ti
esti
es
 Sel
ecti
onofsui tabl
epersonnelandal l
ocati
onofjobsaccordi
ngtosui
tabi
l
ity
 All
otment sofri
ghtsandauthorit
yt othosewhohav ebeenassi
gnedt
hejobso
t
hatmaybeabl etoaccompli
shtheirj
obsat isf
actor
il
y
 Deter
mi nati
onofpositi
onsatdiff
erentlevels

I
mpor
tanceofOr
gani
zat
ion

Anyef
fect
iveor
gani
zat
ion

 Makest hemanagementsi mpleandef

fi
cient
 Encouragesspeci
ali
zation
 I
mpr ovestechni
ques
 Encouragesconstr
uctivet
hinki
ng
 I
ncreaseproducti
vit
yand
 Acceler
atestheprogress

Themanagementaskst heorganizat
iontoaccompli
sht
hetasksset-
for
thbefor
ei t
which an eff
ecti
ve or
ganizati
on is capabl
e ofachi
evi
ng thr
ough itsfrui
tful
organi
zat
ionalfr
amework.Thisiswhyi tissaidt
hator
gani
zati
onisaf oundat
ion
uponwhichthewholest
ructureofmanagementcanbesuccessf
ull
ybuil
t.

Theor
iesofEnt
repr
eneur
shi
p

People use the ter

ms " ent
repr
eneur"and "entrepr
eneur shi
p"i nt
erchangeabl
y.The
entr
epreneurist he person who st
arts hi
s own busi ness.The exactdef ini
ti
on of
"ent
repreneur
shi
p"st il
lremains a vague concept,though v ar
ious entr
epreneur
ship

6
t
heor
ieshav
edef
inedt
heconcept
.

Ear
lyTheor
iesofEnt
repr
eneur
shi
p

RichardCant il
l
on( 1680-1734)wast hefir
stofthemaj oreconomicthinkerstodefinethe
entrepreneurasanagentwhobuy smeansofpr oductionatcertai
npr i
cest ocombi ne
them intoanewpr oduct.Hecl assi
fi
edeconomi cagent si
ntolandowner s,hi
rel
ings,and
entrepreneurs,andconsi der
edt heentrepreneurast hemostact iveamongt hesethree
agents, connecti
ngt heproducerswithcustomer s.

Jean Baptise Say( 1767-

1832)i mprov
ed Canti
ll
i
on’
s defi
nit
ion byaddi
ng t
hatt
he
entr
epreneurbringspeopletoget
hertobuil
daproduct
ivei
tem.

Fr
ankKni
ght
'sRi
skBear
ingTheor
y

FrankKni ght(1885-
1972)fir
stintr
oducedthedimensi
onofr i
sk-
taki
ngasacentral
character
isti
cofentrepr
eneurshi
p.Headoptsthetheor
yofear l
yeconomist
ssuchas
RichardCantil
lonandJBSay ,andaddsthedi
mensi
onofrisk-
taki
ng.

Thistheor
yconsider
suncertai
ntyasaf actorofpr
oducti
on,andhol
dsthemainfunct
ion
oftheentrepr
eneurasact i
nginant i
cipat
ionoffutur
eev ent
s.Theentr
epr
eneurearns
profi
tasarewardfortaki
ngsuchrisks.

Al
fr
edMar
shal
l
’sTheor
yofEnt
repr
eneur
shi
p

Al
fredMar shalli
nhi sPr
incipl
esofEconomi cs( 1890)hel
dland,labor,capi
tal
,and
or
ganizationast hefourf
actorsofproducti
on,andconsider
edent
repreneurshi
pasthe
dr
ivingfactorthatbr
ingst
hesef ourf
actor
stogether.

Thechar
act
eri
sti
csofasuccessf
ulent
repr
eneuri
ncl
ude:

 thoroughunder
standi
ngoft
hei
ndustr
y
 goodl eader
shi
pskil
ls
 foresi
ghtondemandandsuppl
ychangesandt
hewi
l
li
ngnesst
oactonsuchr
isky
foresi
ghts

Successofanentr
epreneurhoweverdependsnotonpossessi
onoft
heseski
l
ls,buton
theeconomi
csit
uati
onsinwhi cht
heyattemptt
heirendeav
ors.

Manyeconomi
stshav
emodi
fi
edMar
shal
l
’st
heor
ytoconsi
dert
heent
repr
eneurast
he
7
f
our
thfact
ori
tsel
finst
ead ofor
gani
zat
ion,and whi
chcoor
dinat
est
heot
hert
hree
f
act
ors.

MaxWeber
’sSoci
ologi
cal
Theor
y

Thesoci ol
ogicaltheoryentr
epreneurshi
pholdssocialcult
uresasthedri
vingfor
ceof
entrepr
eneurship.Theentrepreneurbecomesar oleperformerinconf
ormitywit
ht he
roleexpectat
ionsoft hesociety,andsuchroleexpectat
ionsbaseonreli
giousbel
iefs,
taboos,andcust oms.

MaxWeber( 1864-1920)heldreli
gionasthemajordr
iverofentrepreneurshi
p,and
str
essedont hespi r
itofcapit
ali
sm,whichhi
ghl
ight
seconomicfreedom andpr i
vate
enter
pri
se.Capital
ism thri
vesundertheprot
est
antworkethicthathar psont hese
val
ues.Ther i
ghtcombi nati
onofdiscipl
i
neandanadventur
ousfree-spi
ritdefi
net he
successf
ulentr
epreneur.

Mar
kCasson'
sEconomi
cTheor
y

MarkCasson(
1945-
)hol
dst
hatent
repr
eneur
shi
pisar
esul
tofconduci
veeconomi
c
condi
ti
ons.

In hi
s book "Ent
repreneurshi
p,an Economict heor
y"he st
ates t
he demand f
or
entr
epreneur
shi
parisi
ngf r
om thedemandforchange.

Economi
cfact
orst
hatencour
ageordi
scour
ageent
repr
eneur
shi
pincl
ude:

 taxationpoli
cy
 i
ndust ri
alpoli
cy
 easyav ail
abi
li
tyofrawmat eri
als
 easyaccesst of i
nanceonf av
ourableterms
 accesst oinf
ormat i
onaboutmar ketcondit
ions
 availabi
li
tyoftechnologyandinf
rastruct
ure
 mar keti
ngoppor t
unit
ies

JosephSchumpet
er’
sInnov
ati
onTheor
y

Joseph Schumpet er
’s innovati
on theor
y of entrepreneurshi
p ( 1949) holds an
entrepr
eneuras one hav i
ng thr
ee majorcharact
eri
sti
cs:i nnovat
ion,foresi
ght,and
creati
vi
ty.Ent
repr
eneurshi
ptakesplacewhentheentr
epreneur

 creat
esanewpr oduct
 i
ntroducesanewwayt omakeapr oduct
 di
scov er
sanewmar ketf
oraproduct
 fi
ndsanewsourceofr awmateri
al

8
  f
indsnewwayofmaki
ngt
hingsoror
gani
zat
ion

Schumpet er
’sinnov at
iontheoryhoweverignorestheent
repr
eneur’sri
sktaki
ngabi
li
ty
andorganizati
onal ski
ll
s,andplaceundueimportanceoni
nnovati
on.Thi
stheor
yappl
ies
tolar
ge-scal
ebusi nesses,buteconomiccondit
ionsfor
cesmallent
repr
eneurst
oimit
ate
rat
herthaninnovate.

Othereconomist
shaveaddedadi mensi
ontoimitat
ingandadapt
ingt
oi nnov
ati
on.Thi
s
entai
lssuccessf
uli
mitati
onbyadaptingaproducttoanicheinabetterwaythanthe
ori
ginalpr
oducti
nnovator
sinnov
ati
on

I
srael
Kir
tzner
’sTheor
yofEnt
repr
eneur
shi
p

I
sraelKir
zner(1935)holdspontaneouslearni
ngandalert
nesstwomajorchar
act
eri
sti
cs
ofentr
epreneurshi
pandentrepreneurshipi
sthetransf
ormati
onofspont
aneousl
ear
ning
toconsci
ousknowl edge,moti
vatedbyt heprospect
sofsomegain.

Kir
znerconsi
der
st he al
ert
ness t
or ecogni
ze opportuni
tymore charact
eri
sticthan
i
nnovati
onindef
ini
ngentr
epreneur
shi
p.Theentrepreneureit
herr
emediesignoranceor
corr
ect
serror
softhecust
omers.

Hi
sent
repr
eneur
shi
pmodel
hol
ds:

1.Theentrepr
eneursubconsci ousl
ydiscov eri
nganoppor tuni
tytoearnmoneyby
buyi
ngresourcesorpr oducingagood, andsel li
ngit
2.Ent
repr
eneurf i
nancingthev entur
ebybor r owingmoneyf rom acapi
tali
st.
3.Ent
repr
eneurusi ngthefundsf orhisentr
epr eneuri
alventure
4.Ent
repr
eneurpay i
ngbackt hecapital
ist
,includingint
erest,andr
etai
ningthe"
pur
e
ent
repr
eneurialprofi
t.
”

Lei
benst
ein’
sTheor
yofEnt
repr
eneur
shi
p

HarveyLeibenst
ein(1922-
1994)consi
derent
repr
eneurasgap-
fi
ll
ers.Thet
hreet
rai
tsof
ent
repreneurshi
pincl
ude:

1.recogni
zingmarkettr
ends
2.developnewgoodsorpr ocessesi
ndemandsbutnoti
nsuppl
y
3.determini
ngpr
ofitabl
eacti
vit
ies

Ent
repreneur
shavethespecialabi
l
ityt
oconnectdi
ff
erentmar
ket
sandmakeupf
or
marketfai
lur
esanddef
ici
enci
es.

McCl
ell
and’
sTheor
yofAchi
evementMot
ivat
ion

9
McClel
landsTheoryofAchi
evementMotivat
ionholdthatpeoplehavet
hreemoti
vesf
or
accompli
shingthi
ngs:
theneedforachi
evement,needforaff
il
iat
ion,
andneedf
orpower.
Needforachiev
ementandneedforpowerdriveentr
epreneur
ship.

DavidMcClel
l
and(1917-
1988)considersent
repreneursaspeopl
ewhodothingsina
bett
erwayandmakesdeci si
onsi ntimesofuncer tai
nty
.Thedream t
oachiev
ebig
thi
ngsover
power
smonetaryorotherexter
nali
ncentiv
es.

McClel
land’
sexperimentr
evealedthatt
radi
ti
onalbeli
efsdonoti
nhi
bitanentr
epreneur
,
andthatiti
spossibl
etoint
ernali
zethemotivat
ionrequi
redf
orachi
evementori
entat
ion
thr
oughtrai
ning.

Pet
erDr
ucker
’sTheor
yofEnt
repr
eneur
shi
p

Peter Dr
ucker (
1909-
2005) holds i
nnovati
on,r esour
ces,and an entr
epreneur
ial
behavi
ourasthekey
stoentr
epreneur
ship.Accor
dingtohim ent
repr
eneur
shi
pinvol
ves

1.i
ncreaseinval
ueorsati
sfact
iontothecust
omerfr
om t
her
esource
2.creat
ionofnewval
ues
3.combinati
onofexi
sti
ngmat eri
alsorr
esour
cesi
nanewproduct
ivecombi
nat
ion

Whatt
heor
iesdoy
out
hinkexpl
ainent
repr
eneur
ial
dri
ve?

Ananal y
sisofvar
iousent repreneurshiptheori
esrev
ealwhilewhateconomist
sdiff
eron
theforcethatdri
vesent repreneursort hecentr
alcharact
eri
sti
csofentrepr
eneurshi
p,
theyremainunani
moust hatent repreneurshi
pisadisti
nctconceptandacentralf
actor
oftheeconomicactiv
ity
.

1.
2TheEnt
repr
eneur
ial
cul
tur
e

Entr
epreneurshipisnotani nbornskil
l;iti
sapr oductoftheenv i
ronment.Itinvol
vesa
complexofeconomi candsoci albehaviour.Tobesuccessf ul,anent repreneurhasto
remaindynami candr esponsibletothewhol eenv i
ronment.Entrepreneurshipcanhardly
surv
iveunderanygi venci r
cumst ances.Itcanflouri
shonlyundert heri
ghtenv i
ronment.
Iti
sapar toft hetotalsystem.Thesoci alvalues,cult
ure,governmentpol ici
es,poli
ti
cal
syst
em,t echnology,economi cconditions,customs,laws,etc.i nfl
uencet hegrowthof
entr
epreneurship.

I
nf act,theent
repr
eneur
shi
pcannotbekeptal ooffr
om t
hechangi
ngsocialval
ues,
i
deologies,new emergi
ng aspi
rat
ions,env
ironment
alpr
essur
es,rel
i
gious bel
i
efs,

10
consumerwantsandsoci et
yneedsetc.Busi
nessisasy st
em madeupofcertai
n
envi
ronment
alfactorswhi
chrequi
ret
heent
repr
eneurt
oadoptadynami
cat
ti
tudeanda
newstrat
egyoftheirown.

Entr
epreneur
ialcultureimpl
iesasetofv
alues,nor
msandt
rai
tst
hatar
econduci
vet
o
thegrowthofentrepreneur
ship.

Cult
uralv
aluesdeepl
yaf
fectent
repreneur
shi
pandthel
evelofeconomicdevel
opment–
1Str
uctur
alcondi
ti
onsmakedev el
opmentpossi
ble–cul
tur
alfact
orsdeter
minewhether
thepossi
bil
it
ybecomesanactuali
ty.

Cult
urehasev erythingt odowi t
ht heentr
epreneur i
alprocessandf ocusesont he
di
scoveryandint er
pr etat
ionofopport
uni
ti
es,neglectedbyot her
s.Noentrepreneurcan
overl
ookthecount ry’scultur
alher
it
ageandv al
uesi fhewant stosurvi
veandpr ogress.
Heneedst of unctionont hebasisofsocialexpect ati
ons,desir
esandgoal s.The
entr
epreneurhast or espectt
hehumansociety,
itscultural
valuesandtr
adit
ions.

Awarenessandunderstandi
ngoft
hecul
tur
alenv
ironmentofbusi
nessmaybeusef
ult
o
theent
repreneuri
nseveralway
s:

i
) Tobetterunderst
andt
hebehav
iourandconductofpeopl
ewi
thr
egar
dto
ent
repr
eneurshi
p.

i
i
) Topr
edi
ctbehavi
ouranddeter
minehowpeopl
ewi
l
lacti
nacer
tai
nsi
tuat
ionas
r
egar
ds toent
repr
eneur
ship.

i
i
i) I
tdev
elopst
hesensi
ti
vi
tyoft
heent
repr
eneur
.

i
v) I
tfaci
l
itat
eschangeoft
heent
repr
eneur
.

Underst
andi
ng entrepr
eneur i
alcul tur
ei si mportant
,not onl yt ot he theoreti
cal
underst
andi
ng of entrepreneurshi
p,butal so t o entr
epr eneurshi
p as a pr acti
cal
enter
pri
se,whichcanpr ovidenew andf reshideasofent repreneurship,byl ooki
ngat
i
nnovati
vebusinessbehaviourinothertimes,i
not hersocietiesandi not hercult
ures–
andalsobylooki
ngatent r
epreneurshipfr
om novelanglesandmuchwi derperspectiv
e.

Cult
ureisofgr eatimportancetoent r
epreneurshi
p,becausei tdet erminestheet hosof
people.Ittrai
nspeopleal ongparti
cularl
ines.Itcr
eatesdistincti
ons.I tconveysasense
ofidenti
ty.Itenhancessoci alsyst
em st abi
li
ty.I
tcreatespeopl e,enterpri
singmenand
ri
skbear ers.Itdeterminesgoodsandser v
ices.Theunder standingofcul tureenables
theent r
epreneurt oskill
full
ymani pulat
et hecultur
alcodesofhi ssociet
y ,bal
ancing
betweent heper missi
bleandt hepr
ofane, t
uggingmor alcodesintoanewconf ormati
on.

The ent
repr
eneur
’s abi
l
ityt
o“r
ead”oppor
tuni
ti
es cannotbe due t
oisol
ati
on or

11
separat
eness,butisratherduet oahi gherdegreeofsensiti
vi
tytowhatot hersare
l
ooking for.And iti
scul turet hatgiv
espr e-di
rect
ion t
ot he ent
repr
eneur’
sv i
sion,
enabli
nghimt oreadcer
tainthings.Theycanpickupt hesenseofwherethei
rfel
lowsin
thecultur
estand,whatv al
uest heyadher eto,whatpurposestheypursue,whatthey
consi
derbeautif
ulandwhatt heydeem profane.

Theentr
epreneur’
sabil
i
tytomov eaheadwithconf
idence,hi
sstruggletoturnsetbacks
i
ntoopport
uniti
es,toadvanceandsur vi
veinthebusinessworldi stheknowledgeand
i
nsti
nctt
hatcomesf rom exper
iencegather
edinaparti
cularcul
turalmil
ieu.

Sociologi
stsli
keMaxWeberar guethatentrepr
eneurshi
pismostl i
kel
ytoemer geunder
aspeci fi
csocialcult
ure.Accor di
ngtot hem,socialsancti
ons,cul
tur
alvaluesandr ole
expectati
ons arer esponsiblef orthe emer gence ofent repr
eneur
ship.Formany
researchers,modernentrepreneurshi
pisadi sti
nctl
ynewv ari
antofat i
mel essspecies
createdandsustainedbycul t
ureandcr eati
veofitatthesamet i
me.

Somecul t
uresar eenormouslysuppor
ti
veofent r
epreneur
shi
p– indeedtot hepoi
nt
whereentr
epr eneur
shipdevel
opsitsowncult
ure,suchasinHongKong.Ot hers(
such
asCommuni stCountri
es)regar
dt heent
repr
eneurialwayofli
fewithsuspici
on.The
di
ffer
encesgoal ongwayt owardsexpl
aini
ngwhysomesoci et
iesarev ibr
antand
progr
essi
ve,whi l
eothersst
agnat
e.

Religi
on/casteandf ami l
yinf
luencesgreat
lydetermi
neent r
epreneur
ialculture.Some
rel
igions aref ound to be conducivet o entrepr
eneurshi
p,whi l
e ot hersi nhibit
entrepreneur
shi
p.Religi
ousbelief
sproduceint
ensiveexer
tioninoccupati
onalpur suits,
thesy stemat
icorder
ingofmeanst oanendandt heaccumulati
onofasset s.Itisthese
beli
ef sandthecastesy st
em thatarefoundtoinfl
uencethepropensitytobecomean
entrepreneur
.

Religi
onof tendetermineswhatbusinessonest aysoutof .InIndiaforexample,i
tis
rel
igiosi
tythatkeepsmanypeopl einbusi
nessandof tendeter
mi neswhatbusinessone
staysoutof .Themi ghtyBi
rlaschosetostayoutoft hehotelbusinessbecauseofthe
necessitytoconsiderservi
ngnon-veget
ari
anfood.Rel i
gionbasednor msbecomeeasy
andconv enientr
eferencepoint
sfordesi
gningone’scourseofactions.

Fami l
yt oo plays an i mportantrolei n shaping entrepreneuri
ali nsti
ncts.Family
background,si
mpl yfami l
iar
it
ywi t
habusi nessenv i
ronment, gr
owingfrom “tabletal
k”at
homei sthekeyt oi ncreasi
ngt hepr obabi
li
tythatanof f
springwilllaterbecomean
entrepr
eneur.Entrepreneursarev er
ymuchi ntermswi t
ht he‘conversati
ons’goingon
aroundhi m.Br oughtupi naf amily,wherecommer cialactivi
tyispar toft hedaily
householdroutine,i
tbecomesaconsci ousbattl
ef ortheent r
epreneurt ocreatevi
able
business.

Thechar
act
eri
sti
csoft
hef
ami
l
yent
erpr
ises–commi
tment
,cont
inui
ty,
put
ti
ngaf
acet
o

12
thecompanyandcloseinter
act
ionbetweenthef
ami l
yandt
hebusi
ness–mayhav
ea
str
ongimpactont
hestrategi
cchoicesi
nthebusi
ness.

Familybackgr
oundofbusi ness-
famil
yv al
ues,businessconv ersat
ionsasapar tofthe
dai
lyhouseholdr out
ine,f amil
ysupportandencour agement ,hasgiventhesey oung
entr
epreneur
s,thedr ive,t hedesi
re,and themot i
vati
ont o createthei
rownv iabl
e
busi
nessunit.Ont heot herhand,successf
ulfamilybusinessest hathavebeenforced
oninherit
age,hascurbedt hedevel
opmentofi ndependent,i
nnov ati
vevent
ures.

Familyenter
prisesalsoplayamajorr olei
nregionalandlocaleconomics–oftenactas
theenginesoft hei
reconomi cdev elopmentast heyhav eaposi t
iveatt
it
udetowards
growth,andtheirgrowthisusuall
ymor ecosteffi
cientt
hanofot herfi
rms.Theowners
thatputaf acet othei
rfamilyenterpri
sesarecommi tt
edtodev elopi
ngthei
rfi
rmsas
wellastotheircont
inuit
y.

Toconclude,t
heinfluenceofhumani nst
it
uti
onssuchasnor
ms,val
ues,moral
s,f
amil
y
ti
es and suppor
t– i n otherwords – cul
tur
ef or
ms t
he fr
amework wi
thi
n whi
ch
i
ndiv
idualscanpursueent r
epreneur
ial
opport
uni
ti
es.

1.
3Bar
ri
erst
oEnt
repr
eneur
ial
pract
ice

Theremaybeav ar
iet
yofbar ri
erstoenter
prise,dependi
ngont heindust
rysect
or,r
egion
andtypeofent erpr
ise.Thecommonbar r
ierswhichactt ol i
mitenterpr
iseacr
ossmost
nati
onsinclude:
 Regul atorybarri
ers,suchusadmi nist
rati
vebarri
erst oentr
y
 Culturaland soci albar r
ier
s,such as t he ‘
fearoff ail
ure’and a lack of
entrepreneur i
alknowledgeandski l
lsand
 Financialandeconomi cbar r
ier
s,suchus, i
nsuffi
cientaccesst ori
skcapi
tal
,both
seed/ earlystageandl ongerter
mf i
nancing

Regul
ator
ybar
ri
ers

Cr eati
ngabusi nessenv i
ronmentconducivetoent repreneurshi
pandent erpri
secreati
on
requiresabr oadr angeofr ei
nforci
ngandsuppor t
ivepolici
es.Thesei ncl
udef i
scaland
monet ar
ypol i
cies,whichareessent i
alt
opr ovi
deabasi sf orast abl
emacr oeconomic
env ir
onment .Theyal soincl
udest r
uctur
alpoli
ciest hatdeterminet heoveral
leconomic
framewor ki nwhi cht hebusi nesssectoroper ates,suchast hoseaffect
ing l
abour
mar kets,taxdesign,compet i
ti
on,fi
nanci
almarket sandbankr uptcylaws.

Thereisconsi
derableev i
dencethatr egul
atoryandadmi ni
str
ati
veburdenscanimpose
adver
selyonentr
epr eneuri
alacti
vi
ty.Legalentrybarr
iersshouldbeavoidedunlesstheir
benefi
tsarever
ycl ear.Regardi
ngt hebarrierstoentry,wecani ndi
catesomet hatare
commoni nmanycount r
ies:sev
erallegalformsofent erpri
se,wi
thdi
fferentpr
ocedures,

13
requi
rement sandr egist
rat
ion;thecompl exit
yofcreati
ngacompany :insomecountri
es,
theentrepreneur
sneedonedayt or egi
steranenterpr
ise,i
nother
s,theyneedsomany
weeks;i n addi t
ion t o registr
ation requirement
s,some count ri
es requi
re skil
l
quali
fi
cationwhent heacti
vit
yi sdeemedt obeanar ti
sanalnat
ureortheelabor
ati
onof
abusinesspl ancertif
iedbyabusi nessexpertwhichattestst
otheenterpr
isevi
abil
i
ty.

Empl
oymentr
egul
ati
onli
mit
smanagementfl
exibi
li
tyandleadst osmal
lerf
ir
m si
zeand
l
essr
esear
chanddevel
opmentaswel
lasl
essinvestmenti
nt echnol
ogy
.

Barri
erst
oexitmayalsodi scourageent
ry,sinceexitandentr
yr at
estendtobeclosel
y
rel
ated.Sincefi
rm entryinvolv
esconsider abl
erisk,wit
hsur viv
alchancesthatare
dif
fi
cultt
oassess,i
nsti
tuti
onsthatmakeexi tver
ycostlydi
scourageentr
y.

Cul
tur
alandsoci
albar
ri
ers

Creat
inganent erpr
iseisav erydifficul
tt askbecausei tdemandsknowl edgeoft he
l
egisl
ati
on,envir
onment ,market,institut
ions,et c.Toinstal
lanenterpri
seinacount ry
,
theentr
epreneursneedt oknowwel lthel anguaget ohaveabetterimplement ati
onand
adaptat
ionintheplace.Thedi f
fi
cultiesofl anguagedon’ thel
pthecompl et
ei ntegrat
ion
oftheentr
epreneursandenterprises,speci al
lythemi cr
oandsmal lenter
pri
ses.

Thelackofinfor
mat i
onont heav ail
ablei
nsti
tut
ionsisalsoabarri
erforthecreati
onof
ent
erpri
ses because entrepreneurs don’
thav e enough inf
ormati
on aboutt he rol
e,
ser
vicesandmi ssi
onoft hei nsti
tuti
onsthatgivesupporttoenterpri
secreati
on.The
l
imit
edaccesst osocialandbusi nessnetworksandinsti
tut
ionscanalsobeconsiderat
e
asabarri
ertoenterpr
isecr eat
ion.

Thepr omoti
onofent repreneuri
alcul
turemustbef ost
eredinor dertoimprov ethe
mot i
vat i
onofpersons, t
heappet encet
owardsr i
sk,
theappropr
iateski
ll
sandknowl edge,
factorsthatinhi
bitthecr eat
ionofenterpr
ises.Rol
emodel smustbeal sopresentedin
ordertogi v
eent repreneursani deaoftherewardsandbenefitsofenter
pri
secr eati
on
andr educethestigmaoff ai
lur
e.

Ther ealcostofent er
pri
secr eati
onissti
llabarri
erforst
ar-
upanent erpr
ises,both
personalandfinanci
alcosts.Thefearoff
ailur
eisabarri
ert
hatst
illr
emainsimplanted
i
nmostcount r
iesincl
udingNi geri
abecauset hel
egalandsocialconsequencesof
fai
l
ur earesevere.

I
nformati
on,communicat
ion and r
esour
ces arever
yimpor
tantt
ool
st hatcan be
provi
dedbynetwor
ks.Thelackofaccesstot henet
wor
kscanbeasigni
ficantent
ry
barr
ier
.

Economi
candfinanci
albar
ri
ers
Accesst
of i
nancei simport
antf
oral
lfi
rmsi
nachi
evi
ngt
hei
rbusi
nessobj
ect
ives;

14
par
ti
cul
arl
yforst
ar-
upsandbusi
nesst
hatseekt
oinv
estandgr
ow.

Thecapi talmarketstendtobeef f i
cienttolar
gerfi
rmsbutnewerandsmal l
ergrowth
formsof tendependuponext er
nalsour cesoff i
nanceandcanf acebarr
ier
sint he
mar ketthatpreventt hem fr
om r ai
singev enrel
ati
velymodestsumsofr i
skcapital
,
special
lyf ori
nnov at
ivehigh-
technologysmal lfi
rmsandf orbusi
nessesoperat
ingin
disadvantageareas.

1.
4Ther
oleofent
repr
eneur
shi
pint
heeconomyandsoci
ety

Mosteconomi sts agr

ee thatent r
epreneur
shi
pi s es¬sentialtot he vit
ali
tyofany
economy ,devel
opedordev el
oping.
Entrepr
eneurscreatenew businesses,generat
ingjobsf orthemselvesandt hoset hey
empl oy
.I n many cases,ent r
epre¬neuri
alactivi
tyi ncreases competiti
on and,wi th
technologi
caloroperati
onalchanges,i
tcanincreasepr oductivi
tyaswell.Entr
epreneurs
alsogivesecuri
tytootherpeople;t
heyarethegenerator sofsocialwelf
are.

I
tisagreedthatthebenefi
tsofsmallbusi
nessesgobeyondi
ncome.Smallbusi
nesses
broadenthebaseofpart
ici
pati
oninsociet
y,cr
eatej
obs,
decen¬t
ral
i
zeeconomicpower,
andgivepeopl
east akei
nthefutur
e.

Entrepreneursinnovateandi nnovat
ionisacent ralingr edientineconomicgrowth.As
PeterDr uckersaid,
“Theent repre¬neuralwayssear chesf orchange, r
espondstoit,
and
exploit
si tas an oppor t
unit y
.”Entrepr
eneurs ar er esponsi bleforthe commer cial
i
ntroduct i
onofmanynewpr oductsandser v
ices,andf oropeni ngnewmar ket
s.Alook
atr ecenthi st
oryshows t hatent r
epreneurs wer e essent ialto manyoft he most
si
gni f
i¬cantinnovati
ons,onest hatrevol
uti
onizedhow peopl eliv
eandwor k.From the
automobi letot he air
plane t o per
sonalcomput ers– i ndivi
dualswit
h dreamsand
determinationde¬velopedthesecommer cialadvances.

Smallfi
rmsalsoar
emor el
ikel
ythanlar
gecompani estopro¬ducespecialt
ygoodsand
serv
icesandcust
om-demanditems.AsCar lJ.Schramm hassuggested,entr
epreneur
s
provi
deconsum¬erswi
thgoodsandservicesforneedst
heydidn’tev
enknowt heyhad.

I
nnovat i
onsimpr
ovethequali
tyofl
i
febymult
iplyi
ngcon¬sumers’choices.Theyenri
ch
people’
sl i
vesinnumerousway s– maki
ng lif
eeasier
,improving communi cat
ions,
provi
dingnewformsofenter
tai
nment,
andi
mpr ovi
ngheal
thcar
e, t
onameaf ew.

Accordi
ngt ot he2006Summar yResultsoftheGlobalEn¬tr
epreneurshipMonitor(GEM)
proj
ect,“Regardlessofthelevelofdevelopmentandfir
m size,ent
repreneuri
albehav¬ior
remainsacr ucialengineofi nnovat
ionandgr owthfortheeconomyandf orindivi
dual
compani essince,bydefini
tion,i
timpli
esattent
ionandwi l
l
ingnesstot akeadvantageof
unex¬ploit
ed oppor tuniti
es.” The GEM pr oj
ect is a mul ti
-countr
y st udy of
entr
epreneurshipandeconomi cgrowth.Foundedandsponsor edbyBabsonCol lege

15
(
USA)andt
heLondonBusi
nessSchool
in1999,
thest
udyi
ncl
uded42count
ri
esby2006.

I
nternati
onalandregionalinsti
tuti
ons,suchast heUnit
edNat i
onsandt heOr gani
zation
forEconomicCooper ati
onandDev elopment,agr
eethatent
repreneurscanplayacr ucial
rol
ei n mobili
zi
ng resourcesand pr omoti
ng economicgr owth and socio-
economi c
development.Thi
si sparti
cularlytrueinthedev el
opi
ngwor l
d,wher esuccessfulsmal l
businessesarepri
mar yenginesofjobcr eat
ionandpovert
yreduction.

Foralloft hesereasons,gov
ernment
smaywi
sht
opur
suepol
i
ciest
hatencour
age
ent
repreneurshi
p.

2.
0Modul
e2:TheNi
ger
ianEnt
repr
eneur
ialEnv
ironment

2.1TheBusinessExt
ernal
Env
ironment(
pol
i
tical
,l
egal
,soci
o-cul
tur
al,
economi
c,nat
ural
,
technol
ogi
caletc.
)

I
ntr
oduct
ion

Abusinessdoesnotoper at
einav acuum.Ithastoactandr eacttowhathappens
outsi
dethefactor
yandof f
icewalls.Thesefact
orsthathappenout
sidethebusinessare
knownasext er
nalfact
orsorinf
luences.Thesewi l
laff
ectthemainint
ernalfunct
ionsof
thebusi
nessandpossiblytheobjecti
v esoft
hebusinessandit
sstrat
egies.

16
Mai
nFact
ors

Themai nfact
orthataf
fect
smostbusi
nessist
hedegreeofcompeti
ti
on–howf
ier
cel
y
otherbusi
nessescompetewit
hthepr
oduct
sthatanot
herbusi
nessmakes.

Theot
herf
act
orst
hatcanaf
fectt
hebusi
nessar
e:

 Social–howconsumer s, househol dsandcommuni tiesbehaveandt heirbeli

efs.
Fori nstance,changes i n at tit
ude t owards healt
h,ora gr eaternumberof
pensioner sinapopulation.
 Legal–t hewayi nwhichl egislati
oninsoci etyaff
ectsthebusiness.E.g.changes
i
nempl oy mentlawsonwor kinghour s.
 Economi c – how t he economy af f
ects a business int erms oft axati
on,
governmentspendi ng,gener aldemand,i nter
estr at
es,exchange r ates and
Europeanandgl obaleconomi cfactors.
 Poli
tical–how changesi ngov ernmentpol icymightaf f
ectthebusinesse. g.a
decisiont osubsidi
sebui ldi
ngnew housesi nanar eacoul dbegoodf oral ocal
bri
ckwor ks.
 Technol ogical– how ther apidpaceofchangei npr oducti
onpr ocessesand
producti nnovati
onaffectabusi ness.
 Ethi
cal–whati sregardedasmor al
lyr i
ghtorwr ongf orabusi nesstodo.For
i
nstanceshoul ditt
radewi thcount ri
eswhi chhav eapoorr ecor
donhumanr i
ghts.

Changi
ngExt
ernal
Env
ironment

Market
sarechangi
ngalltheti
me.Itdoesdependonthety
peofpr
oductt
hebusi
ness
pr
oduces,
howeverabusinessneedst
oreactorl
osecust
omers.

Someoft
hemai
nreasonswhymar
ket
schanger
api
dly
:

 Customersdevelopnewneedsandwant s.
 Newcompet it
orsenteramarket
.
 Newt echnol
ogiesmeanthatnewproductscanbemade.
 Awor l
dorcount r
ywi
deeventhappense.g.GulfWarorfootandmouthdi
sease.
 Governmentint
roducesnewlegi
slat
ione.g.i
ncreasesmini
mum wage.

Busi
nessandCompet
it
ion

Thoughabusinessdoesnotwantcompet
it
ionf
rom ot
herbusi
nesses,i
nev
itabl
ymost
wil
lfaceadegr
eeofcompeti
ti
on.

Theamountandt
ypeofcompet
it
iondependsont
hemar
kett
hebusi
nessoper
atesi
n:

 Manysmal
lri
valbusi
nesses–e.
g.ashoppi
ngmal
lorci
tycent
rear
cade–cl
ose

17
 ri
valry
.
 Afewl ar
ger i
val
fir
ms–e.g.washi
ngpowderorCokeandPepsi.
 Ar apidlychangi
ngmarket–e.g.wher
ethetechnol
ogyisbeingdev
elopedv
ery
quickl
y–t hemobil
ephonemarket
.

Abusi
nesscoul
dreactt
oani
ncr
easei
ncompet
it
ion(
e.g.al
aunchofr
ivalpr
oduct
)in
t
hefol
l
owingways:

 Cutpri
ces(butcanr educeprofi
ts)
 Improv
equal i
ty(butincr
easescosts)
 Spendmor eonpr omot i
on(e.g.domor eadv
ert
isi
ng,increasebrandloy
alt
y;but
cost
smoney )
 Cutcosts,
e.g.usecheapermat eri
als,
makesomewor kersredundant

Soci
alEnv
ironmentandResponsi
bil
i
ty

Socialchangeiswhent hepeopleint hecommuni t

yadjusttheirat
ti
tudestowaythey
l
ive.Businesseswi l
lneedtoadj ustthei
rproductstomeett hesechanges,e.
g.t
aking
sugaroutofchi l
dren’sdri
nks,becauseparentsfeelthei
rchi
l
dr enarehavi
ngtoomuch
sugarintheirdi
ets.

Thebusinessal
soneedstobeawar eoftheirsoci
alresponsi
bil
i
ties.Thesearetheway
theyactt
owardsthedi
ff
erentpar
tsofsociet
ythattheycomei nt
ocont actwi
th.

Legi
slat
ioncov
ersanumberoftheareasofresponsi
bil
i
tyt
hatabusi
nesshaswi
thi
ts
cust
omer s,
employ
eesandot
herbusi
nesses.

I
tisalsoimpor
tantt
oconsidertheeff
ect
sabusinesscanhav
eont
hel
ocalcommuni
ty.
Theseareknownasthesocialbenef
it
sandsoci
alcost
s.

Asocialbenefi
tiswhereabusi nessact
ionleadstobenefi
tsabov
eandbey ondthe
di
rectbenefi
tstot hebusinessand/orcustomer.Forexample,t
hebuil
ding ofan
at
tract
ivenewfact
orypr
ovidesemploymentopport
uni
ti
estothel
ocalcommunit
y.

Asocialcosti
swheretheact
ionhastherev
erseef
fect–t
her
ear
ecost
simposedon
t
herestofsoci
ety
,fori
nst
ancepol
lut
ion.

Theseextrabenefi
tsandcostsar edisti
ngui
shedf
rom t
hepri
v at
ebenef
it
sandcost
s
dir
ectl
yat t
ri
but
ablet othebusiness.Theseextracostand benef
it
sareknownas
exter
nali
ti
es–externalcost
sandbenef i
ts.

Governmentsencouragesocialbenef
it
sthroughtheuseofsubsi
diesandgrant
s(e.
g.
regi
onalassist
ancef orundevel
opedareas).Theyal
sodiscour
agesocialcost
swith
fi
nes,taxesandlegi
sl
ation.

18
Pr
essur
egr
oupswi
l
lal
sodi
scour
agesoci
alcost
s.

2.
2Ident
if
yingBusi
nessOppor
tuni
ti
esandThr
eat
s

Thebusi nesswor l
dt odayisaf ast-movi
ngone,andt hepaceofchangecanatt i
mes
seem bewi lderi
ng.Theenv i
ronmenti nwhichy ourbusi nessoperatesischangingallthe
ti
me, andt herearemanydi fferentfact
orsthatinf l
uencei t.Therearecontinualchanges
i
ny ourmar ket,yourcust omer s’needsandpr ef erences,t hetechnologyy ouuse,your
saleschannel s,andt hewayy oucandel iv
ery ourpr oduct sorservices.Thesechanges
canbr i
ngt hreatstoy ourbusi ness,buttheywi l
lal so,undoubt edl
y,bringopportunit
ies.
It
’si mpor t
antt haty ouregularlytakeast epbackandt r
yt oanalyzethewayi nwhi ch
yourbusi nesscur rentlyoperates.Thinkaboutthef actorsthatmaypr omotechange.Tr y
toi denti
fyt hr
eats,andmakesur ey ouar epr epar edf orthem.I tisalsoi mportant,
howev er
, t
haty ouspott hemanyoppor tuni
tiesthatar i
se.

Withsomanybusi nessopport
unit
iesavai
l
able,i
tisoft
endiff
icul
ttodet er
minewhether
apar ti
cul
aroppor
tunit
yshowsgreatpromiseorisl
ikel
ytofai
l.Yourgoalistolear
nhow
totellagoodopportuni
tyfr
om abadone.Her earesomet i
psthatwillhelpyouassess
thepot enti
alofanybusinessopport
unit
yt hatcomesy ourwayandmaket heri
ght
decision.

Oneoft hefir
stfactor
st oconsideri st
hest abi
l
ityofthecompanyassociatedwi ththe
opport
unity
.Inthecaseofanewbusi nessthatdoesnotyethaveaprovent r
ackr ecord,
youwantt oknow whoi sbehindt helaunchorwhoi ssuppl
yingthi
scompanywi th
operat
ingcapitalunti
lthebusi nessbeginst ogenerateprof
it
s.Essenti
all
y,y ouwant
someamountofassur ancethatt hecompanywi l
lbearoundlongenoughf ory outo
benefi
tfrom ar el
ati
onshipwi t
ht heoppor t
unit
y,especi
all
yintermsofr ecoupingany
i
nvestmentoftimeorot herresources.

Keepi
nmi ndthatanewbusinessoraplantostartabusinessmayber i
ski
erthangoi ng
wit
hacompanywi thanestabl
ishedtr
ackrecord.Howev er,busi
nessopportunit
iesof
thi
ski
ndar enotautomati
call
ysuspect.I
fthefundingisthereandt heorganizat
ionis
str
uct
uredproper
ly,
theopport
unityi
swellwor
thy ourconsi
derati
on.

Assessingt hegoodorser vi
ceofferedbyt hebusinessi salsoi mport
ant.Thebest
businessoppor tuni
ti
esinvolvecompani esthatoffersomet hingconsumer swil
lneedor
desireoverallothercompet i
ngproduct s.I
tisnotapr oblem iftheproductisai
medata
nichemar ket.Businessoppor t
unit
iesoft histypeareof tengreatmoney makers,si
nce
theyaddressneedst hatareoftenov erl
ookedbyot hers.Inaddi ti
on,t
hecompet i
ti
onis
probablylessfierceinani chemar ket,asituat
ionthatwi llall
ow thecompanyy ouare
evaluat
ingtoest abl
ishit
selfastheindust r
ystandardinthatmar ket
.

Alongwithhavi
ngasoli
df i
nanci
albaseandaproductthati
ssur
etoattr
actatt
ent
ion,
thebestbusi
nessoppor
tuni
ti
esalsohaveacomprehensi
veandwel
ldef
inedsyst
em for

19
gett
ingt heproductstoconsumer s.Thisincl
udessuchf act
orsasar el
i
ableprocessf or
producingthegoodorser vice,
excell
entsalesandmar keti
ngstrat
egi
es,andanef fi
cient
deli
verytothebuy er
.Withouttheabili
tytosatisf
yorder
squicklyandeff
ici
ent
ly,event he
bestproductislessli
kel
yt obuil
dal oyalcli
entbase.

Theretur
ny ouwillreceivei
salsoveryimport
antwhenconsi deri
ngdif
ferentbusiness
oppor
tuni
ties.Wil
lyouear nanequit
ableret
urnincomparisontowhatyoui nvesti
nt he
busi
nessint er
msoft i
meandot herresour
ces?Ifso,t
hent hereisagoodchancet he
oppor
tuni
tyisworthpur sui
ng.I
fyouarenotsure,keepl
ookingforsomethi
ngbet t
er.

Youwillfi
ndthatint oday’smar ket,itiswor t
hy ourt i
met oconsi derahome- based
busi
nessaswellasamor et radit
ionalbusinesssetting.Businessoppor t
unit
iesofthi
s
ty
peof t
enstar
twi t
hbusi nessi deast hatarenew andf reshint er
msofappr oachor
someaspectoftheproduct soffered.Ifyouseemer itinagivenbusi nessideaandthi
nk
i
thasagoodchanceofsucceedi ng,thenlooki tov ercareful
ly.Thathomebased
busi
nessmaybet heidealinvestmentv ehicl
eforyou.

3.
0Modul
e3:
Creat
ivi
tyandI
ntel
l
ect
ual
Right
s
3.
1Int
ell
ect
ual
Proper
tyandi
tsDi
mensi
ons

I
ntell
ectualpr opertyisav aluabl eassetf oranent r
epreneur.Itconsistsofcer tai
n
i
ntell
ectualcreati
onsbyent r
epr e¬neursortheirstaf
fsthathav ecommer ci
al v
alueand
aregivenlegalpr opert
yri
ght s.Ex amplesofsuchcr eati
onsar eanew pr oductandi t
s
name,anewmet hod,anewpr ocess,anewpr omotionalscheme,andanewdesi gn.A
fenceoral ockcannotpr otectt heseint
angibleasset s.In¬st
ead,patents,copyr
ights,
andt r
ademar ksar eusedtopr e¬v entcompet i
torsfrom benefit
ingfr
om ani ndivi
dual’
s
orfir
m’sideas.

Protecti
ngint
ell
ectualpropert
yisapr act
icalbusinessde¬cisi
on.Thet i
meandmoney
i
nv estedinperf
ectingani deamightbewast edi fother
scoul dcopyit.Compet
it
ors
couldchargealowerpr i
cebecausetheydi dnotincurthestart
upcosts.Thepur
poseof
i
ntellect
ualpr
opertylaw istoencour¬agei nnov
at i
onbygi vi
ngcreatorsti
metoprofi
t
fr
om t hei
rnewideasandt orecov
erdev el
opmentcost s.

I
ntel
lect
ualproper
tyri
ghtscanbebought,sol
d,l
i
censed,orgi
venawayfr
eel
y.Some
busi
nesseshav e made mi
ll
ionsofdol
larsbyli
censi
ng orsell
i
ng t
hei
rpatent
sor
tr
ademarks.

Everyentr
epreneurshoul
dbeawareofi
ntel
l
ect
ualpropert
yright
sinordert
opr
otect
theseassetsinawor l
dofgl
obalmar
ket
s.Anint
ell
ectualpr
opert
ylawy
ercanpr
ovide

20
i
nfor
¬mat
ionandadv
ice.

Themai nf ormsofi ntellectual proper t

yr ight sar e:
Patents:•Apat entgr antsani nventort her ightt oexcl udeother sfr om maki ng,usi ng,
offeri
ngf orsale,orsel li
ngani nv entionf oraf ixedper i
odoft ime-i nmostcount ri
es,
forupt o20y ears.Whent het imeper i
odends,t hepat¬entgoesi ntot hepubl i
c
domai nandany onemayusei t.
Copy r
ight:•Copy ri
ght spr ot ector iginalcr eativewor ksofaut hors,composer s,and
others.I ngener al,acopy ¬rightdoesnotpr otectt hei deaitself,butonl yt hef ormi n
whi ch itappear s -f rom sound r ecor dings t o books,comput erpr ogr ams,or
architecture.The ownerofcopy ¬right ed mat er i
alhas t he excl usi ver i
ghtt o
reproducet hewor k,pr epar eder ivat i
vewor ks,di st r
ibut
ecopi esoft hewor k,or
perform ordi splayt hewor kpubl icl
y .
TradeSecr ets:•Tradesecr etsconsi stofknowl edget hatiskeptsecr etinor dert ogain
anadv antagei nbusi ness.“ Cust omerl ists,sour cesofsuppl yofscar cemat eri
als,or
sourcesofsuppl ywi thf ast erdel iveryorl owerpr icesmaybet r adesecr ets,”expl ai
ns
JosephS.I andiori
o, thef oundi ngpar t
nerofI andiorioandTeska, ani nt ell
ect ualpr oper ty
l
awf i
rm.“ Cer t
ainl
y ,secretpr ocesses, for mu¬l as, techni ques,manuf act uringknow- how,
adverti
singschemes, mar ket i
ngpr ograms, andbusi nesspl ansar eall pr otect abl e.
”

Tradesecr etsareusuallyprotect
edbycont r
actsandnon-discl
osureagreements.No
otherlegalform ofprot
ectionex¬i
sts.Themostfamoustradesecretisthefor
mul afor
Coca-Cola,whichismor ethan100y earsol
d.
Tradesecr etsarev ali
donl yifthei nf
ormat
ionhasnotbeenr eveal
ed.Therei sno
protecti
on againstdiscoverybyf airmeanssuch asacci dent
aldiscl
osure,rever
se
engineeri
ng,orindependentinvent
ion.

Trademarks:At r
ademar kprot
ectsasy mbol,wor d,ordesi gn,usedi ndi
vi
duallyorin
combinati
on,toindicatethesourceofgoodsandt odisti
nguishthem f r
om goods
producedbyothers.Forexample,
AppleComput erusesapi ct
ureofanappl ewi t
habite
outofitandthesymbol (®)whi
chmeansr egisteredt r
ademark.Aservicemar ksimil
arl
y
i
dentif
iesthesourceofaser vi
ce.Trademarksandser v
icemar ksgi
v eabusi nessthe
ri
ghttopreventot
hersfrom usi
ngaconfusi
ngl ysimilarmark.

I
nmostcount r
ies,t
rademar ksmustber egi
steredt obeen¬f orceableandrenewedto
remaininfor
ce.Howev er,
theycanber enewedendl essl
y.Consumer susemar kstofi
nd
aspe¬ci f
icf
ir
m’ sgoodst hattheyseeaspar ti
cularl
ydesir
abl e— f orexampl
e,Barbi
e
doll
s orToy ota automobiles.Unl
ike copy¬ri
ghts orpat ents,whi ch expi
re,many
business’
str
ademar ksbecomemor evaluabl
eov ertime.

21
3.
2Copy
rightLawsi
nNi
ger
ia

Acopy r
ightisalegaldevicethatgi
vesthecr eatorofali
terary,
art
ist
ic,musical
,orother
creat
ivewor kthesolerighttopublishandsel lthatwor k.Copyri
ghtowner shavet he
ri
ghttocontroltherepr
oductionoftheirwor k,
includi
ngtherighttorecei
vepaymentf or
thatreproducti
on.An aut hormay gr antorsel lt
hose rightsto others,i
ncluding
publi
shersorrecordi
ngcompani es.Viol
ationofacopy ri
ghtiscall
edinfr
ingement.

Copy ri
ghti sdi sti
nctfrom ot herformsofcr eatorprotect i
onsuchasPat ents,whichgi ve
i
nv ent orsexcl usiver i
ghtsov eruseoft hei ri
nventi
ons, andTr ademar ks,whicharelegal l
y
prot ectedwor dsorsy mbol sorcer t
ai notherdistingui shi
ngf eaturest hatrepr esent
product sorser vi
ces.Similarly,whereasapat entprotect stheapplicationofanidea, and
atr ademar kpr otectsadev icet hatindicatestheprov i
derofpar t
icularservi
cesorgoods,
copy ri
ghtpr otectst heexpressi onofani dea.Wher east heoper ati
venot ioninpatent sis
nov elty,sot hatapat entr epresentssomei nventi
ont hatisnew andhasnev erbeen
madebef ore,t hebasi cconceptbehi ndcopy ri
ghti sor i
ginal
ity
,sot hatacopy r
ight
repr esentssomet hingthathasor i
ginatedf r
om apar ticularauthorandnotf rom another.
Copy ri
ghts,pat ents,andtrademar ksar eallexamplesofwhati sknowni nthel aw as
IntellectualPr operty.

Ast hemedi aonwhi char ti

sti
candi ntel
lectualworksarerecordedhavechangedwi th
ti
me,copy rightprot
ecti
onhasbeenext endedf rom thepri
nti
ngoft exttomanyot her
meansofr ecordi
ngor i
ginalexpr essions.Besi desbooks,stor
ies,peri
odicals,poems,
andot herpr i
ntedli
ter
arywor ks,copy ri
ghtmaypr otectcomputerprograms;musi cal
composi t
ions;songlyr
ics;dramas;dr amat ico-
musicalcompositi
ons;pict
orial,gr
aphi
c,
and sculpturalworks;ar chi
tecturalwor ks;wr i
tt
en dir
ecti
ons forpantomi mes and
choreographic works;mot i
on pi ct
ur es and ot heraudiovi
sualwor ks;and sound
recordi
ngs.

Enf
orci
ngcopy
right
slawi
nNi
ger
ia

AlthoughNiger
iahaswhatmaybeconsider
edagoodcopyri
ghtlaw andal t
hought
he
NigerianCopyr
ightCommi
ssi
ontakesit
smandateseri
ousl
yandhasl aunchedmany
commendabl eprogrammebutenf
orcementofexi
sti
nglegi
slat
ionr emainsamajor
problem.

Ther
ear esever
all
awsgov er
ningi
ntel
lect
ualproper
typr
otect
ioninNi
geria.Thecount
ry
hasalsorati
fi
edsever
alcopyri
ghtt
reati
es,t
hisisgover
nedbyCopy r
ightActNo.47of
1988(codi
fi
edasChapter68,LawsoftheFederati
onofNiger
ia,
1990)asamended.

Alt
hough,theCopy r
ightActhasbeenamendedt wi
cebyt heCopy r
ight(Amendment )
DecreeNo.98 of1992 and Copy ri
ght(Amendment)DecreeNo.42 of1999.The
Copyri
ghtActisinfourpart
sand41secti
ons.Par
tIaddr
essesissuessuchasel i
gibi
li
ty
forcopyr
ightpr
otecti
on,dur
ati
onofcopy
right
s,ci
vi
landcri
minalpenalt
iesforcopyri
ght

22
i
nfr
ingement
,andowner
shi
pofcopy
right
.

PartIIaddr esses nei ghbouring ri

ghts;Par tII
If ocuses on the admi ni
str
ati
on of
copyri
ghtsandaddr essesi ssuessuchast heestabli
shmentoft heNi ger
ianCopy r
ight
Councilandt heappoi ntmentoft heDirectorandotherstaffoft
heCounci l.Fi
nall
y,Part
IV cov ers mi scel
laneous t opics including r
eciprocal ext
ension of pr otecti
on,
presumpt i
onsandi nter pret
ati
ons.Nigeriahasalsor ati
fi
edseveraltreati
esrelati
ngt o
theprotecti
onofi nt
ellectualproper
ty.

Amongt heset reati

esare:theParisConventionforthePr otecti
onofI ndustri
alPr opert
y
(ratif
iedSept ember1963) ,theBer neConv enti
onf orthePr ot ecti
onofLi ter
aryand
Ar ti
sticWor ks( rati
fi
edSeptember1963) ,theRomeConv ent i
on( Perfor mers,Producers
ofPhonogr amsandBr oadcasti
ngOr gani
zat i
ons)( r
ati
fi
edOct ober1993) ,thePat ent
LawTr eaty( r
at i
fiedApri
l2005),andthePat entCooper at
ionTr eaty(rat i
fi
edMay2005) .
Ni geri
ahasal soassumedaddi ti
onalresponsibil
i
tiesbyv i
rtueofi tsmember shi
pi nthe
Wor l
dI ntell
ect ualPropert
yOr gani
zati
on( May1993)andt heWor l
dTr adeOr ganizati
on
(Januar y1995) .

Pr
ofessorUcheEwelukwaOfodi
leoftheUniv
ersi
tyofArkansasSchoolofLaw,Uni
ted
St
ateshasident
if
iedsixfact
orsthatmil
i
tat
eagainstef
fecti
vecopyri
ghtprot
ect
ionin
Ni
geri
a.

Thef i
rstf actorisl
ackofpopul arsupportorpubl i
cconsul tat
ion.TheNi geri
anCopy right
Actwasadopt edin1988att heheightofmi li
taryr ul
ei nNigeri
awi t
houtanydebat eor
discussion.Essent ial
l
y,theCopy ri
ghtAct,t hepr imar ylegisl
ati
vet oolforcopy right
protecti
oni nNi ger
iatoday,wasadopt edwithoutbr oad-basedpublicdiscussionont he
necessityf orcopyr
ightprotecti
onort hescopeofpr otecti
onthatwasdesi rablecontrary
topar agraph9oft heAdel phiCharteronCr eati
v i
ty,Innovati
onandI ntell
ectualProper t
y
whichst atest hati
nmaki ngdecisionsabouti ntel
lectualpropert
ylaws, "t
hereshoul dbe
widepubl icconsultati
on.
"

Inadequatecost -
benefitanalysisi st hesecondf actori dentifi
edasmi li
tatingagainst
copy ri
ghtsl aw.Anef fecti
vei ntell
ectualpr oper
tyregimemustst ri
keanappr opri
ate
balancebet weent hemonopol ypower sofcr eat
orsandt hei nterestoft heconsumi ng
public.Indev el
opedcount ri
es,t headopt i
onofi ntel
lectualpr opertylawsi susual l
y
preceded by a det ail
ed analy sis oft he costand benef i
ts ofpr otection.Indeed,
paragraph2oft heAdel phiChar terst atesthat"t
hepubl i
ci nterestrequiresabal ance
betweent hepubl icdomai nandpr i
vater i
ghts.I
talsor equiresabal ancebet weent he
freecompet it
ionthatisessent i
alf oreconomi cvit
ali
tyandt hemonopol yr ightsgranted
byi ntel
lectualpr opert
yl aws."Sadl y,lawsi nNigeriaar ef requent l
ypassedwi thout
seriousattentiont othedirectandi ndir
ectcostofapr oposedl egislat
ion.Ther eisneed
forser i
ouseconomi cassessmentoft hecost sandbenef i
tsofcopy ri
ghtpr ot
ecti
oni n
Nigeria.

23
The t hirdfactorisl ack ofpubl ic awar eness.Ther ei slitt
le publi
c awareness or
underst andi
ngoft hei ntell
ectualproper t
yl awsi nthecount ry.Existi
nglawsar enot
readil
yaccessi bleevent ot heeducatedcl ass.Theav er agemanont hestreetisalso
i
gnor antoft outedbenef it
sofi ntel
lect
ualpr opert
ypr otection.TheNi geri
ancopy ri
ght
commi ssion admitsthatl ackofawar enessaboutt hel awsand admi ni
strat
ion of
copy r
ightconst i
tutes"amaj orinhibit
iont ot hedev elopmentofasound copy ri
ght
system i nNigeria.
"Meani ngfulpubliceducat i
onatt hegr assrootslevelmustf orma
cri
ti
cal componentofi ntell
ectualpropertyenf orcementinNi geria.

Anot herfactorisl ackofi ncl usi

onoft hecour seint hel awschoolcur ri
culum.St r
uct ur
ed
l
egaleducat iononi ntell
ect ualproper tylaw mustal sobepar toft heequat i
on.How
manyuni v
ersit
iesof f
ercour sesoni ntel
lectualpr oper t
ylaw?Ver yf ew.How many
universityl
ibrariesar eequi ppedwi thbasi cbooksr elatingtointel
lectualproperty?Also
veryf ew.Pr esent l
y,v eryf ew lawy ersinNi geri
ahav eexpertiseint hef i
eldandonl ya
handf ulofuni versit
iesi nt hecount ryof f
ercour sesi nt hi
sar ea.Onesol uti
oncoul dbe
fortheNi geriangov ernmentt otapi ntotheexper tiseofNi geriansintheDi aspora.There
aremanyNi geriansabr oadwi t
hexper t
iseini nt
ell
ect ualpropertylawwhoar ewi ll
ingto
ret
ur nt oNigeriat ohel pst rengthent hecour seoff eringsofl awf aculti
esint hecount r
y
forl
ittleornocompensat ion.

Thef i
fthf actori scorrupt
ionandweakcust om enf or
cement .At t
enti
onmustal sobe
paidt ot he ef fectofcor rupti
on on i ntel
lectualproper t
y enforcementi n Nigeri
a.
Responsible agenci es ar
er arely
,ifev er,audi t
ed orpr obed.Ther eis need f or
accountabilit
yon t he partofagenci es challenged wi t
ht he taskofenf orci
ng the
country’
si ntellectualpropertyl aws.Forexampl e,Ni ger
ian ports arethe pri
ncipal
gatewayst hroughwhi chpiratedi mportscomei nt
ot hecount ryandpi r
atedexpor ts
l
eav e.Whathas been t he r ecord oft he Ni geri
an Cust om Ser v
ices i
nt erms of
i
nterdict
ion?How doesbr iberyandcor r
upt i
onunder minet heenforcementcapaci t
yof
theNigerianCust om Servi
ceort hepolice?

Thel astfactoridenti
fi
edbyPr of
essorOf odil
eisdel ay
sint hej udi
cialenforcement.
Delaysint hejudici
alsystem andotherbar r
ier
st ojusti
cealsodiscour ageintel
lect
ual
propertyl
iti
gati
onandenf orcementinNigeri
a.Becausei nt
ell
ectualpropertylawi snot
taughtinmanyuni v
ersit
iesinNiger
ia,f
ewj udgesi nthecountr
yhav eknowl edgeabout
thi
sar eaoflaw.Thel i
brari
esofmostcour t
sinNi geri
aaregrossl
yinadequat etoo.

To ef f
ecti
vel
ypr otectcr eati
vewor ksgenerated byt heent ert
ainmentindust ry,the
governmentmustaddr esst hewidelyheldbel
iefthatint
ellect
ualpropertypr
ot ect
ionisa
West ernconceptirr
elevantinAfrica.Debateaboutwhet herandt owhatextentNi gerian
arti
stsandmusi ciansdeser vecopy ri
ghtprot
ectionmustbedi vorcedfrom thebr oader
debate aboutt he mer its and demer it
s ofglobalst rengt
hening ofI Pr ight
s.The
governmentmustal soser iousl
yaddr essthenumer ousfactorsthatundermineef fect
ive
enforcementoflawsi nt hecountryincludi
ngcorrupti
on,lackofcoor di
nati
onamongt he
responsibl
e agencies,lack ofaccount abi
li
ty,and lack ofr esources.Howev er,for

24
enf
orcementtomakesenseandbeeffect
ive,t
heunderl
yi
nglaw mustbeappropri
ate,
bal
anced,under
stoodbyt
hegener
alpubli
c,andaproductofbr
oad-baseddebat
eand
par
ti
cipat
ion.

Nigeri
acanbeabet t
erapl aceonlyandonl yiftheauthori
ti
esconcer
nedcouldtake
responsi
bil
i
tyastoeffect
ivelyenfor
cethealr
eadyexist
inglaws.Whenthisi
sdone,the
countrywil
lbeasafehav enf orpeopl
ewhohav ebeenendowedwi t
hhighint
ell
ectto
displ
aythei
rwisdom i
nmov ingthecountr
yforward.

3.3Strategi
esforPr otect i
onofI ntell
ectualProperty(originali
deas,concepts,product s
etc.
)
Oncey ouhavei dent i
fiedy ourintel
lectualpropertyy oushoul ddev el
opst rategiest o
prot
ecty ourri
ghts so t haty ou don'tputy ourbusi ness atr i
sk.Imagine i fy our
compet it
iondi
scov eredy oursecr etandst art
edr epl
icatingit,oryoutoldsomeoney our
i
deaandt hendiscov eredt oolatethatyouhadl ostthel egalri
ghttomakei texclusi vely
yours.Thekeyi snott ot al kabouty ourideaormakey ourIPpublicknowledgebef ore
you'
v ehadachancet opr otectit
.Intell
ectualproperty( I
P)canbebought ,owned,sol d,
l
icensedoutorbequeat hedi nmucht hesamewayasabui l
dingorabl ockofl and.I P
canbesov al
uablet hatmanybusi nessesl i
stitamongt heirassetsont heirbal ance
sheet.

It
'simpor
tanttodevel
opeffect
ivestr
ategiest
oprotectyouI
Pwi t
hinyourbusi
ness,not
onlytoprotectval
uableassetsbutal sotosafeguardtheproduct
s,processesand
creat
ivei
nputsfr
om whicht
hepr of
it
soft hebusi
nessemanate.

St
ep1:Regi
stery
ourI
P
Thef
ir
stst
epofanypr
otect
ionst
rat
egyi
stor
egi
stery
ourI
P.

Therearesev ent ypesofIP pr

otect
ionavai
labl
et oyou:patent
s;trademarks;pl
ant
breeder
s’ rights; regi
ster
ed designs; copyr
ight
; circui
t layout rights; and
confi
denti
ali
ty/
tradesecr
ets.

Diff
erentI
Pr i
ghtsv aryi
ntheprotecti
ontheypr ov
ideandinmanycasesmor ethanone
typemaybenecessar ytofull
yprotectyourcreat
ion.YoucanpatentyourIPthrougha
patentatt
orneyand/ orani nt
ell
ectualproper
tylawyer,ei
therofwhom wi l
ltakey our
currentmodelandappr opri
atelydescri
beitinmi nut
edetailt
odisti
nguishitf
rom any
othersimi
larproducts.

St
ep2:Actt
okeepi
tsecr
etanddemonst
rat
eowner
shi
p
Thesecondstepinaprot
ecti
onst rat
egyi
stotaket
henecessar
yact
ionst
okeepy
our
i
deaasecr etanddemonstratey ourowner
shipofthei
dea.Consi
dersomeofthe
fol
l
owingstepst
oprot
ectyouridea:

Keepy
ouri
deaasecr
et

25
Contactonl yt
hosepeopl
ewhocanassi styouwi t
hpl anningyourproductdev elopment.
Beforey oudiscussy
ourideawi t
hany onemakesur ey ouhav easignedconf identi
ali
ty
agr
eementoranon- di
sclosureagr eementi nplace,whi chdescr i
best heobj ect
/i
dea
al
ongwi t hdet
ail
saboutyourselfandt heper sontowhom y ouwilldi
sclosethesedetail
s.
Theagr eementmustbesi gnediny ourpr esenceandpr efer
ablywitnessed-andmor e
i
mpor tantly-i
tmustbedatedt oestablishthet i
me, dateandpl aceofdisclosur
e.

Demonst
rat
ethatt
hei
deai
syour
s

Wr it
edowni ndet
ailwhatyourideais;whatitdoesandhowi twor ks.Drawadetai
led
pictureoftheobjectortakeaphot ographoft heprototype.Makecopi esandputthe
originaldocumentsinaseal ed,selfaddressedenv elopeandmai ltheenvel
opeby
register
edmai l
.Wheny oureceivetheenvelopeDONOTopeni t.Putitinasafepl
ace.
Thisest abl
i
shesevidenceoftheti
medat eandpl aceoforigi
nalt
hought.

Makesur
eyou'
renoti
nfr
ingi
ngany
oneel
se'
sIP

SearchtheIPNi
geri
anwebsitetofindoutifthereareproduct
soft hesamet ypeand
appl
icat
ionasyours.Thi
swi l
lsavey out i
meandmoneyi ny ourappli
cat
ionforIP
prot
ecti
on.Manyt
ypesofprotect
ionaren'
tavail
ablei
fyourideai
ssi mi
lartoonethati
s
al
readycover
edbyapatent
,tr
ademar kortheli
ke.

26
4.
0Modul
e4:Technol
ogi
calEnt
repr
eneur
shi
p
4.1TheinterfacebetweenTechnol ogyDev el
opmentandEnt repreneurship
Thewor dtechnologyi snotanewone.I nfact,t
herootofthewor dmeanst oshif
torto
change,andwasusedor i
ginall
yinr el
ationtochangingnat ure.AsBacon,Locke,and
Descart
esr ecognized,thi
sideaofmanchangi ngnatur
e,ratherthanbei ngcontrol
ledby
i
twasessent ialtotheemer genceoft heaut onomousself,andev entuallytothev er
y
noti
onoftheent r
epreneur.Thus,technologyandentrepr
eneur shiparetightl
yrel
ated.

Todaywet hi
nkoft echnologyasbeingaboutelectr
onics(computer
s,sof
tware,web
appl
icat
ions,etc.
),butt hatsmartentrepr
eneursstil
lv i
ew technol
ogy
—in whatev
er
for
m—asameanst oanend, andnotanendofit
self.

Jim Coll
ins,inhi sbook,Goodt oGreat,sumst hisupwhenhesay s,“Technol ogyisan
acceler
ator.
”Embeddedi nthissimplest at
ementi salotofwi sdom.Fi rst,whi l
eCol li
ns
confi
rmst hatt echnol ogyi
sindeedanaccel erator,hedoesn’tqual ifythest atementi n
ter
msofexact l
ywher eorwhatt echnologyi saccelerat
ing.Inot herwor ds,t echnology
canaccel er
at ebot hgoodandbadi deas,andi tcanacceleratet hesei deast owar ds
successorf ai
lure.Thi nkoftechnologyassomesor tofwi dgett hatsi t sinbet ween
i
deasandt hef uture.Whetherent r
epreneur sputgoodi deas( thati s,i deast hatar e
str
ategic and al igned witht hei
rcor e principles)orbad i deas ( random act s of
i
mpr ovement )intot hetechnologi
calaccel eratorwilldeter
mi newhet herornoty ou
speedtowar dssuccessorf ai
lure.

Successfulentr
epreneurs—thosewhohav eacl earconceptofwhatt heyaretr
yingto
accomplish—lev
eraget echnol
ogyinor dert
ohelpthem achiev
etheirgoalsmorequickl
y.
I
nor dertoascer t
ainwhi chtechnologywillal
ignwiththeirgoal
s,entrepr
eneur
smust
haveav eryopenandi nquisi
ti
vebiastowardstechnol
ogy.

Whatent r
epreneursdonotdoisburythei
rheadsinthesand.I fyoudesi
retobecomean
entrepreneur,andyou’r
eoneofthosepeoplethatsaysthingsl i
ke,“
Idon’
tdoe- mail,
”or
“Ican’tevenpr ogr
am myVCR,”thenyoumustst op.Technologytodayisnotwhatitwas
evensum y earsago.Withtheadvancesmadei nprogrammi nganduseri nterf
ace( UI
)
design, t
oday’stechnol
ogyisver
y,veryuserf
ri
endly.Thefactoft hematteris,
ifit
’snot
userf ri
endlyitwouldnotstayaroundtoolong,becauseacompet it
orwillcomeal ong
andmakei tuserfri
endly.

Today,wecannott hi
nkofanycompanywher etechnol
ogy(ei
therintheform ofan
I
nternetpr
esenceorj ustgener
alcommunicati
on)isnotcruci
al,ent
repr
eneursmust
havetheknowledgeandt heabi
l
ityt
ousetechnol
ogy.Thismeansthatanentr
epreneur
mustunderst
andt hel
anguageandthet
rendsoftechnol
ogy.

Touseananal ogy,t
hinkofthemusici
anwho,whilenotanengi neer
,isfl
uentwitht
he
tool
soft herecordi
ngstudio.Shecaneasilyandeffect
ivelycommuni cat
ewi t
hthe
engi
neerandproducerinor
dertogetthesoundshehearsi
nherheadont othetape(or
harddri
ve).I
t’
st hesamet hi
ngwithtechnol
ogy.Asanent repr
eneury ouwil
lneedt o
27
makemanif
esty
ourv
isioninanynumberofways,bei
ngabl
etoef
fi
cient
lyconv
eyy
our
goal
stot
hosewhowi
llhelpyour
eali
zet
hem i
sreall
ytheonl
ywayt
ogo.

Throughout
,iti
sessenti
althatyoumakesurethatwhatev
ertechnol
ogyy
ouembr
ace
hasadeepanddi r
ectconnecti
ontoy
ourov
erall
businesspl
an.

4.2Technol ogicalEnvir
onmentandBusi ness
Technologycanbedef inedast hemet hodort echniqueforconv ert
inginputstooutput
s
i
naccompl i
shi ngaspeci fi
ctask.Thus, t
het erms'met hod'and'technique'r
efernotonly
totheknowl edgebutal so tot heskill
sandt hemeansf oraccompl i
shingat ask.
Technologicali nnovat
ion,then,refer
stot heincreaseinknowl edge, t
heimpr ov
ementin
skil
l
s,ort hedi scover
yofanew ori mprovedmeanst hatextendspeopl e'sabil
i
tyto
achiev
eagi vent ask.

Hightechnol
ogyhasbecomel ikeaf or
ceofnat ur
e.Itt
ransf
ormstheeconomy ,
school
s,consumerhabi ts,thev er
ychar acterofmoder nl
ife.I
nvestor
spour
moneyintoit;
parentsur
get hei
rchil
drentostudyi t
;communiti
esvi
et oatt
racti
ts
fact
ori
es;decorat
orsadoptitasastyle;pol
it
icianspushitasapanacea.
(
Sour
ce:Sci
enceDi
gestMagazi
ne)
Technologycanbecl assifi
ed i
nsev eralway s.Forexampl e,bluepr
int
s,machi nery,
equipmentandot hercapi t
algoodsar esomet i
mesr ef
erredtoashar dt
echnologywhi l
e
softtechnologyincludesmanagementknow- how,fi
nance, market
ingandadmi nist
rati
ve
techniques.Whenar el
at i
velypri
mit
ivetechnologyisusedi ntheproducti
onprocess,the
technologyisusual l
yr eferr
edtoasl abour-i
ntensi
ve.Ahi ghl
yadv ancedtechnology,on
theotherhand, i
sgener al
lyter
medcapi t
al-
intensi
ve.

Changesint hetechnologi
calenv
ironmenthav ehadsomeoft hemostdr amat i
ceffect
s
on business.A company may be t horoughly commit
ted to a par
ti
culart y
pe of
technol
ogy,andmayhav emademaj orinvest
ment sinequi
pmentandt rai
ningonlyto
seeanew, mor einnovati
veandcost-eff
ectivetechnol
ogyemerge.

I
ndeed,t he managing di
rectorofmul ti
nat
ionalorgani
sati
on manufactur
ing heavy
machineryoncesaidthatt
hehar destpar
tofhisjobhadnothi
ngtodowi thunions,pay
orproducts,butwithwhet herornott ospendmoneyont hel
atesttechnologi
call
y
i
mprov edequipment.

Comput ertechnologyhashadanenor mousimpactoneducationandheal t

hcar e,t
o
namebutt woar easaffected.Theadvancementsinmedicalt
echnology,forexample,
havecontri
but edtolongevit
yinmanysocieti
es.I
naddit
ion,t
heintr
oducti
onofr obotsi
n
many f act
ories has r educed the need f
orlabour,and the use of VCR' s and
microcomput ershasbecomecommonpl aceinmanyhomesandbusi nesses.

Unf
ort
unat
ely
,ther
eisanegat
ivesi
det
otechnol
ogi
calpr
ogr
ess.Thei
ntr
oduct
ionof

28
nuclearweapons,forexample,has made the dest
ruct
ion oft he human race a
fr
ighteni
ngpossi
bil
it
y.I
nadditi
on,fact
ori
esusingmodernt echnol
ogieshavepollut
ed
both airand waterand contr
ibut
ed tovari
ous envi
ronment aland heal
th-
relat
ed
problems.

Technologyi sacr it
icalfactorineconomi cdev el
opment .Becauseoft headv ancesof
i
nt er
nationalcommuni cati
on,theincr easingeconomi cinterdependenceofnat ions,and
theseriousscar ci
tyofv it
alnaturalresour ces,thetr
ansferoft echnol
ogyhasbecomean
i
mpor tantpr eoccupat i
onofbot hi ndust ri
ali
sedanddev elopingcount ries.Formany
i
ndust r
iali
sedcount ri
es,thechangesi nthet echnologi
calenv ir
onmentov erthel ast30
years hav e been immense par ti
cularlyi n such areas as chemi cals,dr ugs,and
electr
onics.Itisv i
talthator ganisat i
onsst ayabr eastoft hesechanges-notonl y
becauset hi
swi l
lallow them toi ncorpor at
enew andi nnovati
vedesi gnsi ntot hei
r
products,butalsobecausei twillgivet hem af ir
merbasef r
om whi chtoant ici
pat eand
counteractcompet it
ionf r
om otheror gani sati
ons.

Whent heGi ll
et t
eCompanydev elopedasuper i
orstainlesssteelr
azorblade,itfeared
thatsuchasuper iorproductmi ghtmeanf ewerr eplacementsandsal es.Thus,t he
companydeci dednott omar ketit
.Inst
ead,Gil
lett
esoldt hetechnol
ogytoWi l
kinson,a
Brit
ishgardent oolmanuf acturer,thi
nki
ngthatWilki
nsonwoul dusethet
echnol ogyonly
i
nt hepr oductionofgardent ools.WhenWi l
kinsonSwor dBladeswereintroducedand
soldquickly,
Gi l
lett
eunderstoodt hemagnitudeofitsmi stake.

Thet ransf
eroftechnologyi sessentialforattaini
ngahighlevelofindust
ri
alcapabi
lit
y
andcompet i
ti
veness.Mul ti
nati
onalcor porati
onsar epl
ayi
ngani ncreasi
nglyimport
ant
roleintechnol
ogyt r
ansferbecauset heyi nvestabroadt
oexpandpr oducti
on,market
ing
andr esearchacti
vit
ies.Ther ei
sal soagr owingconsci
ousnessamongstgov ernments
oftheneedt oincreaset echnol
ogyt r
ansfert othedevel
opi
ngcount r
iestohelpstabi
l
ise
theireconomicandsoci alcondi
tions.

Inspiteoft hemanydi f
fer encesinsoci al,polit
ical,cultural
,geogr aphi candeconomi c
conditi
ons,t herearesomecommonchar acteri
sticsint het echnologi calenvi
ronment s
ofdev elopingcountries.Themostcommont echnologyt ransferfrom i ndustri
ali
sedt o
developingcount ri
eshasbeeni nagricultureandheal thcar e.Asar esultofimpr oved
healt
hcar esy st
ems,i nfantmor t
ali
tyr ateshav ebeencutwhi l
et hei ncidenceofonce
commondi seasessuchasmal ar
iaandt yphoidhasbeenr educedi nLat i
nAmer ica,
south-eastAsi aandAf rica( alt
hought hei ncidentsoft heAI DSv irushasi ncreased
alar
mi ngly).Simil
arl
y,agr icult
uraltechnol ogyhasi ncreasedagr i
culturalproductivi
tyin
Brazi
l,Indi aandel sewher e.Howev er,inmostdev elopingcount ries,t echnologyhas
madel i
ttl
ei mpactont hepr oducti
vesy stems,i ncomedi stri
butionandl ivi
ngcondi t
ions
ofthemaj orit
yofthepopul ati
on.

29
5.
0Modul
e5:ManagementofI
nnov
ati
on
5.1Innov ationandEnt repr eneur shi
p
Ani nnov ationisgainfulmodi ficationt othepr oductorpr ocess.Anexi stingproductcan
bemadebet terbyaddi ngmor efeaturesmodi fy
ingdesi gnt omakei tsaf erormor e
usersfriendl y.Orthemet hodmaybemodi fi
edt oproducei tinmor ecostef fectiveway .
Somet imest her aw mat eri
alsar esubst i
tutedt obr i
ngdownt hecost .Allthesear e
exampl es ofi nnovation.I n shor tI nnovation is achieved byVal ue Anal y
sis/ Val
ue
Engineer ing.It’
snev ereasyt ocompet eagai nstol dplay ersinanywal kofl i
fe.New
entrantf acesconsi derableoddsi nthebegi nningandonl yt hi
sbat tl
e.Innov at
ioni sthe
bestallyofanent r
epreneuri nt hisbat tl
e.Ithelpshimt ogai ncompet i
tiveadv antagein
his busi ness eitherdue t o costadv antage ordue t o di f
ferent
iation ofpr oduct.
Innovationsi nmar keti
nganddi stri
butionhelphi m gainthemar ketshar equickly.

I
nnovati
onisneededbyt heent
repr
eneurf
orf
oll
owi
ngr
easons–
1.Tofacecompet i
ti
on.
2.Tostandoutintheclut
ter
.
3.Tosurvi
verecession
4.Tosolvecer
tainprobl
ems.

I
nstall
ingAt ti
tudeforinnov ati
on
1.Encour agecreativeconflict
2.Bigideasf rom smal lt
eams
3.Learninghappensf rom thedesk
4.Underst andthepr oductuser s
5.Li
vei nt hefuture
6.Fail
uresomet imepr oducesi nnovat
ion
7.Jointpr ot
otypingtobr ai
nst ormingforfastt
racki
nnov
ati
on

Dif
ferentSourcesofInnovat
ion–
1.Unexpectedoccurrences
2.Processneeds
3.I
ncongr ui
ti
es
4.I
ndust r
y&mar ketchanges

30
5.2Entr
yStrat
egi
esf orNewVent ur
es
Iti
seasytobecapt i
vatedbyt hepr omi
seofent r
epr
eneurshi
pandt helureofbecomi ng
one’
sownboss.I tcanbedi ff
icult
,however,f
oraprospect
iveentrepreneurtodetermine
whatproductorservicetopr ovi
de.Manyf actor
sneedt obeconsi dered,i
ncluding:an
i
dea’smar ketpo¬tenti
al,thecompet it
ion,fi
nanci
alresources,andone’ sski l
lsand
i
nterest
s.Thenitisimpor t
antt oask:Whywoul daconsumerchooset obuygoodsor
serv
icesfr
om thi
snewf irm?

Oneimpor
tantfact
ori
stheuniquenessoftheidea.Bymakingav
enturestandoutfr
om
i
tscompet
itor
s,uni
quenesscanhelpfaci
l
itat
etheentryofanewproductorser
vicei
nto
t
hemarket
.

Iti
sbesttoav
oidanent
ryst
rat
egybasedonlowcostal
one.Newvent
urestendt
obe
small
.Largef
ir
msusuall
yhavetheadvant
ageoflower
ingcost
sbypr oduci
ngl
arge
quant
it
ies.

Successf
ulent
repr
eneur
softendi
sti
ngui
sht
hei
rvent
urest
hroughdi
ff
erent
iat
ion,ni
che
speci
fi
ca¬ti
on,
andinnov
ati
on.

 Dif
fer
enti
ati
onisanat tempttoseparatethenew company ’sproductorservice
fr
om thatofi
tscompet i
tor
s.Whendi f
fer
entiati
onissuccessful
,thenewpr oduct
orservi
ceisrelat
ivel
ylesssensi
¬tiv
et opr i
cef l
uct
uati
onsbecausecust omer s
val
uethequali
tythatmakestheproductunique.

A productcan be f unct
ionall
ysimilartoit
s compet i
tor
s’productbuthav e
feat
uresthati
mpr oveitsoperati
on,f
orexample.Itmaybesmal l
er,l
ight
er,easi
er
touseori nst
all
,etc.In1982,CompaqComput erbegancompet i
ngwi t
hAppl e
andIBM.Itsfi
rstproductwasasi ngl
e-uni
tper
sonalcomput erwi
thahandl e.The
conceptofaportablecomput erwasnewandext remel
ysuccessf
ul.

 Nichespeci
fi
cati
oni sanattempttoprovi
deaproductorser
vicethatful
fi
ll
st he
needsofaspeci f
icsubsetofconsumers.Byf
ocusi
ngonaf airl
ynarrowmar ket
sector
,anewv entur
emaysat i
sfycust
omerneedsbettert
hanlar
gercompet i
tors
can.

Changesi npopulati
onchar acter
isti
csmaycr e¬at eopport
uniti
est oserveni che
mar ket
s.Onegr owi
ngmar ketsegmentindev elopedcountri
escompr i
sespeopl e
over65y earsold.Othernich¬esincludegroupsdef inedbyinterest
sorl i
festyle,
suchasf it
nessenthusiasts,adventur
e-t
ravelbuffs,andworkingpar ent
s.Inf act,
some ent r
epreneurs special
ize in making “homemade”di nnersf orwor king
parentstoheatandser ve.

31
  I
nnov ati
oni sper
hapst hedefiningcharacter
is¬ti
cofent r
epreneurship.Visi
onary
businessex¬pertPeterF.Druckerexplainedinnovationas“changethatcreatesa
new di mension ofper for
¬mance. ”There aret wo mai ntypes ofpr oduct
i
nnov ati
on. Pioneeri
ng or r adical i
nnovation embodi es a t echnologi
cal
breakthrough or new- t
o-t
he- world product.I ncremental i
nno¬v ati
ons ar e
modi f
icati
onsofexisti
ngproduct s.

Buti nnovat
ion occursi n allaspects ofbusinesses,f r
om manuf act
uri
ng
processesto prici
ngpolicy.Tom Monaghan’ sdecisi
oni nt helat
e1960st o
cre¬ateDomino’sPizzabasedonhomedel iver
yandJef fBezos’deci
sionin1995
tolaunchAmazon. com asat otal
l
yonlinebookst
oreareexampl esofi nnov
ati
ve
dist
ribut
ionstr
ategi
esthatrevol
uti
on¬izedthemarket
place.

Entrepreneursinless-
devel
opedcount r
iesoft
eni nnovat
ebyi mitati
ngandadapt i
ng
products cre¬at
ed in devel
oped countri
es.Druckercalled this process “cr
eativ
e
i
mi tati
on.”Creat
iveimit
ati
ont akespl
acewhenev ertheimi t
atorsunder st
andhow an
i
nnov ationcanbeappli
ed,used,orsol
dinthei
rparti
cularmarketbetterthantheori
ginal
creatorsdo.

I
nnov
ation,di
ff
erentiat
ion,
and/ormar
ketspeci
fi
cat
ionar
eef
fect
ivest
rat
egi
est
ohel
pa
newventur
etoattractcustomer
sandstar
tmakingsal
es.

32
6.
0Modul
e6:WomenEnt
repr
eneur
shi
p
6.1TheConceptofWomenEnt repreneurship
Af emal eentrepreneurisawomanwhohascr eatedabusi nessi nwhi chshehast he
maj ori
tyshareholdingandwhot akesactiveinterestindeci sion-
maki ng,risk-t
aki
ngand
day-to-daymanagement .Thecont ri
butionofwomenent repr eneurstoeconomi cacti
vit
y
andempl oymenthasi ncreasedov erti
me.Womenent repr eneursandt hei rbusi
nesses
arear api
dlygrowi ngsegmentoft hebusi nesspopul ati
on.Womenent repreneursare
promi nentnotonl yini ndustri
eswher et heywer et r
aditionallyact i
ve,butal soinless
tr
adi t
ionalsect ors(e.g.manuf acturi
ng,const r
ucti
on,and t ransport
ation).Women
entrepreneurs hav e created a v ari
ety of new v entur es and cont ributed tot he

33
dev
elopmentofar
angeofser
vicesandpr
oduct
s.

Research has shown t hatthe percent

age off emale ent
repr
eneurs worl
dwide sti
l
l
remainsl
owi nrelat
iontot hatofmaleentrepr
eneursandtothepercent
ageofwomeni n
thepopulati
on.Thecr eati
v eandentrepr
eneuri
alpotent
ialofwomeni sal at
entsource
ofeconomi cgrowthandi sav eri
tableweaponforthecreati
onofnewj obsandshoul d
beencouraged.

Resear
chhasshownaswel lthatwomenf aceanumberofdi f
ficult
iesinestabli
shing
andmaintaini
ngbusinesses.Althoughmostoft hesedi ffi
cul
ti
esar ecommont obot h
gender
s,i
nmanycasest heytendt obemor esi gni
ficantforfemal eentrepr
eneurs.This
i
sduet ofactorssuchasapoorbusi nessenv i
ronment ,thechoi ceofbusinesst ypes
andsectors,infor
mationgaps,l ackofcont actsandaccesst onet worki
ng,gender
di
scri
minati
on and stereoty
pes,weak and i nfl
exible supply ofchi l
dcaref aci
li
ties,
di
ffi
cul
ti
esi nreconci
l
ingbusinessandf amilyobl i
gations,aswel lasdiffer
encesint he
waywomenandmenappr oachent r
epreneurship.

I
ncreasi
ng t
herat
eofnew businesscreati
on bywomen i
sessent
ialt
o st
imul
ate
i
nnovati
onandempl
oymenti
noureconomies.

Measur
esPr
omot
ingFemal
eEnt
repr
eneur
shi
p

Specifi
cact i
onsormeasur espr omoti
ngf emal
eent r
epreneurshi
phav ealr
eadybeen
establ
ishedinsev er
alcountr
ies.Theseincl
udesupportmeasuresinthefol
lowingsev
en
areas;capturedasFI NANCE:( 1)Funding,(2)I
nfor
mat i
on,(3)Networki
ng,(4)Advice
and consultancyment ori
ng,( 5)New Techniquesand t r
aini
ng,(6)Commencement
support,and( 7)Encour
agementandment ori
ng.

Ot
hermeasur
esi
ncl
ude:

1. Suppor
ti
ngwomenont hei
rwaytoself-empl
oymentaccor
dingtothei
rspeci
fi
c
demandsandt
oenabl
eexperi
enceexchangeandbusi
nesscont
acts.

2. Creati
ng optimal condi
ti
ons forwomen t o doasuccessf
ulent
repr
eneur
ial
j
ob;womenwhowantt ocreat
eabusinessshoul
dbecoachedandsupport
edin
therel
evantf
ields.

3. Repr esent
ingthei
nter
est
soffemal
eent
repr
eneursandinf
luencet
hepol
i
cyof
thegov
ernmentt
hrought
hisco-
oper
ati
onoff
emaleentr
epreneur
s.

4. Enabl
ingwomenwithdi
ff
erentper
sonalbackgr
oundtoachievesel
f-
employment
andtosuppor
tsel
f-
empl
oyedwomen( highrel
evancet
olabourmarketpol
icy
).

34
5. Str
engt
hening the economi c pot
ent
ialof women and to supportf
emal
e
ent
repr
eneurshi
p by of fer
ing anopti
mali
nfrast
ruct
uref
orst
art
-ups.

6. Str
engt
hening the per sonal
i
ty of the f
emal
eentr
epr
eneurs,topr
ocur
e
theent
repr
eneur
ialknow-howandtohel
pwomentomanaget
heirprobl
emsand
dif
fi
cul
ti
esasentrepr
eneurs.

7. Foster
ing equali
ty on the labour mar
ket and t
oincr
easet
heempl
oyment
rat
eandt hestar
t-
uprateoffemaleentr
epr
eneurs.

8. Buil
ding an opt
imal env i
ronment f or f emaleentrepr
eneurs by
provi
ding them wit
h v ar
iousprofessionalser
vicesthatrangefrom adv
ice,
l
obbying,f
undi
ngt
ocont
act
sandent er
prisepresent
at i
ons.

9. I
ncreasi
ngtheknowledgeonf
emaleent
r epr
eneur
shi
pi nordertoopenupt
he
busi
nesscr
eati
onprocesst
oal
lbypr
ovi
dingnecessar
yresources.

10. Obtaini
ng stati
sti
calinformati
on (
e.g.numberofenterpr
ises,t
urnover
,and
sectorsofacti
vit
y)onenterpr
isesr
unbywomeni nor
dertogainmoreknowledge
onfemal eentr
epreneur
ship.

Goodpr
act
icesf
orWomenEnt
repr
eneur
shi
p

Thef
oll
owi
ngmeasur
esar
esuggest
ed:

1. Measur
esshoul
dbedesi
gnedf
orbot
h,gr
oupsandi
ndi
vi
dual
s.

2. Measur
es suppor
ti
ng ent
erpr
ise st
art
-ups shoul
dfocusonsect
orst
hatcan
pr
ovi
dewomenwi t
hanadequat
eincome.

3. Measuresi
ncr
easi
ngt hesel
f-
conf
idenceofwomenandt
hebel
i
efi
nthei
rown
abi
l
iti
esasent
repr
eneursar
eimport
ant.

4. Notonlywomen,butal
sogi
rlsshoul
dbet argetedatbysuppor
tmeasur
esi
n
or
dertoencour
aget
hem t
obecomeentrepr
eneurs.

5. Thef
aci
l
itat
ionofaccesst
ocr
edi
tshoul
dbeakeyel
ementi
nbusi
nesssuppor
t.

Recommendat
ionswi
thRespectt
oWomenEnt
repr
eneur
s

Onthebasi
sofr
esear
chfi
ndings,
thefol
l
owi
ngr
ecommendat
ionshav
ebeenr
epor
tedi
n
encour
agi
ngwomenentr
epreneur
shi
p:

1.Seek t
orai
se awar
eness of women'
sissues bymai
nst
ream suppor
tagenci
es.

35
  Promoting t
he message to busi
ness suppor
tprov i
der
sthatrai
sing f
emale
part
ici
pati
onr at
esisani mportantpar
tofast r
ategyforr
aisi
ngthelevelof
entr
epreneur
shipinsoci
ety
.

 Support should be given to or

gani
zat
ions that wi
sh to improv
e thei
r
underst
andingoft heneedsofwomenentr
epreneur
s,t
hroughact
ivi
ti
essuchas
exchangevisi
ts,
traini
ngprogr
ammesandseminars.

 Ensur
ing t
hatallli
ter
atureand othermat er
ialproduced regarding enter
pri
se
i
ssuesrecogni
zesthefactthatwomenar easubstanti
alandgr owingcomponent
ofthe entr
epr
eneurcommuni t
y.Thisshould paypar ti
cularat t
enti
on t othe
l
anguageusedi npromoti
onalmaterialai
medatpeopl einterestedinst art
inga
busi
ness.

 Prov
idi
ng cont
inui
ng suppor
t f
or nat
ion-
widei
nfor
mat
ionandl
obby
ing
bodi
es.

 Supportingthedev el
opmentofawebsi t
ef orwomenent r
epr
eneurs,pr
ovi
ding
i
nformat ionaboutspeci
fi
csuppor
tthatisav ai
labl
e,adat
abaseofbusinesses
i
nterested in co-oper
ati
on,and adiscussion forum to exchange views
andinformationbetweenwomenentr
epreneurs.

 Str
essingtheneedformai
nst
ream busi
nesssupportor
gani
zati
onstocont
inual
l
y
revi
ew thei
rprovi
siont
o ensur e t hat i t both r ef
lect
s women' s
experi
encesanddoesnotdet
erwomenf rom seeki
ngsuppor
tforbusi
nessstar
t-
up.

 Takestepsto ensur
ethatorgani
zat
ionspr
ovi
ding adv
isor
y ser
vices t
o
busi
nesses become moreaware of t he speci
al needs of women
entr
epr
eneur
s.

2.Takest
epst
oincr
easet
heav
ail
abi
l
ityoff
inance.

 Str
ongandef f
ectiv
elobbyingoff
inanci
ali
nst
it
uti
onstocount
eract
ual
,per
cei
ved
oruni
ntendeddiscri
minat
ionagai
nstwomenent r
epr
eneur
s.

 Shouldr educe t
he need forfi
nancialsuppor
taimed speci
ficall
yatwomen
entr
epreneurs.Theallegedpracti
ceofsomebanksi nr equestingapartner
's
counter
signatur
eonal oanappl
icat
ionisanexampl
eofonepossi bl
etar
getfor
thi
saction.

 Of
fer
ingt
arget
edf
inanci
alsuppor
tai
medatf
emal
eent
repr
eneur
s,aspar
tofa

36
 str
ategyf orraisi
ng the ov eral
llev
elofent r epreneurshi
p.Suppor
tf orlocal
schemes,suchascr editunionsandmutual guar anteeschemesinv
olv
ingwomen
entr
epreneurs,wouldbev aluabl
e.Micr
o-creditpr ogrammesar ebenef
ici
alnot
j
ustf orthe cash theyof fer,butalso fort he peersuppor tand mentori
ng
arr
angement s.

3.Cont
inue sel
ect
ive suppor
tforf
emal
e speci
fi
cpr
ogr
ammes.

 Femalespeci
fi
ctrai
ningandsuppor ti
snotr equi
redi
nallareasofbusiness.I tis
mostappli
cabl
e at t he star
t-up stage and wi t
hreferencet o par ti
cular
areas such asmot i
vat
ion,confi
denceskill
sandcapit
alizati
onissues.Once
womenar e'
inthesystem',t
heycanpar t
ici
pateinmoremainst r
eam provi
sion.

 Femal
e speci f
ic t r
aini
ng i
s par
ti
cul
arl
yimpor
tant i
n l
ear
ning new
ski
l
ls,such ast
echnol
ogy.

 Priori
tysupportf
ormentorpr
ogrammesf orwomenent
repr
eneur
s ( par
ti
cul
arl
y
thosewant i
ngto dev
elopthei
r busi nesses)
, usi
ngsuccessf
ul women
entrepreneur
s as mentorswherepossi
ble.

4.Takeacti
vestepstoencour
ageequaloppor
tuni
ti
esmoni
tor
ingbygener
albusi
ness
suppor
torgani
zati
ons.

 Ademonst rati
onofef f
ecti
vemonitori
ngofequaloppor tunit
yofaccessshould
be a conditi
on ofanysuppor toffered byt he Commi ssi
on t
o mainstream
businesssupportorgani
zati
onsandot heragencies.Thiswouldhel
pt oensure
equitabl
e pract
ice and al
so pr
otectt hese organi
zat
ions agai
nstinaccurat
e
accusati
ons.

1 Rol
eofOr
ient
ati
onandWomenEnt
repr
eneur
ial
Aspi
rat
ions
2 Cont
ri
but
ionsofWoment
oNat
ional
Soci
o-economi
candHumanDev
elopment
3 Bar
ri
erst
oWomenEnt
repr
eneur
ial
Pract
ice.

37
7.
0Modul
e7:Soci
alEnt
repr
eneur
shi
p
7.1TheConceptofSoci alEnt
repr
eneurshi
p
Soci alentrepr
eneur shi
pati tsessenceisapr ocessbywhi chindiv
idual
s“ bui
ldor
transf or
mi nst
ituti
onst oadvancesoluti
onstosoci alproblems”.Socialent
repreneurs
aret heideachampi ons:peopl
ewhoadv ancechange,wor kingwithi
n,betweenand
bey ondest abl
ishedor gani
zati
ons.Thesocialentrepreneuralsohelpsothersdiscover
theirownpowert ochangebyhel pi
ngthem envisionanew possi bil
it
yandr ecognize
howi tcanbebr okendowni ntodoabl
estepsthatbui l
dmoment um f
orchange.

Qual
i
tiesofaSoci
alEnt
repr
eneur

Socialentrepreneurshi
pi sapr ocess–i nvolvi
ngal ong-t
erm commi tmentandcont i
nual
set-backs.Fort hisreason,soci alentrepreneur ssharecertainqual iti
es,includingt he
abil
ityt oovercomeapat hy,habit,i
ncompr ehension,anddisbeliefwhi lefacingheat ed
resi
stance;t heabili
tytoshi ftbehav i
or,mobi li
zepol i
ti
calwi l
l
,andcont inuallyimpr ove
theirideas;theabili
tytolist
en,r ecr
uitandper suade;amongt hoset heywor kwi th,they
encour ageasenseofaccount abili
ty,andasenseofowner shipf orthechange.Soci al
entrepreneursarealsocomf ort
ablewi thuncer t
aintyandhaveahi ghneedf oraut onomy .
Sincesoci alentr
epreneurswi l
lfaceadv ersit
yal ongtheway, anotheri mportantqual i
tyis
the capaci t
yt o derivej oy and cel ebrate smal lsuccesses.Successf ulsoci al
entrepreneurshipinvolveswel lest abli
shedbehav ior
swhi chcanbeacqui red.Whi l
e
somepeopl eappeart obebor nwi t
hmor eent repr
eneuri
alincli
nat i
ont hanot hers,most
peoplecanl earntobehav elikeent r
epreneur s.

Hi
stor
ical
Per
spect
iveonSoci
alEnt
repr
eneur
shi
p

Socialent r
epr eneur
shi
phasalway sexi
sted, thoughi thasnotbeenr ecognizedassuch.
HistoricalfiguressuchasSt .Franci
sorGandhiadv ancedimportantsocialchanges
throughwor kt hatisanal
ogoust owhatsoci alentrepreneurstodayar edoi ng.Soci al
entrepreneur shipasamov ementdev elopedi nresponset omajorgl obalfor cesthat
hav eshi ft
edt hepatt
ernsoflifearoundt hewor l
d,cr eat
ingmor eoppor tuni t
iesf or
peoplet ocausechange.Amer icaexperiencedmanyoft hesechangesov eracent ury
ago:t heemer genceofthepri
vatesector,rapiddev elopment si
nindust r
y,urbani zat
ion,
andt her i
seofnew weal thupt otheear ly1900scr eatednew socialprobl ems,and
Amer icans r esponded wi
th progr
ams and or gani
zat i
ons to address these needs.
Exampl esincludeHull
House,BoyScout sandt heSal vationArmy.

Soci
alentrepr
eneur
shiptodayi
sar esponsebyt heglobalci
ti
zenrytochangest hathave
happened,andarehappeni
ng,onagl obalscale.Large-
scalechangesov erthepasthalf
-
cent
ury,suchast hecol l
apseofaut horit
arianandcommuni stregi
mes,r esult
edi n
newfoundf r
eedomsf ormanyacrosst hegl obe.Thesef reedomshav el edtogr eat
er
wealt
h,longerli
fespansandbettercommuni cat
ionsaroundt heworld,buttheyhav e
38
al
socr eat
ednew pr obl
ems.Forexampl e,massr ur
al-
to-
urbanmi gr
ati
onhasinsome
count
riesresul
tedinmegat ownst hatareviolentandunhealthy;or
,peoplewhohave
beeninvol
untar
ilydi
spersedbychangestruggletopickupt hei
rli
vesagainandsuf
feri
n
pover
ty.

Soci
alMov
ement
s

Att hesamet ime,howev er,hundredsofmov ementsandmi ll

ionsofor ganizat
ions
ai
med at addr essing these my ri
ad problems hav e also emer ged,and soci al
entrepreneurship as a mov ementhas gr own.The pace ofchange cont inues to
accelerate,andasi tdoes,thepaceofadapt iv
esystemsmustkeepup.Sol utionsmust
bedecent ral
i
zedandi nt
egratedanddeployedinrealti
me.Socialentrepr
eneurshipisthe
i
ntersection oft he world’
s complex problems,the recogni
tion thatnew ki nds of
organizationsandmodel sar erequir
edtoaddr esst hoseproblems,andt hehi stori
c
changest hathav edr amati
callyi
ncreasedthecapacityofindiv
idualsandmodest -si
ze
groupst oaddr esst hoseproblems.

Pi
oneer
ingSoci
alEnt
repr
eneur
s

Twohi ghl ysuccessf ulexampl esofpi oneer i

ngor gani
zat ionsi nt hef ieldar eGr ameen
Bankandt heBangl adeshRur alAdv ancementCommi ttee( BRAC) .Bot hor ganizat i
ons
originat edami dstdi sasterinBangl adesh:acy cl
oneandaci vilwarr av agedt hecount ry.
MuhammadYunusandFazl eH.Abedcr eat edandoper atedt heGr ameenBankand
BRAC,r espect iv
el y,ont hebelieft hattheirr esul
tswoul dbest r
ongeri ft heybr okef r
om
thepat ter nofpat ernal i
sti
cai dandf oll
owedanewmet hodbasedont ri
alander rorand
anemphasi sonr esul ts.YunusandAbedhi r
edlocalsi nst eadoff oreigner s,withhi red
staffthr oughacompet iti
veappl i
cat i
onpr ocessi nsteadofdol ingoutj obst of ami l
yand
fri
ends,t heyr efusedt osanct ionbr ibery,theyf ocusedonef ficiencyandr esul
ts,t hey
exper i
ment edcont inuousl y,andt heyv i
ewedf ail
uresasoppor tunities.Theset acti
cs
wer eadepar t
uref r
om t hetraditi
onalmet hodsofai ddistribut i
onandmanagement .The
GrameenBankandBRACal sobenef it
edf rom thel ong-ter mi nv olvementofYunusand
Abedandt ensoft housandsofl ocalst affmember s,wher east raditionaldonor sof ten
onlyst ay ed on pr ojectsf ora f ew ofy ears beforer otating outofcount r
y .Bot h
organi zat ions saw r esult
st hatwer e a wor ld apar tf rom any thing t he f ield of
i
nt ernat ionaldev elopmenthady etseen.Theypr ovedt hati twaspossi blet omi ti
gate
pov ertyonamassi vescal eandhel pedshi f
tt heglobaldev elopmentpar adigm.

Di
ff
erencesandSi
mil
ari
ti
eswi
thOt
herSect
ors

How dosoci alentr

epreneuri
alventur
escompar et ochangeagent sinothersector
s?
Whi l
esocialandbusinessentrepr
eneursaresimilarinthei
rskil
lsandt emperaments,
they dif
fermarkedlyi ntheirprimary obj
ect
ives.Forbusi ness ent
repreneur
s,the
objecti
veisusuall
ytomaxi mizeprofi
tsorbuil
dal ast
ing,r
espectedentit
y.Forsocial
entrepr
eneurs,t
heobj ect
iveistomaxi mizesomef orm ofsocialimpact,usual
lyby

39
addr
essinganur
gentneedt
hati
sbei
ngmi
shandl
ed,ov
er-
looked,ori
gnor
edbyot
her
i
nsti
tut
ions.

Soci alentrepreneur shipalsodi ffer

smar kedlyf rom gov ernmenti nmanyway s.Unl ike
gov ernment s,whowor kf rom t het opdown,soci alent r
epreneur saddr esspr oblems
from t hebot tom up.Thesoci alentrepr eneur s’effort
sof tenbegi nwi t
hani nt eraction
wi t
hapr oblem ont hegr oundl evel,whi chleadst oaquest iont hateventuallygr owsi nto
anor ganizati
ont hrought ri
alander ror.Gov er nment sof teni mplementi deasbef ore
testingandadapt i
ngt hem ast heygo, andt heyof tenlackt henuancedunder standi ngof
ground- leveldet ai
lsthatist hekeyt osuccessi nsoci alent r
epreneurship.Addi tionally
,
gov ernment sar eboundbypr otocol
,r ulesandpr ocedures; socialentr
epreneur shav efar
mor ef lexi
bil
it
y .Asoci alentrepreneurhast hel uxur yoftryi
ngseemi ngl
ycr azyi deasand
get t
ingr idofi deast hatdonotwor k,wher easagov ernmentget sboggeddowni n
hashi ng outt hedet ail
spr iort oimpl ement ationwi thoutt hechancet ol ear nf rom
mi stakes.

Simil
arly
,socialent r
epreneurscan st ayworking on a pr
oblem unt i
lt heysolv
ei t.
Government sareunderpr essureforquick,tangi
bleresult
s.Gov ernment ,however,
benefi
tsf r
om itsaccesst oawi dearrayofresourcesandr ecognizedl egit
imacy.To
addresssocialprobl
emsatt heproperscal
e,wemustcombi net hecreati
v i
tyandagil
it
y
ofsocialentr
epreneurswiththeresourcesandlegi
ti
macyofgov ernments.

Soci
alAct
ivi
sm

Activi
sm issimi l
art osoci alentr
epr eneurshi p,butcanbestbeunder stoodasasubset
ofsoci alentrepr
eneur ship.Activism i sat oolt hatmanysoci alent repreneur
suset o
furt
hert hei
rcause.Act i
vism typicallywor ksf rom t heout si
de,at tempt ingt oi
nfl
uence
thedeci si
onmaker si ngov ernmentorl ar
gei nstituti
ons.Soci alent r
epr eneurshi
puti
lizes
outside-andi nside-di
rectedt actics,of t
enwor kingdirectlywi thi nstit
utionstoenact
change.Soci alent r
epreneur salsoof tenseekt ocr eatenew i nstit
ut i
onsr at
herthan
changeol dones.Act i
vism i simpor t
antbecausei thelpsel icitempat hybymaki ng
i
njusticeandsuf fer
ingpal pable.Soci alentrepr eneur scanf urthertheircausebyut il
izing
techniquesofact i
vism fort hi
spur pose.

Soci
alEnt
repr
eneur
sandCi
ti
zenDemocr
aci
es

Thewor kofsoci alent r

epreneur sst rengthensest abli
shedandemer gingdemocr aci es.
Democr acy ,l i
ke soci al ent r
epr eneurship, is an i ter
ative process. Ci t
izens of
democr aciesandsoci alentr
epr eneur sbuildandcont inual
lyadaptinstitut
ionsdesi gned
tomeetsoci ety’sneeds.I npre-democr at
iccont exts,socialentrepreneurshelpci tizens
real
ize theirabi l
it
yt o shape change,whi ch reinforces theirpoweras ci tizens.
Democr aciesf lourishwhenl argenumber sofci tizensacqui rethecapaci tytoshape
civi
cli
fe.Soci alent repreneurshipi sapr ocessbywhi chci t
izensorganizetodoj ustt hat.
Ast hef ieldsoci alent r
epreneur shipcont inuest oexpand,i tmayhel predef i
net he
conceptofci tizenshi p,creat
ingawor ldofci t
izenswhoar eact i
velyinvolvedincr eat i
ng
andshapi ngt heircount ri
esinstitutions.

40
Fi
nanci
ngSoci
alVent
ures

Socialent repreneursfinancesoci alorganizat i

onsf r om av ari
etyofsources.Theyof ten
startwi thpeopl eclosetot hem –f amily
,friends, classmat esandpr ofessionalcont
act s.
Socialent repreneurs also t ur
nt o corpor ati
ons,publ i
cf oundat
ions,soci alventure
compet it
ions,impacti nv estorsandWeb- basedi ntermedi ari
es.TheObamacampai gn
prov edt hatt hisapproachcanbehi ghlyef fecti
v e.Fellowshipsandpr izeprograms
directedspeci fical
lyatsoci alentr
epreneursar eanot hersourceoff unding.Thought he
organi zati
onsar enotnumer oustheycompr iset hecur rentkeypipeli
nesofsuppor tand
recogni ti
on.

Achi
evi
ngSoci
alandFi
nanci
alObj
ect
ives

Socialent repreneur sar ei ncreasi nglyseeingst rongr esult

st hroughcompl ement ary
nonpr ofi
t,busi ness,andhy br i
dent er
pri
ses.Thet erm“ bl
endedv alue”r eferst ot he
commi ngli
ng of soci aland f i
nancialobj ecti
v es,and an i ncreasing number of
organizati
onsar ewor kingi nthisgr ayarea,usingacombi nati
onofbusi nessmet hods
andphi l
anthropy .Soci alent erprise,acombi nationofbusi nessandphi lanthr
opy ,isa
promi si
ngst rategybecausei tallowsasoci alorgani zati
ont obenef i
tfrom t hestrategies
oftraditi
onalbusi nessent repreneur s.Thesedev elopment sbri
ngchal lenges.Ast heline
betweensect or sbl urs,anew f orm off i
nancingwi llbenecessar y .Blendedv alueor
i
mpacti nvestor s,invest orswhocr ossthelinesbet weenphi l
anthropy, businessandt he
publicsector, willbei ncr easinglyimpor t
ant.

Cul
ti
vat
ingTal
ent

Anotherchal lengesoci alent repreneurs’facei sat tr

actingt alent.Socialentrepreneurs
mustr ecrui
tt alentwi thoutt heabi li
tytoof f
ercompensat i
ont hati scompar ableto
business.I nst ead,soci alor ganizati
ons r el
y on at tracting peopl e by pr omi si
ng
meani ngfulwor k.Thesoci alsectoral solacksast r
uctur edsy stem tonurturet al
ent;
whencombi nedwi t
hf inancialinhibit
ors,thismakesr etaini
ngt al
entdiff
icult.Mor e
people hav e chosen soci alor ganizati
ons ov erot heroppor tuniti
es fol
lowi ng the
economi cdownt urn,probablybecausecompar ablesalar i
esi nthepr ivat
esect orhav e
dropped.Soci alent repr
eneur sint henearf uturewi l
lhav et odetermi netheti
ppingpoi nt
i
ncompensat ioni nordert oredir
ectt al
entfrom ot hersect ors.

Nur
tur
ingI
nnov
ati
onsi
nEducat
ion

Fosteri
nginnovati
onwi l
lal
sorequirechangesineducati
on.Theideathateveryonecan
beachangemakershoul dbeintegrat
edstart
ingingradeschoolsot hatchil
drencan
becomecomf or
tabl
ewi t
htheideasandskill
snecessarytoef
fectchangeearlyon.Fr
om
chi
ldhood,itisimportanttonurturestudent
s‘wi
ll
i
ngnesst otryoutnew ideas.When
chi
ldrenareencour agedt ot
estoutt hei
rowni deasinasaf eandnon- j
udgment al

41
env i
r onment ,theylear ntov aluet hei
rowni deas,andv al
uingone’ sowni deasi scr ucial
forasoci alent repreneur .School sshouldal soencour agest udent stoaskquest ionsand
takei niti
at i
v e.Thisi si mpor t
antbecausesoci alent r
epreneur sar eact i
onr esear chers,
l
ear ni ngt hr oughexper i
ment ation.Addi t
ionall
y ,school scoul dcr eateprogramst hathelp
childr endev el
opempat hy.Emot i
onallearni
ngi sj ustasi mpor tantascogni tivel earning,
thoughschool sfocusal mostent i
rel
yont hel atter .Schoolst hathav eutil
izedemot i
onal
l
ear ni ngpr ogramshav eshownt hatiti
spossi blet ot eachchi l
drent odev elopempat hy;
dev elopi ngempat hywi llhelpchi ldr
enunder st andhow t heyf i
tintot hel argerwor l
d,
helpi ngt hem t ounder standot hersbet t
erandt obui l
dt eams.Anot heropt i
ont hat
target st hemor epr acticalskillsofsoci alent repr eneursi st ocr eatepr ogr amst hat
woul dexposest udent st oprobl emsandt henhel pgui det hem t hrought hepr ocessof
const ructingasol ution.Fi nall
y ,schoolscoul ddo mor et o celebrat
ey out h-i
niti
ated
soci alpr obl em sol vi
ng.Whi ley outh-
ledsoci alent repreneur shipisgr owing,i tismost ly
outsi deoft heschool system.

Uni
ver
sit
iesRol
einMov
ingt
heFi
eldFor
war
d

Uni v
er sitiesal sopl ayani mpor tantr ole.Universitiesl egiti
mi zenew f ieldandcar eer s,
andt hushav et hepot entialt ogrowsoci alent r
epr eneur shipasaf i
eld.Thef ir
stcour se
i
nsoci alent repreneurshipwasi niti
at edbyGr egDeesi n1994atHar var dUni versity.
Resear chi nsoci alentrepr eneur shipeducat ionbyDebbiBr ockandAshokasGl obal
Academyf orSoci alEntrepr eneur shipdocument edov er350pr ofessorsi n35count ries
teachi ng cour ses i n soci alent repr eneurship.Ot heri nit
iat i
ves i nclude f ell
owshi p
progr amsatschool ssuch asHar vard and New Yor kUni v ersit
y,soci alent erprise
cour sesandsoci alventur epl anni ngcompet i
tionsatmanyl eadi ngbusi nessschool s,
andpar tner shipsbet weenuni versiti
esandsoci alor ganizati
onst hatal l
ow st udent st o
i
nt eractwi thsoci alentrepr eneur s.Oneexampl ei st heRey noldsPr ogr am inSoci al
Ent r
epr eneur shipatNew Yor kUni versity.I
tist hef irstuniversi t
y -
widei nt erdi
sciplinar y
fell
owshi ppr ogr am int hef ield,andi sopent ogr aduat eandunder graduat est udent s
from ev eryschoolandev erydi scipline.Interdisciplinarypr ogr amsar eessent ialduet o
theint erdi sciplinarynatureofsoci alpr oblems.

Par
tner
shi
psandSuppor
tOr
gani
zat
ions

Ther elat
ionshipbet weengov ernment sandsoci alent r
epreneur scanandshoul dbe
changedi nordertomaxi mizeef fi
ciencyandsoci alimpact .Socialent repreneur sand
gov er
nment shavesuf f
eredfrom amut uall
ackoft rustandr espect.Theyf acedi ff
erent
pressures,havediff
er entneedsandoper at
eindifferentway s,andthet ensi ons,lackof
respectandweakr elati
onships,hav eimpedednecessar ycol l
aboration.Gov ernment s
oftenutil
izethepil
otandscal emet hodwheni nter-
act i
ngwithsoci alentrepreneur s.This
entail
sidentify
ingapr omisi
ngi nnovationinthesoci alsectorandt hensuppl antingt he
organizati
onandt akingt heideat oscalewi t
hinthegov ernment .Howev er ,
f orthesame

42
r
easonthatgovernmentsdonotlaunchandrunbusi
nesses,government sshouldnottr
y
t
orunsocialenterpr
iseswhenthereareother
sinsociet
ywhoar ebettersui t
edtothe
t
ask.Gr
owi ngasocialent
erpr
isetakesasmuchormor eent r
epreneuri
alism asstar
ti
ng
i
tdoes,
andgov ernmentsdonothav eacompeti
ti
veadvantageinthisarea.

Suppor
ti
ngandCol
l
abor
ati
ngwi
thGov
ernment
stoSer
vet
heSoci
alSect
or

Wher e gov ernment sdo hav e a compet i

ti
v e adv ant age i si n det er mining pr iori
ti
es,
ensur i
ng f airness,and f ashi oni ng a f r
amewor k of i ncentives and ov ersight s.
Gov ernment sshoul dshi ftf rom t hemodelofr unningpr ogramsandpr ovidingaf ter-t
he-
factpay ment sf orser vicest oamodel ofi nvest ingandov erseei ngl ong- t
ermi nv estment
i
nsoci alent repreneur i
alor gani zat ions.Gov er nment sshoul dt hinkl i
keagar denerr ather
thanabui l
der–i dentifyingpr omi si ngseedsandr i
chsoi l(thesoci alent r
epr eneur sand
env i
ronment sr i
pef orchange) ,andf ost eri
nggr owt h( throughl ong- ter
mi nv est ment ).
Thisdoesnotmeanabol ishi nggov ernmentpr ograms;r ather ,itmeansshi ft
ingt owar d
harnessi ngt hepowerofsoci alent r
epr eneur st oachi ev epol icygoal s,asgov ernment
doeswi thbusi nessent repr eneur s.Gov er nment swi llalsoneedt oov erhault henet wor k
ofconst rai ntshol dingsoci alent r epr eneur sback.Exampl esi nclude:maki ngi teasi erfor
cit
izenst or eceivet axbenef i
tsf orcont ributionst osoci alent repreneur s;creat i
ngcr oss-
sectorf el l
owshi pst o br ing soci alent repr eneur si nto gov ernmentand pl acepol i
cy
staffersinsoci alor gani zat ions;andi ntroduci nginnov ati
onf undswi thinal lgov ernment
agenci est oencour aget hedev el opmentofasoci alcapi talmar ket .Oneexampl eof
socialent repreneur swor ki ngef fect i
v elywi thgov ernmenti sAmer i
caFor war d.Thi s
coaliti
onofmor et han80soci alent repr eneur screat edasetofpol icyi deast hatl edt he
Obamaadmi nistrationt ocr eat et heWhi teHouseOf f
iceonSoci alI nnov ationandCi vi
c
Partici
pat ionandt osuppor tani nnov ationf und,f orwhi chCongr essappr opr iated$50
mi l
li
oni nseedcapi t
al.Thenew of f
icewor kst oi dent if
yandscal ehi gh-per formi ng
socialor gani zations,f orgepar tner shipswi thbusi nessandphi lant hropyandsuppor t
nationalser vi
ceand ot herf ormsofci ti
zenengagement .Thef und i sdesi gned t o
l
ev eragepr i
vatei nvestmentt oexpand―i deast hatwor k.―I ntrapr aneur swi thint he
admi nistrationcanbui ldont hesei deasandf osterapol i
cyenv i
ronmentmor eal ertto
thepot ent i
al ofsoci alent repr eneur s.

Rel
ati
onshi
pswi
thPr
ivat
eSect
or

Withr egar dtobusi ness,agr eatdealofi nnovati

oni nthecomi ngy ear
swi l
lresultfrom
thei nter sect
ionoft hesocialandbusi nesssect ors.Businessesar ereal i
zingtheycan
benef itbywor kingf r
om andl earni
ngfrom soci alentrepr
eneur sforav ar i
etyofreasons.
1)Busi nessesr ealizethatsocialorganizati
onsknowhowt ooper ateinunder dev el
oped
mar ket s( int
ernationallyanddomest ically
)– how t oidenti
fyoppor tunit
ies,dev elop
product s,managest aff,et
c.,inunfami li
arcont exts.Asbusi nessesexpandi ntot he
devel opi ngwor ldandot herunderservedmar kets,organizat
ionscanl earnf rom soci al
entr
epr eneurs‘ experience.2)Businessesar eunderi ncreasi
ngpr essur ebycust omer s,

43
empl oyeesandi nv estorst obesoci all
yconsci ous.Busi nessest hatar ef amili
arwi t
ht he
l
andscapeofsoci alent repr eneur shipwi l
lbebet terpoi sedt osucceedt hancompet i
tors
whoar enotawar eoft hesesoci alchanges.3)Bypar tneringwithsoci al entrepreneurs,a
busi nesscant argett heBot tom oft hePy ramid, t
hef ourbi ll
ionpeopl elivingonl essthan
$2perday ,withouthav ingt oest abli
shnew channel sofbusi nessf rom scr atch.The
busi nessi nthissi tuati
onwi llalsobenef itfr
om t hesoci alentr
epr eneur ’sexper ti
seint he
fi
eld.Aswi thgov ernment s,t hebenef itsofcombi ningar ecompl iment ari
l
y.4)Soci al
entrepr eneurs ar er eshapi ng t he nat ure ofcor por ate socialr esponsi bili
ty.Soci al
entrepr eneursar ei ncreasingl ywor ki
ngdi rectl
ywi tht opexecut i
v esi nst eadofgoi ng
throught hecor por atesoci alr esponsibili
tyormar ketingdepar t
ment s.Cor poratesoci al
responsi bil
ityi st hus becomi ng a cor e managementf unction as opposed t oa
componentofPR.5)Soci alent repreneursar einfl
uenci ngt heregul ator yandi nv est
ment
env i
ronment s,hol dingbusi nessesmor eaccount ablet otheirsoci alandenv ir
onment al
perfor mance.Ov ersightt ool s,suchasSoci alAccount abil
i
tyI nt ernat i
onalsSA8000,
whi chcer tifi
est hatcompani esmai ntaindecentwor kingcondi ti
ons,wi l
laccel erat
et he
growt hofsoci alent erpri
se.

TheRol
eofPhi
l
ant
hropi
stsi
nFost
eri
ngSoci
alEnt
repr
eneur
shi
p

Wecanr eshapephi lant hropy’sappr oacht omor eef fectivelyf ost ersoci al entrepr eneur s.
Philant hropistshav et heabi li
tytomakel ong- t
ermi nv estment s, assumegr eaterr iskand
suppor tlesspopul ari deast hanbusi nessesorgov er nment s.Phi l
ant hr opyi nthecomi ng
year swi l
lbepar ti
cul arlyimpor t
ant :r esear cher sestimat et hati nher i
t anceswi llamount
tot ens oft ril
l
ions ofdol l
arsi nt he comi ng decades.I nt he past ,phi l
ant hropic
i
nv est ment swer etreat edaschar ityandchoseni nanof ten-capr i
ci ousmanner .The
standar dappr oachwast opr ov idemodestone- yeargr ant sr est ri
ct edt ospeci ficuse.
Thepastdecadehasseenani mpor tantshi ft,charact erizedbyi ncr easedi nv olvement
byt hedonorwi tht heor ganizat ionont her eceivingendandamet hodoff i
nanci ng
simi l
art othatofv ent urecapi t
al.Onahi ghl evel,philanthr opyhasshi ftedf rom pal l
i
ative
to cur ativ
e.Thi s shi fthas i nvolv ed sear ching fori nnov at i
v ei deas,t argeting hi gh
perfor mancesoci alent repreneur s,pr ov idinglongert erm capi talal ongwi t hmanager ial
assist anceandr i
gor ousl ytrackingr esul ts.Also,manydonor shav eadopt edav enture
capi talappr oach,prov i
dingmul tiyeargr ant sthatar ecombi nedwi t
hdi rectengagement
ont hepar toft hedonor ,whet hert hr oughmanagementconsul t
ing,l obby i
ngsuppor t,
busi nesspl andev elopment ,orsi mi larwor k.JoelL.Fl eishmanar guest hat“ venture
philant hropy”andsoci alent r
epr eneur shipwi l
ldomi nat ephi lant hropyi nt het went y-
fi
rst
cent ur y.Thelimitati
onst othev ent ur ecapi t
almodelf orsoci alent repr eneur sar et hati t
i
snotdesi gnedt osuppor tanent er prisef orever.Opt i
onsf orl ong- term suppor tar e
gov er nment s,generat ingr evenuet hroughsoci alenter pri
se, orpat i
entcapi talfunds.

Therearef i
veproposed way
sbywhi ch phi
l
ant
hropycoul
dredepl
oyr
esour
cest
o
harnesssoci
alent
repr
eneur
smoreef
fecti
vel
y.

1. Hel
p soci
alent
repr
eneurs engage more successf
ull
y with businesses and
gov
ernment
s:Phi
l
ant
hropi
stsareinaposit
iont
ocreateaneut r
alspaceforgenerati
ng

44
i
deasandtocatal
yzenecessaryexchangesbet
weensocialentr
epr
eneur
sandpol
i
cy
maker
sandbet
weensocialentr
epreneur
sandthebusi
nesssector
.

2.Fundst ructur
alsupportsforsoci alent repreneur s:Phil
anthropi
eshaveinfl
uencewi t
h
universit
iesand t heeducat ionsy stem gener all
yt hatt heycould useto encourage
educat i
onandr esearchonsoci alent r
epreneur s.Theycoul dprovi
detui
ti
onsuppor tto
attr
actst udentsto studyi nt hef i
eld.Phi l
anthropicf oundati
onscould supportthe
creati
onofnewmedi apl atf
ormst oencour aget heshar i
ngandexchangeofknowl edge.
Foundat i
ons coul d also suppor tpr ograms f ort r
aining baby boomersi n social
entrepreneur shi
ptoencour aget hi
sgr oupt obecomechangemaker si
nt hei
r“encore
careers.”Finally
,phil
anthropycoul dsuppor tthegr owthofadv i
sor
yservi
cesthatallow
socialinvestorstomakewel l
-inf
or medi nv
est mentdeci sions.

3.Stickwiththi
ngsthatwor kandcommunicat
eclear
ly:Phi
l
ant hropiesshouldbeclear
whenpr ovidi
ngthei
rreasonsforendi
ngarel
ati
onshi
pwi t
har ecipientorgani
zat
ion,
and
organizat
ionsshoul
dcontinuetodowhatt
heyhavebeensuccessf ul at
.

4.Letmoreorgani
zati
onsdie:Moreorgani
zat
ionsopen,butfewclose.Thi
smeansthat
fundi
ngisconti
nual
lyspreadthi
nnerandthi
nner.Foundat
ionscouldensur
ethatf
ail
ure
ormediocr
it
yleadtoreducti
onsorwit
hdrawaloffundi
ng.

5.Helpsocialentrepr
eneurswor ktogether:Thefi
eldofphil
anthr
opycouldencourage
soci
alentr
epr eneurstojoi
nt ogetherinfirms,wheretheyshareexpert
ise,t
estideas,
l
aunchventuresandpr ovi
deconsul t
ingadvicetol
argercl
ient
s.Thi
screat
esal owerri
sk,
moreeff
ective,andmor esupporti
veenvironment.

TheRol
eoft
heMedi
a

Journali
sm willplayakeyr olei
nhelpingsoci et
ybecomemor einnovat i
ve.Thestr
ucture
ofnewsmedi ai schangi ngastradit
ionalmedi asourceshav etoadaptt oachangi ng
societ
y, butt
hecont entofmediahasnotkeptup.Newsmedi adr asticall
yunderr
eports
stori
esofsocial innovati
oninfavourofstoriesofconfli
ct.Socialentrepreneur
scanhel p
changet hisbylegi t
imizi
ngacat egor
yofnewsf ocusedonsol ut
ions.Themedi ahasa
vi
talroleinmaki ngt heworkofsocialentrepreneursvi
sible,i
l
lustrat
ingwhatt heleaders
i
nt heindustr
yar edoi ng,j
ustasthemedi aalreadydoeswi thbusinessandgov er
nment .

I
ndi
vi
dual
sRol
einSuppor
ti
ngSoci
alEnt
repr
eneur
shi
p

Themostv aluablestepani ndivi

dualcant aket opreparehim/ hersel
ftopar t
icipat
ei n
thef i
eldofsoci alentr
epreneurshi
pi stodeepenhi sorherself-knowledge.I
nor dertobe
successf ulandmakeani mpact,ani ndiv
idualmustf ir
stunder standwhathe/ shecar es
aboutandhasal way scaredabout ,whathi s/
herstrengthsandweaknessesar e,what
his/herv alue seti t,whatenv i
ronment s he/ she works besti n,and whathi s/her
mot iv
ationsar e.Withoutknowingt hesethingsaboutonesel f,onemayi nadvertentl
yadd
totheal readyampl estoreofnegat iv
el eadershipinthewor l
d.Itisnotnecessar yt o
studysoci alent r
epreneurshi
p,buti tisnecessar ytounder standt heworkingsoft he

45
syst
em you wantto change and t
he hi
stor
yoft he probl
em with whi
ch y ou ar
e
concer
ned.Thi
si nv
olves whatmay be a l engt
hy process ofinvest
igat
ion and
brai
nst
ormi
ng.Mostofall
,youneedtobeprepar
edtoli
stenandtofacechal
lenges.

8.
0Modul
e8:Busi
nessOppor
tuni
tyEv
aluat
ion
8.1Sour cesofBusi nessOppor tuni
ti
esinNigeria
Abusi nessi saconcept ,whichcoul dbecont empl atedanywhere.Ittakessomeonewi th
businessi nsighttov i
sual i
zetheneedt odevelopt heconceptintoideas,reducet hem to
businesspl anandnur t
uredt oassumer esemblancesofeconomi cact ivi
ti
essuppor ted
withr esources.Att he simpl estlevel,a business assessmentpl an is somet i
mes
ref
erredt oasaf easibil
it
yst udy .I
tmustbenot edhowev er,
thatacl earli
neofdi f
ference
exist
sbet weenabusi nesspl anandaconcept .Aconceptbr oadlyspeaking,involves
mor ethanapl an,itisagener albeli
ef,anabstract i
onorapr i
nciple.Forinstance,iti
sa
conceptt hatev erylocat i
oni nNi ger
iahasabusi nessoppor t
unity
.Thi smaynotbet he
sameasact uall
ydr awingupapl antorunapar ticularl
ineofbusiness.Tot hisextent,a
conceptdi ffersfr
om apl anbutsuf fi
cetosayt hatbot hareincontextthesame.

Abusi nessplani
sv er
yimpor
tanti
nanybusi
nesspr
oposali
rr
espect
iveoft
henat
ureof
business.General
ly
,however,bel
ow i
sthef or
m mostbusinessplansorf
easi
bil
i
ty
report
st ake:
-

46
Feasi
bil
i
tyr
epor
t

Feasi
bil
i
tyisadocumentt hatgenerall
youtl
inesthepot encyofapl annedproject
commencingwi t
hapr eambl
e;whi
chst at
esgenerali
nfor
mat i
onorcompanyprofi
le,the
proj
ectit
self
,sponsorshi
pandwhet herarr
angementsexistf ort
echni
calassi
stance.
Otheri
nfor
mat i
onincl
udes:

• Marketabilityanddemandanal ysi
s.
• Technical feasi bilit
yinter
msofski ll
edandadequat emanpower ,machi
nery,
raw
materials,equi pment ,et
c.
• Product i
onr equi rements,forecastproducti
on li
mit,f
actoryl
ayout.
• Fi
nanci ng pl ans,i ncl
udi
ng loan,l ease orhir
epurchasearrangement.
• Fi
nanci alev aluat ionbywayofi nvestmentapprai
salmet hods.
• Fi
nanci alproj ectionsandcash- fl
ow, budgetest
imatesforthedurat
ionoft
he
proj
ectorf oratl east12mont hsahead.
• Envir
onment alimpactassessment .
• Detai
lsoft hepr ojectimplementati
on.

1.Sour
cesofbusi
nessi
nfor
mat
ion

Themaj orsourceofbusinessi nformati

oni sone' smi ndsetorsubconsci ousmind.A
promi nentpast orinAbujaoncepost ul
atedt hathenev ert aughtanyf oll
owerhow t o
praybecauseheknew t hati ndi
vidualexperi
enceswoul d.Thi sis,indeed,aper ti
nent
l
essonf oraspiringent
repreneurs.Mostpeopl ewhohav esucceededi nbusi nesstoday
didsof orcompel l
ingr
easonsr angingfr
om failuretogai nawhi t
ecol l
arjobt onotbeing
sat i
sfi
edwi t
htheoneof f
ered.Thosewhounder standthebusi nesswor lddoseekwhi te
col l
arjobt orai
secapit
alinordert obeont heirown.I nsear chingforsuch, theybecome
dissatisfiedwitheachsucceedi ngj obandkeepmov i
ng,ther eby,takingadv ant
ageof
higherper kstoaccumulatet heircapit
al.Suchper sonsar eof tenr eferr
edt oashi gh
fl
y ers.

Elueni(2000)postul
atedthatwealthcanbeacqui redt hr
oughone'sphysi
calst
rength,
sustai
ned f ora whilethrough conceptualstr
ength and made permanentthrough
i
nv est
ment :inassets.I
nhi sopini
on,owner shi
pinterestthr
oughsharesisthemost
permanentand r eli
ableform ofasset s,provi
ded that:such compani
estrul
yhav e
perpetualsolv
ency.

Akingbol
a( 2008)classi
fiesplay
er sintheeconomyassal ar
yearners,self
-empl oyed
professi
onalsandinvestorsandfurthernot
esthatinv
estor
scont
roltheeconomy ,they
havegov er
nmentear sandsympat hy,t
heyworklessbuthav
eever
ythi
ngi ntheirf
av our.

2.Env
ironment
alscanni
ng

Envir
onment alscanni
nginvolvesaprocessofst udyingone'slocal
i
tyi nor
dertogai
n
i
nsightwithav iew t
oi dent
ifyi
nginherentopportunit
ies.Eachenv i
ronmenthasit
s
peculi
ari
ty permeated by chall
enges beneat
h whi ch lay gol
den opport
uni
ti
es.An

47
explorati
onoft heenv i
ronmentwoul dunr aveltranchesoft hei nherentgol d.Howev er,
thepr ocessofunear thingt hisi squiteoner ousandchal l
engingr equi ri
ngthev i
rt
uesof
patience,per sev er
ance,cr eat ivi
tyandcour aget oaccesst hehi ddengol d,whil
et hreats,
fearandweaknessesconst itutear t
if
icialbarri
ersconst r
ainingthepr ocess.Nowonder ,
managementspeci ali
stsadv ocat ethatent repreneursshoul dov ercomechal lengesby
maxi mizingt heirst rengthsi nor dertocount erbalancetheirweaknessesandt hreats.
Akingbola( ant e)st atesthatget tingrichisnott aughtinschoolr ather,itislearntwhy
doingi tont hest r
eets,whi chhecal l
st heUni versi
tyofLife.Hel istst healumniofsuch
universit
yasBi llGat es( Mi crosof t
),TedTur ner( CNN),Ri chardBr anson( Virgi
nAi r),
ThomasEdi son( Electri
cbul b) ,etc.

TheNi ger
ianeconomyi sfullofoppor t
uniti
esaswel lasthreats.Themai nthr
eatsar
ei n
theregionofpol i
cyinconsistency,poori nf
rastruct
ure,nearabsenceoft heruleoflaw,
amongot her s.Howev er,herpopul at
ion;diversecult
ureandv astexpanseoflandar e
i
mmeasur ableopportuniti
est hattendt oout weighthethreats.Thisprobabl
yex pl
ains
whyi nspiteoft hethr eat
s,businessesal way sthri
veinNi geri
amaki ngitthesecond
bestoppor t
unecountryont hecont inentaft
erSout hAfri
capr obabl
y.

3. I
nter
act
ionwi
thpeopl
eofsi
mil
ari
deasorexper
iences

Thi
sisapreludetofor
mat i
onofapar
tner
shipbasedonmut ualbusi
nessinter
est.I
ti s
mostcommonamongpeopl ewhosuf
feracommonf ateorundertakesimil
artrai
ning.
Suchbusi
nesssynchr
onizat
ionmor
eoft
enthannotyi
eldssy
ner gi
ceffect
.

4. Ext
ensi
vet
rav
elsar
oundt
hel
ocal
i
tyorbey
ond

Travell
ing,theysay,ispar tofeducati
onandper haps,experi
enceaswell
.Bothare
wealthi nasenset hattheycaneachbet r
anslat
edintobusinessi
deast
oearnsome
money .OurI bobrot
hersfrom t
heeasternpartofNiger
iaareagoodexampleher
e.The
businessi deastheyimpor tfr
om dif
ferentpartsofthewor ldhasmadethem qui
te
prosperous.

5. Seminar
s by busi
ness communi
ti
es,gov
ernmentagenci
esor
prof
essi
onal
associ
ati
ons

Semi narsareusefulforbusinessopportuniti
esi nt hatspeakersatsuchoccasi onsar e
carefull
yselect
ed.Theyar eusuall
ypeoplewi t
hpr ov enknowledgeont opi csassignedto
them.They ar e somet i
mes,gov ernmentof f
icials who ar er esponsi bl
ef orpol i
cy
formulati
on.Theirpresencegoesal ongwayi ncl arifyi
ngot her
wise,thornypol i
cyissues
orpr ovesanoppor tuni
tyforthem toavailtheaudi enceofsomepr ivi
legedi nf
ormation
on gov ernment'
s st r
ategi
cf ocus.The maj ordr awback her ei st hatt he costof
attendanceatsuchsemi narsisoft
enqui t
eexor bitant .Aprobablewayr oundthisisfor
theent r
epreneurtoaskaf t
erthepapers,atpost-ev entast heyareli
kelycheaper .

6. Enqui
ri
esatspeci
ali
zedGov
ernmentAgenci
es

The Smal
land medi
um ent
erpr
ise dev
elopmentagencyofNi
ger
ia(
SMEDAN)
,the

48
Niger i
anexpor tpr ocessingcommi ssion( NEPC) ,theNi ger i
ani mpor tandexportbank
(NEXI M) ,theNi geri
anexpor tpr ocessi ngzone( EPZ) ,amongot hershav edesksf or
publ i
cenqui ri
es.CBNf ori nstance,hasanext ensi
v eagr i
culturaldepar t
mentknownas
dev elopmentf i
nance,whi chof fi
cesexi sti
nv irt
uallyallthebr anchesoft heBank.The
depar tmentof fersagr icultur
alcr editguar anteeschemes,cur rentl
yupt oal i
mitof
N1mi ll
i
onf oranindividual orN10mi ll
ionforcorpor atefarmer s.Thel oansaresour
ced
from conv enti
onalbanksbutguar ant eedbyt heCBN.I nterestcostonsuchl oanscanbe
drawnbackt ot heext entof40% af tertheappl i
canthasf ul l
yrepaidt heunderl
yi
ng
facili
ty.Theschemei sknownasi nterestdrawback( I
DA), whichwasi ntr
oducedbythe
CBN i n2003wi t
hacapi talbaseofaboutN2bi l
li
on.Suchi nformationcouldonlybe
av ai
lableifsoughtaf t
eratt herel
ev antsour ces.

7. Examinati
onofpr
oject
s/di
sser
tat
ionsofgr
aduat
esofhi
gher
I
nsti
tuti
ons

Thisisoneoft hemostor i
ginalsour cesofbusi nessi deas.Businessst udent
sar e
pri
vi
legedtosel ecttopi
csinar easoffami li
arityfort hei
rpr oj
ect
s.Itisexpectedthatthe
knowledgegainedi nsuchsect orwouldser veasi ncentiv
et ofurt
herst i
mulateinter
est
andact i
ons.A goodpr oj
ectshoul dt hereforehav ebackgr oundi nf
ormat i
onont he
i
ndustrybeingconsidered.Businessst udents, especi al
l
yatt heMBAl evel,whoaspireto
becomeast uteent r
epreneurs,shouldpl anthei rprojectsinamannert hatwoul dserve
asprecursortobusi nessplansorf easibil
i
tyr epor t
s.For t
unatel
y,students'proj
ectsare
avai
labl
eatl i
brari
esofpol y
technicsanduni v
er sit
ies.

Wecanr ecal
ltheexper i
enceofMr .Wal eAdenuga,af amoustel
evisi
onproducer.
Adenugar eadBusinessAdmi ni
str
ati
onatt heUniversi
tyofLagoswher ehebusied
hi
msel fasthechiefcartoonistofthecampuspubl i
cati
onbetween1971and1974.On
graduati
on,hestart
edpubl i
shingIkebeSuperandSuperSt or
ymagazinein1976and
l
ateraddedBi nt
amagazi net ot helistofhispubli
cati
ons.Astimewenton,publ i
c
i
nterestswappedt oelectronicmediaandWal ewasresponsi
veenought omovewi t
h
ti
mebychangi ngf r
om pr i
ntmedi atot el
evi
sionpr
oducti
on.HisPapaAjascoat
tract
ed
somuchpubl i
cappeal foll
owedbySuperSt or
y .

I
tisdesi
rabl
etostat
eherethatwhatinformedWale'
sbr
il
li
antcar
eerist
heknowledge
hehadacqui
redasahobbyattheundergraduat
est
udi
esi
nbusinessadmi
nist
rat
ion.

8. Browsi
ng i
nter
netwi
thav
iew t
o st
udy
ingexper
iencesofot
her
count
ri
es

I
nter
netcafesexistt
opr
ovidei
nformati
ononawidearrayofi
ssuesi
ncludi
ngbusi
ness
act
ivi
ti
es.Somemaybet ooadvancedandoutsi
dethescopeofourenv i
ronment
.
However,mostcanbest
ream-l
i
nedt osui
tthei
mmediat
eneedsofourenvir
onment.

9. Tappi
ngi
ntel
l
igencer
epor
tfr
om exi
sti
ngbusi
nesses

Thi
scanbedonet
hrought
heengagementofanempl
oyeeofsmal
lscal
ebusi
nessesi
n

49
adi
scussi
onbot
her
ingont
hebusi
nesspol
i
cyoft
hei
rrespect
ivecompani
es.

10.Taki
ngadv
ant
ageofi
mpr
ovedi
nfr
ast
ruct
ure

I
nt hemodernglobalvi
ll
age,accesst
obusinessoppor
tuni
ti
esi
snolongeranexcl
usi
ve
ri
ghtofthelocalauthori
ti
es.Theeffectofglobal
i
zat
ioncanaswellcreat
ebusi
ness
opport
uni
ti
es.

Ani nstanceoft hisisseeni nthecaseofGboko,at radit

ionalcapi
taltownoft heTivs,
Benuest ate.Gbokoi soneoft het hr
eemaj ortownsi nBenueSt atewi t
hl i
tt
leorno
Federalgov er
nmentpr esence.Itishowev er,t
het r
adi
tionalseatofTivNativeAut hor
it
y
andal so,agr eatmar ketforagricultur
alproduce,therefor
eahostt ownt oanumberof
cottagei ndust r
ies.Iti spr i
vil
eged t o havea gi antcementf act
ory,which became
comat osei nthel ate90s.Priortot his,
residentsofthetownhaddependedsol elyonthe
resourcesoft hef actorywhilesol vent.Howev er
,itssubsequentdistressrenderedthe
town economi cally cast r
ated despi t
e cl ai
ms of di v
idend of democr acy by
unconsci onablepol i
ti
cians.

Int
erest i
ngly,atthehei ghtofdesper ati
on, theFeder algov ernmentliber al
izedt hegl obal
system ofmobi let el
ecommuni cati
on( GSM)ser vi
ceandi tsexpansiont othet ownwas
embr acedbyy ouths, especiallyladieswhocoul dnotcompet ei
nOkadabusi ness( hir
e) .
Today ,t he GSM has gai nful l
y empl oy ed overt en percentoft he y ouths whi l
e
contributingaboutf i
vepercentoft het ownshipi ncome.Thi swasf ollowedcl oselyby
theest abl i
shmentoft hreei nstitut
ionsofhi gherlear ningi .e.apol ytechnic,col legeof
educat i
onandauni versit
y,whi chhav ecol l
ecti
velycr eatedoppor tuni ti
esi nt ermsof
i
ncreased demand f orhost elaccommodat i
on,busi ness cent res cum secr etarial
services,t ail
ori
ng and banki ng ser vices.Meanwhi l
e,t he cementf actoryhasbeen
revi
vedt hroughpr i
vati
zation.Thenew demandaccent uat edbyt hespat eofpr ivate
i
nstituti
onsofhi gherl earning,GSM r ev oluti
onoccasi onedbypr ivatizationphi losophy
andbanki ngserviceexpansi onar eal i
ent oanydel iberat egov er
nmentef f
ortst opr ovide
j
obs.Ont hecont rary,gl
obal i
zat ionledt oi mprovedenv i
ronmentwi thoutgov ernment '
s
dir
ecti nterventi
on.I not herwor ds,t hesear eext ernal it
iesofgl obal i
zat i
ont hatcoul d
tri
ggerent r
epreneur i
alacti
v i
ties.

11. Taki
ngcour
sesathi
gherschool
stoacqui
remor
eorr
elev
antski
l
ls

Educationi sapower f
ulspr i
ngt hatspinsone'slif
e.Highereducat i
onmeanshi gher
stakesinl i
fe,al
lthingsbei ngequal.WhenIwasdev elopi
ngahost elaccommodat ionat
FideiPolytechnic,
Gboko, Imetabr eadbakerwhowasr oundinguphi snat i
onaldipl
oma
programme( ND)inmar ketingattheinst
itut
ion.I
ntheensuingdi scussion,heimpressed
onmet hathist r
aininghadaf f
ordedhim anoppor tunit
ytogener ateincreasedsal es
throughcour teoushandl ingofhi scustomer s.Thi
si sani ntr
insicbenefitofahi gher

50
education.Bankersin Gboko havehad causet o maketest
imoniesthattheyhad
witnessedOkadadr i
verswit
hov erN50,000.
00inthei
rsav
ingsaccount
.Thesebanker
s
probablyfor
getthatthesedr
iver
saregraduatesofatl
east
,NDsorNCEsandt heyknow
betterwhytheyareintheOkadabusiness.

12. Taki
ngadv
ant
ageofgov
ernmentpol
i
cies

Generall
yspeaking,polici
es ar
e gener
alprinci
ples t
hatgui
de top managementin
decisi
onmaki ng.Inthecor por
ateworl
d,theyaresetbyt heboard.Poli
ciesai
m at
creati
ngconduciveenvi
ronmentfort
heattai
nmentofsetobj
ect
ives.

Ingov ernance,pol icesai m atachi evi

ngmacr o-economi cobject i
vessuchasst able
exchanger at e,bal
anceofpay mentequil
ibrium,acceptablelev
el ofunempl oyment,price
stabi
li
ty,amongot hers.Inot hertoachievet hi
s,governmentempl oysacombi nationof
fi
scalandmonet arymeasur essomeofwhi chcanspi nopportuniti
esf orent
repreneur s.
Forinstance, thebanonf rozenf oodshasencour agedbot hchickenandaquat i
cfarmi ng
i
nr ecentt i
mes.Si mi l
ar l
y,l
ocalricehast akenthecent restagefollowingthebanonr ice
i
mpor tationandNi gerianfarmer sarewor kingont heimperati
veofi nwar dsourci
ng, not
toment iont heef f
ectoft hebanonf rui
tjuice,whichtri
ggeredstiffcompet i
ti
onbet ween
Dangot eGr oupandCocaCol atocustomer s'del
ight.

13.Rel
i
anceone'
shonest
y

Honestyisnowar areatt
ri
butei noursoci
etyandwhoev erpossessesitst
andsouttobe
appreci
ated.Sev er
alcapit
ali
stsamongstushav eoneform ofjobofferortheotherbut
they wouldr athernott rade-offsuch withtreacher
y .Itis evi
dentthatdomest ic
employment sli
kehousekeepi ng,gardenatt
endanceanddr i
vinghaveallvani
shedfrom
thehit
hertogainfulj
oboppor t
uni t
iesduetodear
thofintegri
ty.

Therefore,wher e an indi
vidualpossesses thisr are qualit
y,such per son should
demonst rateiti
namannert hatwouldattr
actpatronage.Thebestwayt odemonst r
ate
honestyi s by renderi
ng one's selfavail
ableforagency act ivi
ties t
o earn some
commi ssion.Agencyact i
vi
ti
esmayst artf
rom ther enewalofv ehicleli
censes,proj
ect
supervisi
on, r
entcoll
ecti
on,housedecorati
on,landregistrat
ion,businessregi
str
ati
onor
assetspr ocurement.Oncethef i
rstdel
iv
erableisri
ghtt hendemandsf orsuchserv i
ces
begintot ri
ckl
ein.

14.I
nvest
mentcl
ubbi
ng

Investmentclubist hecomi ngtogetherbypeopleoflikemindst opoolresour

cesand
takeadvantageoft heinvestmentoppor tuni
ti
es.I
thasbecomenecessar ytofor
mt hese
clubsduet othecont inuedshift
ingoft hegoalpostbystockbrokersinter
msofi nit
ial
amountr equired to open cli
ents'investmentaccounts.Fori nst
ance,Fir
stTrustee
Limitedatapoi ntrequiredN2. 5mill
iont oopenacl i
ent'
stradi
ngaccount,whichwas
wellbeyondanav eragei nv
estor.Consideri
ngthatFir
stTrusteeLtdisanexper i
enced
corporat
einvestor,amemberoft helargerFi
rstBankfamil
ywi t
hasi st
ercompanyl i
ke

51
Fir
stRegistr
arsLtdt
hatcontrolsover40%ofquotedcompaniesinNigeri
a,oneisnotin
doubtastohowbenef i
cialFi
rstTrust
eeLtdcoul
dbet opotenti
ali
nvest
ors.I
tissensi
ble
ther
efor
e, i
fagroupoffi
v ecoul
dt opoolr
esour
cestogetherandmeetthethreshol
d.

15.Engagementi
nhobbi
es

Ahobbyi sapastt i
meendeav our
.Ty picall
y,hobbiescanbedev el
opedi nt
oal ucrati
ve
businessv ent
ure.Hobbiesmaybecl assif
iedintogames, col
lections,outdoorrecr
eation,
performingartsorcreat
ivehobbi es( cooking,gardeninget c.
).Indeed,thesupremecour t
ofThai l
andhashadt osackt hecount ry'
spr i
memi nisteronchar gesofengagementi na
tel
ev i
sioncookingprogrammeasahobby( CNN,Sept ember12,2008) .InNigeri
a,wi t
h
thegr owingneedt oaddspi cest ooccasi ons,agoodnumberofel oquentempl oyees
havedev el
opedhabitint hehobbyofbei ngmast ersofcer emonies( MC)wher et hey
earnr easonabl
ywel l
.Acol league,aLondont rai
nedeconomi st,hashadt or esi
gnher
appointmentasaseni ormanageri nabankt ocont i
nuewi thherweddi ngcookingwhi ch,
untilt
henwasj ustahobby .Al otofmar ri
edwoment endt or unkiosksi nfr
ontoft heir
resi
dencesashobbi est o ev adei dleness.Somepr ofessionalsengagei npar t-
ti
me
teachingasahobbyandt hel istcangoon.

Regul
ator
sincaseofneed

Thef
ollowi
ngareregulat
orsi
nsomeoft
hesect
orswher
epr
ospect
iveent
repr
eneur
s
maywishtorai
secapi
tal:

• Moneymar ket:CentralBankofNi geri

a, Niger
iaDepositInsur
anceCorporati
on,
Chart
eredI nsti
tuteofBanker sofNiger i
a,MoneyMar ketAssociat
ionofNi ger
ia.
• I
nsurance mar ket:Nat ionalInsurance Commi ssion(NAICOM),Niger
ia
I
nsuranceAssoci ation(NI A)
.
• Capit
al Market:Securiti
esandExchangeCommi ssi
on,Nigeri
anStockExchange
(NSE),AbujaCommodi t
yand Secur i
ties Exchange ( AC&SE),
Charter
ed
I
nsti
tuteofSt ockbrokers( CIB)
.
• Pensionfundmar ket:PensionCommi ssion(Pencom) .
• Debtsmar ket:DebtManagementOf fi
ce

Unfortunately,ther
eexist
snocommer ci
alcodetor egulat
eotherf inancialinvestment
s
thatfailt
ocomeundert hepurvi
ewoft heabovestatedagencies.Accor dingly,EFCChas
becomear eadyagencyt omediateindisput
ear i
singfrom theset ransacti
ons.The
FederalGov ernmentshouldurgent
lytaskBureauofPubl i
cEnt erprisesSMEDAN and
NACCI MAt ocomeupwi thaccept
ablecommer cialcodet odef i
neandenf orcegood
businesset hicsandpract
icesasisdoneinthedevelopedwor l
d.

8.2Entr
epr
eneuri
ali
deasandOpportuni
ti
es
The process of oppor
tuni
tyr ecogni
ti
on i s cr
it
ical t
oentr
epreneurshi
p. The
fundament
al act ivi
ty ofentr
epreneurshi
pisnewv ent
urecr
eati
on.Amaj orst
epin
any ent repr
eneur
ial vent
ure cr eati
on pr ocess i s t her ecognit
ionofthe

52
oppor
tuni
tybyt
heent
repr
eneur
.

Opport
uni
tyr
ecogni
ti
on connot
es per
cei
vi
ng a possi
bil
i
tyf
ornew pr
ofi
tpot
ent
ial
t
hrough:

a) t
hef
oundi
ngandf
ormat
ionofanewv
ent
ure,
or

b) t
hesi
gni
fi
canti
mpr
ovementofanexi
sti
ngv
ent
ure.

From thi
sbroaddefini
ti
on,opportuni
tyrecogni
ti
oncanbeconceiv
edofasanacti
vi
ty
thatcanoccurbot
hpr i
ortofi
rmf ormationandaf t
erfor
mat
ionoft
hef
ir
mthroughi
nto
theli
fe.Howdoentrepr
eneursidenti
fyopport
uni
ties?

Ani deaf oranent repreneuri

albusinessdoesnotnecessar i
l
yequat etoanopportunit
y
alt
houghi tisalwaysatt heheartofanoppor t
unit
y.Entr
epreneurshi
pisamar ketdri
ven
process,ot herfactorsmustexi sttosupportthenewpr oductideaforitt
obecomean
opport uni
tyaspot entialcust
omer smustwantt heproduct.Hence,wecant hinkofthe
"i
dea"asast eppi
ngst onethatleadst oanoppor tunit
y.Oppor t
uni
tyrecognit
ionis
thereforeapr ocess.

Ti
mmons'(1994)proposedamodelofsuccessf
ulv
ent
urecr
eat
ionbasedont
het
hree
cr
uci
aldr
ivi
ngforcesofent
repr
eneur
shi
p:

(
1) t
hef
ounder
s(ent
repr
eneur
s),

(
2) t
her
esour
cesneededt
ofor
mthef
ir
m,and

(
3) t
her
ecogni
ti
onoft
heoppor
tuni
ty.

Surroundi
ng thepr ocessar esucht hi
ngsasr isk,chaos,informat i
onasy mmet r
ies,
resourcescarcit
y,uncer tainty,par adoxes,andconf usi
on,allofwhi chcompl icatethe
process.Onlywhenal lt hreecomponent sconv er
geandf i
tcanent repreneurshipoccur
successful
ly.Thechal lengef ort heent repreneuri stomani pulateandi nfl
uencet he
surroundi
ngf actor
st oi mpr ovet hechancesf orsuccessofav enture.AsTi mmons
(1994)notes,theprocessofr ecogni zi
ngandsei zinganoppor tunit
yof tenrel
iesont he
ri
ghtt imi
ng.Thus,accor ding to Ti mmons( 1990),the businessi dea iscent ralto
oppor t
uni
ty.Howev er,onl y when t he business env ir
onmentand t he skil
ls and
backgroundsofi ndi
v i
dualent repreneursf i
ttoget herappropr
iatelywi t
ht hefeaturesof
anoppor t
unitycanitreachi t
sf ull
pot enti
al.

Reasonsf
orSt
art
ingaBusi
ness

53
Anobservat
ionthati
sfundamentaltoent
repr
eneurshi
pschol
arshi
psuggeststhatsome
i
ndivi
dual
sar emoreli
kelyt
oidenti
fyandexpl
oitopport
uni
ti
esthanareothers.Avari
ety
ofexpl
anati
onsforpresumeddiff
erencesbet
weenent r
epr
eneursandothershavebeen
off
eredanddebated.

Thesedi
ff
erencesar
eduet
o:

a) Var i
at i
ons i n t he bel ief
si ndi
v i
duals hold about t heeff i
cacyofper cei
ved
availabler esour ces;
b) Ther esour cesatone' sdisposal;
c) Expect ationsaboutt hev al
ueoft heser esour
ces;
d) Consi derat ionofone' sopportunitycosts;
e) Pr iorexper ience;
f) Opt i
mi sm;
g) Act i
on- or
ient ati
on; and
h) Awi dev arietyofper sonaldisposi ti
ons,suchastolerancef orambi guit
yorneed
forachi evement .
Thepur suitofent r
epreneur ialacti
vi
t yrefl
ectsaser i
esofchoi cest hatentrepr
eneurs
makeast heyengagei nt hepr ocessofst art
ingabusiness.Ascer taini
ngt hereasons
entr
epreneur sof ferf orwhyt heychooset oengagei nbusinessst art-
upi sli
kelyto
provi
dei nsight sint odi ff
erencesi nper sistenceinentr
epreneurialact i
vi
ty,t
heki ndsof
entr
epreneur i
alact i
vi
ti
esunder taken,andsuccess( orfai
lur
e)atst art
ingabusi ness.

New busi nessesar enotcr eatedbyacci dent .Therearesuf fici

entimpedimentst o
successf ulbusi nessst ar
t-
upt osuggestt hatt heprocessi nvolvesacti
onsthatar e
clearl
yi ntenti
onal .Whenobst acl
esar i
sei nconnect i
onwi t
hanyoft heseact i
vi
ti
es,
entrepreneursmustf indway stoov er
comet hem inordertoensur ewhatHeider(1958)
call
ed " equifi
nality"oft he outcome.Ther efore,i
nt heoreti
calt er
ms,new v enture
creati
oni sani ntenti
onalactt hati
nvolvesr epeatedattemptstoexer ci
secontrolover
theprocess, inor dertoachievethedesir
edout come.

Thecausesofbehav i
ourhav etradit
ionall
ydistinguishedbet weent hosefactorsinter nal
totheper sonandf actorsthatar elocatedi nt heext er
nalenv ir
onment .Themor ean
eventappearstohavebeent heproductofani nter
nal cause, t
hemor ethei ndiv
idual can
be held accountabl
ef ort he ev ent.In Heider '
s wor k,at t
ribution theory has al so
dist
ingui
shedbet weent empor ary,transi
entcausesandcausespr esumedt or emai n
essenti
all
yunchangedov eralongert imeper i
od.Thef ormerar er eferr
edt oasv ariable
causes;thelatt
erarest ablecauses.ForHei der(1958) ,intentionali
tywast he"cent ral
featur
e"ofpersonalcausal i
ty,theoneel ementneededt odistinguishbet weenev ents
broughtaboutbypeopleandev entsbr oughtaboutbyf orcesofnat ure.

54
I
nast udyofent repreneur
sf r
om 11di f
ferentcountr
ies,Scheinber
gandMacMi l
lan
(
1988)pil
ot-
testedasetof38possi bl
ereasonsf orgoingint
obusi ness.Subsequent
f
actoranal
ysesoft hesestatementseventual
lyledto23possi blereasonsthatwer e
t
est
edindetailbyBirl
eyandWest head(
1994).Inorder
,thetopsixreasonswere:

(
a) Tohav
efr
eedom i
nwor
k

(
b) Tot
akeadv
ant
ageofanoppor
tuni
ty

(
c) Tocont
rol
one'
sownt
ime

(
d) "
Itmadesenseatt
hatt
imei
nmyl
i
fe,

(
e) Topr
ovi
desecur
it
yforone'
sfami
l
y,and

(
f) Tohav
egr
eat
erf
lexi
bil
i
tyf
orper
sonal
li
fe.

Withthepossibl
eexceptionof(d),t
heseexplanat
ionsallsoundqui
teintent
ionaland
presumethattheentrepr
eneurcanexertcontr
olovertheoutcome.Factoranaly
sisof
the23reasonsproducedsevenfact
orsthatt
heauthorsl
abell
ed:

(
a) Needf
orappr
oval

(
b) Needf
ori
ndependence

(
c) Needf
orper
sonal
dev
elopment

(
d) Wel
far
econsi
der
ati
ons(
int
hecont
ri
but
ing-
to-
the-
communi
tysense)

(
e) Per
cei
vedi
nst
rument
ali
tyofweal
th

(
f) Taxr
educt
ion,
and

(
g) Fol
l
owi
ngr
olemodel
s.

Aswast hecasewi ththet opsi

xi ndiv
idualreasons,thesefactorshavet hedist
inct
fl
avourofintendi
ngtopur sueachi
ev abl
e( i
.e.
,contr
oll
able)goals.Otherreasonsgi
v en
forwhy st arta business werei denti
fi
cati
on ofa mar ketneed,aut onomy and
i
ndependence, adesi
retomakemor emoney ,adesir
etouseknowl edgeandexperi
ence,
theenj
oymentofsel f
-employment,
andadesi r
etoshowt hatitcouldbedone.

Applyi
ngt heframeworkofexpectancytheorytot hechoi
cetoundertakethebehavi
ours
requir
edf ornew vent
urecreati
onl eadstot hepr edi
cti
onthatsuchact i
onsaremost
l
ikelywheni ndivi
dual
sbeli
evethat( 1)theyar eablesuccessful
lytoperfor
mv entur
e-
organizi
ng behav i
our
s,(2)successf ulv enture-or
gani
zing behav
iours wil
llead to

55
predi
ctableout comes( suchasabusi nessst
art
-up)and( 3)asuccessf
ulstart-
upwi l
l
resul
tin ot herout comes ofa posi t
iveval
ue (such as weal
th cr
eat
ion,increased
personalstatus,orgreateri
ndependence)
.

Bothi ndiv
idualf actors" endogenous f actors"and si tuationalv ari
ables "
exogenous
factors"wi l
lenteri nt
ot heper son'sexpect ancyj udgment s,instrument ali
tyjudgment s,
andassessment sofv alues.Pr obabil
ityjudgment smaybeaf fect edbyper cepti
onsof
one'sownski l
lsandabi l
i
t i
es,generalizati
onsf rom pastexper iences( especial
lyother
entrepreneurialexperiences) ,thepercei v
eddi ff
icult
yoft het ask, ortheamountofef f
or t
required. Instrument ality judgment s may be af f ected by per cepti
ons of t he
environment alandsi t
uat ionalconstraints,suchast heav ail
abi l
ityofcapi t
al,network
contact s,and pot entialmar ketdemand f ort he pr oductorser vice.Inaf ashion
compar abl
et oour s,theopen- endedr esponsescoul dbecodedt oaccountf ornascent
entrepreneur'sper ceptionsofabi li
ty,thel i
keli
hoodofsuccess,andt hev alueoft he
outcomesofnewbusi nesscr eati
on.

Oppor
tuni
ti
esandPot
ent
ial
Ent
repr
eneur
s

Indi
vidual
sbecomeent r
epr
eneursforawi dev ari
etyofreasons.Al lofthem,however
,
maybesummar izedbysay ingthateachpot entialent
repreneur,whenmaki ngthat
choice,bel
iev
est hattheuti
lityr
eceiv
edf rom undertaki
nganent repr
eneuri
alvent
ure
exceedstheutil
i
tyrecei
vedfrom anyalt
ernati
veincome-producingactiv
ity
.

I
magine a wor l
d where each i
ndivi
dualisf aced wi
th a profi
toppor t
unity
.Some
i
ndivi
dualswillseeit
,somewi llnot.Ofthosewhoseei t
,somewi l
lactuponi t,ot
her
s
wil
lnot.Indi
vidualst
hatseizetheopportuni
tybecomeentrepreneurs,al
lother
sdonot .
Thus,eachindivi
dualchoosesbetweenbecomingornotbecomi nganent r
epreneur.

Alt
ernativ
ely,we coul d assume t hati ti s possiblet o divi
de allincome- pr
oducing
acti
vi
tiesintotwogr oups:onegr oupi ncludingallact i
vit
iesthatrequir
eent repr
eneurial
eff
ortandasecondgr oupincl udingal lacti
v i
ti
est hatdonotr equir
esuchanef fort
.In
eit
hercase,and f oranygi v en ent r
epr eneurshi
pr ate,because there are onlyt wo
possiblechoices,eachi ndi
vidual'schoi ceofact i
v i
tyi sdeterminedbyt hediff
erence
betweent hesubjecti
vereturnt obecomi nganent repreneurandt hesubj ecti
veexpected
ret
urnt odoingsomet hingelse.Wecal lsuchadi f
ferencet hesubjecti
ver el
ativ
er et
urn
toentrepreneur
ship.

Subject
iver
elati
ver et
urnsto ent
repr
eneurshi
p descr
ibe an i
ndi
vi
dual'
sdeci
sion t
o
becomeanent r
epreneurasafunct
ionoft
hreesimult
aneouselements:

1) The subj
ect
ive i
nit
ial endowment
, whi
ch i
sper
sonal
;

56
2) Theinsti
tut
ionalandeconomicci
rcumstancesoft
heeconomy
, whi
ch ar
e
obj
ecti
ve and communi t
yspeci
fi
c;and

3) Theexi
sti
nglev
elofent
repr
eneur
ialact
ivi
tyi
nthatcommuni
ty as per
cei
ved
and ev
aluat
ed by t
hei
ndivi
dual
.

Thei nit
ialendowmentsummar i
zesal lsubj
ecti
veper sonalcharacteri
sti
csand,among
othert hings,incl
udes the indi
vidual'
sf amil
ybackgr ound,educat i
on,and personal
hi
stor y
. The i nsti
tut
ional and economi c v ari
ables summar ize the objectiv
e
socioeconomi ccircumstanceswi thi
nwhi chthei ndiv
idualoperates.Theyincl
ude,but
are notl i
mited to,propert
yr i
ght s,taxes,inf
lation rate,possibil
it
y ofalter
nativ
e
empl oyment ,
etc.

Finally,thechoi ceofani ndi vidualwi thr espectt oentrepreneurshipisinf

luencedbyt he
existingl evelofentrepr eneur ialact i
vity.Int r
aditi
onalexplanat i
onsofent repreneurshi p,
differences i n entrepr eneur shipr ates acr oss communi ti
es ar e expl
ained t hrough
differencesi neconomi candi nst i
tutionalcondi ti
ons.Asar esult,t
heseexpl anat i
ons
cannotaccountf ort hehi ghv ariancei nent repreneurshiprateswhensi milareconomi c
andi nsti
tutionalchar acteristicsexi st.Ouri deai sthat,li
kemosthumandeci sions,t he
choi cet obecomeanent repreneuri sf ormedandr evisedwi t
hi nthesetofi nformat ion
avai l
ablet ot heindividual .Thekeyassumpt i
oni sthatdi f
ferentagentshav edifferent
i
nf ormat ion,t hus differentper ceptions aboutt he r i
sk and costofbecomi ng an
entrepr eneur .In particular,per ceptions aboutl i
keli
hood and ease ofsuccess ar e
i
nf l
uencedbyt hesoci alci rcl
eoft hei ndividualand.therefore,infl
uencedbyt heex i
sting
rateofent repreneuri
al activ i
tyitself
.

Thus,ent repr eneurshi

p creat es mor e entrepreneur ship and t he aggr egatel ev elof
entrepr eneurialactivi
tyisuncer tainandheav ilyinfl
uencedbycul turaltrai
ts.Thismeans
thatsi gnif
icantdi ff
erencesamongent r
epreneurshi pratesofdi fferentgr oupsmayexi st
i
n spi te ofr elati
vely modestdi fferences among t heireconomi c and institutional
char acteri
stics. To summar i
ze, f or each i ndivi
dual,t he r elati
ve r eturn t o
entrepr eneurshipi saf uncti
onoft hesetofper sonalchar acteristicst hatdeterminet he
i
nitialsubj ect iv
e endowment ,obj ective socioeconomi c circumst ances,and oft he
entrepr eneurshipr atei t
self.I n par t
icular
,t hehi ghert heent repr eneurshi
pr at e,t he
strongeri st hei ncentivetobecomeanent repreneurr athert hant opur sueanyot her
activit
y ,i
ndependentofi nit
ialper sonal characterist
ics.

Ifthe entr
epreneur
shi
p rat
ei nfl
uences t
he choi
ces of new indi
vidual
s,t
hen
ent
repr
eneurshi
pi saself
-r
einf
orci
ngphenomenon.Asar esul
t,t
hepr ocessofit
s
57
devel
opmentt hroughoutacommunityi
snotpr
edi
ctabl
e.Thus,
dependi
ngonthenature
andstr
engthofcer tai
nsoci
altr
ait
s,acommuni
tymayormaynotdev el
opahi
ghlevelof
ent
repreneur
ialacti
v i
ty.

8.3ElementsofVentur
eCr eat
ion
Somekeyf act
orsmayleadt oanincr
easeinaperson'sdesireanddecisi
ont ostar
ta
business.Examplesofsuchf act
orsi
ncludeaperson'spercepti
onofdesirabil
it
yand
feasibi
li
tyofstar
tingabusinessortheperson'
spropensit
yandi nt
ent
iontof ounda
businessandhisorhersense-
makingabouttheenv
ironmentalfor
ces.

Four el
ement
s i
n v
ent
ure cr
eat
ion hav
e beeni
dent
if
ied:

1. Apr
ofi
tabl
ebusi
nessoppor
tuni
ty

2. Techni
cal
know-
howoft
heent
repr
eneur

3. Busi
nessknow-
howoft
heent
repr
eneur
,and

4. Ent
repr
eneur
ial
ini
ti
ati
ve.

Thus,somel it
eraturesuggeststhatforanent r
epreneurtostartabusiness,heorshe
shoul
dper cei
vet hataprofi
tabl
eoppor t
unit
yexists,shoul
dfeelconf
identthatheorshe
possessesnecessar yski
ll
stogoi nt
obusiness,andshouldtakeaniniti
ati
veforstar
ti
ng
abusiness.Threekeyel ement sofav enturecreati
onprocesscanbeconcept ual
i
zed
fr
om Vesper '
ssubmi ssi
ons,asopportuni
ty,pr
opensityandabil
it
ytoenterpri
se.

Ent
repr
eneur
ial
Oppor
tuni
ty

Oppor t
unit
yref er
st ot heextentt owhi chpossibil
iti
esf ornew v entur
esexistandthe
extenttowhi chent repreneurshav etheleewayt oinfluencet hei
roddsf orsuccess
throughthei
rownact ions.Entrepreneuri
alopportunit
iestendt obehi gheri
neconomies
that are der egul
ated, wher e mar ket mechani sms oper ate freel
y, and where
entrepr
eneurshav et of acever yfew barri
erstoent ry.Thus,gov ernmentpoli
ciesand
procedures affect the busi ness oppor t
unit
y.The oppor tunit
y wi l
linfl
uence an
entrepr
eneur'
spr opensitytoent er
priseandabil
it
yt oent erpr
ise.

Ent
repr
eneur
ial
Propensi
ty

A str
eam of research on ent
repreneur
ship emphasi
zes t
he psychologi
caland
behav
iour
alchar
acter
ist
icsofent
repreneur
s.Themostcommonoft hesear ethehi
gh
needforachi
evement,capaci
tyt
oi nnovate,i
nter
nall
ocusofcontr
ol,propensi
tyf
or

58
t
aki
ngr
isks,
andot
herkeyent
repr
eneur
ial
char
act
eri
sti
cs.

Peoplet hathav eanur geforexcell

ence,wi l
l
ingnesst otakemoder ater i
sk,anddesireto
beindependentar ev eryli
kelytobecomeent repreneurs.Ast udyconduct edinv ar
ious
countri
esf oundt enbehav i
ouralcharacteri
sti
csofsuccessf ulentrepr eneur
s.These
characterist
icsareoppor t
unit
yseekingandi nit
iati
ve,persi
stence,r i
skt aking,demand
forqual it
yand ef f
iciency,commi t
mentt o wor k,goalsetting,i nformat i
on seeking,
systemat i
cpl anni
ngandmoni tori
ng,persuasionandnet wor
king, andi ndependenceand
self
-confidence.

Thel i
terat
ureonper sonalent
repreneuri
alcompetenci esarguest hatpeoplewi thcertai
n
behav i
ouralchar acteri
sti
cs are ableto perceiv
et he oppor t
uniti
es avail
ablei nthe
envir
onment ,seizesuchoppor t
uniti
es,andthent urnsuchoppor tuni
ti
esi ntopr ofi
tabl
e
ventures.Yet,
aper sonali
tyorbehaviour
alprofi
leisnotasuf fi
cientcondit
ionf orpeople
togoi ntobusiness.Ani ndivi
dualwithhighpropensi t
yt ostartabusinessi smor eli
kel
y
to go into business when he orshe sees sev eralbusi ness opportunit
ies i nthe
envir
onment .Fur thermore,thepr opensit
yt o enterpr i
sewi l
lbeenhanced when an
i
ndividualfeel
sconf i
dentinhi
sorherabi l
it
ytoent erprise.

Ent
repr
eneur
ial
Abi
l
ity

Entrepr eneuri
alabi l
ityreferst othesum oft echnicalandbusi nesscapabi l
it
iesrequi red
tost artandmanageabusi ness.Whi l
e" t
echni calcapabi li
ty"referstot hetechnical skill
s,
"businesscapabi li
ty"referst otheknowl edgeandski l
lsinv ari
ousf uncti
onalaspect sof
business such as busi ness pl anning,pr oductdev elopment ,mar keti
ng,per sonnel
management , gener al management , account ing, f i
nance, et c. Fur t
hermor e, as
entrepr eneurs f ace r esistance f rom cust omer s, inv estors, and sev eral ot her
stakehol ders,theyr equire some pol it
icaland st rategic planning skillsin or dert o
succeedi ntheirendeav our s.Wi t
houthav i
ngt heabi l
itytoent erprise,entrepreneur smay
notbeabl etosei zet heoppor tuniti
esav ai
lablet ot hem andsuccessf ull
ygot hr ough
various st art
-up act i
viti
es ormanage t he on- going busi ness.I ndivi
duals wi tht he
necessar yabil
it
yt oent erprise,whencombi nedwi thenhancedpr opensi tytoent erprise,
willincreaset heirchancesofgoi ngintobusi ness.And,oncet heyar einbusi ness,t hey
aremostl i
kel
yt obet hewi nner s.

Acr ucialr
equir
ementi nthepr
ocessofnew v enturecreat
ioni samat chbet weenthe
oppor t
unit
y,the propensi
tyto enter
prise,and the abili
tyt o ent
erpri
se.Whi lethe
oppor t
unit
ymayenhanceone'spropensitytoenterpri
se,personswithhighpropensit
yto
enterpri
sewil
lperhapsbeabletoident
ifytheoppor t
unit
iesintheenvir
onment .Si
milarl
y,
abi
lit
yt oent
erpri
semaydependupont henat ureofav ailabl
eoppor t
uni
ties.Some

59
peoplemayhav ehighengineeri
ngskill
sbutt heoppor t
unit
yf ort heuseofsuchski ll
s
maybel ow.Personswi t
hahi ghabil
itytoenterpr
isemayal sobemor eabletolocate
opportunit
iesthanthosewi t
hl owerabili
tytoenterpri
se.Thel ikel
ihoodtoent erpri
se
i
ncreaseswi thanincreaseinthepropensit
yandabi li
tytoent erpri
seandamat chwith
avai
lableopportuni
ti
es.Thus,ahi ghlevelofopportuni
ty,propensi t
yt oenterpr
ise,and
abil
i
tytoent er
pri
sewillposi
ti
velycorr
elatewit
hani ndi
vidual
'slikeli
hoodt oenter
prise.

Thereisar el
ati
onshipbet weenopportunit
y ,propensitytoent er
pri
se,andabi l
it
yt o
enterpr
ise.Theprocessofdev el
opingcompet entent repreneursandincr
easingt hei
r
l
ikeli
hoodt oenter
pri
seconsi stsofdevelopingpl ent
if
ulbusi nessopport
uniti
esint he
envir
onment ,enhancing people'
s propensityt o enter pri
se,and developi
ng t hei
r
capabil
itytoenterpr
ise.Compet ententr
epreneur swillbeabl et otakeadvantageof
mostoppor t
unit
iesandr espondtotheneedsoft heenv i
ronment s.

Akeyr ol
eoft heent r
epreneur
ialenvironmenti stohel pentrepr
eneur
sdev el
opboth
propensit
yt o enter
pri
se and abil
it
yt o enter
pri
se.Per sons wit
hlow propensi
tyto
enter
priselackt henecessarymot i
vationandmi nd-setrequi
redtostartabusiness,
whereaspersonswi t
hl owabil
it
ytoent erpri
selacktheskil
lsneededtomanagethestart
-upandsubsequentpr ocessesofbusinessoper at
ion.

Thef oregoingdi scussionsuggest st hatt hei mportanceofeachdi mensi onoft he

envir
onment alf actorsv ari
es dependi ng upon t he av ailabil
it
y ofoppor tuniti
es f or
businessst art-
upandt heov eralllevelofpr opensityandabi l
it
yofpeopl et ost artan
enterprise.Eachaspectofenv i
ronment alcondi t
ionisrelatedt oaspecificaspectoft he
coreel ement sofnew v enturecr eati
on.Gener ally
,theav ailabil
i
tyofoppor t
uni t
iesi sa
pri
mar yelementf orenhanci ngthepr opensityandabi li
tytoent erpri
seandconsequent ly
thelikelihoodt oent er
prise.Thedi mensi onoft heenv ir
onmentt hatdir
ect l
yr elatest o
theoppor tunityismacr oeconomi cpoliciesandpr ocedur es.Thebet t
ert hel egaland
i
nstitutionalf ramewor kf orefficientfunct i
oning oft hemar ketsand t hef ewert he
barri
er st hatconst rai
n peopl et o pur sue business oppor tunit
ies,the gr eatert he
l
ikeli
hoodofbusi nessst art-
up.

The di
mension oft he envi
ronmentthatr elat
est othe propensi
tyt o enter
pr i
se i
s
soci
oeconomicf actors.The greater t
he i mpor t
ance placed by t he society on
entr
epr
eneuri
alv al
ues and behav i
ours,the largert he proporti
on ofexper i
enced
entr
epr
eneurs and r ole models, and the hi gher t
he soci etal recogni
ti
on of
entr
epr
eneuri
alperformance,themoreli
kel
yt hatthepropensityt
oent er
priseishigh.

Thedi
mensionoftheenv
ironmentt
hatrel
atest
ot heli
kel
ihoodtoenter
pri
seist
helevel
ofent
repr
eneur
ialandbusinessskil
l
s.Thegr eatertheav ai
l
abi
li
tyoftechni
caland

60
business-r
elatedt r
aining,thegreatertheabi l
it
yoft hepot enti
alentrepreneur stostar t
andmanageabusi ness.Thus,ifpeoplehav eahi ghpr opensit
ytoent erprisebutal ow
abil
i
t ytoenterpri
se, envir
onmentalinter
ventionswillneedt odeveloptheent r
epreneurial
andbusi nessskill
soft hesepeople.Conversely,i
fpeopl ehavehighabi l
i
t ytoent erpr
ise
butal ow propensityt oenterpr
ise,envi
ronment alinterventi
onsneedst obeor i
ented
towar dsmakingt hesoci oeconomicconditi
onsconduci vef orentr
epreneur ship.

Asar guedearli
er,aper sonwi t
hhi ghpropensit
ytoent er
pri
semayent erintobusiness;
yetthepersonislikel
yt ofailei
theratthestart-
upstageorafterwar
dsifheorshel acks
theabili
tytoent erpr
ise.Conv ersely
,aper sonwi thhighabil
itytoenterpr
isebutl ow
propensit
ytoenterpri
sel acksadequat emotivati
ontoventureint
obusiness.Successful
entr
epreneurshi
pt husrequireshighlevel
sofpr opensi
tyandabili
tyt
oenterpri
se.

Thefi
nanci
alandnon-
financialassistanceappeari
mportantonlyi
ftheover
alll
ikel
i
hood
toent
erpri
seishi
gh.Pr ev
iousst udieshaveshownt hattaxandot heri
ncenti
veswere
i
mportantwhenpeopl
ehadhi ghermot iv
ati
ontogoint
obusi ness.

Theseel ementsofv enturecreat ionhav ei

mpor tanti
mpli
cat i
onsforpublicpolicyandfor
thedesi gnandimpl ement ati
onofpr ogr
ammest odevelopentrepreneurship.General
ly,
thepr i
mar yrol
eoft hegov ernmentandot heragenci
esi stoincreaseoppor tuni
ti
es,to
developt hemot i
vationofpot entialentr
epreneurstogoi ntobusiness,andt oenhance
potenti
alent r
epreneurs'abili
tyt ost artabusiness.Governmentagenci est hatdev el
op
entrepreneuri
alenvir
onment smaybeef fi
cientinthei
rwor kift
heyaddr esst hespecifi
c
element sofourmodel .Thef ollowingpoi ntssummar i
zet heguideli
nesf orformulati
ng
publicpolicy
:

1. Gov ernment
s can cont r
ibutet o ent
repr
eneurship by adopt i
ng pol i
cies and
proceduresthatpr ovi
dea br oaderscopeofoppor tuni
ti
est o entrepreneurs.
Exampl esofpossibleint
ervent
ionsaretheprov i
sionofl awsandr egul at
ionsto
protect ent
repreneuri
alinnovati
on such as pat ent
s andcopy r
ights,l i
beral
economi c poli
cyt o let people f r
eelyexerci
set heirentr
epreneurialtal
ents,
andmi ni
mum rulesandregulat
ionsforentr
epreneur stofoll
owsot hatt hecosts
ofdoingbusinesscanbemi ni
mized.

2. Government swhosecount rieshav elowpr opensit

yt oent erpri
sebuthighabi lit
y
to enterpri
se could design pol i
cies and programs ai med ati mprov i
ng t he
socioeconomicdi mensionoft heenv ir
onment .Short -
termi nter
vent
ionscoul d
i
ncludesuchpr ogr
amsast hebest -
entrepr
eneur-of-
the-yearawar d,pr
ovisionsof
tr
ade f air
s,and simil
aract i
vit
ies thatrewar d entrepreneurialact
ivi
ties and
i
ncreaseov er
allsoci
etalawar enesst owardent r
epreneur ship.Apossiblel ong-

61
 ter
m poli
cyapproachi
stoi
ntr
oduceent
repr
eneur
ialv
aluesandt
hinki
ngi
nthe
educat
ional
syst
em.

3. Government swhosecount ri
eshav eal ow levelofabi l
i
tytoent er
prisebuthigh
l
evelofpr opensit
yt oenterprisecoul
dt r
yt odev el
oppol i
ciesandpr ogramsthat
enhancet heentrepreneuri
alandbusi nessski l
lsoft hepot ent
ialentrepr
eneurs.
Examplesofusef ulinter
ventionsaretechnicalandv ocati
onaltrai
ning,andshort-
ter
m entrepreneurshipdevelopmentcour sesandwor kshopsaimedatenhanci ng
speci
ficbusinessskill
s.

4. Somecaut i
oni sneededi nof feri
ngbr oad-basedf inanci alassistancet opot enti
al
entrepreneur
si ncount r
ieswher epr opensi t
yandabi l
ityt oent erpr
isear el ow.If
thepr opensi
tyandabi l
i
tyt oent erprisear elow,pol i
ciesandpr ograms shoul d
also be di rected to dev el
oping t hepropensi tyandabi l
itytoent erprise.This
i
sbecausedespi tethef inancialassi stance, peopl ewi thlow pr opensi tyand
abil
itytoenterprisemaynotv enturei ntobusi nessor ,ev enift heydi d,theymay
notbeabl etomanaget heent erprise.Thegr eatert helikeli
hoodt oenterpr i
se,t
he
greatertheroleoffinancialandnon- financial assistancei ncreat i
ngnewv entur
es.

Overall
,theargumentsabov esuggestthatbef oredevel
opingspecif
icpol i
ciesand
programmes,gov er
nment scoul
dfocusonanal y si
softheext entoft
heoppor t
unity
,
propensit
ytoenterpri
se,andabi
li
tytoenterpr
ise,coul
didentif
yweakar eas,andt hen
formulat
epoli
ciesandprogramstostr
engthentheweakerareas.

Thear gument
sdev el
opedi nthi
schaptersuggestthatsimilarr
elat
ionshipsmayexist
bet
weenenv ir
onmentalfactor
sandperformanceofani ndiv
idualent
repreneur
,andthat
amat chbetweenspecif
icrequir
ementsoftheentrepreneur
sandenv i
ronmentalf
orces
wouldleadtogreat
erli
keli
hoodofbusi
nessstart-
upandsuccess.

Amaj orcont ri
but i
onoft hi
schapt erist hatentrepreneurshi
pcanf l
ourishifpot ent
ial
entr
epreneursf ind oppor t
unities i nthe env i
ronment ,ifenv ironmentalcondi ti
ons
motivateentrepreneurstotakeadv ant
ageoft heseoppor tunit
ies,andifenv i
ronment al
condit
ionsenhanceent repreneur s'abil
itytostar tandmanageabusi ness.Wehav e
shownhowt hef ramewor kofent repreneuri
alenvironmentsandt hemodeldev elopedin
thi
spaperpr ovi
deabasi sf orst udy i
ngent r
epreneurialenvir
onment s,fordev el
oping
ri
chertheori
esi nent r
epr
eneur ship,andf orfor
mul ati
ngpubl i
cpolicy.

Finall
y,asVandeYen( 1993)argued,"thestudyofent repr
eneurshipisdef i
cientifit
focusesexclusi
vel
yonthecharacteri
sti
csandbehav i
oursofindividualentr
epreneurs,
ont heonehand,andifittr
eatsthesocial
,economi c,andpolit
icalfactor
sinfl
uencing
entrepreneur
shi
pasext
ernaldemographicst
atist
ics,
ont heotherhand.
62
63