ENTREPRENEURSHIP IN HOSPITALITY & - Social entrepreneurship is aimed at

TOURISM transformational systems change that

tackles the root causes of poverty,
CHAPTER 1: INTRODUCTION TO environmental deterioration, marginalization
ENTREPRENEURSHIP and accompanying loss of human dignity.

ENTREPRENEURSHIP “SEARCH FOR APPROACHES TO MOVE POOR

PEOPLE OUT OF POVERTY BEYOND
“Entrepreneurship is the purposeful activity of WELFARE-BASED SAFETY NETS”
an individual or a group of associated
individuals, undertaken to initiate, maintain or
aggrandize profit by production or distribution of
economic goods and services”
- A.H. Cole

“Entrepreneurship is based on purposeful and

systematic innovation. It included not only the
independent businessman but also company
directors and managers who actually carry out
innovative functions”
- Joseph A. Schumpeter

“Entrepreneurship is the process by which

individuals pursue opportunities without regard
to resources they currently control”
- Stevenson & Jarillo

“Entrepreneurship is the art of turning an idea

into a business”
- Fred Wilson
THE TRIPLE BOTTOM LINE
ENTREPRENEURSHIP
- The activity of setting up a business or
businesses, taking on financial risks in the
hope of profit.
- Is the act of creating a new business or a
new business model based on an original
idea.

FORMS OF ENTREPRENEURSHIP
- SOCIAL ENTREPRENEURSHIP
- BUSINESS ENTREPRENEURSHIP
- TECHNO ENTREPRENEURSHIP ABILITY OF SOCIAL ENTREPRENEUR
- Adopt a mission to create and sustain social
SOCIAL ENTREPRENEURSHIP value; not just commercial value
- Innovation, market-orientation approaches - Recognize and persistently pursue new
strengthen by the passion for social equity opportunities to serve the mission
and environmental sustainability.
-abbk-
 - Engage in a process of continuous
innovation, adaptation, and learning
- Act boldly without being limited by
resources currently in hand
- Exhibit a heightened sense of accountability
to the constituencies served and for the
outcomes created
BUSINESS ENTREPRENEURSHIP
- Business for profit
- The study of systems, structure and
staffing to make a large corporation stay
competitive, innovative and profitable on a
sustainable basis.
TECHNO ENTREPRENEURSHIP
- The entrepreneurship in the technology
area and the person who undertakes
Techno-entrepreneurship is termed as
Techno-entrepreneur
- Creating and capturing value for the firm
through projects that combine
specialists and assets to produce and
adopt technology
The activity of entrepreneurship is
undertaken with sole objective of making the profit.
It is also the reward of the efforts made and
risk taken by the entrepreneur.
Risk Bearing
Willingness to assume the risk is the
essence of entrepreneurship without which
he/she cannot succeed.
It occurs due to the creation and
implementation of new ideas. Such ideas are
often uncertain and so the result may or may not
be positive and instant.
ENTREPRENEURIAL PROCESS
The Entrepreneurship Process can be
expressed as a set of procedures and
methodologies that are followed by entrepreneurs
for establishing a new business or venture.

CHARACTERISTICS OF ENTREPRENEURSHIP
1. Economic Activity
2. Creativity and innovation
3. Profit
4. Risk Bearing

Economic Activity
Entrepreneurship is an economic
activity, it involves designing, launching and Discovery
running a new business enterprises in order to earn - An entrepreneurial process begins with
the profit, by ensuring best possible use of the idea generation, wherein the
resources. entrepreneur identifies and evaluates the
business opportunities.
Creativity and innovation
It involves discovering new ideas and Developing a Business Plan
implementing it in business. - This step involves developing a successful
The entrepreneur continuously evaluates business plan to exploit the identified
current modes of running a business and opportunity.
identifies new methods and techniques for - Developing a business plan involves
operating the business more efficiently and setting goals, standards, methods, and
effectively. techniques of achieving those set goals
- A well-drafted business plan serves as a
Profit road map to the entrepreneur to guide and
-abbk-
 monitor his/her activities towards the set
goals
Resourcing
- In this step, the entrepreneur identifies the
sources from where the finance and the
human resource can be arranged.
- The entrepreneur also finds the investors
for its new venture and the personnel to
carry out the business activities.
Managing the company
- After resourcing the funds and employees,
an entrepreneur must decide the
management structure or the hierarchy that
is required to solve the operational
problems when they arise
Harvesting
- The final step in the entrepreneurial
process is harvesting wherein, an
entrepreneur decides on the future
prospects of the business
- The actual growth is compared against
the planned growth and then the decision
regarding the stability or the expansion of
business operations is undertaken
accordingly, by an entrepreneur.
Role of Entrepreneurship in Economic
Development (NOT PART OF QUIZ)
1. Promotes Capital Formation
2. Creates Large-Scale Employment
Opportunities
3. Promotes Balanced Regional Development
4. Reduces Concentration of Economic Power
5. Wealth Creation and Distribution
6. Increasing Gross National Product and Per
Capita Income
7. Improvement in the Standard of Living
8. Promotes Country’s Export Trade
9. Induces Backward and Forward Linkages
10. Facilitates Overall Development
-abbk-
CHAPTER 2: THE ENTREPRENEURS
ENTREPRENEUR
- Is someone who develops a business
model, acquires the necessary physical and
human capital to start a new venture, and
operationalizes it and is responsible for
its success or failure.
Characteristics of Entrepreneur
● Creativity
● Professionalism
● Risk-taking
● Passion
● Planning
● Knowledge
● Social Skills
● Open-mindedness toward learning, people
and even failure
● Empathy
● The customer is everything
Creativity
- Entrepreneurs usually have the knack to pin
down a lot of ideas and act on them.
- Creativity helps in coming up with new
solutions for the problems at hand and
allows one to think of solutions that are out
of the box.
- It also gives an entrepreneur the ability to
devise new products for similar markets to
the ones he’s currently playing in.
Professionalism
- An entrepreneurs mannerisms and behavior
with their employees and clientele goes a
long way in developing the culture of the
organization.
- Self-discipline enables an entrepreneur to
achieve their targets, be organized and set
an example for everyone.
- Reliability results in trust and for most
ventures, trust in the entrepreneur is what
keeps the people in the organization
motivated and willing to put in their best.
Risk-taking
 - Without the will to explore the unknown,
one cannot discover something unique, and
this uniqueness might make all the
difference.
- Entrepreneurs have a differentiated
approach towards risks.
- Evaluation of the risk to be undertaken is
also essential. Without knowing the
consequences, a good entrepreneur
wouldn’t risk it all.
Passion
- Passion acts as a driving force, with which,
you are motivated to strive for better, enjoy
what you’re doing and stay highly
motivated.
- It also allows you the ability to put in
those extra hours in the office which can
or may make a difference.
- At the beginning of every entrepreneurial
venture or any venture, there are hurdles
but your passion ensures that you are able
to overcome these roadblocks and forge
ahead towards your goal.
Planning
- Without planning, everything would be a
loose string as they say, “If you fail to plan,
you plan to fail”.
- Planning is strategizing the whole game
ahead of time. It basically sums up all the
resources at hand and enables you to
come up with a structure and a though
process for how to reach your goal.
- Facing a situation or a crisis with a plan
is always better. It provides guidelines with
minimum to no damage incurred to a
business.
Knowledge
- An entrepreneur should possess complete
knowledge of his niche or industry.
- It enables him to keep track of the
developments and the constantly
requirements of the market that he is in.
- A good entrepreneur will always try to
increase his knowledge, which is why he is
always a learner.
-abbk-
- The better entrepreneur knows his
playground, the easier he can play in it.
Social Skills
- Social skills make up the qualities required
for an entrepreneur to function.
Social Skills involve the following;
● Relationship Building
● Hiring and Talent Sourcing
● Team Strategy Formulation
Open-mindedness towards learning, people,
and even failure
- To recognize openings, an open-minded
attitude is required
- An entrepreneur should be determined. He
should face his losses with a positive
attitude and he wins, humbly. A good
businessman will know not to frown on a
defeat.
- Learning with an open mind lets you look at
your faults humbly. Open-mindedness also
enables you to know and learn from your
competition.
Empathy
- Empathy is the understanding of what goes
on in someone’s mind. A good
entrepreneur should know the strengths
and weaknesses of every employee who
works under him.
- Unhappy employee are not determined and
as an entrepreneur, it is up to you to create
a working environment where people are
happy to come.
- Keeping a workplace light and happy is
essential. For without empathy, an
entrepreneur cannot reach the hearts of
employees nor the success he desires.
Customer is everything
- A business is all about the customer.
How can you grab a customer’s attention is
the first step.
- It is also important that you know the needs
of your customers.
 - The product or service which is being
created by your organization needs to cater
to the needs of your consumers.
- The ability to sell yourself in front of a
potential investment when it comes in the
form of a customer is also required. Being
ready with the knowledge to please a
customer, is a way to have a successful
business.
- Risk-taking is the most important function of
an entrepreneur. Modern production if very
risky as an entrepreneur is required to
produce goods or services in anticipation of
their future demand.
Two Kinds of Risk
● Measurable and insurable risks
● Uncertainty

Functions of Entrepreneur Innovation

1. Decision Making - Entrepreneur must make frequent
2. Management Control inventions.
3. Division of Income - Invention of new products, new techniques
4. Risk-Taking and Uncertainty and discovering new markets to improve
5. Innovation competition position and to increase
earnings.
Decision Making
- The primary task of an entrepreneur is to Types of Entrepreneur
decide the policy of production. ● According to the type of business
- An entrepreneur should answer the ● According to the use of technology
following questions: ● According to the motivation
1. What to produce? ● According to the growth
2. How much to produce? ● According to the area
3. How to produce? ● According to the gender and age
4. Where to produce? ● According to the sale of operation

Management Control According to the type of business

- Management and control of the business ● Business Entrepreneur
are conducted by an entrepreneur ● Trading Entrepreneur
himself. ● Industrial Entrepreneur
- Entrepreneur must possess a high degree ● Corporate Entrepreneur
of management ability to select the right ● Agricultural Entrepreneur
type of persons to work with him. ● Retail Entrepreneur
● Service Entrepreneur
Division of Income
- An entrepreneur makes a necessary According to the Use of Technology
arrangement for the division of total income ● Technical Entrepreneur
among different factors of production ● Non-Technical Entrepreneur
employed by him. ● Professional Entrepreneur
- Even if there is a loss in the business, he is
to pay rent, interest, wages and other According to the Motivation
contractual incomes out of the realized ● Pure Entrepreneur
sale proceeds. ● Induced Entrepreneur
● Motivated Entrepreneur
● Spontaneous Entrepreneur
Risk-Taking and Uncertainty-Bearing
According to the Area
-abbk-
 ● Urban Entrepreneur
● Rural Entrepreneur How to avoid failure in a Entrepreneurial
Business
According to the gender and age 1. Know your business in depth
● Men Entrepreneur 2. Develop a good, effective and solid
● Women Entrepreneur Business Plan
3.
According to the sale of operation 4. Manage your financial resources effectively
● Small scale Entrepreneur 5. Have a thorough and complete financial
● Large scale Entrepreneur statement
6. Learn hire and manage people effectively
Classification of Entrepreneurs 7. Keep physically fit, consume healthy food,
● Innovating Entrepreneurs and avoid addictive consumption cigarettes
● Imitative Entrepreneurs and alcohol
● Fabian Entrepreneurs
● Drone Entrepreneur

Innovating Entrepreneurs
- Is one who introduces a new goods,
inaugurates new method of production,
discovers new market and reorganizes the
enterprise.

Imitative Entrepreneurs
- These are characterized by readiness to
adopt successful innovations inaugurated
by innovating entrepreneurs.

Fabian Entrepreneurs
- These are characterized by a great caution
and skepticism in experimenting any
changes in their entreprises.

Drone Entrepreneurs
- These are characterized by a refusal to
adopt opportunities to make changes in the
production formulae even at the cost of
severely reduced returns relative to the
other like producers.

Barriers to Entrepreneurs
1. Lack of viable concept
2. Lack of market knowledge
3. Lack of technical skills
4. Lack of capital
5. Lack of business know how
6. Time presences and distractions
7. Legal constraints and regulations
-abbk-