THE ENTREPRENEUR IN

OIL AND GAS INDUSTRY

 CHAPTER 3
INTRODUCTION
TO
ENTREPRENEURSHIP
 What is Entrepreneurship?

• Entrepreneurship is a set of
ACTIVITIES involved or aimed at
creating an organization or entity
that will deliver value to the
society.
• Entrepreneurship is
the capacity and willingness
to develop, organize and manage
a business venture along with any
of its risks in order to make
a profit.

• The most obvious example of

entrepreneurship is the starting of
new businesses.
 who is an Entrepreneur?
• An Entrepreneur is a risk taker who
creates value to provide solutions to
identified problems while making profit.

• Entrepreneurs are people who create

organizations that deliver products and
services of value to society (change
society positively).
• They might do this for profit or not for
profit (e.g. social entrepreneurs).

• It is what you do (actions and

behaviours) that make you an
entrepreneur, not who you are or what
personal trait you possess.

• The Entrepreneur’s end game is that the

society will reward you.
 The Role of Entrepreneurship in
Economic Development
• Economic development of a country is
the outcome of purposeful human
activity.
• A developing country needs
entrepreneurs who are competent to
perceive new opportunities and are
willing to incur the necessary risk in
exploiting them.
• Entrepreneurship is one of the most
important input in the economic
development of a country.
• Hence, entrepreneurs are national
assets and should be cultivated,
motivated and remunerated to the
greatest possible extent.

some vital roles Entrepreneurship play in

economic development are;
• Employment Generation: It provides
immediate large-scale employment. Thus, it
helps reduce the unemployment problem in
the country, i.e., the root of all socio-
economic problems.
• Capital Formation: Entrepreneurship
promotes capital formation by mobilizing the
idle savings of the public. The funds which are
used by entrepreneurs is a mix of their own
and borrowed. This leads to creation of
wealth which is very essential for
development of an economy.
 Balanced Socio-Economic Development
• It helps reduce the concentration of economic
power and also, stimulates the equitable
redistribution of wealth, income and even political
power in the interest of the country.
 Better standards of living
• Entrepreneurs are able to produce goods at lower
cost and supply quality goods at lower price to the
society according to their requirements.
• When the price of the commodities decrease the
consumers get the power to buy more goods for
their satisfaction.
• In this way they can increase the standard of living
of the people.
 Self-Reliance
• Entrepreneurs are the corner stones of
national self-reliance.
• They help to manufacture indigenous
substitutes to imported products which reduce
the dependence on foreign countries.
• There is also a possibility of exporting goods
and services to earn foreign exchange for the
country.
• Hence, the import substitution and export
promotion ensure economic independence
and the country becomes self-reliant.
 Community Development
• Entrepreneurs regularly nurture
entrepreneurial ventures by other like-minded
individuals.
• They also invest in community projects and
provide financial support to local charities.
• This enables further development beyond
their own ventures. It also, encourages
effective resource mobilization of capital and
skill which might otherwise remain unutilized
and idle.
• Thus, it is clear that entrepreneurship
serves as a catalyst of economic
development.

• On the whole, the role of

entrepreneurship in economic
development of a country can best be
put as “an economy is the effect for
which entrepreneurship is the cause”.