EMT 301-

LECTURE 1
INTRODUCTION TO ENTREPRENEURSHIP
 Meaning of an Entrepreneur

Entrepreneurship is one of the four mainstream economic factors

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

Entrepreneurship.

Basically, the word entrepreneur is derived from the French word

“enterprendre” which means “to undertake”. To undertake

simply means to start a business/enterprise

 ENTREPRENEURSHIP AS A PROCESS

Joseph Schumpeter (1934) equated

Entrepreneurship, as a force of “creative

destruction” whereby established ways of

doing things are destroyed by the creation

of new and better ways to get things done.

Penrose (1963) views Entrepreneurship as

the activity that involves identifying

opportunities within the economic

system.
According to Gana (2001), Entrepreneurship is

the ability to seek investment opportunities

and persisting to exploit that opportunity.

 Entrepreneurship Versus Intrapreneurship

Entrepreneurship within an existing firm or

large organization is referred to as

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

Visionary and Innovative Roles

The role of the entrepreneur is to search for and discover new idea

or take the creative concept and launch this idea into a business

operation
 SOCIAL ROLES

Transformation of traditional indigenous industry into

a modern enterprise, transform the new ideas into

product, processes and service, provision of social

welfare service of redistributing wealth and income,

and provision of employment to job seeker.

 ECONOMIC ROLES

In performing the economic role, entrepreneurs bear

the ultimate risk of uncertainty. They Mobilize savings

necessary for the enterprise, and provide channel for

the disposal of economic activities. Utilise local raw

materials and human resources for production process.

 TECHNOLOGICAL ROLES

Motivating the use of indigenous technology in the

production process, modifying traditional technology to

modern system, and developing technological

competence in self and the workforce through

innovation.
 MANAGERIAL ROLES

The entrepreneur is also the business owner. In

this role, the entrepreneur is responsible for the

entire starting up of a business.

 TYPES OF ENTREPRENEURS:

Innovative entrepreneurs: These entrepreneurs

have the ability to think newer, better and more
economical ideas of business organisation and
management.

Imitating entrepreneurs: These entrepreneurs

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

Drone entrepreneurs: The dictionary meaning of

the term ‘drone’ is ‘a person who lives on the labor
of others’. These are entrepreneurs that are
resistant to change. They are considered as ‘old
school’. They prefer to stick to their traditional or
orthodox methods of production and systems..