Department of Agricultural Economics

Course title: Entrepreneurship and Business

Development
Credit hour :3 ETCS

By : Fikiru T.(Assit. Prof; PhD Scholar)

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 What is Entrepreneur?
 What is Entrepreneurship?
 What makes deference Entrepreneur
from Entrepreneurship?

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 The Entrepreneur concept

 What is Entrepreneur?

 The term entrepreneur comes from a French word

entrepreneur which means to undertake.

 Richard Cantillon, an Irish man living in France, was the

first economist who introduced the term “entrepreneur”
referring to the risk taking function of establishing a new
venture.

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 Cont…

 Entrepreneur refers to a person who establishes his own business

or industrial undertaking with a view to making profit.
 The meaning of entrepreneur depends upon the level of
development of the country.
• For instance, in a developed country only people carrying out
innovations are termed as entrepreneurs.
• But in underdeveloped countries, imitators are also considered as
entrepreneurs.

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 Contn..

 An entrepreneur is a person who has the

initiative skill for innovation and who looks for
high achievements.
 An entrepreneur is an individual who starts and runs
a business with limited resources and Planning, and
 Is responsible for all the risks and rewards of his or
her business venture.
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 Cont…

 Entrepreneurs are peoples

who have the ability to see and evaluate business

opportunity;
the ability to gather the necessary resources to
take advantages of them, and
 the ability to initiate the appropriate action to
ensure success.

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 Entrepreneurial traits

 The successful entrepreneur can have a number of traits, which

single them out:

 Need for achievement

 Self determination

 Desire for independence

 Innovation

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 Characteristics of entrepreneurs

 Self-confidence
 Innovation
 Total commitment
 Corporate refuge
• All-rounder
 The society protection
 The educational refuge

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 Kinds of entrepreneurs

1. Innovating entrepreneurs
 Innovating entrepreneurs is the one who introduces
new goods, install new method of production,
discovers new market and reorganize the enterprise.
2. Adoptive or imitative entrepreneurs
 They are characterized by readiness to adopt
successful innovations inducted by successful
innovating entrepreneurs.
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 Cont…

3. Fabian entrepreneurs
• They imitate only when it becomes perfectly clear .their
dealings are dominated by custom, religion, tradition, and
past practices.

4. Drone entrepreneurs
 They struggle to exist, not to grow .when their
product loses marketability and their operations
becomes uneconomical they are pushed out of the
market. 10
 Functions of an entrepreneur

The major functions of an entrepreneur

 Innovation:
 risk taking:
 Organization building:

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 Entrepreneurship

 Entrepreneurship is a human creative act.

 It is the process of creating and building something of
value from practically nothing.
 It is the dynamic process of incremental wealth.
 This wealth is created by individuals who assume the
major risks in terms of equity, time and /or career
commitments of providing value for some products or
services.
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 Nature and characteristics of entrepreneurship

The distinctive features of entrepreneurships are;

 Innovative function;- entrepreneurship is an innovative
function as it involves doing things in a new and better way.
 A function of risk-bearing;- risk is an inherent and
inseparable element of entrepreneurship.
 A function of high achievement-
 Economic activity;- entrepreneurship is primarily an
economic function because it involves the creation and
operation of an enterprise 13
 Cont…

 Purposeful activities;-

They are profit oriented

Goal oriented

 An organizing function- an entrepreneur brings together

various factors of production.
 Gap filling function-an entrepreneur identify the gaps
between human needs and the available products and
services and introduce new products and services to fill
the gaps.
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 Rewards and drawbacks of entrepreneurship

 Rewards

• Profit-capital formation (wealth incremental)

• Independence-freedom, being own boss, can make
their business flexible decision to achieve more
• Satisfying way of life;- their independence to do
whatever they want on their business with out the
enforcement of any external body create satisfying
way of life for them.
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 Rewards and drawbacks of entrepreneurship

Drawbacks
• Owning a business needs hard work, long hours,
and much emotional energy.
• It demands high labor force, time and energy.

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 The difference between Entrepreneur and
Entrepreneurship
Entrepreneur Entrepreneurship

Is a person Is a process

Is an organizer Is the organized form of initiative

Is a risk taker Risk taking activity

Is an innovator Is the process of innovation

Is a good planner Is the planning for successful performance

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 Cont….

Entrepreneurship:
 is both the study of how new businesses are created
 as well as the actual process of starting a new business
– the term is used interchangeably

 An entrepreneur:
 is someone who has an idea and who works to create a
product or service that people will buy, by building an
organization to support those sales.
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 Success factors for entrepreneurs

Every entrepreneurs can be success when they;-

Entrepreneurial team;-
markets and timing
business ideology

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 Motivation to start a business

Desire for independence

Financial incentives (Profit)
Success history of other entrepreneurs
Unemployment (threat of employment
Job dissatisfaction
Disagreement with previous employers

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Thanks!!!

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