EDS 111

INTRODUCTORY CLASS
DEFINITION OF ENTREPRENEURSHIP

Entrepreneurship just like other disciplines

has no universal definition.
So many authors and individuals have
defined it differently.
However, for the purpose of this lecture, the
following definitions will be adopted;
CONT’
(i) Entrepreneurship is a process of creating
something new with value by devoting the
necessary time and efforts, assuming the
accompanying financial, physical and so-
cial risks and receiving the resulting re-
wards of monetary and personal satisfac-
tion and independence (Hisrich and Brush,
1985).
CONT’
 (ii) Entrepreneurship is a process that has
to do with a conceptual approach of doing
new things, within a new philosophy of
value, of purpose, of utility, of quality and
of use which satisfies needs
(Abraham,1999).
CONT’
 (iii) Entrepreneurship is also the willingness
and the ability of an individual to seek out an
investment opportunity, establish an enter-
prise based on this and run it successfully ei-
ther for profit making or social benefit (Udeh,
1999).
Cont’
 (iv) According to Bob Reiss (2000) en-
trepreneurship is the recognition and pursuit
of opportunity without regard to one’s cur-
rently control resources with the confidence
and assurance of success, with the flexibility
to change topic as necessary and the will to
rebound from setback.
Explanation
 From the first definition, four basic aspects were em-
phasized;
 (i) The element of creative process (physical
outfit).
 (ii) A creation that has value (satisfaction of needs).
 (ii) A transaction that involves risk factor which cen-
ters on psychological, financial and social areas
(risk taking).
 (iv) A transaction that involves rewards to the en-
trepreneur (external or intrinsic rewards).
CONT’
 Entrepreneurship is actually concerned with
the identification of gaps and business oppor-
tunities in one’s immediate environment and
bringing together the necessary resources in
an innovative way to fill these gaps and in the
process gaining personal rewards (which may
or may not be for profit motives).
AN ENTREPRENEUR

 An entrepreneur also has been defined differ-

ently by different authors. For instance;
 Schumpeter (1934) defined an entrepreneur
as an individual who develops something
new. (an innovator)
 Carland, et al (1984) defines an entrepreneur
as an individual who establishes and man-
ages a business for the principle purpose of
profit and growth.
CONT’
 Bagby (1988) defined an entrepreneur is a
person that utilizes the opportunity of instabil-
ity, turbulence, lack and want to produce
something new or modifies an existing one
for profit motive.
 Gartner (1989) defines an entrepreneur as
someone who creates an organization.
CONT’
 Herbert and Link (1989) viewed an entrepre-
neur as a person that has some comparative
advantage in the decision making process ei-
ther because he or she has better information
or different perception of events or opportuni-
ties.
Cont’
 Pickle & Abrahamson (1990) see an entre-
preneur as one who organizes and manages
a business, undertakes and assumes the
risks for the sake of profit.
 The entrepreneur evaluates perceived oppor-
tunities and strives to make the decisions that
will enable the firm to realize sustained
growth.
Cont’
 According to Thomson (2002) entrepreneurs
are individuals who survey their potential
business environment, identify opportunities
to improve it, marshal resources and act to
maximize such operational opportunities.
Cont’
 An entrepreneur is therefore someone who
sees a gap or a need in his or her immediate
environment and brings resources together to
meet such need, taking the risks involved for
some rewards.
Cont’
 Because entrepreneurship covers all sphere
of life and different people view an entrepre-
neur from different perspectives, we therefore
have different types of entrepreneurs.
Cont’
 Today you hear different names relating to en-
trepreneurship such as an entrepreneur, in-
trapreneur, cyberpreneur, hobbypreneur, co-
entrepreneur, managerpreneur, politipreneur,
sportpreneur, familypreneur, homepreneur,
womanpreneur entertainpreneur, youth-
preneur, engineerpreneur, acadapreneur,
pastorpreneur, etc.
Conclusion
 Entrepreneurship is therefore the real thing
for economic development and growth and
entrepreneurs are the brain behind such eco-
nomic development.