EDF 222 :ENTREPRENEURSHIP COURSE

1. INTRODUCTION TO ENTREPRENEURSHIP
• An entrepreneur is someone who perceives an opportunity and creates an
organization to pursue it (Bygrave, W and Zacharatis, A,
• An entrepreneur in someone who specializes in taking on a financial risk (Cantillon,
R, as quoted by Blunded R, Lockett, N and Wang, C, 2018)
• In North America, an Entrepreneur is often used to describe anyone who establishes
their own business, whatever its size, (Blunded R etall, 2018)
• Entrepreneurship is neither a science nor an art. It is a practice ( Peter F Drucker)
• Argument on whether it makes sense to use the same word to describe a 30-year-old
billionaire who has set up five Internet businesses and the 70-year-old semi retired
owner of a small picture-framing business
• Main counter argument is that while there may be considerable differences between
them, there are also common features among them
• The word Entrepreneur is derived from the French “entreprendre” meaning “to take
in between” or to undertake. “English doesn’t really have its own word for
entrepreneur or better said, it once had such a word but lost it (D, Howard F, D’conn
• Organization of Economic Cooperation Development (OECD) defines Entrepreneurs as
those persons (business owners) who seek to generate value, through the creation or
expansion of an economic activity, by identifying and exploiting new products,
processes or markets (Blundel,R et all, 2018)
• Entrepreneurship is the phenomenon associated with entrepreneurial activity, which is
the enterprising human action in pursuit of generation of value, through the creation
or expansion of an economic activity, by identifying and exploiting new products,
processes or markets.
Take note:
• Entrepreneurship is a phenomenon that manifests itself throughout the economy and
in many different forms with many outcomes, not always related to the creation of
financial wealth, for example, they may be related to increasing employment, tackling
inequalities or environmental issues (OECD, 2016;12-13)
• Entrepreneurship process extends beyond the individual, to teams, organizations,
social net works and institutions
 1.1 RANGE AND SCOPE OF ENTREPRENEURIAL
ACTIVITY
• There is more than one way of acting entrepreneurially as a result world of entrepreneurship is
not conclusive, it is open to a very wide range of people
• There are three main sources of entrepreneurial variety;
i. The way entrepreneurial activity is organized
ii. The context in which it, takes place
iii. The goals that it pursues

(a). Where is it taking place?

Entrepreneurial activity can take place in many different settings, for example it might be a small
food business, a butcher or technology based venture
(b). How is it organized?
Entrepreneurial activity can be organized in a variety of ways, each of which has its own advantages
and disadvantages, for example, by forming a limited company, you can raise finance for your
commercial venture by persuading shareholders to invest, though this may also mean “giving away”
some degree of control
• Many small star-up ventures begin as an unincorporated business, in other words, they
do not have a separate legal identity from that of the individual founder
(c). What is it seeking to achieve?
Entrepreneurial activity can be inspired by the pursuit of some radically different goals, for
example a team of University scientists may be motivated by an opportunity to launch an
innovative Pharmaceutical produce. If the product is successful it may serve or improve
the quality of many lives. In addition, the commercialization of their intellectual property
may also provide the scientists with considerable personal wealth

1.2 CAN YOU LEARN TO BE ENTREPRENEURIAL?

• Entrepreneuriarship is something you can learn about, through direct personal
experience (check what the “amwenyes” do) and from the experiences of others. Some
people argue, often in very forceful terms, that entrepreneurs are “born” not “made”
• Peter Drucker, a popular Management writer says;
“Most of what you hear about entrepreneurship is all wrong. Its not mysterious; and it has
nothing to do with genes. It’s a discipline and, like any discipline it can be learned(Drucker.
P 1982:143)
• However, your prospects of embarking on an entrepreneurial career will be affected to
some extent by the place and time you are born, as well as by the people who surround
you in your early years.
• It is also true that you will never be a successful entrepreneur simply by reading a book
or taking part in a new venture creation exercise or studying an entrepreneurship course
like this one. It’s more about practice and resilience. Entrepreneurship is a slippery
concept.
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