LIFE ORIENTATION

ENTREPRENEURSHIP BOOKLET
Entrepreneurship
What is an Entrepreneur?

Lets explore…and as you do:

Consider possible opportunities
in each type of entrepreneurship
venture that will be discussed!
 Different forms of Entrepreneurship

• E-commerce (e-Business)
• Small Business
• Innovative
entrepreneurship.
• Design entrepreneurship
• Social entrepreneurship
• Cultural entrepreneurship
• Tourism entrepreneurship
 E-business of E-commerce
Definitions How do e-businesses work?
E-business or Electronic Commerce (e-
commerce) means a trade activity of buying These business transactions can be done in
four ways:
and selling of goods, products, or services
• Business to Business (B2B),
over the internet.
• Business to Customer (B2C),
E-commerce is also known as electronic • Customer to Customer (C2C),
commerce or internet commerce, it is an • Customer to Business (C2B).
umbrella term that includes the act of
running business, i.e., buying/selling/ The standard definition of E-commerce is a
advertisement, online with an intention of commercial transaction which is happened over
broadening/sustaining the customer base the internet.
for profit. E-business is part of e-commerce
and it only deals with the processes involved Examples of e-businesses
in that transaction.
• Amazon,
These services provided online over the
• Flipkart,
internet network.
• Shopify,
Transaction of money, funds, and data are
• Myntra,
also considered as E-commerce.
• Ebay,
• Quikr,
• Olx
 ADVANTAGES AND DISADVANTAGES
Advantages of E-Commerce
• E-commerce provides the sellers with a global
reach. They remove the barrier of place (geography
). Now sellers and buyers can meet in the virtual
world, without the hindrance of location.
• E-commerce will substantially lower the
transaction cost. It eliminates many fixed costs of
maintaining brick and mortar shops. This allows the
companies to enjoy a much higher margin of profit.
• It provides quick delivery of goods with very little
effort on part of the customer. Customer
complaints are also addressed quickly. It also saves
time, energy and effort for both the consumers and
the company.
• One other great advantage is the convenience it
offers. A customer can shop 24×7. The website is
functional at all times; it does not have working
hours like a shop.
• E-commerce also allows the customer and the
business to be in touch directly, without any
intermediaries. This allows for quick
communication and transactions. It also gives a
valuable personal touch.
Disadvantages of E-Commerce
• The start-up costs of the e-commerce portal are
very high. The setup of the hardware and the
software, the training cost of employees, the
constant maintenance and upkeep are all quite
expensive.
• The e-commerce industry has a high risk of
failure. Many companies riding the dot-com
wave of the 2000s have failed miserably. At
times, e-commerce can feel impersonal. So it
lacks the warmth of an interpersonal
relationship which is important for many brands
and products.
• Security is another area of concern. Credit card
theft, identity theft etc. remain big concerns
with the customers.
• Then there are also fulfilment problems. Even
after the order is placed there can be problems
with shipping, delivery, mix-ups etc. This leaves
the customers unhappy and dissatisfied.
 Small businesses
Definition Examples of small businesses
• Small businesses are corporations, • Handyman.
partnerships, or sole proprietorships • Woodworker
which have fewer employees and/or • Online Dating Consultant Sewing and
less annual revenue than a regular- Alteration Specialist. ...
sized business.
• Freelance Developer
• Thus it is a business that operates at a
• Personal Trainer
small scale with fewer employees,
capital, machines and has a limited • Freelance Graphic Designer
revenue base. • Life/ Career Coach
• Outside of government regulations, • Estate agent
any business with • Photographer
under 500 employees can be • Gardening services
considered a small business • Builders
• A business which functions on a small • Hairdressers
scale level and involves less capital
• Internet café
investment, less number of labour and
fewer machines to operate. • Small retailers
• Fruit and veg vendors
• House shop/corner cafe
• Etc.
 ADVANTAGES AND DISADVANTAGES
Advantages
• Independence -as a business owner, you're your
own boss.
• Lifestyle - owning a small business gives you
certain lifestyle advantages.
• Financial rewards as compared to working for
someone else
• You stress less - nothing is more stressful than a
cash flow crunch.
• Learning opportunities as you progress with your
business
• Creative freedom and personal satisfaction
• Your finances are easier to forecast ·
• It gives you a sense of control.
• Set Your Own Schedule i.e. you decide how many
hours will work
• Build Self-Confidence.
• You Can Take Time Off
• Feel Pride of what you started from scratch
• You deliver better work
Disadvantages
• Possible income instability. ...
• Potential of financial risk - the
financial resources needed to start and
grow a business can be extensive.
• Finding Customers can be a
challenge
• It’s difficult to hire talented people.
• Longer working hours.
• Ties to a physical location.
• Limited expertise.
• Access to fewer resources.
• Possible lack of guidance
• Stress - as a business owner, you are
the business
• Time commitment - often start
businesses so that they'll have more
time to spend with their families. ...
• Undesirable duties.
• Reliance on individual relationships.
 Innovative entrepreneurship
Definition
• Innovative entrepreneurship
is the practice of establishing
creating new/unique business
ideas/ways of running a
business with an intention to
generate profit, assist their
community and accomplish
company goals.
• Innovative entrepreneurs
develop business to meet the
needs of an organization and
customers with an intention to
improve their competitiveness
in the market.
How does it operate
• Create solutions, products, or services
to help people change their lives.
• Can identify and seize opportunities and
may turn it them into profitable
businesses.
• It carries the zeal to find much-needed
solutions, which also means that it also
can take on risks.
The following are few examples of
success through innovation.
• Technology companies triggering a
paradigm shift by impacting industries
• Apple – changed music and
consumer electronics
• Uber – changing the taxi business
• Airbnb – changing the
accommodation industry
• Amazon – changing retailing
 Innovative entrepreneurship
Technology companies creating new markets /
industries
• Google – with” Search, etc. ” for a
much better online experience– changed
the Advertising world with AdWords–
impacting the mobile, car, utility, etc.
industries
• Facebook – established the ” social
network ” market
• WhatsApp – established the personal
communications market
• even more fun for their audience. They also brought the
Steam – established the online market
for licensing games
• Companies making something old new
again
The following brands have taken familiarity and made it relevant
with modern technology to create a winning product / service.
• Nintendo - Pokemon Go is a world-class example of how
Nintendo became relevant again by simply reinventing itself
through a modern game that activated gamers of all ages and
genders. Pokemon Go incorporates virtual reality elements,
gamification, and commerce at scale in a way that has never
been done with such precision.
• Snapchat - Snapchat brought photo sharing forward into the
modern age and brought back a real interest in photos and
communicating through photos. They were successful
because they incorporated the social element and added
ways to edit the pictures and add things to them that made it
photo-sharing concept into the digital online age and made it
interactive.
• GoPro - GoPro effectively took an old product that everyone
has, re-purposed it, and made a fortune. GoPro is nothing
but a good-quality camera. However, they managed to make
it attractive, target a large niche of passionate customers and
create a new category for themselves. The beauty behind this
brand is targeting a group of people who are tight-knit
and large enough to build a sizable business.
• Netflix - As one of the cornerstones of the home
entertainment industry, DVD rental stores seemed like they
were around forever. Then along came Netflix. Not only did
the brand reinvent the delivery of DVDs, they transformed
movie rental altogether with streaming service.
 ADVANTAGES AND DISADVANTAGES
Advantages
• Businesses can initially charge higher
prices for new products before
competitors’ products come on the
market.
• Being innovative good for a firm's
reputation.
• If they have been first in the past -
people naturally interested in future
products.
• Innovations in processes add value to
existing products / services.
• Businesses with lots of innovative
products can take advantage of
economies of scope.
Disadvantages
• Very costly and time consuming.
• Businesses can run out of money if
they invest too much and don't get
products to market quickly enough.
• End up wasting resources by
developing something that doesn't
sell.
• Businesses not able to produce new
product on large scale at low enough
cost - no guaranteed return on
investment.
• Businesses risk ruining reputation if
new product is poor quality.
 Design entrepreneurship
How does it operate?
Definition:
• Designing/generating • Designers become proactive in identifying
needs/challenges people might have and
ideas that are humanly create/design solutions to such
desirable, technologically needs/challenges in the form of a business
venture.
feasible and financially
viable. Examples of businesses:
• Website designer,
• The process of deeply • video editing,
understanding customer • digital prints,
• graphic design,
needs and then • clothing designer,
creating/designing a • Envato market (A platform where designers,
developers, photographers, illustrators and
product or service that producers can sell their products – People
addresses their unmet with experience in these industries offer their
skills on “Envato” and interested clients pay,
needs. for them to take on their projects).
 ADVANTAGES AND DISADVANTAGES
Advantages:
• Design entrepreneurship stimulates the
development of new markets, this happens due
to the creation of new products and services
which lies solely within the hands of the
entrepreneur.
• •
Design entrepreneurship reduces time and costs
to the market for new products and services
• It reduces customer complaints as these can be
resolved and attended to immediately.
• It builds a strong and unique identity for your
business.
• It boosts customer loyalty as goods and services
sold are original.
• It leads to increased sales of goods and services.
• It improves the position of the business in the
market.
• It improves environmental record and
compliance with regulations.
Disadvantages:
• There are too many responsibilities to
contend/juggle with particularly at the budding
stages of the business, you might not be able to
execute all successfully and that might lead to
failure.
You work from anywhere, at any time and you are
always on call, doing something for the company
and this is very taxing/exhausting.
• It is very difficult create a balance between work
and life.
• Some areas of your life are bound to suffer due to
personal neglect.
• Personal income becomes irregular, particularly
when the business is new and that might yield
economic stress.
 Social entrepreneurship
Definition
Social entrepreneurship has various meaning and each
is driven by the main objectives of those involved in a
business for a social course/change. Social
entrepreneurship could be defined as follows:
• A social entrepreneur is a person who establishes
an enterprise with the aim of solving social problems
or effecting social change (Online dictionary, 2022).
• Social entrepreneurs are essentially a new breed
of business-minded people who have evolved with a
universal goal of making the world a better place
while also running profitable companies that satisfy
consumers' demand (Schahegger & Wagner, 2003).
• Social entrepreneurship deals with running or
starting up a business/ company supplying
environmentally or socially beneficial products and
services.
• models with an important social mission in ways that can help to make
For example, running a community bakery could
have various social benefits: it could lead to
constant food supply to communities and it could
also employ people from the community, thus
reducing unemployment (Schahegger & Wagner,
2003).
• Social entrepreneurship is doing business for a
social cause or to address a social problem/ a
prevalent problem engulfing society at a particular
point in time (Online dictionary, 2022).
How does social entrepreneurship work?
• For the longest time, most entrepreneurs chose to accumulate wealth in
more private sectors. Building a company, hiring employees,
manufacturing products and running a well-oiled machine was the best
approach to be a successful entrepreneur in days past. Today,
entrepreneurs can work to improve social issues and challenge real
world problems through their businesses. A new business model has
emerged which meshes (interconnects) with government and social
organizations. Non-profits and businesses have teamed up to form a
hybrid business model, led a by a new generation of social
entrepreneurs.
• These leaders can successfully tackle social issues while generating profit
for shareholders at the same time. Widespread usage of ethical practices
such as impact investing, conscious consumerism and corporate social
responsibility programs facilitated the success of social entrepreneurs.
• Some social entrepreneurs use their know-how and business savviness
to make the world a better place. They combined traditional business
significant changes in places around the world for decades.
• Mainly, it involves running a business whose profit is used to address a
social problem. It could also involve running a business in order to
provide services needed by communities in which it finds itself.
• The main focus of social entrepreneurship is not only to make profit, but
to use part of the profit to alleviate communities. In other words, the
profit that could be generated is directed to endeavours dealing with
social change and self-maintenance.
Characteristics of social entrepreneurship
• Practicality when solving social problems,
• Philanthropic bent,
• Faith in team work,
• •Ebonoko Foundation: Ebonoko was started in 2012
Money management,
• Commitment to improve social welfare,
• Healthy impatience,
• donations.
The desire to change,
• Innovation,
• Risk taking.
• Social entrepreneurs are innovative,
resourceful, and results oriented.
• They draw upon the best thinking in both
the business and non-profit worlds to
develop strategies that maximize their
social impact
Social entrepreneurship in action in South Africa
•SiyaBuddy: SiyaBuddy is a venture focused on
recycling and waste management. The company buys
waste from local collectors and sells it to recycling
companies. SiyaBuddy creates jobs for waste pickers
while helping to clean up the environment.
as a way to empower the youth through education.
The social venture empowers young people through
mentorships, bursaries, donations, expos, and book
•Repurpose Schoolbags: Repurpose Schoolbags is a
for-profit enterprise in South Africa that addresses
the problem of school children living in rural areas
that don’t have access to proper school bags. The
company creates school bags from up-cycled plastic
bags to help school children while creating a positive
environmental impact at the same time.
•Maths Centre South Africa: An organisation that
aims to improve maths, science, and technology
education in South Africa. The organisation provides
learning methods, programs, and resources to
improve the impact of South Africa’s education
system.
 ADVANTAGES AND DISADVANTAGES
Advantages
• On the positive side, many people are more
willing to support social entrepreneurs thanks
to the positive impact they make.
• In a world that faces many environmental and
social problems, social entrepreneurship is
one of the best ways to make a difference.
South Africa is brimming with budding social
entrepreneurs.
• While there may be many challenges to
getting this kind of venture off the ground, the
opportunities for using entrepreneurship to
drive social change are huge.
• Social entrepreneurship shows us that it’s
possible to create a successful business while
still achieving more than just profits. This gives
many entrepreneurs a whole new kind of
inspiration to succeed.
Disadvantages
• Getting carried away by focusing more on
helping communities than generating
income for the survival of the business.
• Investors may be hesitant to fund social
entrepreneurship, especially, if the idea
does not lead to more profit.
• Young people may be swallowed by the
notion of consumerisms that they may
view social entrepreneurship as a waste of
time.
• Difficulties accessing funding
• Difficulties in creating a sustainable social
entrepreneurship venture
• Being able to turn a profit while still making
a positive social impact
• Competing with larger enterprises
Cultural Entrepreneurship

How does it operate?

Definition
• Starting a business that • Entrepreneurs may use creativity to design
cultural products in a way that can attract
specializes in selling potential customers.
• Entrepreneurs may also venture into offering
cultural products or services related to cultural activities, for example,
offering a service that is offering cultural tutorial lessons, running
workshops on how different cultures have used
unique to a specific culture for their livelihood, etc.

cultural group/which is a Examples of businesses

heritage of a specific • Cultural art gallery stalls
• Cultural clothing stores
community. • Theatre performance on cultural plays
• Cultural music productions
• Using culturally endowed • Cultural food restaurants
items/wares/folklore to • Paid trips/expeditions to cultural heritage sites
• Publishing and selling of cultural books/ e-books,
run a business. etc.
 ADVANTAGES AND DISADVANTAGES
Advantages
• Cultural entrepreneurship can help bring societal
unity/togetherness as the business market gives
customers exposure to different cultural heritage.
• It may create an easy platform for aspiring entrepreneurs
who may not have the financial means to start a business,
thereby enabling them to use their cultural heritage to
generate an income.
• It may be used as a means of reviving old cultures which
may be at the risk of dying/being lost.
• It may give entrepreneurs an opportunity to be agents of
social change in their communities while at the same
time boosting their local economies.
Disadvantages
• It may run the risk of misrepresenting certain cultural
customs/rituals/garments/attire etc. if not well researched.
• It may experience backlash from certain cultural groups
who may claim sole custody of certain wares/oral
history/knowledge systems.
• Finding potential customers may be a challenge in the
current modern society, which may lead to inconsistent
income for the cultural entrepreneur.
• The cultural entrepreneur may have to put in a lot of effort
and time to attract potential customers and to build a
reputation for his/her business to sustain the market.
• Staying competitive may not be easy as the entrepreneur
may constantly need to enhance his/her creative skills to
overcome the competition.
• Cultural entrepreneurs may struggle to make a specific
cultural history meaningful to a wide range of people from
various other cultures, which may lead to them running a
risk of making profit/no return on investment in the
products.
 Tourism Entrepreneurship
Definition How does it operate

• This is about entrepreneurial opportunities in

• Creating and sustaining the tourism sector.
businesses in the tourism • It could be any type of businesses offering a
sector by being innovative and variety of tourists products and services.
• It entails development of tourism business
thinking beyond what exists activities and opportunities in avenues such
currently to increase. as: Accommodation, transport, shops
entertainment etc.
• Johannesson & Huijbens, 2010
describe Tourism
Entrepreneurship as a strategy
for economic development in
underdeveloped countries.
Walking tours
• Exploring a tourist destination on foot like walking in the city.
This gives you the opportunity to explore and experience some
hidden gems and other pieces of history that you might miss out
if you’re using a mobile kind of transport.
Airbnb Rentals
• A market place where you can rent a room, apartment or a
house at a cheaper price.
• Entrepreneurs can register their apartments/houses to rent out
to tourists
Local Cuisine Cooking Classes
• This is about teaching tourists how to prepare interesting and
unique local meals/dishes for them to experience different
flavours as well as history behind the different types of food.
Souvenir Shops
• These shops offer locally inspired gifts that are unique to a particular
tourist destination’
• Tourists can buy to take back home as, remembrance e.g key holders,
branded caps, beads etc.
Airbnb Management Company
• This kind of company comes in handy for helping those entrepreneurs
who listed multiple rentals with daily logistics. E.g
• It is a tourism business which assist with the day to day renting of
spaces on the Airbnb.
Fashion Mini-bar
• Available for tourists to access clothes, accessories and
other essentials especially when they have forgotten to
pack some for their tour.
• Options to buy or rent are also offered.
• Specifications such as size, colour etc. could be
outsourced for the guests on request
Translators
• Those who are eloquent in multiple languages are
relevant to this regard hence this could be a business idea
• Help foreign tourists with translation
Cultural /Heritage Tours
• This is about travelling to experience places, artefacts and
activities that represent stories and people of the past
and the present including cultural historic and natural
resources.
• Three types of heritage tourism are natural, cultural and
those built for the purpose, see examples below:
• Visiting museums, historic buildings and town sites, eating
local food, participate in local festivals and events, works
of monumental sculpture or paintings etc.
• Takeaway Hotel Rooms
• Instead of locating a hotel nearby, this service allows
tourists to choose the exact location of their hotel rooms.
 ADVANTAGES AND DISADVANTAGES
Advantages/benefits of Tourism Entrepreneurship Disadvantages/downside of Tourism
Entrepreneurship
• Creating employment opportunities/job creation
• Generate & increase income for economic • Unpredictable market
growth of the country • Technological advancement
• Creation of new sustainable businesses • Ineffective and inefficient management
• Develop rural economy • Lack of entrepreneurial capacity/expertise
• Develop infrastructure
• Attract foreign investors
• Encourage women entrepreneurship
• Promote cultural exchange vs. foreigners and
local people
• Conservation of the natural environment,
cultural assets and traditions
• Alleviation of poverty and inequalities