INTRODUCTION TO ENTREPRENEURSHIP  Entrepreneurship there is the practice of starting a new business

or revitalizing existing businesses in response to identifying

Definition of an entrepreneur
opportunities.
 An entrepreneur is a person who identifies a business
Self-Employment
opportunity, harnesses and obtains the resources necessary to
initiate a successful business activity.  Working independently and earning a living from it.
 The entrepreneur implements the idea  This is a concept that arises when the entrepreneur relies on
 Undertakes to operate the business revenues from his business as a source of income
 An entrepreneur is therefore a central key individual in the  What is Unemployment? Advantages and disadvantages of
society who makes things happens for economic development. Self Employment?
 What is Salaried Employment? Advantages and
Entrepreneurship meaning;
Disadvantages of Salaried employment? Enterprise
 In the broader sense entrepreneurship refers to the means of  A business undertaking by an individual for the purpose of
stimulating innovative and creative undertakings for a better making a profit.
business community or world.
Factors impeding the growth of Entrepreneurship
 The act or process of identifying business opportunities and
gathering the necessary resources to initiate a successful business  High Taxation Levels
activity.  Corruption and Official Harassment
 Entrepreneurship is a French word meaning to undertake and  Unregulated competition from outside countries
focuses on a business enterprise  Decline in personal incomes
 Entrepreneurship can exist in any situation – therefore it is the  The high cost of finance
creation of values through establishing a business enterprise.  Lack of entrepreneurial culture
 Entrepreneurship means having an idea of one’s own and trying  Poor transport and communication networks
to implement the idea to create values on it.  Lack of skills and knowledge
 Entrepreneurship is a term which encompasses what  Explain the distinctions between an Entrepreneur and a
entrepreneurs do i.e Manager
 Identifying a business opportunity of a particular
Contribution of Entrepreneurship to National Development
demand
 Look at the opportunity as a process of creating,  The economic growth, the improved quality of life, the equitable
something that did not exist. distribution of resources and the capacity of the economy to deal
 Constantly searching/ harnessing one’s environment with economic, social and environmental development.
and resources to implement the activities.  Main objectives of national development include:
 Creating a totally new product and using it in as new.
 o Provide basic needs to every citizen: - food, shelter,  Facilitating community development through
health, security, education, clothing, elimination /  Establishment of small businesses
Reduction of poverty: reduce rural-urban migration  Participation in community dev. Projects
o Provision of opportunities for employment and personal  Providing a positive role model and facilitating.
advancement  Competition between domestic entrepreneurship and
o Trying to narrow the income differences between the imported Stimulating dev. of entrepreneurship.
rich and the poor.  Reducing dependence on imported goods and services.
 Employment Creation: Entrepreneurship provides job  Stimulates competition through
opportunities  Quality production methods are adopted
 Promotion of National Productivity: This is through production  Quality products are produced
of goods and services within the country and therefore they  Variety goods and services are produced.
contribute to the Gross Domestic Product (GDP)  Facilitated development of the financial sector through which;
 Raising Standards of Living: It’s measured by the capacity of  Capital accumulation is possible through savings
people of a country to buy goods and services. Entrepreneurs  Loaning is facilitated
contribute by employing people and giving them salaries or  Development of the capital market.
wages to buy their necessities. The Functions of an Entrepreneur
 Conservation of foreign Exchange: Entrepreneurs produce goods
and services that are needed by people and reduction in 1. The bearing of uncertainty is the primary function of the
importing those goods and hence the government saves foreign entrepreneur i.e losses or profits.
exchange. 2. The management of the business enterprise i.e can delegate
 Export Promotion: Entrepreneurs who produce goods and 3. Provision of risk capital and invention.
services for export earn 4. Identifying gaps in the market and turning such gaps to business
 Conservation Agent: Entrepreneurs can contribute to opportunities i.e to initiate a business.
conservation and utilization of resources e.g. manufacturing a 5. Financing the businesses, through raising and mobilizing the
Jiko that uses sawdust instead of wood charcoal necessary resources to exploit opportunity.
 Rural development which in effect 6. Searching for business opportunities through environmental
 Promotes change to the formal sector from informal sector scans. vii) Mobilization of resources needed to start and run a
Equitable development business e.g. from
 Reduced rural-urban migrations a) Personal savings
 Development of technology through establishment of research b) Friends & relatives
institutions ii) education systems c) Financial institutions e.t.c
 Government revenue 7. Evaluation of business opportunities to access viability and any
 Through taxes. other benefits that might accrue to the business.
 From domestic borrowing (TBs)
8. Provide the necessary leadership for the business and those 
working in it.
Promotion of Entrepreneurship
Advantages of Entrepreneurship
 Integrating entrepreneurship into the education system
 Financial gains  Registration to encourage risk taking
 Self-employment which leads to job satisfaction and  National companies to promote entrepreneurship
flexibility  Support of entrepreneurs through friendly loans at the
 Provide job opportunities to the unemployed or those appropriate time.
seeking better jobs.
 A means of opening up new industries especially in the rural
areas – facilitating globalization
 A source of generating income and increased economic
growth.
 Facilitates competition encouraging high quality products
 Facilitates production of more goods and services
 Leads to the development of newer markets
 Promotes use of modern technology in especially small-
scale manufacturing to enhance higher productivity
Drawbacks of entrepreneurship
Challenges of a being an entrepreneur
 long working hours
 poor pay
 unclear future
 fear of losing all that has been invested
 bankruptcies and closure
Other challenges
 Fear of delegating
 the problem do it yourself and know it all
 competition by established business
 lack of funds especially before break even
 Mis-management by employees