ENTREPRENEURIAL SKILLS DEVELOPMENT

Course Objectives:

The module introduces the students to the basic concepts in

entrepreneurship, identification of business opportunities, business
evaluation and analysis.
It provides students with the skills needed to effectively identify, organize,
develop, and manage own business ventures.
This module is based on creativity and professional development
foundations that should orient a student to take adventure, a personal
journey, and seize opportunity for business start-up.
The module gives students an opportunity to make creative adjustments to
meet personal needs and increase self-drive to achieving success.
 Learning outcomes

At completion of this module students will be able to:

- Think creatively, resourcefully and strategically about new value creation,
opportunities, whether creating new ventures or managing innovation in existing
businesses, not-for-profit, or government organizations

- Demonstrate the ability to generate and develop a business idea through feasibility
analysis to a full business start-up plan

- Integrate interdisciplinary knowledge, skills and experience involving the creation

and success of new ventures

- Develop and demonstrate entrepreneurial skills including creative problem solving

and strong interpersonal and communication skills including pitching a new venture
idea to potential investors
- Demonstrate the ability to apply ethical reasoning when making decisions
Entrepreneurship as a Career Option

The vast majority of human being direct their activities

towards earning a living, generating wealth and
improving standard of living.
You can choose your career from two options i.e. wage
employment or entrepreneurship
We may define entrepreneurship as a career in own
business. (YOB) rather than wage employment (JOB)
Differences 1:1 wage Employment and
Entrepreneurship
Work for others Own Boss
Follow Instructions Make own Plans Creative
Routine job Activity
Earning is fixed, never Can be negative, some
negative times surplus
Does not create wealth Creates wealth contributes
Can choose from to GDP
government service, Can choose from industry,
public or private sector trade or service enterprise
The Context of Employment Generation

Income generation: It tries to generate surplus or profit. It is

often taken on as part-time or casual basis to supplement income
e.g. fixed deposit A/c
Self employment: It is an individual's full-time involvement in his
own occupation e.g. tea shop but may not have plans to add any
other service like eats, or expand.
Entrepreneurship is the terminal stage of the entrepreneurial
process. After setting up a venture one looks for
diversification and growth.
What is Entrepreneurship? ^°chno\o|v

Entrepreneurship involves decision making,

innovation, implementation, forecasting of the
future, independency, and success.

There is no consensus on the definition of an

entrepreneur or entrepreneurship as
researchers and academics never seam to
come to an agreement on the definition.

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Definition of entrepreneurship ^°chno\o|v

Definition: Hisrich et al (2008) define as” a process of creating

something new with value by developing the necessary time and
efforts assuming accompanying financial, psychic, and social risks,
and receiving to the resulting rewards of monetary and personal
satisfaction and independence”.
According to Peter Drucker Entrepreneurship is defined as ‘a
systematic innovation, which consists in the purposeful and
organized search for changes, and it is the systematic analysis of the
opportunities such changes might offer for economic and social
innovation.’
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Who is an entrepreneur?

An entrepreneur is an individual who establishes and manages a

business for the main purpose of profit and growth. ( Carland)
Entrepreneurs are people who are strong on innovation,
opportunity recognition and growth in a business venture.
(Watson)
An entrepreneur is some one who causes disequilibrium in the
state of equilibrium. (Schumpeter ) - new products, new processes,
new methods of production and distribution. Etc

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Cont ...

An entrepreneur is not in a routine business.

He might not have resources but he will have ideas.
He/she is creative and innovative.
He/she can convert a threat into opportunity
Entrepreneurs analyze the situations
An entrepreneur can leave a perfectly running
business to another venture if he/she so desires.
For the purpose of our learning the following
definition will be adapted;

An entrepreneur is defined as a person who sees an

opportunity in the market, gathers resources, creates
and grows a venture to meet these needs. He or she
bears the risk of the venture and is rewarded with
profit if it succeeds.

•Taking key concepts from a number of definitions including the

one above, one can identify some important aspects of
entrepreneurship and the entrepreneur to include the following;
 Important concepts aspects of entrepreneurship
and the entrepreneur from definition ^°chno\o|v

 Identifying an opportunity: this means that there must be

a real business opportunity.
 Innovation and creativity: something new and different is
required.
 Getting resources: capital, labor and operating equipment
must be found.
 Creating and growing a venture: this refers to the starting
of a new business venture or the conversion of an existing
business.
 ^°chno\o|v

 Taking risk: there will be personal and financial risk

involved for the person who embarks on the
entrepreneurial process.
 Being rewarded: reward is an essential element of the free
market system. It can be in the form of profit or an
increase in the value of the business.
 Managing the business: there must be planning,
organizing, leadership and control of all the functions in
the business venture.
 ^°chno\o|v

NB. Entrepreneurs prefer to be in control of their own

businesses, but can also be found in large corporations and
are then referred to as intrapreneurs or corporate
entrepreneurs.
Entrepreneurs are different from small business owners. Both
need entrepreneurial action for start up, but the small
business venture will tend to stabilize at a certain stage and
only grow with inflation.
Small business owners are individuals who establish and
manage their businesses for the principal purpose of
furthering personal goals and ensuring security.

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TYPES OF ENTREPRENEURS

New ventures spring from three sources;

Independent entrepreneurs - these create stand
alone new businesses.
Corporate spin offs - weaned from corporate
parents.
Intrapreneurs - when enterprising employees
create new ventures or separate divisions with in an
organization.