Lecture 3

Chapter 1
Entrepreneurship and New venture oppertunities
Entrepreneurial Development Process
• Identification and Evaluation of opportunity
• Development of Business Plan
• Determination of Required Resources
• Creating Enterprise
• Management of Resulting Enterprise
 • Adam Smith (1776) - An entrepreneur is a
person who acts as agent in transforming
demand into supply.

Evolution of • Jean Babtiste Say (1803) - An entrepreneur is a

person who shifts resources from an area of
Entrepreneurshi low productivity to high productivity

p theories • Alfred Marshall (1936) - The process of

entrepreneurship or business development is
incremental or evolutionary . It evolves from
sole proprietorship to a public company.
 • John Stuart Mill (1848) - An
entrepreneur is a prime mover in the
private enterprise. The entrepreneur is
the fourth factor of production after
Evolution of land ,labor and capital.
Entrepreneurshi
• Carl Menger (1871) - The entrepreneur
p theories acts as an economic agent who
transforms resources into products and
services. The entrepreneur transforms
and gives added value.
 • Ibn e Khaldun (Abdul Rahman
Mohamed Khaldun) - The entrepreneur
is seen as a knowledgeable individual
and is instrumental in the development
Evolution of of a city-state.
Entrepreneurshi
• David McClelland - The entrepreneur is
p theories a person with a high need for
achievement. This need for
achievement is directly related to the
process of entrepreneurship.
Social Responsibility of Entrepreneur towards
…
• Customers - sell quality products at fair price.
• Society/community- job creation and environmental observation.
• Suppliers- be fair with his suppliers by paying them on time as agreed upon
• Staff- promote the welfare of his employees
• Competitors- observe business ethics with his competitors
• Country- must pay the correct amount of taxes to the government
Concept of corporate entrepreneurship
• Corporate entrepreneurship, or intrapreneurship as it is often referred to, is the
concept of supporting employees to think and behave like entrepreneurs within
the confines of an existing organisational structure. Employees with the right
vision and skills are encouraged to identify opportunities and develop ideas
which lead to innovative new products, services or even new lines of business.