Module 1: Entrepreneurship

While there is no universally accepted definition of entrepreneurship, it is fair to

say that it is multi-dimensional. It involves analyzing people and their actions together
with the ways in which they interact with their environments, be these social, economic,
or political, and the institutional, policy, and legal frameworks that help define and
legitimize human activities. – Blackburn

Entrepreneurship involves such a range of activities and levels of analysis that no

single definition is definitive. – Lichtenstein

It is complex, chaotic, and lacks any notion of linearity. As educators, we have the
responsibility to develop our students’ discovery, reasoning, and implementation skills so
they may excel in highly uncertain environments.

Learning Outcomes:

At the end of this module, you are expected to:

1. Define entrepreneur/entrepreneurship.
2. Discuss the importance of entrepreneurship.
3. Identify the characteristics of an entrepreneur.
4. Identify the different roles of entrepreneur in the society.

Lesson 1: Meaning and Importance of Entrepreneurship

Meaning of Entrepreneur

According to Webster’s dictionary, an entrepreneur is one who organizes,

manages, and assumes the risks of a business or enterprise. Entrepreneurs live in the
future. They have creative personalities, innovative and thrive on change. David Mc
Clelland describes the entrepreneur as primarily motivated by an overwhelming need for
achievement and a strong urge to build.

Another study states that entrepreneurs are concluded to be tough, pragmatic

people driven by needs of independence and achievement.

According to Geoffrey Meredeth, author of the Practice of Entrepreneurship,

entrepreneurs are people who have the ability to see and evaluate business opportunities,
to gather the necessary resources and to take advantage of them, and to initiate
appropriate action to ensure success.

Whether you have the desire to go into business or not, it is best to check for
yourself if you are capable of meeting the challenges brought about by business. Who
knows, one day you may develop the interest because of proper motivation to improve
yourself and become a successful entrepreneur.

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Meaning of Entrepreneurship

Entrepreneurship is the capacity and willingness to develop, organize and manage

a business venture along with an y of its risks in order to make a profit. The most obvious
example of entrepreneurship is the starting of new businesses. In economics,
entrepreneurship combined with land, labor, natural resources and capital can produce
profit. Entrepreneurial spirit is characterized by innovation and risk-taking, and is an
essential part of a nation's ability to succeed in an ever changing and increasingly
competitive global marketplace.

Entrepreneurship is the creation or extraction of value. With this definition,

entrepreneurship is viewed as change, which may include other values than simply
economic ones. Some more narrow definitions has described entrepreneurship as the
process of designing, launching and running a new business, which is often initially a
small business, or as the "capacity and willingness to develop, organize and manage a
business venture along with any of its risks to make a profit The people who create these
businesses are often referred to as entrepreneurs. While definitions of entrepreneurship
typically focus on the launching and running of businesses, due to the high risks involved
in launching a start-up, a significant proportion of start-up businesses have to close due
to "lack of funding, bad business decisions, an economic crisis, lack of market demand,
or a combination of all of these.

A somewhat broader definition of the term is sometimes used, especially in the

field of economics. In this usage, an entrepreneur is an entity which has the ability to find
and act upon opportunities to translate inventions or technologies into products and
services: "The entrepreneur is able to recognize the commercial potential of the invention
and organize the capital, talent, and other resources that turn an invention into a
commercially viable innovation. In this sense, the term "entrepreneurship" also captures
innovative activities on the part of established firms, in addition to similar activities on the
part of new businesses. Yet, the definition is still narrow in the sense that it still focuses
on the creation of economic (commercial) value.

Why Entrepreneurship Is Important to the Economy

Entrepreneurs are frequently thought of as national assets to be cultivated,

motivated, and remunerated to the greatest possible extent. Great entrepreneurs have
the ability to change the way we live and work. If successful, their innovations may
improve standards of living, and in addition to creating wealth with entrepreneurial
ventures, they also create jobs and contribute to a growing economy. Entrepreneurship
is thus important for a number of reasons, from promoting social change to driving
innovation.

Entrepreneurs Spur Economic Growth

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 New products and services created by entrepreneurs can produce a cascading
effect, where it stimulates related businesses or sectors that need to support the new
venture, furthering economic development.

Education and training institutes nurtured a new class of IT workers who were
offered better, high-paying jobs. Infrastructure development organizations and even real
estate companies capitalized on this growth as workers migrated to cities where
employment was growing.

Similarly, future development efforts in underdeveloped countries require robust

logistics support, capital investments, and a qualified workforce. From the highly qualified
programmer to the construction worker, entrepreneurship benefits a large part of the
economy.

Entrepreneurs Add to National Income

Entrepreneurial ventures help generate new wealth. Existing businesses may

remain confined to existing markets and may hit the glass ceiling in terms of income. New
and improved products, services or technology from entrepreneurs enable new markets
to be developed and new wealth to be created.

Additionally, increased employment and higher earnings contribute to better

national income in the form of higher tax revenue and higher government spending. This
revenue can be used by the government to invest in other, struggling sectors and human
capital. Although it may make a few existing players redundant, the government can
soften the blow by redirecting surplus wealth to retrain workers.

Entrepreneurs Create Social Change

Through offering unique goods and services, entrepreneurs break away from
tradition and reduce dependence on obsolete systems and technologies. This results in
an improved quality of life, improved morale, and greater economic freedom.

For example, smartphones and apps have revolutionized work and play across the
globe. Smartphones are not exclusive to wealthy countries or people. As the growth of
the smartphone market continues, technological entrepreneurship can have a profound,
long-lasting impact on the world.

Moreover, the globalization of technology means entrepreneurs in lesser-

developed countries have access to the same tools as their counterparts in richer
countries. They also have the advantage of a lower cost of living, so a young entrepreneur
from an underdeveloped country can compete with a multi-million-dollar existing product
from a developed country.

Community Development

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 Entrepreneurs regularly nurture ventures by other like-minded individuals. They
also invest in community projects and provide financial support to local charities. This
enables further development beyond their own ventures.

Lesson 2: Characteristics of an Entrepreneur

Entrepreneur characteristics are qualities that help entrepreneurs achieve their goals.
An entrepreneur is someone who creates, organizes and runs their own business.

Examples of entrepreneurs include:

 Online business owners: Online entrepreneurs include bloggers, e-commerce

or any business owner who performs commercial activities mostly online.
 Home-based business owners: Home-based entrepreneurs run their business
from their home as opposed to offices.
 Inventors: Inventors are entrepreneurs who build their idea and sell it on the
market.
 Small business owners: Small businesses employ less than 500 employees.

In every case, entrepreneurship involves innovating new ideas, putting them into action
and persevering through challenges. Some entrepreneur characteristics are natural
personality traits, but there are also skills and characteristics you can cultivate through
practice.

1. Creativity

Becoming an entrepreneur starts with an idea. You need to see opportunities, find
innovative ways to do things and bring solutions to the public.

2. Passion

Passion is what drives entrepreneurs. They usually love what they do, and this helps
them invest their time in their projects.

3. Motivation

Motivation is the will to accomplish certain things. Entrepreneurs are driven to make
their business a success and push themselves.

4. Product or service knowledge

Entrepreneurs know what they have to offer and to whom they can sell it. Clearly define
the category of products or services you sell and how they provide value to consumers.

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Also, study your target clients to make sure you answer their needs. This will allow you
to improve your offer continuously so you can stay on top of industry trends.

5. Ability to network

The ability to connect with people and to recognize opportunities for partnership is
crucial to successful entrepreneurship. Meeting new people might facilitate access to
resources or knowledge that your business needs. It allows you to learn from the
success of others, promote your services or goods and meet new clients.

6. Self-confidence

Entrepreneurs believe they can achieve their goals. They may have doubt, but they
persevere through it. They are ready to invest the necessary work because they are
confident they can create something better than what already exists.

7. Optimism

Entrepreneurs are dreamers with a plan in place: They see the positive side of the
situation and always move forward. Optimism supports creativity, so it helps business
leaders finding new ideas for their products or services and increases their chances of
success.

8. Vision the ability to think about or plan the future with imagination or wisdom

Entrepreneurs have vision. They see a big picture they wish to accomplish, which fuels
their efforts and pushes them to do more. Moreover, vision is what defines the culture
and identity of an organization. Not only does it keep entrepreneurs energized, but it
allows them to motivate others and keep them working towards the company's success.

9. Goal mindset

Entrepreneurs are goal oriented. They know what they want to achieve, set a goal and
work toward that objective. Determination is vital to overcome possible challenges, and
it also inspires trust from the people who work with you.

10. Risk-taking

Entrepreneurs are ready to take risks. They plan for the unknown so they can make
calculated decisions that are profitable for them and their business.

11. Persuasiveness

Entrepreneurs know their business and how to talk about it to people. They need to
persuade others to believe in their idea.

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12. Decision-making

Entrepreneurs need to make quick decisions and take action for the success of their
business.

13. Tenacity the quality or fact of being very determined

Entrepreneurs overcome challenges. They persevere through difficulties and hold on to

their goals and dreams.

14. Money management

Entrepreneurs need to understand the financial situation of their business. Even if they
hire a specialist like an accountant, they are the decision-maker and must know their
situation to run the business successfully.

15. Adaptability

When they start a business, entrepreneurs often need to multitask. Flexibility in your
schedule, as well as in your thinking, is crucial to continue growing in challenging
situations.

Lesson 3: Entrepreneur Role in Society

Entrepreneurs have the power to shape their businesses into anything they want. They have
full control over the scope and direction of their initial ideas, the types of processes and
regulations their business follows, and of course, how the business grows over time.

Environmental Responsibility

Take these strategies as examples of how your business can become more
sustainable and environmentally friendly:

1. Go paperless. Officially going “paperless” is a big step for most businesses, so don’t
be intimidated by taking the term literally. Limit your paper consumption as much as
possible with simple steps.

2. Use recycled products. Recycled products help reduce the demand for new
resources; as an example, recycled paper products use old paper products as root
material rather than requiring new trees be cut down. Keep an eye out for products
that are described as being recycled, and if you have a choice, opt for ones that are,
even if they cost a bit extra. By extension, you should also recycle any recyclable
products you have in your business.

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3. Make use of “green” appliances. You have a choice in the types of technology and
appliances you buy for your business, so opt for ones that carry an Energy Star
rating, or ones that maximize your energy efficiency.

4. Monitor your use of resources. This is a simple measure, but it’s still an effective
one; keep your employees cognizant of how they’re using resources in your
business, and try to control this as tightly as possible.

5. Use alternative energy sources. Though it may be a heavy investment for new
entrepreneurs of startups, more seasoned entrepreneurs or existing business
owners can invest in alternative energy sources to power their businesses.

6. Institute a carpool (or reduce commuting). Your business’s impact on the

environment isn’t limited to just what happens at the physical location of your
business. You have people driving in and out of your business regularly, so why not
take environmental responsibility by reducing this commute time as much as
possible?

Community Responsibility
The business or entrepreneur is a part of society. Business is performed in the society,
for the society, with resources of the society. The society also provides the opportunity
for development and expansion of the business

1. Encouragement to Healthy Competition. The entrepreneur should encourage

healthy competition among the local community and make good quality commodities
available to the public at fair prices.

2. To Help in Activities of Public Utility. The entrepreneur should cooperate in

providing facilities for the public utility to the local community, Like, Education,
entertainment, medical, housing, and Libraries, etc.

3. To Provide Employment to Local Community. The entrepreneur should provide

more and more employment to the local people of the place, Where he is establishing
his business unit or is performing the business activities.

4. To Improve Standards of Living. The entrepreneur should make all possible efforts
to improve the standard of living of the public.

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5. To Promote Public Relations. The entrepreneur should provide information to the
public about the policies and activities of his business or business organization and
should try to understand the feelings of the common man.

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