TECHNICAL UNIVERSITY OF MOMBASA

SCHOOL OF BUSINESS
DEPARTMENT OF BUSINESS ADMINISTRATION

BEN 4401: ENTREPRENEURSHIP SKILLS

INSTRUCTOR: Dr. Titus M. Kising’u, Ph.D.

OFFICE: Main Campus, Business Studies Block, Ground Floor
PHONE: +254720263369
EMAIL: drtituskisingu@gmail.com

WEEK 5

TOPIC 5
Types of Entrepreneurship

Broad Categories
1. Business entrepreneurship is the work of a business entrepreneur.
A business entrepreneur typically measures performance in profit and return. Business entrepreneurs are most commonly
associated with the voluntary and not-for-profit sectors.
Craft
Exploits and utilizes personal skills to start a business without thinking of growth or expansion objectives i.e,
• Craft entrepreneur is not business expansion oriented.
• They provide technical and professional skills.

Opportunistic
This is whereby a person starts a business, acts as a manager with view to expand the business to the maximum. He might not
have the professional skills but he has the opportunity to start and direct others. He sees beyond and he has the abilities to
initiate and venture into business that will expand and grow. Innovative – somebody who is able to delegate activities to others,
ready and able to see, scan the environment. In situations of competitiveness, the craft entrepreneurs have a very high mortality
rate than opportunistic entrepreneurs, so far greater chances of survival in this competitive world is better to expand and grow
becoming opportunistic entrepreneurs.

3. Social entrepreneurship is the work of a social entrepreneur. The Skoll Foundation defines a social entrepreneur as
"society's change agent: a pioneer of innovation that benefits humanity." A social entrepreneur recognizes a social problem
and uses entrepreneurial principles to organize, create and manage a venture to achieve social change (a social venture).
1
Whereas a business entrepreneur typically measures performance in profit and return, a social entrepreneur focuses on creating
social capital. Thus, the main aim of social entrepreneurship is to further social and environmental goals. However, whilst
social entrepreneurs are most commonly associated with the voluntary and not-for-profit sectors, this need not necessarily be
incompatible with making a profit. Social entrepreneurship practiced with a world view or international context is called
international social

4. Political entrepreneurship
A political entrepreneur is a business person who utilizes political systems or seeks support from political bodies in
order to promote, expand and profit from their own commercial ventures. A political entrepreneur refers to a political
player who seeks to gain certain political and social benefits in return for providing the common goods that can be shared by
an unorganized general public. These common goods that political entrepreneurs attempt to provide to the populace generally
include foreign- and domestic-related public policy, while the benefits involve voter support, public recognition, and personal
popularity.

5. Intrapreneurship/corporate entrepreneurship
Intrapreneurship is the equivalent of entrepreneurship practiced within an existing business structure. Such a business has the
financial resources, business skills, marketing and distribution systems, etc. Yet, the bureaucratic structure, emphasis on short-
term profits and highly structured organization inhibit creativity and prevent new products and businesses from being
developed. This causes intrapreneurial individuals to leave their positions in corporations to create their own ventures. In
recognizing this, large corporations attempt to establish an intrapreneurial spirit in their organizations. An intrapreneurial
individual in a corporation does not raise any funds and does not fully bear the risk involved in the enterprise.

Specific Types of Entrepreneurs

1. Inventor – have the ability to invent new products, process or service and then create companies to develop, produce and
sell the items.
2. Opportunistic – A person who starts a business acts as a coordinator with a view to expand, create, innovate and spot
opportunities to make the business grow in order to be able to hire other employees.
3. Pattern multiplier - looks for ideas, products others have come up with, and then creates their own business based on
other people’s model.
4. Speculators - purchase a commodity and resell it for a profit.
5. Acquirers – takes up a business started by another and use their own means to make it successful.
6. Craft –exploit or utilize personal skills to start a business without thinking of growth and development (skills could be
technical).
7. Economy of scale exploiters - sell large quantities of products by offering discount prices and have low overhead expenses
8. By and sell artists – these are people who buy a company for the purpose of improving it before selling it for a profit.

Functions of Entrepreneurs
• Prime mover in the business enterprise
• Bears of uncertainty (risk) – regarded as the primary function

2
• Idea generation and searching for business opportunities by scanning the environment
• Evaluating business opportunities to assess their viability
• Determination of business objectives
• Product analysis and market research
• Determination of the form of ownership/organization
• Mobilizing resources needed to create and run the business
• Managing the business that is the production, marketing, finances, human resources, etc.