Lesson 1

Entrepreneurship Terminology
1. Entrepreneurship
 Schumpeter
 Jean Baptiste Say
2. Entrepreneur
An entrepreneur is an individual who starts and runs a
business with limited resources and planning, and is
responsible for all the risks and rewards of his or her
business venture. The business idea usually
encompasses a new product or service rather than an
existing business model.

3. Small Business
Concept of Entrepreneurship
Entrepreneurship involves decision making, innovation,
implementation, forecasting into the future and
independence of mind.
It is a discipline with a knowledge base theory. It is an
outcome of complex socio-economic, psychological,
technological, legal and other factors. It is a dynamic and
risky process. It involves a fusion of capital, technology
and human talent.
Entrepreneurship is equally applicable to big and small
businesses, to economic and non-economic activities.
Different entrepreneurs might have some common traits
but all of them will have some different and unique
features.
Entrepreneurship is a process. It is the purposeful and
organized search for change, conducted after systematic
analysis of opportunities in the environment.
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Entrepreneurship is a philosophy - it is the way one
thinks, one acts and therefore it can exist in any
situation be it business, government, in the field of
education, science and technology, poverty alleviation or
any other area.
Entrepreneurship can be described as a process of
action. It is a creative activity. As J. A. Timmons defines
it, it is the ability to create and build something from
practically nothing. This implies entrepreneurship is
driven by creativity and innovation. It is the unique
ability of sensing opportunities where others see chaos,
contradiction and confusion. Entrepreneurship is the
attitude of mind to seek opportunities, take calculated
risks and derive benefits by setting up a venture. It
comprises numerous activities involved in conception,
creation and running an enterprise. According to

Peter Drucker
Drucker defined entrepreneurship as ‘systematic
innovation, which consists of purposeful and organized
search for change. It entails systematic analysis of
opportunities that result to innovation in economic and
social environments.

Entrepreneurship is a dynamic process of vision, change,

and creation. It requires an application of energy and
passion towards the creation and implementation of new
ideas and creative solutions.
Essential ingredients of entrepreneurship include:
1. The willingness to take calculated risks- in terms of
time, capital, or career.
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2. Ability to formulate an effective venture team.
3. Possession of creative skills to marshall/mobilize the
needed resources.
4. The fundamental skills of building a solid business
plan: and, finally,
5. The vision to recognize opportunity where others see
chaos, contradiction, and confusion.