“thought, Bill and Thompson state “but with Adam Smith (1 all but disappeared from economic thought”. In their tion later, the entrepreneur was reintroduced by Jean Baptise | "entrepreneur as someone who shifts economic resources out of an area of low ‘area of higher productivity and greater yield. He equally added to Cantillon’s d by including the idea that an entrepreneur is one who brings other people toge order to build a ‘single productive organisation. However, Jean - Batiste definition did not'tell us who the entrepreneur is. Therefore, for us to be abl understand an entrepreneur, we, first of all, discuss some key concepts listed bel a. Entrepreneur or Entrepreneurial person b. Opportunity Creation c. Entreprene J Action, and d. Entrepreneunal spirit or behaviour. a. Entrepreneurial Person Some writers see the entrepreneur as a new factor in production, just as m machines, money, and others. An entrepreneur is concerned with identifying opportunity related to the satisfaction of needs and converting it to something of (either as a product or service). Starting a new product or service is very much i individual decision, which is why the individual's qualities as an entrepreneur central in the investigation of entrepreneurship (Littunen, 2000). That is the classic theories of Schumpeter’s innovative entrepreneur (1934-1942). characteristics of a successful entrepreneur are the ability to take innovativeness, knowledge of how the market functions, manufacturing “marketing skills, business management skills, and the ability to co-operate (Littunt OOO) ic tg i . Dots nity’ has become the central organising concept in the ip (Busenitz, et al., 2014). It refers to the discovery and explo s or to the creation of enterprise. Under this, the risk-takingtrepreneurs consciously formulate projects to achieve their idtale and deliberate ‘over what actions to take to attain them (Kitching, 2017). Therefore, the entrepreneur is seen as one with initiative and imagination that responds to business opportunities. " Reference to entrepreneurial initiative underlines the reasons for correctly anticipating market imperfections or the capacity to innovate in order to create a “new ~ combination”. According to Kitching (2017), entrepreneurs pursue projects mostly under conditions not of their own making, uncertain whether their actions will succeed. They act in, and on, a natural world of non-human resources, a practical world of human-made artefacts and a socio-cultural world of relations with other people, to create new goods and services for market exchange in the’ belief that this will enable them to realise some goal. This allows for diversity in goals (levels of economic return deemed subjectively acceptable), business practices and interactions with stakeholders, and outcomes. Entrepreneurial action covers the concepts of creation, risk-taking, renewal or innovation inside (intrapreneurship) or gutside an existing organisation. d. Entrepreneurial Spirit or Behaviour Entrepreneurial behaviour is central to our understanding of the concept of entrepreneurship. According to Miller (1983), entrepreneurial behaviour is seen as behaviour that managers exhibit. to combine innovation, risk-taking and “proactiveness. The entrepreneurial spirit emphasises exploration, search and innovation, as opposed to the exploitation of business opportunities (pertaining to managers). Gruber and MacMillan (2017) view entrepreneurial behavior as the conerete enactment by individuals (or teams) of tasks or activities’ such as prepare a b plan, look for identifies organize a‘team, hire émployees, form a legal entity, a market which are required some combination to start and grow most new tions. Two, ey Points are evident from the above. First, there is some tion of the concept of entrepreneurship. These different ons why entrepreneurship is described in different ways, As hip had variously been defined from various angles i ry ones. Second, there is also the business»project as propounded by Bekhary, | foundations in our quest at its conceptualisation, we Stat definitions of entrepreneurship to gain more insight, “a process by which individuals — either within or outyiq, opportunities" (Stevenson and Jarillo, 1990: 23). This definition as well as the emphasis that if the firms were to adopt entreprenewiria) firms would be facing a much brighter future ne individuals with vision, Passion to successfully implement a novel ides ner, Morris, et al (2010) avers that entrepreneu: n “dreamers and doers” who see a better way and rit takes to make that better way happen. ‘The Entrepreneurial Process Process ‘encompasses new venture. creation or. # creation applicable to organisations of all type in, Love (2008:135), the different steps that are reneurial outfit are starting a busines: eeking finarice; and assuming the neur and the business ide: of a recognised val enterprise, ‘start-ups creativity risk. Starting an ‘a he/she has conceived lue. In this process, the creates and employs the different , it will fail and lead to nothing,Entrepreneur - seen as Actor and person in charge of large-scaje production projects } Seen as a person bearing risks of profit (loss) in a fixed-price contract with the government Richard Cantillion- a person who bears risk is different from one who is supplying capital Jean Baptise Say - separated profits of an entrepreneur from profits of capital Francis Walker - distinguished between those who supplied funds and received interest and those who receive profit from managerial capacities Joseph Schumpeter - An entrepreneur, is an innovator and develops untried technology 1961 David McClelland — An entrepreneur is an energetic, moderate| risk-taker | 1964 Peter Drucker - Entrepreneur maximizes opportunity 1975 Albert Shapero - Entrepreneur, takes the initiative, organises) social and economic mechanisms and accepts the risk of failure 1980 Karl Vesper — An entrepreneur, is seen differently by economists, psychologists, business persons and politicians. 1985 Robert Hisrich - Entrepreneurship is the process of creating something different with value by devoting the necessary time, and effort, assuming the accompanying financial, psychological and social risks, and receiving the resulting rewards of monetary and personal satisfaction 2004 Scott Shane — Entrepreneurship is an activity that involves the discovery, evaluation and exploitation of opportunities to introduce new goods and services, ways of organising, markets, Processes, and raw materials through organising efforts that previously had not existed. Hisrich, (1998) or Perspéctives of Entrepreneurshipility and use will be realised. Secondly, becalise entreprene © concepts of creation, risk-taking, renewal or innovation, € opportunity. The entrepreneur must have the drive, the ability to creatively. There must also be that aptitude for human relations to be able to harness the potentials of team members. Most fundamentally, and as earlier "expressed by Stevenson and Jarillo (1990: 230), entrepreneurship is “a process by which individuals — either within or outside organisations ~pursue opportunities”. ‘Therefore, for entrepreneurship to really subsist and fully become effective, there has to be the creation of an operating business organisation to implement the opportunity ~ motivated business idea through which the benefits of the enterprise will accrue to the entrepreneur. The entrepreneur searches for an opportunity and gathers the resources that are necessary to start a business to capitalise on the opportunity. Another key component is an entrepreneurial team that provides the necessary skills Tequired to organise and run a successful venture, How do entrepreneurs distinguish mere ideas from opportunities? The framework of Three Ms - market demand, market size and structure, and margin analysis enables opportunity identification to venture creation (Timmons and Spinelli, 2005). The first of the 3 Ms is a determination of the market demand, which is a crucial factor in assessing the opportunity. The second is gauging the Market size and structure. The third M is Margin analysis, which is key to differentiating ideas from opportunities. Entrepreneurs analyse the idea to identify the Strengths of their venture by examining the strengths, weaknesses and value Proposition for maintaining competitive advantages. Perspectives of the definitions of Entrepreneurship | Section, we. seek to describe the various assumptions of the realist; the ionist; the evolutionary realist that includes some elements of realist *s and some elements of constructionist perspectives in order to understand ons of entrepreneurship and the formation of entrepreneurial opportunities Mach's (1968) state that the realist perspective has its dates back'to Aiugust Comte. In that view, t any theory ¢ facts is meaningless. In their account, Comte claimed,ent of our attempts to know it; that we humans can know that world; diy of our knowledge- claims are, at least in part, determined by the way 40,1997). Theory in his view either correctly or incorrectly describes ervable and it can be tested as either true or false. This also means that now the truth about genuinely existing unobservable entities. However, they iene .) argue that the objects of scientific knowledge are phenomena and take [jaws that must be testable by experience and show logical links ‘form of general laws tha! phenomena and these laws. : ts manifests in entrepreneurship literature-have-come . This way of thinking of the realis! r b ~ to be known as discovery opportunities or the individual/opportunity nexus approach. n m1 the-work of the “Austrian economists” who differed from _ The root of this approach is ‘ ~ ‘the more traditional neoclassical economists by assuming markets with imperfect information (Kirmer, 1989; Von Mises, 1949). The central assumption of their discovery approach suggests that unobservable opportunities exist objectively and independent of individual perception and by implication that these opportunities can only be seen, and thus “discovered,” by particular alert individuals (Kirzner, 1973:10). ‘Therefore, the realist perspective of opportunity formation in this view attempts to answer the question - Who is an entrepreneur? This realist assumption asserts that individuals who are entrepreneurs differ from those that are non-entrepreneurs in many ways. This may also help in resolving the age-long discourse on the reason why one person sees opportunities in an area where others are complaining of lack of amenities and decaying infrastructure. This position further assumes that without these differences, anyone in an economy could become aware of and then exploit an opportunity. However, if entrepreneurs and non-entrepreneurs differ, then not €veryone in an economy will know about particular opportunities, and if they do, not ‘everyone will be predisposed to exploit them. ‘Karmer (1973) and Shane (2003) had examined several possible differences between Satrepreneurs and non-entrepreneurs. According to them, most of those differences : lopment of information asymmetries between entrepreneurs and non- (2000), Kirzner (1973: 67) summarise the differences between i's urs by merely asserting that entrepreneurs are eee than non-entrepreneurs. The primary ee is that these opportunities exist peer of em ean. that this knowledge can be is that it holds the nature of the world “ase, subject to empirical investigation. In unds for an opportunity to be tested forProces¥es ~ undertaken by Entrepreneurs # The three Dimension of entrepreneurship. Wilson & Stokes (2006) The Theories of Entrepreneurship (Debates) the years, several theories have been put forward by scholars to explain the ‘Concept of entrepreneurship. These theories, which still form the base of cutrent theories, have their roots in €conomics, psychology, sociology, anthropology and _. Management. These theories include: < Economic entrepreneurship theory b. Psychological entrepreneurship theory = Sociological entrepreneurship theory - d. Anthropological entrepreneurship theory Opportunity-based entrepreneurship theory Resource-based entrepreneurship theory entrepreneurship theory has deep roots in the classical and neoclas ‘ical economics. They see an entrepreneur as an agent of economic These theories explore the economic factors that enhance e! 0 The classical theory extolled the virtues of free trade, n (Ricardo, 1817; Smith, 1776), The theory was the result which took place in the mid-1700 and lasted until.the ibed the directing role of the entrepreneur intheents that bear TISks ayy and M top) 2 ee criticisms of the cing xenight (1970) model mere ould BE * segated to instancealal sical mornenomens ce in an economic System that i nent ing marine Wy Gea ue ‘ment (MUrphy, Liag 4 t an optim ouple ‘al move! ange © classic e neoclassicn” renew, other factors exchange, reflec ae closed. The importance ae ent eneurshiP t the © enough impetus eee that witlot transform ip°9 anything of economy. froauréon ie nd rangjvating factor for the Acquisit, wn, The Pl skills was not eories urship Er theories sg the individual (Landstrom, 1996), Fy recognises traits, motives and personalities ay al spirit in an individual. Personaliy ‘reviewed and empirical evidence production like value on their 0% of entrepreneurial s Psychological Entreprene’ psychologic The level of analysis in ological theory Love (2013), the psych ctors that instil the em! the significant fa‘ ieee raits nees for »ment and locus of control i lea eer: innovativeness and tolerance for ambiguity. Those ‘al inclination because Psychologists presented for risk-taking, teristics are associated with entrepreneur fend to believe that there is an inner UEC OF force (personal traits) in a man that asa hinidesire ejebangeiof status and Powl=fe So, entrepreneurial business it motivated by an individual’s need for achievement which is a force that inspires an entrepreneur to generate idea(s) and energises him to pursue the idea until it becoms a reality (McClelland, 1963). charact le qualities that a person shows in mast Coon (2004) defines personality traits as stabl during inborn qualities or potentials situations. To the trait theorists, there are en the individual that naturally make him an entrepreneur. The question on your mind may be “what are the exact characteristics or congenital qualities?”. This model 8° some insight into these characteristics or inborn qualities by identifying the oO associated with the entrepreneur. Thus, explaining personality Teens saaay inferences from behaviour. Some of the characteristics or behaviours associated entrepreneura are’ that’ they tend! to’ be more, opportunity-drivens oeaaaaaa geal for an opportunity), demonstrate a high level of ingenuity and inno | and demonstrate a high level of management skills and business acum Entrepreneurs have also been found to be optimistic, emotionally resilient MY mental energy, work very hard, show the highest level of commitmen wi perseverance. Also, entrepreneurs thrive on a competitive desire to excel and wi tbe dissatiafied with the staius qu ender aaa ss reneurs ty transformational by their nature, re nprovemsni aa ‘ , always ready to i better scotcenutbey,cuse feilure/aaiaines (4s eee Alnnataes Sig 0 perspective, entrepreneurs believe that they fe anaes a differen” of individuals of integrity, visionary in disposition, Pe js still not by research evidence. The only Way to explain or claim that it exists 8 to ook 2irs and conclude that one has the in inborn yviou! ‘mains a debate till date hg. sociologcalintneaeyaay the third of the ma cocoon cotrmine Files pg pl sorpvironment 19 te Baas ‘motivating factor for the fact that ideas, traits and motives ‘curship to come into being, In other sf analysis is traditionally the society. ‘that relate to entrepreneurial the focus is on building social tunism. In other words, the f people to be success at them. ves analysing the life have decided to ‘become e their thought and action, ‘The third context is eth ‘ne decisive “push” rks. Here, mote trust and not OPPO entreprene’ 1d not cheat OF undue advantage 0} they should keep faith vith peoples that way, succes® smiles alled the life course stage context, characteristics of individuals who rhe experiences of people could influenc g meaningful with their lives. ind is one of le, the ‘the second he © situations and ‘entrepreneurs. T! they want to do something identificatio’ peoome an entrepreneur. For CxO7 1 how far he or she can 60. Peo obstacles and strive for success: tralce life better. The fourth social con! ‘environmental factors play an essential rol system, government legislation, ‘customers, employees tnvironmental factors that may have an impact on the sntrepreneur. m. One's sociological backero!® le in the survival of pusinesses- fand competition afe survival of venture success of the e1 Theory ¢ anthropologie ntrates Anthropological Entrepreneurship ‘The fourth major theory is referred to as th (1993) aver that this anthropological theo mae. which can positively influence an in per Dtrepreneurial skills that may lead Bepemie venture ratheopology fai the study atseibi ee pauls In other words, the culture of the spacthrove ical theory says that for someone tO success et peta atets should be examined oF COM8 entrepreneurship model, which refers to ™* ‘the influence of one’s culture. Cultural practices ead to em! os v 8 innovation that also leads to ventures that 32 itchell et al,, 9» individuals (Mit x ' tical complexities in in i logical, and politic economic, ecological, i (Baskerville . al differences ( , ts can produce coe th, 1990; Shane 1994) Seerealbral reneurial behaviour difereices ( bility of the individeaiiaa well as ee coeur ba are still subject to al these socio-cultur: : sion. needed skills and the ability to take deci eo! Opportunity. Based Entrepreneurship theory h as Peter p ; by scholars sucl tun: is championed , Z The er Stee ta ae era et ne ee 200 ide. ‘ nee for entrepreneurship an eae one ane, aimed by rian Entrepreneurs do not cause change (as cl in ciciag ee a but exploit the opportunities that change in ch ferences an He further says, “This defines entre ani the entrepreneur always searches for change, responds to it exploits it as an oj Pportunity”, What is apparent in Drucker’s opportunity Construct iy that entrepreneurs have an eye more for Possibilities created by Change than ip Problems. Stevenson (1990) extends Drucker’s Opportunity-based construct to i - This is based on Tesearch to determine the differences Detween management, entrepreneurship, tuman capital re; the resource-based entre Eee loped by Hisrich nirepreneurship and the names evolution of “ntepreneurship at that e marises f the most Cutstanding contributors to # | ra, Innovation Theory Asa theory of entrepreneurshi, wo tenn ovation theory ig credited to Schumpete' ery gre oriented ver i 1. & function of innovation and $$ itrep; “4rship does not exist, He wrote rt Tut of innovation, tn that same bie nie) factor in "tiellisrocess id to te? we high that ont cannot be said t By ny When he said “a, entrepreneur must not ne be a development planner or an inventor but should be able to SE Ee nT enterprise that already exists, Create and carve New things out of its form’. fntrepreneur without innovatic 4his innovation theory of Schumpe ters , supported # nnovate but should also be creative. ted tha it ruckel 5 must not only } 985, current heories Of mntrepreneurship ag 4 the Economic entre , , ad discusse -preneurship theory, ological entrepreneurship theory, Psychologica, we pis ip theory Socit iP cory, Opportunity ~ based entrepreneurship theory, ange & ship theory, one may Degin t0 wonder ‘why: eee theories of entrepreneurship. ‘These multi - various theories arise ete 80 many pointed out in this chapter, (see page one) entrepreneurship is an eet earlier thus necessitating varied approaches to conceptualise. This view is liscipkinary separa (2011:6) when he stated that entrepreneurship coat approaches that can Be sed to increase one’s understanding of the fed, alee it two ways to examine these theories are: ~ t a. Witha ‘school of thought’ approach that divides entrepreneurship into specific activities t blends the elements into multi-faceted models. b, With a Process approach that that the broad views of entrepreneurship are classified as and Micro views of entrepreneurial thought, where, the t the Macro (external factors) view: affect a potential In that piece, he stated emanating from the Macro following three schools of thought represen! > The environmental school of thought-factors that entrepreneur's life either positively or negatively. The fnancial or capital school of thought — that fo money. © The displacement school of thought — included here are political, economic displacements that affect venture development. cuses on the search for seed cultural and listed as: i determination Further to ' the above, the Micro (internal factors) view was ; nt, creativity» o. A peeene tet theory-exhibition of achieveme Sete knowledge. Bee eee a school of thought - the search for Creativity and concepts and the implementation of vent fata erateneaswne aise yemes 09.208 sources of ideas e tunities: Okpuke ara (2011: wy it 88° 18) farther sted other theories that neiped 10.7 Se nt? 10.) which focus (a) the di existence een (individual opportunity nexus” | ry and exploitation of opportunities) 24 ag the (b) the creati eatio thetm, theory - which focused on the entrepreneur copeatio® f 15| ip yinectire ; which any ay k theories in_entrepreneUrshiPs a say that oa . ee Se SO many rut will prove TUULe. Suffice hen (on thea accommodate all in ees oe propounded 1 pounce TUMpete ¥ cee nee neory of innovation, discussed above) cio abound in thea atreprencurship tory cae = Marshallian neo-classical entrepreneing elucidate this concept. Suc theory: ‘alert? entrepreneur are exam! irzner's ne ae theory, and Kirzner’s entrepreneurs! expend ae theories are technological theory, structural theory, expe: theory ani | network theory. Other Entrepreneursh ; | 3. Factors that Influence Individual’s Decision to Become 4, Entrepreneur a, Development of new products and services Entrepreneurs are the backbone of the economy in the sense that they have tr enthusiasm, the vision and the driving force to set up enterprises. Through these ne ventures, various new products and services needed in the society are produced. b. Introduction of new technologies As innovators and isk-takers, entrepreneurs take advantage of busines opportunities, social problems and difficulties to create something of value. In thet bid to respond to the challenges of Society, they creatively encounter and invent 1! | ways of doing things that transform into unimaginable profits. For example, Bill Ga! has transformed the world of industrial enterprise with new (computer) technologies | | ©: Mobilisation of capital resources for socie All the significant factors of ey are mobilised and coordinated by entrepreneurs such that particular society. The)™ creativity to combine these resources in a mix that build up the wealth of the nat” | d. Introduction of ae industries” »«‘MFastructural facilities and building © Every year, throu a eee mae sort of entrepreneurs, new infrastructural, materials of various sizes and make 1! and others, flood they masleialte anita eee entreprencira and theit Lic sho aria eae Het ap Production such as Innovation, land, labour, and c=! e. Job creation & employment ge, yf ; eration i we As a result of the undertakings of entrepreneurs tienes tate sa service ventures, millions of jobs are > pee agricultural and allied services, Provided in factories, manyss ral Benefits of Entrepreneurship Education in Nigeria , Gene: re 9 note that the National University Commission h: jeory in our tertiary institutions, i as made the of entre] reneurshiP compu! i me, itres; aaa iP dents, According to Tkeme (2012:n, oe ee ‘ successful enterprise setting due primarily to the ame ing devoid of entrepreneurship education has higher chances of tale 7 paration for challenges associated with start-ups. Among other benefits ship education, he included the following «Understanding the steps essential in business start-up | Enhancing awareness of CATET! ‘and entrepreneurial option + Using strategies for idea generation and assessment of the feasibility of ideas = Understanding basic financial concepts: | tnereasing awareness of social responsibility and entrepreneurs’ contributions to society. «Enhancing personal and career goals and attitudes "Improving self - management skills because of focus on personal responsibility | Enhancing the ability to pursue additional training or access 10 other resources and services. + Improving problem- identification and solving skills for business operation issues. | Enbancing self-worth thorough ‘understanding of personal capabilities. 1 Gahancing reliance on teamwork to solve realistic and complicated problems Benefits of Entrepreneurship Education to Students iso listed as possible positive outcomes of entrepreneurial education to students at all levels of academic endeavour are: Increased sense of “locus of control”; greater awareness of personal talents and skills; improved school attendance; higher S dem : See application of enbsnced creativity skills in business Saons, exbanced buses opportunity recognition skills; ability to handle cally; and ability to use problem — solving skills effectively. In conclusion, possible and speci ' specific positi . etradistcs of the U positive outcomes of entrepreneurship education iniversity or highe eatin efucation are: t education who have undergone a. Ability to pursue entrepreneurshi arniny ip as am f i Improved business start-up planning perience aay an es Ability Reeser plan to achieve cena al : effective financial manager 2 = = ment and application of basic accounting Secs ot bl , ness closings as an exit strategy versus fail jure. v7reneurs 6. Characteristics of Successful Entrep’ * TePreneyy distinguishes, the ent, In most cases, the qualities outlined below are what from the rest of their contemporaries: it A high level of drive and energy Enough self-confidence to take carefully calculated risk ~ Aclear idea of money as a way of generating more money diciee The ability to get other People to work with you and for you productive} ly High but realistic and achievable goals The belief that you can co1 Readiness to learn from A long- Intense ntrol your own destiny your own mistakes and failures term vision of the future of your business | | . Competitive urge, with self imposed standards. | | le iga een ees op) Advantages of successful Entrepreneurship Enjoying the Profits from one’s efforts, Adventure p roduces excitement in entrepreneurial Activities due to its high | isk that was overcome. the entrepreneur has liberty for a holiday, family time, ete. | ride'in originating new business and offer ducts 7 Ting new pri S| not previously available to customers. : ee aie Independence 1SPecially in taking business decision i Salary-startin | ii, &n entrepreneur is never predictable; a? | any time, | f the busi our ON d higher in Mess must be made on ys - a your business you on the chain of command in ¥ \ Summary and Conclusion In the course of the the; Process and a discipline, sets of interpretations, Pe “Entrepreneurship” and 4 have a distinct meanin, establishing and man, Sretical evonat, Scholars from oof entrepre, rar neurship, especially both TPectives and dan et “on dives isciplines have grappled He Entrepri Hons to conceptualise this phene® i! @ Entre’ ¢ terms Often used interchangeably pg aging a new pe™UFship, retere to the process of dey “siness while entrepreneur refers to the P 8_ = tes a new business, bearing gual who crea Overall, this chapter has d skills of an indivi tributes 2” rewards. yehaviours: 2 lishing most of the ‘ post of the risks ey appreciation of the theory of éntrepreneurship, attempted t Bids Tt has also discussed the entrepreneurial habits, sreativity oes pis and behaviours associated with effective -and successful Jompetencies entrepreneurs Revision Questions vn entrepreneurship and entrepreneur. ncurship education is important in Nigeria, jons surrounding entrepreneurship. vneurship in national development. an entrepreneur? Critically discuss the difference betwee! piscuss four key reasons why entrepre Discuss the various perspectives OF dimens’ Discuss three key contributions of entrepre! What are the advantages and disadvantages of being wpere References ‘Aivarez, S. & Busentiz, L. (2001). The entrepreneurship of resource-based theory. Journal of Management, 27,755-775 Alvarez, S. A, & Barney, L.W. (1999). Discovery and creation: Alternative theories of catepreneurial action. Strategic Entrepreneurship Journal, I (1-2): 11-26. pore J. (2002). Updating Organizational Epistemology. In J.A.C. Baum (Ed), ace ie poeaieione: 715-732. Oxford: Blackwell Publishers Ltd. a a pares Reality: An Evolutionary Realist Methodology for the epee and eos pesca Albany, NY: State University of New York Press ee ee iS). Cees something from nothing: Resources construction 4 ricolage. Administrative Science Quarterly, 50(3) 329- Bamey, J. B. , J. B, (1986). Strat peeled (0286). Stratenic factor markets: Expectations, luck, and business Bee percrerits Science, 32(10):1291-1241 Tag (1996) Organizational Ecology. In S : gia ibook of organization 7 gy. In S.R. Clegg, C. Hardly, & WR. Nord (Eds), »P. L., & Luckman: ee in, T. (1966). : ise i Bian ® Sociology of Knowledge. cel a Social Construction of Realty, A eats 8 ae. C. (1855). The Posi ity. NY: Anchor Books Doubleday: ndensed sitive Philosophi Baton, pg bY Harriet Martineau New York of Auguste Comte Freely Transat a Crporturay, oomPee. J. (2013 See a FTeSS, Baer rtunity. Cornwall: TS I ). Entrepreneurs: Talen' Brokat G: (2007) Creati international Ltd. % tonsa (2007) Creation and Pursuit of Er Padstow. Busenita Ly motnic Perspective. Small Sea OR DEER Rae rte eee ee 28(4):323-337 . C., Shahzad, A., & Rhoads, K- (2014). L i t, Temperament andChapter 2 The Entrepreneurial Environment Hyginus Nwosu & Ambrose Oloveze Learning Objectives After reading the chapter, students are expected to be able to: + Understand the entrepreneurial ecosystem = Evaluate the contextualisation of the entrepreneurial ecosystem Understand the organisational environment + Identify how entrepreneurial opportunities are identified and most common sources of new business ideas + Understand how to harness entrepreneurial opportunities within the environment + Discuss how to assess the business threat and to overcome them «= Understand the factors that shape and constrain entrepreneurship development 1. The Entrepreneurial Ecosystem ‘There are numerous definitions of what an entrepreneurial ecosystem is. The concept is gaining popularity in recent years, given the ideas entrepreneurial leaders and policymakers have about a place’s community, and culture has a significant impact on the entrepreneurial process. Though there is no widely shared definition, some definitions given by authors vary. However, the entrepreneurial ecosystem deals with two concepts: entrepreneurial and ecosystem. The first concept which is entrepreneurial refers to a process in which opportunities for creating new goods and services are explored, evaluated and exploited. It deals mostly with micro, small and medium-sized enterprises in their starting and scaling phase with the impression that it is an essential source of innovation, productivity growth and employment. On the other hand, the second concept which is ecosystem is seen in natural sciences 65 © system or group of interconnected elements formed by an interaction of @ commer of organisms in their environment. In this respect, the ecosystem in entrepreneurshi 2 consists of different elements which can be individuals, groups, organisations om institutions that form a community by interacting with om a environmental determinants that influence how these acto” concept Sees organisations or institutions) work and interconnect. In other words, is oma thi entrepreneurship as taking place in a community of interdependent pee, ®cosystem demands leadership that is made up of entrepreneurs" q grow am Sccessible and committed to making the region a great placate giving beck across ee: It requires many well-respected mentors and even effective & eee Sectors, and demographics as a substantial prese? accelerators and incubators. 24entrepreneurial ecosystem ag an . ; Stam and Spigel (2016) defined’ 1 crisations) and influencing factoe Ml interdependent actors (individuals way to permit productive entrepren, I inated in a and culture) that are coor interdependent actors and factors are « } given territory. In this definition, the ductivity within iam Ong to influence entrepreneurship and its produ pee aa AS ge productive entrepreneurship differs from place to pl 38 @ function ty in a given territory, it imps 4 influencing actors. Also, because it is entrepreneurial ecosystem is geographically bounded but not co geographical scale-like city or region. Productive entrepreneurship, on the yt refers to the results of successful ambitious entrepreneurship while her entrepreneurship refers to exploring and exploiting opportunities to di ambit goods and services and add meaningful values to them. ‘corn Mason and Brown (2014) defined entrepreneurial ecosystem as « 7 entrepreneurial actors (both potential and existing), cae mretConne firms, venture capitalists, business angels, banks), institutions unre oat bint gatencies, financial bodies) and entrepreneurial processes (e.g wt! erat at, Bumbers of growth firms, level of blockbuster entrepreneusehin’ busing Preneurs, degree of sell-out mentality within the fee ewe 25‘Table 2.1: Main focus Difference Between Entrepre! Jndustrial district, Cluster, and Innovative system neurial Ecosystem and Previous Concepts MST Enti repreneurial ecosystem The main focus here is on the economic and social structures of a place that affects the overall innovation and organisation’s competitiveness Distinctions could come between fast-growing startups and other ~— types_—soOf organisations Here startups are at the centre of the ecosystem seen... as | different from established large organisations and lower growth small and medium-sized enterprises in terms, conceptual development policy formation. of | and Role of knowledge Focus here is on knowledge as ‘a source of new technological and market insight. Knowledge from multiple sources is recombined to increase an organisation’s competitiveness. Also important are knowledge spillovers from universities and other large research-intensive organisations Here market, technical” and entrepreneurial knowledge’ are essential. The knowledge about the entrepreneurship process is shared between entrepreneurs and mentors through informal social networks, entrepreneurship organisations and training courses offered. Locus of attention In building and maintaining industrial district, cluster and innovative system, the primary locus of attention is the state and private organisations There is little room for individual agency in their creation. Here the entrepreneur is the focus of attention as he/she is the core actor in building and sustaining the ecosystem. Though state and other sources might support the ecosystem through public __investment, entrepreneurs retain the agency to develop and lead the ecosystem Source: Stam and Spigel (2016) 2. Principles Ecosystem. In creating an entre advo Scosystem. The Processes, ambits ambitious entrepreneurship, and lastly, they focus 0" cates public leade 26 Preneurship ecosystem, there is no exact formula. leader follow nine principles in building o> Principles emphasise the role of local condition that Guide Building of Entrepreneurship Isenberg (2010) entrepreneur 4 bottom-uP institutions:phe principles include: lating Silicon Valley a eee ecosystem around local conditions Tenge the private sector from the beginning stress the roots of new ventures Do not over-engineer clusters instead help them grow organically Favour the high potentials Get a big win on the board ‘Tackle cultural change head-on Reform legal, bureaucratic, and regulatory frameworks weerageenrr The first five principles emphasise the role of local conditions ang processes. The sixth and seventh principle emphasises on ambitious en betas While the eighth and ninth principle focuses on institutions. These nine prog designed to lead to the creation of an ecosystem, venture creation ang business sector. The domain of the Entrepreneurial Ecosystem ‘The domain of an entrepreneurial ecosystem is sometimes referred to as its da Several models of entrepreneurial ecosystem exist. However, Isenberg's models yd} sed, The model identifies six peculiar domains which emphasise that each « emerges under a unique set of conditions and circumstances. The six distin aaa of an entrepreneurial ecosystem include: Conducive culture . Enabling policies and leadership . Availability of appropriate finance . Quality human capital . Venture friendly markets for products . Range of institutional supports | Qanpone ‘These broad domains consist of hundreds of elements that interact in hig) ways and peculiar ways. The importance of this is that ecosystems do not eu same way. There are different interacting factors in different milieus. Ts?#t pattern for an entrepreneurial ecosystem for all regions would be suicidal eo to the uniqueness of the region would yield desired benefits. The point 8 Isenberg’s model of entrepreneurship ecosystem each ecosystem cme pete of conditions and circumstances. However, entrepreneur Beinitustry-specio (Mobile phones cluster in Lagos and Onitsha, Nise ae North Jutland, Denmark). They may as well evolve from @ ae several industries in that there are entrepreneurial 0°)" 8 industries, The fact in this model is that entrepreneur) Seographically bound but not confined to a specific 27'g model of entrepreneurship ecosystem shows 7 taining entrepreneurship, the entire entrepreneurial cosyaten Hy IL shows that there should be leadership, governmeny human: capital, universities, entre,” fang frastructure, support services, networks and early custom, "Unty the ecosystem elements differ across the world. 1, ;,° tk on’s strength and weaknesses should be the key in gk will be centred on its local specific, The elements in Isenberg to have self-sus! be in existence cultural norms, organisations, in! region. However, understand that a regi eneurial ecosystem because it success stories, trepr tre i te dents ‘might not be equally needful. Equally, it is essential to note may define th iy relationship between these elements that de e ecosystem and nop mat elements. components of Entrepreneurial Ecosystem Pillars The components of entrepreneurial ecosystem pillars were developed by Foster ¢ (2013) in their study conducted for the World Economie Forum (WER), developed around eight pillars after inquiring from over 1000 entrepreneurs or globe. The eight pillars emphasise the importance of local resources (e.g, Wort funding, and support services) and formal (major universities, regulatory framens, and infrastructure) and informal institutions (cultural support) and access to marion facilitating entrepreneurial activity. However, market accessibility, human capital i, access to funding are seen as the most vital components of an entrepreneuii ecosystem. In Foster, et al.’s (2013) eight pillars, a vital part of defining the component i identifying the key areas where the definition of an ecosystem from an entreprenait perspective extended beyond a single geographical area. The pillars indicate tht entrepreneurial ecosystem presents a shift from traditional economic thinking = organisations and markets to new economic thinking about individuals, networks 2! formal and informal institutions. It emphasises the role each of the pillars playsia' successful development of an entrepreneurial ecosystem. With the eight pilars mt components there is existence of major differences from region to region when itn to entrepreneurial ecosystem. In some regions the dominant contributor tora os growing early-stage organisation sector is a small number of break-out organs! However, large organisations in the overall entrepreneurial ecosystem have ne to playlin the region as they can provide vital leverage for early growth organs their growth and development. Entrepreneurs being the key drivers of economic and social progress ual expansion opportunities beyond their regions. They play vital roles in "1-7 an entrepreneurial ecosystem. Though entrepreneurs consider access ca human capital/workforce and funding and finance as being ee isi goverment and regulatory policies as potential growth accelerators °°, sf! However, there are potential alignment issues with governments uytheir entrepreneurial m ecosystem »: us ™ i eg ates are systems that produce successfiy, entreprest Thus, BF e005) ‘ a ni 5 sft ge) ‘ ts of mntrepreneurial Ecosystem Pillars earthip, Ti nen! Og: com Human Capital Workforce ae arge companies, | ° Management talent esi mi companies, | ¢ Technical talent ae = Bos) edie customers. 3 e Entrepreneurial Company exper; oe ts jarge companies, | Outsourcing availability ae ign ™! . anies, Access t immi, , Fat edi one = © the immigrant workforce Soe ment as CUSsCOmICTS Govern = | Support system |__| iad aa 7 « Mentors/Advisors | frends and f * Professional services |, Angel investors ¢ Incubators/Accelerators 1. Private equity ¢ A network of entrepreneurial peers , Venture capital ebt — i See and [Education and Trainin; al ee. eed Available workforce with pre- [orastruct Falls ; ise ' university education ; . ase of starting a business * Available workforce with university + Tax incentives . Business-friendly education pe erin ' 1 ur S| ific legislation /policies elie Entrepreneurs |" Access to necessary infrastructure (e.g. water, electricity) * Access to telecommunication/ broadband Support "Access to transport cal eae and failure + Tolerance oT . employmen + Preference OF 1. models Jor universities promoting a e Success ston’ r tie of respect for » Research Cae entrepren® ; apereneurship © A positive mr ovatio? in i universities playing a key role || Cejebration ° "Maj “2 formation for new companies ia a universities playing a key role compan graduates for ies ee: Fi; *ster et al. (2013)provide ingj, - js that it did not provi ights hc Le ecosystem. Also, it did not Provide he ‘ties for public policy: Also, it did not offer any Cohe, Bt lite ments and as well its interdependent co"®tng tes most vital elements of access to Markey, % ‘d funding and finance are likely to be the Proximate U%&, Kforce a causes of entrepreneurial ecosystem success, a dame! the weakne causes of 0 ent possibil However fundamental sapital or wor rather than fant 3. Types of - 5 be defined as surroundings especially the . Ba eerie eran al ort development! 4 oa sual 2000). According to Daft (1997), an organisation's enviro, fy saeeeaatail ieclementateetcnafetalieene boundary of the organisation nett the potential to affect all or part of the organisation. However, Enudu (1995 ie Onuoha (1991) visualises the environment as a set of conditions and forces ia surround and have direct or indirect influences on the organisation, Business not exist in isolation but in an environment. For any business to fail or SUcceed will depend on whether the environment is hostile or Supportive (Nwosu, 201; 6) hit further submits that the environment is said to be supportive when it Possesses m, 4 cnablers that will enable the business achieve its objective, and hostile when j exhibits constraints that inhibit the success o} 4 f the organisation. According ta (2003), a business organisation and its environment are in mutually inter-de Business Environment Internal Business Environment eo maaess environment comprises of factors within the company, whist of the organisation. ic. to Nwosu (2018), the ton BF nm. They are not emergent and dynamic. lowing are internal environmental factors; ‘on. Owners can be an individual or group of perse started the compan: oe ly. They have the ri which can perfo; ei le right to make policies the organisation cither ways. A company4; creative ideas are more likely to Outperform, those that fanagement im| plements the policies mad ent i # nesses management of the business. Therefore, nthe board ang o mansftaion, 1 i8 the duty of the management Te 5 val of a0 Tee ced rival of OF OFA airectors of the company when dealing wath oe eset criti i ating policy for the overall intere cal i st of the compan nue? of ‘e when formull ipany. tial factor in an organisati amployees are an essen ganisation. The of ace nrigo anything on its own except through its ae catty an rkcplace, the workers not only have talents; they also In a hi peter Employees need CO be motivated to be hard-working and prox eee better togethe 6. tional cull eereatoniit ia the values, cions, AN organisation's cul is an essential de eause culture i fg roanclal: Finance plays a vital role in the life of every organisation; money daemines whether a company survives OF dies. Financial resources include funding, fmeinent opportunities and sources of income, Finance affects everything that fappens in an organisation; the quality ‘and number of people to be employed, the taal, quality and quantity of raw materials 0 be procured, the market to be feuched, the research and development as well as innovation. Enough finance wil bring more flexibility for growth and expansion. ture: Culture is the collective behaviour of me visions, beliefs, habits that employees ates ture plays a significant role in shaping its succes eterminant of how well an organization performs, . External Business Environment niemal factors are those factors that are outside the control of the business Grylsnion, External are emergent, unpredictable and dynamic: sation than internal fcors pose a significant challenge to every business 0! ‘iors. According to Nwosu (2018), the following are external enviro) 1.Feonomic Bees wit the armloperates Various econo} en determining the current an : merit, For a business, key economic fe mak fee mneny policy, and taxes. Economic factors and macroeconomic) individual factors are {actor tire economy, HOt or hoy re that affect the entire econt™ ment rates: olds, Examples include interest rates employe 32 —lo tionary income, sa 6 Pereumer Coors ving, 0% confidence oN consum IF eS? sxchané’ depressio igual business, such as market gi us ns, a dividul : Sie, b as spe mcors nar aC BE ibution chain, such as retgi cust? eonomie 001079 TE A ith suppliers Oi strength of competitors, 9 ict sapply relate the number ans os demand, SUPP ducts, and cust hat sell the P' 36 tores oo 7 or - I 2, competitors — ie. they exist everywhere, ene aan capitalist oy oust Business 18 ubiquitous, U6 that are doing the same or a related business mus, Co competitive economy: ee vse a challenge; they compete for customers in g 4. te monitored because Ree or services. These competitors will try to take away Peal marketplace with simile PT ter product and services Nee customers by offering them better P1 gor id 3. Political or Government ‘ Ws tivities and political conditions that may alfet se Political factors are governmental act 7 7 ta Poi ges. Examples include laws, regulations, tariffs and other trade barriers, war, ie and social unrest. Changes in government policy can have a Significant effect on ven! businesses. Government enacts laws guiding all businesses in the country, Issues Entrep like tax, labour laws, tariff, quota, protectionism, stable government, are within the a preview of every government. produ 4. Social gainin, e a startu Social factors are sociological factors related to general society and social relations = that affect business, Social factors include social movements, such aS environmental ne movements, as well as changes in fashion and consumer preferences. For example, : clothing fashions change with the season, and there is 2 current trend towards get? Harve construction and organic foods. ogy 5. Technology ia ger Tech i Fy rs y + ee ae ai 8 are technological innovations can either benefit oF turt busines Otay jological innovations can increase productivity and profit margins: Tain 6. Globalisation a ang Sh The world is now F ; an aaloreanisations eee ¢ with the trend in modernisation. Everybouy: asi Ry : is happening in other parts of the world, what re Om and what policy a pam coted: The growth in international competition and the incressed among nations is a result of globalisation. = 7. Labour marketajuiade, desires) degree of education, te soci fe » belief, ure fi, est ie Hrafgl values affects the performance and eles costoms, ty 0 gist every 8 ees tal t romer® cost iq one of the external environmental factors which eve qysiomet 8 et endeavour 10 monitor. In other to remain business, fae iy Orpsisaion Mt ofy the need and demand of their customers ypor ean ation, n gusto ce contestuasisation OF entrepreneurial Ecosystem aw -_ . vigese 8 HE most populous black nation in Africa and the largest economy is et ply. Howeveh it has a high unemployment rate and ranks poorly on the pd Bank's DOWnE pusiness Rankings”: It is @ rapidly modernising country with ae wel challenges entrepreneurs to tackle. This makes it a fertile breeding ground or, fo surtups who BOL only wants to create attractive, innovative and profitable - ct on ayes put elso oo effect chang and make life better for fellow Nigerians: sues reneurs are critical drivers of economic and social progress: Rapidly growini i pawep Y ly growing 2 smreprencurial enterprises ‘are often viewed a5 important sources of innovation, productivity, growth and employment. In Nigeria, its entrepreneurial ecosystem 18 fining more international attention ‘and economic footing. This is aided by the Lagos - famup ecosystem value which is the highest in Africa. Ecosystems have developed in ations a sae fags and Abuja with unique network of players, areas of focus ‘and gaps beeging t ae eaddressed, Across the nation, there are entrepreneurial clusters: green venard Business Schoo! Professor, Michael fe Porter)idetinedmctustere) = Perwtically proximate group of interconnected companies and associated pins in a particular field linked by commonalities and complementarities. 1m Bales consist of small home-grown businesses that have sprang up snes ee ; ly. They may be inventive and rich in ideas, but they are still growing. ‘This is a southern Nigeria which is attracting technical talent, superior management on eee However, Nigerian clusters differ from place to place, but they ye nr ion features. Majority of them came up spontaneously without the oot ect Equally, they have little to do with ‘universities and 10 “y cratories like in developed Nations. The level of development iffers ference 18 fom Place to zs ‘i ected by les region to region and country to country: ‘This level of difference, Sal enveonment, pl ‘technological environments economic &M 7 nt, political environment, and legal environment. 34the state of the use of scie 31 Te pnoiogiea! Enviro! nse eee » cal environme wiifferent tasks in society. Technology technolog parecer ciety a Te ciples mechan id for a long time in Nigeria. In Niza the local techn, nh Prmpanies Ba beer engage in peasant farming, small scale businesses and eye. js applied bY whe “construction pusiness. On the other hand, more advan. mining, 1 wd in the steel industry, breweries, textile, banks, hospitals, is engag' trepreneurshiP is still not well developed conn ee, technological ©D : ig te jas shown great potential. Repatriated stan,, to the develop es ereased focus On innovation. They did this by integra ‘ato the local technological ecosystem. On the other a ‘em has produced entrepreneurial ventin, rnline market places that started in Nig, e performed well. For instang, smia group PE with aT billion US dollar valuatin ime, people began to recognise the potential for Nigeria's tet d began to form & community around it; among the earliest entrants here ms Hub), which is Make-IT in ‘Africa’s implementing partner fori Lagos. Next, Andela started uP and began to channel training programme for developers, connecting them ri orld. This growth in Nigeria’s talent pool has made foi more sophisticated start-up ecosystem ‘in the country. However, this current ware d start-ups is benefiting from an increased interest in start-ups around the world, # well as better access to information. Thanks to the internet, and a growing supe system (hubs, investors, news coverage, etc.) that has not existed in the past. 02 emerging trend is the universities’ interest in entrepreneurship. Some of the lat academic institutions offer entrepreneurship programmes, Table 2.3 shows some these programmes: scene an Co-Creation Hub (Cc! accelerator programme in interest in start-ups into a talent seekers around the w, barriers to all technology entrep; 'g infrastructure pose i re ‘a. Gaps in Nets: cm, This hinders entrepreneur’s development, whereby heat Nigeria's ¢cos I. %, iness is driven up. ‘ SOE noe market for Nigerian technological entrepreneur is only g fra i cre potential that could be achieved through short- and medium-term initia c. eeeieal policies and regulatory support have not been in syne vith ty "development needs of young digital enterprises. Besides these areas in the technological ecosystem of Nigeria that needs imp, there are factors associated with the technological environment ecosystem in Ngug They include: 1. Choosing a Market Focus: Across the continent, there are sectors like Si Valley attractive to investors. For instance, Fintech is a popular sector with invams This is also true in Nigeria with ventures like Riby and Paystack that atte significant investor interest. Investors are interested in seeing real value in venus operating in this space and are attracted to a diverse Tange of investmer, opportunities, from buy-out to growth opportunities but principally having me control and choice over where they invest their capital. 2. Targeting consumers: The most prominent technological start-ups globally are te ones people interact with daily. Typical examples are Instagram, WhatsApp, Facetud etc. They target consumers and not businesses. In this regard, several Nigerian sat ups find it challenging to crack the business-to-consumers (B2C) market. Ths & because the cost of acquiring a new user is high and the typical user’s spending pam is low. However, some fast-moving consumer goods (FMCG) ventures in Nigeria bit been able to tap into the B2C market successfully. The problem in this aspet® Nigeria is that start-ups lack the desire to target consumers. This is because 1 potential market size is not as large as the headline numbers suggest: 4 bie, instance is where telecoms sell data bundles that restrict data usage to ee like WhatsApp or Facebook. In this case, they will not be able to access si online services. Also, though the Nation has large population, the middle “a small. It limits the market size and makes it less attractive to en ee i cases. Where entrepreneur's solution is a truly B2C one, potential ee i ask many questions around how you plan to make money in a ee oy others have not had success. They express the sentiment that es aves Nigeria’. This is a conception that is affecting the tech climate, This mise Nigerian start-ups think carefully through their customer aca! sey ol : the middle class yet eo 8. Targeting Businesses: Given the small size of the goes who BAVE mc in Nigeria, many of the start-ups in Nigeria target busines tart 03 8 si pay for the start-up's products and services. Start-ups who pivoting to B2B. -wing but From a Small Base: The pro}; re investors entering the scene. This Proliferation coe got TORY plumelu Roundatons Entrepreneurship Boe from anton tke Ts that ran training programmes for entrepreneurs and ¢. oUbat the end of the programme; to early-stage investors at Sometimes a fonding al vate equity investors like Helios. Besides, aes Singularity 4 ering the market, there remains a gap/challenge in = the number of qvesto% e start-UPS- This has made accelerator and incubator a Of funding for ant, and it has meant a significant role for angel investors to aie mem » ef such investors is growing, the demand for money still ae While rearing nvestOrs have more ‘negotiating power and generally get to shop pees find a start-up 1 which they want to invest. That has led found to chase investors that may not be a good fit. This can be Baar tors should be able to offer start-up time and access in ad ce money. If an investor has never been active in a start-up’s market, he or she is unlikely to be able to provide connections that can make or ‘break a) business) Moreover, if the investor does not know anything about your market, the advice he or ‘she provides will be limited. entte} fim, Ideal inves Political Environment ‘he World Bank thinks that improvements in the enabling environment lead to higher les of investment by the private sector, more wealth, job creation, and ultimately nue poverty alleviation. This is where the government come in, The government, in is dors to deliver economic and job growth, is teveloping entrepreneurshiP paps polices and programs that vere into consideration each state's needs. The ne government to understand how to improve the enabling environment isto Bi soa Paves seetor throueh re eultation and dialogue and, in particu, 1 involved nae ieee, the private sector's needs and priorities as they a7” soe Programmes that n’s building, The Nigerian government has initiated sr iiatves that wil pre geared towards the mobilisation, training ‘and suppo! a Bites per financial literacy and entrepreneurship ‘development. Beene penne ans peeulatory policies are viewed by entrepreneurs a BO Mean entrepreneur lerators and growth inhibitors. ‘Their action impacts hugely 0 1. urial ecosystem. This relates to areas like: : Procedure: “ r fet which aa Res have been developments in Nigeria concerning es bat have rasan ace oy mrore| eens ode ‘business. For instance, peel eal anert peepee oyProse ax breaks 10 ground-breaking 3 for Tea ie ree 100 million Naira. Despite the developments, te Modifica ‘2 Net payee tions in order to make business process¢® entrepene the OS tr nae Hor, ans to seek consulting support. The Nigerian (ox 2 aeaen enterprise eur. They are not designed ' ichude incentives 8. Considering the tax payment procedures; Nigeria 19" 38directly touch on data protection. Besides, laws and Policies like cybereaz: Prevention Act and copyright laws are actively in place. The essence of all these lan that confidence in the ecosystem will be established once the enforcentl uncertainties and ineffectiveness in deterring infringements are alleviated. In general, lack of clarity and established implementation guidelines are challens= Regulators develop quick judgement on policies and regulations without nena ecosystem stakeholders. The result is that many digital policies do not take SMES aa account. However, improving digital literacy and use of the internet are wees agi) to unleash the full potential in the Nigerian market. On the contrary) I iy literacy is a significant barrier for technological entrepreneurs wishing B2C market and SMEs market. te ‘a7 ith i roblems. The ini a 3, Infrastructure: Nigeria struggles with infrastructure Probes in Nigeria that has an impact on the development o} a ecosystem include: oe materia a. Transportation: Providing transportation networks 1 Tock cll areas to cities where some of these clusters have fo ‘xc universities 07 b. Technical workforce: Government must Pe five or si them into global centres of learning and research.ja must show that it can enf tem: Nigeria "an enforce its int al ting land ownership an ll 2 on rights lave a P and Prosecuting vita PoPEY ‘and Fe Of Software Bs dards define quality. A . product stan ean A dards: Pro’ Tea 4, Sr epiance sriocal products rather than a preference for forelg, eel ™Meang f A at climate: The investment climate suffers because of th, ds, nt Ssttutions at all levels of government, © Perception of aking progress in providing electricity to drive j has been commercialised. The success of new its ‘the nation’s industrial power. e este corrupt publ power: Nigeria 35 mi t industrial e1 te ‘the power sect Sa ¢ success O} sal define th Security: Nil North East ant javestments. h Parks, Centres and jpremment labs and centre fd measure and speed up local innovation. \ capital: The lending structure in Nigeria needs to be looked at because high- inert, short-term loans cannot drive big projects ~ this means @ robust industrial tccor cannot be built, The Bank of Industry needs more capacity to expand its ‘orice, and the private sector must push capital to fund and grow ideas. find a lasting solution to its security crises. Peace in the . in geria must elta will create more opportunities as a result of new d Niger Dé Labs: Nigeria must improve the quality of research in 3. It needs to come up with new systems and processes to places in Nigeria, clean drinking |. Water and Sewer: Despite having water in most ities. Access to water and a well- ‘ateris still costly; the same applies in most of the cil planned sewage system are vital. ;. 5 ae and Telecoms: Broadband internet exists in most of the big nge is that the cost remains high compared to most global economics: The most i Pose etal problems in Nigeria are in power supply, access poate a ena ed concems, etc. For instance, the infrastructure propleft went z most of the initiatives undertaken to foster pecan Sead tng ig get, Infastructural concems are @ huge hindrance ane Bboy coe ntemet access that is mainly out of reach for many NE i = ind very high costs associated with internet in Niger. cal let it ‘low, Nell affected as cloud computing uP! rae Oy Nir 5 Hence ohag ess i8 hindered by infrastructural coer ot LP otgancaty oo oy cPerience infrastructural challenges whether Bor ual yf Paley mandates as in export processing z0ne8 “ome of the ‘astructure affects the density of clusters: Me most vibrant cluster firms. cities, but. trepreneurial ende sce pehind most €m! i aVOUre - re ean an opportunity. Measures Ns ig ; The porders* ul than following trade impede the entrepren, Preneye, ging 87 rather i pased 0° neces P to control freee coreg) entzeprenens from accessing on}, geo ee instance, it impesea ntional markets: Also, Nigeria through oe 4 chee transfer operators which in effect permits only those jy, Changed its POLY erin to conduct services: ‘The implication is that it limite have oper? jons in Nig* \ine foreign currency payments such as excluding Pay-pal fy gon Concerning trading —ACTOSS boy a e one options ng on transactions: ; on iated with penetrating populated conducting oath are asso jon aspirations : internaganalinnTayment colecon® OFS inderea fom across the Border iting HoeeyrencurshiP- In essence, it is a hurdle for scaling up any start-up beyond Niger, en in the political environment, the government should ensure the following Moreover, ace for the maintenance of law and order structures put in pl Z z necessary infrastructures and secunty of life and property to create sx iness activities thrive {b) Provision of atmosphere where meaningful Dus ms ticies, Jaws and regulations, it should accelerate and improve te (¢) In making po! ‘ociety as business firms that are armed with the policy thrust of i welfare of the s government can anticipate the pulse and direction of the government and therdy adjust business operations accordingly. (d) Assist in establishing business incubators to support entrepreneurs early on (e) Create a single location where aspiring entrepreneurs can find and fle 4 necessary paperwork in order to register their business. {a) There are Legal Environment ‘The legal environment consists of the laws, regulations and procedures of a county? which business enterprises are anticipated to comply within the course © operations. These laws may facilitate successful business conduct 85° constitute major handicaps to successful performance. In carrying out their aaa operations, entrepreneurs are required by law t0 pay taxes, value-added wi gain tax, education tax, import duties, excise duties, etc. In Nigeria, e868 5] procurement regulations are not written in a way that can easily be inte a3] startup friendly. Any firm that could want to become & government required by law to provide three-year financial audits, tax cert! eon nee of years of experience in the field. Applied as written: ea start-ups from public procurement procedures. However, the aw a0 Tp council and the Bureau of Public Procurement (BPP) to api ‘Procurement processes to adapt to improvements } - technological entrepreneurs, it may help them to stand & s with revised applications of established rules: = & 4aho ral Envi oe ural environment is a composite of social and cul nth soe S00 the society which have far-reaching effects on ieee Conitions e000 tural conditions in which the organisation operates Sa rie hic characteristics of the population, nature oe lifestyle of soos! 000 ne demoeraP! ye groups they form and the nature of interactions among the gro\ ons tney oreated (OF themselves. Nigeria has a ‘doraat canes ihe ste by abundant activity, despite its infrastructure nies sual Y jqures are marked DY thei guntortinetuneetaet ‘qe ation? with individuality and competition, cand less adherence to “Pcs Jes. Nigeria is considered as a collectivistic society. This is Rea Seeallin i vreations for business dealings. On the constructive side f the culture feeds entrepreneurs’ motivation to do good re ‘The society is also driven’ by achievement and success. The Ys seen among investors and entrepreneurs, Lack of yn aspect that is repeated when describing the waps in the ecosystem. In Nigerian culture, pple end to cluster around affiliate groups and known circles: ‘Though there are no feinite signs of cross-functional, territorial or institutional collaborations, there are fuore informal sharing of experiences among technological entrepreneurs’ ‘at the ents, innovation hubs and workspaces ut ibe Nigerian people: fedrure of quick wins i Nigeria Jing-erm orientation is a commo! qecations of different stakeholder gro te to be disregarded. The network te opportunities for start-uPS f° the most visible Qathe other hand, social networks in Nigeria are not rents and demo days organised in the ecosystem crea By and access to grants and prizes. Innovation hubs are st Becearecure, is Meroe ‘They provide physical clustering and acces 10 ee programmes, and initial funding for their participants. pe eee and capacity are not sufficient to mec! demand. Not f3sence, there iced between ecosystem stakeholders is shallow in Nigeria I Manups and | e start-up associations that advocate meeting the challensss of Sitprencurship oe for needs, This is particularly felt in technolog a ene te fle oe benefits of clustering talent together '2 facilitate an! Nigerian gove its investments have been recognised by the government Wy in Re mment strives to achieve greater private sector participation, > by etrengibening thefrelatonet i 4 private lationship between universities 209 PI le Environment ing the Introd eet dicing innovative evolving entrepreneurial ecosystem can Be number of aie Products, This can be duc to the eed to generate & Weasley noe eee ye nee IO product licensing less credible experts In production and a ProPer © annel © challengin& a2rail “a Identification of Entrepreneurial Oppo, — neurship field, the opportunity is a vital concep, coy sites an important step to any entrepreneurial busines, a a ldentitcation ty identification is a central element of entrepreneurship, great: Hence difers from ideas. Ideas are personal which can ooene St *Pthcunal opprtances but intended to solve or respond to a given problem a aeerent life Eiet for organisations to pursue when there are not enou; Sai Es that proves its inedequacy. However, entrepreneurial opportunity cee the E ment in a market, an accepted idea, or favourable set of circumstan 8 to an craes a need for a new product, service or business, They may involve in aa ger gods and services, exploring new markets, developing new production proces toi combining raw materials in new ways. However, some people discon opportunities while others do not. How they discover these opportunities include: phe entre? consti opportu tunity environ! 1, Por knowledge: This refers to an individual's distinctive information about a panicular subject matter which may result from work experience, education, or other means. In other words, it involves prior information people possess that others do not have. It constitutes a knowledge corridor that allows them to recognise the value of any new information. Each individual’s idiosyncratic knowledge creates a knowledge comidor that permits entrepreneurs to identify entrepreneurial opportunities and not Others. The knowledge corridor principle implies that once entrepreneurs found, their smjnisations, they set off on a journey down the corridor through which windows of “portunity open for them. The point is that they would not have identified the “morunity if they had not entered the knowledge corridor. However, prior knowledge tf an individual in a particular field grants such individual advantages in decision Fatt Notably, knowledge can be ones gained from experiences or through formal un. Knowledge from education usually helps in enhancing individual's itbrmatioe, pesto skills by tapping into the knowledge bank. Thus, the see 2 Ube able tg knowledge individuals gained through life experiences positions ae Yotcation within nn wn PPoTtunity than others, Entrepreneurial: eee oowedge of he Prior knowledge of an entrepreneur is in three Soe in Fetus) and prior tes prior knowledge of ways to serve the markets (i an Hhémation ther tins wledee of customer problem markets (i.e. consumer iss 3 jeur’s oof opportinity these key dimensions is crucial to an entrepren 2 Becta ee sot srt: al port 801 ‘etwork is trending in this contemporary time. es a Snag Maton gry POLeRiAl capital, Though entrepreneurs gain access Meuanigt 2 Into), je aqyessstance (depending on the kind of neler ag vue and nay ue * will enable them to spot opportunities better than 0! a rset holes, Te social Networks matter, It is composed of weak/strons ' M08 they are oe, Usually @ vital source of information for poleri * Important in entrepreneur's opportunity identifica 44al networks tend a MOTE sucoesy vnnding on the Tight mix of En ODF than there, O aaa identification will be pf! seeteork reiionsbiP sien) cee someone else other than from their prior sete neeaive ideas can come TT “network relationship depends on’ thiny we eght mix of StONBI CT mental conditions and how they le BS such Trehnolpgical, industtsl ane i deals with information from source bene aes tiring substantial interaction, weak ties as ftom Coy friends pnd ra from casual acquaintances such as suppliers, cug aa in Hower, casual acquaintances tend to provide unique informations seanbeny concerning opportunity identification while close friends and famijee usr Sromaton that is non-fedundant, Non-redundancy of Ges = network increases the possibilities of an entrepreneur to gain the right com aa newark gn necessary for opportunity identification, The vital element of ie ane eork is having the right mix of weak/strong ties. Besides, the qui these network, connections affects alertness and creativity. On the aes these iff ies deal with disconnection between partners of an organisa tosety, It involves existence of gaps in people’s social structures. Entreprnes, eee Vin hating etructurall holes jin) its imetworkalialitol bellanie\taeeaaaaa edvedant information which is used|for entrepreneurial opportunity Meta Organisations that have many structural holes will enjoy the advantages re have acéess to more sources of information which i chan b : ; increases the : information that will be put to productive use. oe extended soci h g thes E fee cognitive properties: Cognitive properties of an individual « jetermine how opportunities are identified, It puts an emphasis on mental =! (mental stimulation and counterfactual thinking) which frames an indivi) identification of new opportunities, Cognitive properties deal specifically wib Paeeealy traits of the entrepreneur. Entrepreneurial opportunities can be del lepending on the personal traits of the entrepreneur. The personal traits cover tit Peculiar elements of entrepreneurial alertness, creativity and self-efficacy. = Seer alertness: Entrepreneurial alertness relates to a” wi eave lentify opportunities when they immediately appear. It correspon cae Vigilance to entrepreneurial opportunities and com monitoing. This particular sll enables the entrepreneur sis is ine yn that turns out to be entrepreneurial opportunities. Opportun rge from the market are often picked by alert entrepreneurs onl opportunities through a. cogniti tock on oa 5 gnitive process based on their s! enttel experiences and knowledge gained over time: Thus, Opportunities are discovered through an individual's alertne rn information or opportunities that come up in the market oF f°), i be 4 ‘that all individuals do not have. It enables indivi i ‘thifts, opportunities and overlooked possibilities. € om 459 opportunities that occur in the marke ‘um caused DY faulty decision-making aad a viva ij surpluses: A its peak entrepreneurs ae that in Sal of ‘ = ; fa tum, eceptive to opportunities but not ceo cea earchin, in 8 for the m, Be sigenc Bulb pnorteees hich BOY pecome ™ mal systematic manner. _ creativity is one of the cognitive properti i938) was the first. person (aa a identificatio As a means of opportunity identification, ere creativity fe ‘ye destruction to the emergence of domething, ee a is seen'from the vaneforming the economic structure from aaa destruction and creating a new one. ‘The economy in this guise is ae. destroying the al disequilibrium, put entrepreneurs upend the or ee to be in ative destruction that compels incumbents to either aaah vale a eased on disTUPHVe cr ipal innovations with the entrepreneur tanta a ae a of major change and improvement. pspnadicatetenea ket, it opens up more entrepreneurial sntreprencurs librium into a marl ea i In this guise, entrepreneurial activity is seen as the opportunities gaurce of innovation: Therefore, entrepreneurs who set aside time specifically to be creative tend towards being able to identify opportunities than others. i duals sense of competence, belief in and desire ponds with an individual's d targets. It corres! g difficult. Consequently, 2° individual's jal ‘entrepreneurial opportunities: It 's involves an indivi rtain tasks an\ take on somethin} to perceive potenti ¢, Self-efficacy: Thi to effectively achieve ce belief of being able to attitude reflects his or her desire affects individual’s motivation. 6, Common Sources of New Business Ideas Peter Druker (1985; 1998) is one of the first scholars usiness idea. According to prucker, entrepreneurial OPPO athe wher three sources. Four of the opportunities exi thin the organisation w get vusia) sources exist outside the organisation four sources opportunities that exist within the organisation are: st wi 1, Unexpected occurrences 2, Incongruities in demand and supply 3, Process needs nitie 4, Industry and market changes po? of entseprene et include: ater in its social and jatenectan sis se pndiocaas * Demographic changes like population gro immigration and population mobility 46 On the other hand, the three sources oulside the organisationcha : «New knowledBe come from different sources. The sou, Rene jal opportunities ri treprenew erent authors. However, the peculiarities inj) in diferent ways bY QT anges in environmental trends like g PN ecvephy, and changes in industry and market gy deimarees of business idea, business ideas According se SV include; a a ‘ell come from other sources that include: Fuduric (201 cis involves psychology, sociology, economics and management, 1. Discipline: .e micro level of analysis p, individual Level of analysis: This relates to th lysis and the Macry level of analysis 3, Institutional landscape 4, Demand and supply market factors 5. Government policy 6. Macro environmental forces such as technological, socio-cultural, economic an political changes Also, the most common sources of business ideas come from two categories of ei the individual or from the environment. Put differently; it can come fon Schumpeterian perspective and Kirznerian perspective given that one consider tt Source of entrepreneurial opportunities as being driven by the individual while te other considers the environment as the main source of entrepreneurial ideas opportunities. Schumpeterian’s perspective of sources of entrepreneurial opportunities vet? entrepreneurial activity as the primary sources of innovation in the economy. In\bs entrepreneur is seen as bringing disequilibrium into the market thereby opens More opportunities due to this s| hift. The primary sources of entre} wl

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