ENTREP 111- NOTES

Entrepreneurship is the process of discovering new ways of combining resources.

The word “entrepreneur” originates from a thirteenth-century French
verb, entreprendre, meaning “to do something” or “to undertake.” By the sixteenth
century, the noun form, entrepreneur, was being used to refer to someone who
undertakes a business venture.

 A person who undertakes the risk of starting a new business venture is called
and entrepreneur.
 An entrepreneur creates a firm, which aggregates capital and labor in order to
produce goods or services for profit.
 Intrapreneur- an individual who works on developing new ideas and products
within the confines of the business that they already work at. Intrapreneurs
include any person within the company that applies entrepreneurial skills,
vision, and forward thinking into the role that they have in the company.

THEORIES
1. Economic entrepreneurship theory
-Classical theory
-Neo-classical theory
2. Psychological entrepreneurship -focus on the individual and the mental or
emotional elements that drive entrepreneurial individuals.
3. Sociological Entrepreneurship Theory-focuses on the social context
4. Anthropological Entrepreneurship Theory- focuses the culture of the people in
the community.
5. Opportunity–Based Entrepreneurship Theory- “This defines entrepreneur and
entrepreneurship, the entrepreneur always searches for change, responds to it, and
exploits it as an opportunity
6. Resource- Based Entrepreneurship Theory-stresses the importance of financial,
social and human resources.

5 General Steps that most entrepreneurs have followed

1. Ensure Financial Stability- starting out with an adequate cash supply and
ensuring ongoing funding can only help an aspiring entrepreneur
2. Build a Diverse Skill Set- Building a skill set can be achieved through learning
and trying new tasks in real-world settings.
3. Consume Content Across Multiple Channels-The important thing is that the
content, no matter the channel, should be varied in what it covers.
4. Identify a Problem to Solve-an aspiring entrepreneur is able to identify various
problems to solve.
5. Solve That Problem-Successful startups solve a specific pain point for other
companies or for the public
Based on the Type of Business:
  Trading Entrepreneur- as the middlemen as wholesalers, dealers, and retailers
between the manufacturers and customers.
-procure the finished products from the manufacturers and sell these to the
customers directly

 Manufacturing Entrepreneur- convert raw materials into finished products.

Agricultural Entrepreneur-undertake agricultural pursuits

Based on the Use of Technology:

 Technical Entrepreneur- entrepreneurs who make use of science and
technology in their enterprises.
 Non-Technical Entrepreneur- the forte of their enterprises is not science and
technology, concerned with the use of alternative and imitative methods of
marketing and distribution strategies to make their business survive

Based on some behavioural scientist:

 Solo Operators- essentially work alone
  Active Partners-who start/ carry on an enterprise as a joint venture.
 Inventors- invent new products
 Challengers-who plunge into industry because of the challenges it presents.
 Buyers-o not like to bear much risk, they like to buy the ongoing one.
 Life-Timers-take business as an integral part to their life

Types of Entrepreneurship
 Small Business Entrepreneurship-Local grocery stores, hairdressers, small
boutiques, consultants and plumbers
 Scalable Startup Entrepreneurship-Facebook, Instagram and Uber.
 Large Company Entrepreneurship-Companies such as Microsoft, Google and
Disney are examples of this kind of entrepreneurship.
 Social Entrepreneurship-main goal is to make the world a better place

Shared traits of Entrepreneur and Intrapreneur

 Leadership-these types of individuals should be able to motivate other people

to work towards the same goal.
 Adaptability-entrepreneurs and intrapreneurs will need to know how to adapt.
 Intelligence-knowing what to expect from the wider market, understanding
which skills and tools are needed to complete a project.

Entrepreneurial motivation is the process of transforming an ordinary individual to

a powerful businessman, who can create opportunities and helps in maximizing
wealth and economic development.
Internal factors
 Need for self-actualization- Need for freedom and self-fulfillment makes the
individuals or employees of the organization make them become powerful leaders or
entrepreneurs.

 Optimism-having positive mindset

 Positive attitude- Habituating positive attitude can lead an individual to develop
constructive thinking; it motivates them to become powerful entrepreneurs,
 Self-motivation-self-motivated people can take decisions to implement ideas.
 Enthusiasm-motivates in finding better solutions
 Commitment- inspiring and developing emotional attachment towards an
objective
 Education-motivates a person to innovate and create new products
 Financial background-strong financial background facilitates to start a business.
External-

 Influence-Influence of family members, friends, and society motivates the

individuals to become entrepreneurs.

 Availability of resources-availability of land, labor, money, machinery, and

materials make individual to start a new business.

 Product’s demand- particular product motivate entrepreneurs to produce

innovative and value added products
 Government policies-Subsidies and benefits given by the government

 Information availability-Market knowledge and information motivate individuals to

enter into the markets
 Technological advancement

 Changing tastes and preferences

Good Qualities of an Entrepreneur

 Disciplined-focused on making their businesses work, and eliminate any
hindrances or distractions to their goals
 Confidence- They are confident with the knowledge that they will make their
businesses succeed
 Open Minded-ability to look at everything around them and focus it toward their
goals.

 Self-Starter-They are proactive, not waiting for someone to give them

permission.

 Competitive-they need to win at the sports they play and need to win at the
businesses that they create.

 Creativity-often come up with solutions which are the synthesis of other items.
 Determination-they look at defeat as an opportunity for success.
 Strong people skills-has strong communication skills to sell the product and
motivate employees
 Strong work ethic-will often be the first person to arrive at the office and the last
one to leave.
 Passion-They genuinely love their work.

Creativity - is the ability to produce new and unique ideas, innovation is the
implementation of that creativity – that’s the introduction of a new idea, solution,
process, or product.

Don’t limit yourself, you can do everything as long as you study and believe on
yourself. You got this! Study with lots of prayers!

“Trust in the Lord with all your heat and not lean on your own understanding”

Proverbs 3: 5