Entrepreneurship

Development

Dr. HABINEZA Emmanuel (DBA,MBA,BBA)

0788301980
emmyhabineza@gmail.com
 Course description
▪ This module
✓facilitates the development of an entrepreneurial mind-set,
✓equips students with necessary cutting-edge knowledge and
skills vital for generating value in a knowledge based economy.
✓brings students to widen their knowledge and skills with
regard to a broader application of entrepreneurship and
quenches their thirsty of
1. knowing how managing innovation entrepreneurially,
2. discover entrepreneurial opportunity, motivation, marketing,
and an understanding of how finance fuels
entrepreneurship.
 Learning Outcomes

On successfully completing the module students will be able to:

▪ demonstrate a systematic understanding of the pathways for
becoming an entrepreneur in a wide array of settings including
large organization, start-ups, universities, government,
intermediaries and society;
▪ critically evaluate, by making use of scholarly reviews and
primary sources the processes and organizational forms
involved in co-creating value to solve complex challenges in
collaboration with different types of entrepreneurs;
 Learning Outcomes (cont’d)

▪ deploy accurately established knowledge and techniques of

analysis and enquiry to manage innovation entrepreneurially in
a knowledge based economy;
▪ Develop an entrepreneurial mind-set by understanding and
applying key debates in the areas of entrepreneurial
opportunity, motivation, marketing and finance
Indicative contents
1. Introduction to Entrepreneurship
2. Identifying business opportunities and developing
successful business ideas
3. Feasibility Analysis
4. The Business Plan
5. General Rules and Regulations of a Business Practice in
Rwanda
6. Managing and growing an established entrepreneurial firm
7. Emerging issues in entrepreneurship
8. Exporting, importing, licensing
Chapter 1 Introduction to Entrepreneurship

▪Entrepreneurship has become a interest of each and

everyone
▪The past decade years have witnessed the most
powerful emerge of entrepreneurial activity in the
world.
▪ Entrepreneurs are now described as aggressive
catalysts for change in the world of business;
Chapter 1 Introduction to Entrepreneurship

▪ Same entrepreneurs are described as individuals who

recognize opportunities where others see chaos, contradiction,
or confusion.
▪ They have been compared to Olympic athletes challenging
themselves
▪ to break new barriers;
▪ to long-distance runners dealing with the agony of the miles,
▪ to symphony orchestra conductors who balance the different skills and
sounds into a cohesive whole, or to top-gun pilots who continually push
the envelope of speed and daring. Donald F. Kuratko (2007)
Chapter 1 Introduction to Entrepreneurship
▪In this unit
1. Introduction
2. Definition & history of Entrepreneurship
3. Personality Traits of Successful Entrepreneurs
4. Entrepreneurial motivation
5. Entrepreneurship versus Intrapreneurship
6. Classification of Entrepreneurs
7. Success factors of entrepreneurs
8. Benefits and Limitations of Entrepreneurship
9. Entrepreneurship, creativity, and innovation
Chapter 1 Introduction to Entrepreneurship

By the end of this unit, you should be able to

1. Explain entrepreneurship and localize it in other disciplines
like history, geography, accounting, finance, etc… discuss
its relevance
2. Describe corporate entrepreneurship and its use in
established firms.
3. Discern reasons as why people decide to become
entrepreneurs,
4. Identify the main characteristics of successful
entrepreneurs.
5. Explain the common myths regarding entrepreneurship.
6. Explain how entrepreneurial firms differ from salary-
substitute and lifestyle firms.
Chapter 1 Introduction to Entrepreneurship
1. Introduction
▪ Giving a birth to a child
▪ The woman’s love overcomes the risk of life
▪ The entrepreneurs' passion overcomes the risk
of loss
Chapter 1 Introduction to Entrepreneurship

1. Introduction (cont’d)

▪They are 2 types of people in this world

▪ Those who are happy
▪ Those who are not

▪The question is what next?....if happy what next…..if

not happy what next?...
Chapter 1 Introduction to Entrepreneurship

1. Introduction (cont’d)
Chapter 1 Introduction to Entrepreneurship
2. Definition & history of Entrepreneurship

2. Definition & history of Entrepreneurship

▪Entrepreneurship is

▪ the process by which individuals pursue opportunities without regard

to resources they currently control. (Stevenson & Jarillo)

▪ the art of turning an idea into a business. (Fred Wilson)

▪ The process of organizing, managing and assuming the risks

of a business .(Kuratko D F and Hodgetts R M)
Chapter 1 Introduction to Entrepreneurship
2. Definition & history of Entrepreneurship

2. Definition & history of Entrepreneurship (cont’d)

▪The ability of a person to see a business opportunity, to get
together the capital needed to take advantage of the
opportunity, and to start a business, taking the risk of failure
the hope of reaping the rewards of success
(Koontz &Fulmer)
▪ The capacity for innovation, investments, and expansion in
new markets, products, and techniques. (Nathaniel H Leff)
Chapter 1 Introduction to Entrepreneurship
2. Definition & history of Entrepreneurship
2. Definition & history of Entrepreneurship (cont’d)
▪ Someone who always searches for change, responds to it,
and exploits it as an opportunity (Peter Drucker).

Simply, “Just an act of starting a

business”.
 Chapter 1 Introduction to Entrepreneurship
2. Definition & history of Entrepreneurship
2. Definition & history of Entrepreneurship (cont’d)

▪ Therefore, a person who undertakes a risk of starting a

business, turning his/her idea into a business is called an
“Entrepreneur”

▪ Entrepreneurs do assemble and then integrate all the resources needed

(the money, the people, the business model, the strategy), just to
transform an invention or an idea into a viable business.
 Chapter 1 Introduction to Entrepreneurship
2. Definition & history of Entrepreneurship
2. Definition & history of Entrepreneurship (cont’d)

▪ Entrepreneurs are the founders of today's business success;

their sense of opportunity, their drive to innovate and their
capacity for accomplishment have become the standard by
which free enterprise is measured.

▪ They will continue to become critical contributors to the

economic growth through their innovation, research and
development effectiveness, job creation, competitiveness,
productivity, and formation of new industry.
 Chapter 1 Introduction to Entrepreneurship
2. Definition & history of Entrepreneurship
2. Definition & history of Entrepreneurship (cont’d)

▪ The words entrepreneur and entrepreneurship have acquired

special significance in the context of economic growth in rapidly
changing socio-economic and socio-cultural climates both in
developed and in developing countries
Chapter 1 Introduction to Entrepreneurship
2. Definition & history of Entrepreneurship
2. Definition & history of Entrepreneurship (cont’d)

▪back 20,000 to 30,000 years

▪ We may think that the concept of entrepreneur is a modern
one.
▪ However the entrepreneurial impulse found expression among
some of the more enterprising tribes during the Upper
Paleolithic period and the end of the Stone Age, a time by
which barter was the medium of trade. The stone age started
roughly 3.4 millions of years ago and ends between 8700 and
2000BCE
▪ It was Mesopotamia (part of the cradle of civilization), with the
development of writing and cities, that gave birth the
entrepreneurial class—merchants.
Chapter 1 Introduction to Entrepreneurship
2. Definition & history of Entrepreneurship
2. Definition & history of Entrepreneurship (cont’d)

Some centuries BC

▪The history of enterprise falls naturally into two periods:

1. First is the development of economic practices in
Mesopotamia,circa 3500–1200 BC.
2. By the end of antiquity (just around 476 BC) we find gain-
seeking shifting away from productive enterprise to land
acquisition, usury, profiteering from political office, and
extraction of foreign tribute by force.
 Chapter 1 Introduction to Entrepreneurship
2. Definition & history of Entrepreneurship
2. Definition & history of Entrepreneurship (cont’d)

Some centuries BC (cont’d)

▪ Assyriologists now apply the term entrepreneur broadly to
Assyrian and Babylonian tamkarum “merchants” from early in
the second millennium BC down to the Egibi and Murashu
families of Babylonia in the seventh through fifth centuries BC,
who created novel commercial strategies to manage estates and
provision the palace and its armed forces.
▪ These practices initially were developed to create an export
surplus of textiles, metalwork, and other labor-intensive products
to obtain the stone, metal, and other raw materials lacking in
southern Mesopotamia(what is now Iraq)
Chapter 1 Introduction to Entrepreneurship

3 primary reasons that people become entrepreneurs

and start their own firms

Desire to be their own boss

Desire to pursue their

own ideas

Financial rewards
Chapter 1 Introduction to Entrepreneurship

Questions for discussion

▪ How many in your group have ever considered starting their own
business?
▪ Write your answer (yes or no) on a piece of paper. Be prepared to
discuss your answer in class. If you answered “yes,” let everyone
take 2 to 3 minutes to tell you what kind of business he/she’d like
to create.
▪ Write down whatever have been barriers?
▪ Which looks to be unique to everyone and which ones look general
for the entire group
▪ Which solutions do you think can work to overcome those barriers?
Chapter 1 Introduction to Entrepreneurship
3 Personality Traits of Successful Entrepreneurs

▪A common stereotype of the entrepreneur emphasizes

such characteristics as a
A) high need for achievement,
➢There is a positive correlation between the need for achievement and
entrepreneurial activity.
➢Those who become entrepreneurs have, on the average, a higher need
for achievement than do members of the general population.
➢Entrepreneurs are driven by a need to achieve more and more.

B) Willingness to take moderate risk:

The risks that the entrepreneur takes in starting and or operating their own
business are varied.
▪ By investing their own money, they assume a financial risk.
▪ If they leave secured jobs, they risk their careers.
Chapter 1 Introduction to Entrepreneurship
3 Personality Traits of Successful Entrepreneurs
▪ A common stereotype of the entrepreneur emphasizes such
characteristics as a (…)

C) Strong self-confidence.
➢Successful entrepreneurs tend to be confident individuals who see the
problem in launching a new venture but believe in their own ability to
overcome these problems
➢entrepreneurs have a higher internal locus (People who base their success
on their own work and believe they control their life have) of control than is
true of the population in general.
Chapter 1 Introduction to Entrepreneurship
3. Personality Traits of Successful Entrepreneurs
▪ A common stereotype of the entrepreneur emphasizes such
characteristics as a (…)

D) Innovation and creativity.

➢Innovative activity is a hallmark of entrepreneurship. The entrepreneurial
manager is constantly looking for innovations, not by waiting for a flash of
inspirations, but through an organized and continuous search for new ideas

E) Total commitment
Hard work, energy, and single mindedness are all essential elements in the
entrepreneurial profile.

F)Effective time management:

Establishing goals, determining deadlines, allocating time for each and every
important activity are personality traits entrepreneurs are identified with
 Chapter 1 Introduction to Entrepreneurship
3. Personality Traits of Successful Entrepreneurs
▪ A common stereotype of the entrepreneur emphasizes such
characteristics as a (…)

G) An Ability of leadership:
➢To be aware of better ways to accomplish tasks is to be an effective leader.
➢By the very nature of their of their work , entrepreneurs are leaders because
they must seek opportunities ; initiate business enterprises; gather the
physical, financial and human resources to carry out their enterprise; set
goals for themselves and for others, and direct and guide others to
accomplish goals.

H) An ability of decision making:

Looking matters from different angles, gathering relevant information for
decision making and consistency are crucial in entrepreneurial decision
making.
 Chapter 1 Introduction to Entrepreneurship
3. Personality Traits of Successful Entrepreneurs
▪ A common stereotype of the entrepreneur emphasizes such
characteristics as a (…)

I) Desire for Independency:

Entrepreneurs wish for autonomy believing that independency of action is the
only sure way to get what they need.
Chapter 1 Introduction to Entrepreneurship
4. Entrepreneurial motivation
▪ The entrepreneur may perceive that they are among the few to
recognize or be able to solve a targeted population problem,
as they perceive it to be an opportunity for business starting
and growth.
▪ In general the factors for business formation can be divided
between "Pull" and" Push" influences.
i. Pull influences: Some individuals are attracted towards
business ownership by positive motives such as
Independence (1), market opportunity (2), financial
incentives (3), community service (4)
ii. Push influences: Many people are pushed into founding a
new enterprise by variety of factors including
Unemployment (1), Disagreement with previous
employer(2), Challenge(3)
Chapter 1 Introduction to Entrepreneurship
5. Entrepreneurship versus Intrapreneurship
Points of Intrapreneurship Entrepreneurship
differenc
e
Definition Intrapreneurship is the Entrepreneurship is the dynamic
entrepreneurship within an process of creating incremental
existing organization. wealth
Core To increase the competitive To innovate something new of socio-
objective strength and market sustainability economic value.
of the organization.
Primary Enhance the rewarding capacity Innovation, financial gain and
motives of the organization and independence.
autonomy.
Activity Direct participation, which is more Direct and total participation in the
than a delegation of authority. process of innovation.
Risk Bears moderate risk. Bears all types of risk.
Decision Collaborative decisions to Independent decisions to execute
s execute dreams. dreams.
Etc.. Etc… Etc…
Chapter 1 Introduction to Entrepreneurship
6. Classification of Entrepreneurs
▪ According to the type of business
1. Business entrepreneur
2. Trading entrepreneur
3. Industrial entrepreneur
4. Corporate entrepreneur
5. Agricultural entrepreneur

▪ Entrepreneurs based on technology

1. Technical entrepreneur
2. Non-technical entrepreneur
3. Professional entrepreneur
Chapter 1 Introduction to Entrepreneurship
6. Classification of Entrepreneurs (cont’d)

▪ Entrepreneurs based on motivation

1. Pure entrepreneur
2. Induced entrepreneur
3. Spontaneous entrepreneurs

▪ Entrepreneurs based on stage of development

1. First-generation entrepreneur
2. Modern entrepreneur
3. Classical entrepreneur
Chapter 1 Introduction to Entrepreneurship
6. Classification of Entrepreneurs (cont’d)

▪ Entrepreneurs based on Idea generation

1. Technological entrepreneur
2. A geographical entrepreneur
3. A sociological entrepreneur

▪ Based on source of capital

1. private entrepreneurs
2. Collective entrepreneurs

▪ Entrepreneurs based on the reason to start-up

1. Opportunity-driven entrepreneurs
2. Necessity-driven entrepreneurs
Chapter 1 Introduction to Entrepreneurship
7. Success factors of entrepreneurs

▪ The entrepreneurial team:

Entrepreneurs do not start business by themselves; they have teams,
parents, close associates, or extensive network of advisors.
▪ Venture product and service:
Nearly all successful ventures start from score small and then grow
incrementally; few" gear-up" with substantial organizations for a big-bang
start
▪ Marketing and timing
✓Successful entrepreneurs tend to have a clear vision of both
existing and potential customers
✓Timing pertains when product or services are to be
introduced, how they are priced, how they are distributed, and
how they are promoted.
Chapter 1 Introduction to Entrepreneurship
7. Success factors of entrepreneurs ( Cont’d)

▪ Business Ideology
A business ideology is defined as a system of beliefs about how one
conducts an enterprise. These beliefs include
1. a commitment for providing customers with value,
2. the ability to take calculated risks,
3. the determination to grow and to control the fate of the business, and
4. the perspective of creating wealth realistically.
 Chapter 1 Introduction to Entrepreneurship
8. Benefits and Limitations of Entrepreneurship

▪ Generally, even though people start business for various reasons, the
following are considered as the benefits of entrepreneurship:
1. It plays a considerable role in economic development
✓Capital formation
✓Improvement in per capita income
✓Generation of employment
✓Balanced regional development
✓Improvement in living standards
✓Economic independence
✓Backward and forward linkages
 Chapter 1 Introduction to Entrepreneurship
8. Benefits and Limitations of Entrepreneurship

▪ Generally, even though people start business for various reasons, the
following are considered as the benefits of entrepreneurship:
1. It plays a considerable role in economic development
✓Capital formation
✓Improvement in per capita income
✓Generation of employment
✓Balanced regional development
✓Improvement in living standards
✓Economic independence
✓Backward and forward linkages
2. Benefits of Entrepreneurship for individuals (next slide)
 Chapter 1 Introduction to Entrepreneurship
8. Benefits and Limitations of Entrepreneurship

▪ Generally, even though people start business for various reasons, the
following are considered as the benefits of entrepreneurship:
2. Benefits of Entrepreneurship for individuals
✓Opportunity to gain control over your destiny
✓Opportunity to reach your full potential
✓Opportunity to reap unlimited profits
✓Opportunity to contribute to society and recognized for your effort
✓Opportunity to do what you enjoy
 Chapter 1 Introduction to Entrepreneurship
8. Benefits and Limitations of Entrepreneurship

▪ The potential limitations of entrepreneurship

✓Uncertainty of income
✓Risk
✓Long hours and hard work
✓Lower quality of life until the business gets established
✓High level of stress
✓Complete Responsibility
 Chapter 1 Introduction to Entrepreneurship
9. Entrepreneurship, creativity, and innovation

▪ Creativity and innovation are considered to be overlapping constructs

between two stages of the creative process; and both are necessary for
successful enterprise.

▪ Creativity can be defined as the production of novel and useful ideas, while
▪ innovation refers to the implementation or transformation of a new idea into
a new product or service, or an improvement in organization or process.
Thank you