Brookside School for Science entrepreneurial vision is defined by discovery and risk-taking

Fall Semester 20XX and is an indispensable part of a nation’s capacity to succeed

in an ever-changing and more competitive global marketplace.
Teacher: Ms. Wendy Writer
Here are the basic concepts of entrepreneurship:
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Basic 1. Risk bearing concept

o This is the premier and most popular concept.

Entrepreneurial “Entrepreneurship is a function of taking unlimited risks.”

This has revealed that the entrepreneur has to bear various
types of risks for establishing the new enterprise and operating
Concepts it. These risks are related to time changes and fluctuations in
prices. Entrepreneurship s the concept capacity bears
___
uncertainties. Further, elaborating it they have made a slight
Notes differentiation between risk and uncertainty. According to this,
“Uncertainty bears risk, which can neither be predicted nor
insured.
Introduction: Basic entrepreneurial concepts

The concepts of entrepreneurship are not new. Until the

19th-century entrepreneur was regarded as the person taking
2. Innovative concept
risks, facing uncertainties, and establishing Enterprises. o According to this concept, entrepreneur in a developed
Entrepreneurship is the ability and readiness to develop, economy is that person whose parents something new in the
organize and run a business enterprise, along with any of its economy.” Innovation is a specific tool for entrepreneurship.
uncertainties in order to make a profit. The most prominent In this concept, entrepreneurship has been regarded as the
example of entrepreneurship is the starting of new business. adaptation of various innovations in industries, new
In economics, entrepreneurship connected with land, labour, production systems or techniques, new products, new markets,
natural resources and capital can generate a profit. The
new marketing methods, new qualities of raw materials, new
o Entrepreneurship is a high achievement capacity concept, for
packaging and new mixture on methods are used. Hence, this
which the capacity of making innovations and taking the
is regarded as a modern entrepreneurship concept.
decision during risks is essential. Under the assumption, There
is mentioned two characteristics of entrepreneurship:

3. Managerial skill concept o Ability to perform work with the latest method.

o The Scholars supporting this concept have turned o Ability to take decisions during uncertainties.
entrepreneurship as the ability of managerial skills.
o Besides, he has also assumed that inspiration for high-level
Entrepreneurship as the ability for inspections, controls, and achievements makes a man an entrepreneur.
direction. Similarly, entrepreneurship as a Managerial skill,
along with the capacity to bear risks.

6. Professional concept

4. Creative and leadership concept o Modern management experts accept entrepreneurship as a

professional concept. They are of the view that
o According to this concept, entrepreneurship is a creative entrepreneurship may be developed through education and
activity and it is the function of progressive leadership.” training. Being a managerial ability may be learned by
Similarly, Entrepreneurship is the quality of developing education and training, similarly entrepreneurship attitude
resources of the institution, developing human capacity, maybe also be developed by education and training. That is
performing creative activities and coordinating new thoughts. why Governments and private organizations conduct various
He is of the opinion that new thoughts emerge due to training programs for entrepreneurial ability development.
creativity, which may be put to economic use, by efficient
leadership. Creativity activities also expand due to high-level
entrepreneurship.
7. Organization and coordination concept

5. High achievement capacity concept

o Entrepreneurship is that economic component that o Entrepreneurship is not only to adopt new works and
organizes and coordinates various sources of production. behavior, but it is also the transformation of personality and
Entrepreneurship, as an “ability to organize Enterprise.” to establish a new identity through that. Basic entrepreneurial
principle

8. Business oriented concept

● Be a solution provider
o Under this concept, entrepreneurship is expressed as the
business-oriented entrepreneurial attitude of the individuals, o “Look for a way to make a life easy for others”
that inspires them to become entrepreneurs, to do the
o You must note that entrepreneurship is not just about
business thinking, to formulate plans and programs and to
making money at first but it’s about providing solutions and
establish Enterprises.
adding value. Over the years, successful entrepreneurs had
noted that passion is what brings success in business. This is
because, in starting a business, there are bound to be issues
9. Result oriented concept ranging from sourcing funding to getting good partners,
building a good team, location, marketing etc. If you are
o According to this concept, entrepreneurship is called
involved with inexperienced persons, you are bound to fail as
result-oriented in the modern age. Now, it is not very
fast as you had started. Only passion can keep you if you find
important, what efforts have been made for obtaining the
yourself in such situation. You just need to impact a life no
goals or how much hard labor has been put, more important is
matter how small; that is the beginning of your success story.
what has been the result. In the business world, only who
succeed in achieving the Goals is recognized as an
entrepreneur.
● Have a vision

o “Successful entrepreneurs are those that were able to

10. Personality, identity or role transform their vision into reality”
transformation process concept
o You are not an entrepreneur merely to make a living. You are
an entrepreneur because you want to enable the world to live
more amply, with greater vision, with a finer spirit of hope and
achievement. You are an entrepreneur to enrich the world, and
you impoverish yourself if you forget the errand. Jonathan
Swift said that “Vision is the art of seeing what is invisible to
others”. Have a defined purpose and pursue it.
● Select the team wisely
o “There is no need to sell good products as they sell by
themselves”
o Let your product/service fulfill a need, be innovative and the
approach, a little different from other regular businesses.
Technology is an important tool in the hand of modern
entrepreneurs. Your business should easily be accessible to
your target customers. Always give your customers room for
feedback or suggestions on how your product/service can be
better.

o “Good team work builds speed”

● Capital
o “The team should be motivated as well as dedicated to high
speed” o “Capital isn’t scarce, vision is”

o When assembling your team, it is imperative to gather a
team of individuals with the same mindset and attitude
towards achieving a common goal. You must not involve
family or close friends especially those without any knowledge
or expertise they can add to your startup. Your team must have
the same drive, tenacity, perseverance, and an underlying
belief in themselves and the value they can add to the success
of the business. Your team must be motivated and dedicated.
● Viable products/services
o “Good products most times sell itself”
o “Vision is scarce but not capital”
o Good business plan always draws investors. Capital should
be your least worry when you have a solution.
Entrepreneurship is all about solution. When your idea is
great, you can easily get investors or government loan. In my
country, Nigeria for example, government has created loan
programs for SMEs and this can be easily accessed with a good
business plan alone. One of such programs is YouWin. Also,
the Central Bank of Nigeria is supporting startups with
funding with a little interest rate. Other programs like the
Tony Elumelu Foundation also support startups financially.
These funding channels should be exploited. These are
measuring most national governments are applying to
promote entrepreneurship knowing that the growth of the
world’s economy depends on it.
● Accountability
o “Accountability breeds responsibility”
o “Accountability breeds from responsibility”
o As an entrepreneur, you are accountable to the success or
failure of your business, not your employees, investors or
advisors. You must have a detailed account of whatever
transaction made by the company. Have a scorecard of all
inventories. Always carry your investors along if there are any.
The success of any business is, in many ways, measured by the
management of its resources. Even if you hire a full-time
accountant, as an entrepreneur, you are expected to have a
fundamental knowledge of accounting, how it works and how
to apply its basic principles with the aim of operating a
flourishing business.
● Growth and marketing
o “Without continual growth and progress, such words as
improvement, achievement, and success have no meaning.”
o “Always stay focused on your goal and also always keep
success in your mind”
o Every successful business grew over the years. Most big
companies started small. It was all a process. Success in
business is not a one-time event; it is an on-going process.
You must give room for growth. Do not be content with the
success of yesterday; always strive to beat your own record.
That way, your business will keep on growing, your investors
will be happy to remain and inject more funds. Always remain
focused and dedicated to your goal. Have a clear goal and
pursue it. Your business growth also depends on your
marketing strategy. Marketing helps in getting your product
known and good sales come from good marketing.
● Know your customer
o “Always treat your customers as special guests.”
o “Your business must be streamlined in a definite niche”
o Your customer base determines the life of your business. If
you provide solution to better the world, your customers will
increase. In business, the higher your customers, the higher
the profit. Your business must be streamlined into a particular
niche. This will help you to know who your prospective
customers should be and how to get and keep them. When you
focus on a niche market, it is more efficient, more productive
and less competitive. Always map out strategies that will allow
for customer feedback even if it means giving out ● Never give-up
discounts/vouchers in exchange.
o “Never, Never, Never Give Up”

o “Persistence and determination are the key principles of

entrepreneurship.”
● Priorities
o The never give up attitude is one quality an entrepreneur
o “Things which matters most must never be at the mercy of
must possess. Successful entrepreneurs are goal-getters. They
things which matter least.”
never give up on turning their vision into reality. Like I stated
o “You need to fix a target and that is well-defined.” in this article 10 Major Causes of Business Failure, quitting too
soon is the biggest reason why many businesses failed. If you
o For success in business, you must categorize things in order
do not persevere, enquire, research, fail and try again, you
of importance. Set your priorities based on your goals and do
might not be successful in business. If you persist, you will
not deviate. Your investors should not make you lose focus on
have no choice than to succeed. In entrepreneurship,
your dream. Daren Smith of theselfemployer.com wrote
persistence and determination is supreme.
“Decide what to do and do it, then decide what not to do and
don’t do it“. Simple! Analyze what to create next based on
what has proven to have the biggest return. If Apple had
pushed their Mac Pro, their powerhouse desktop computer ● Not money-makers
created specifically for demanding professionals who need lots
o “Entrepreneurship is not a short way but a game for the long
of computing power, harder than they pushed the iPod back in
haul.”
the day, they wouldn’t be the industry giant they are today.
I’m sure there were some people who were way more o Before launch a new business in the market, an entrepreneur
passionate about the Mac Pro, but they had to realize that the needs to test the water first. An entrepreneur must equip with
numbers don’t lie, and the iPod was more important to market the idea of entrepreneurship and always keep trying with some
to the world. Your target should always be defined. new business models and new forms as well as paradigms to
transact the business.
o In short, it is a better thing to come up with some new and
out of the box ideas rather than pursuing leads that might not
work at the ends.
● Find opportunity and not mirages
o “Forget illusions and concentrate on opportunities.”
o To exemplify, there is cliché that opportunities knock only
once if you do not grab the chance, then create a door to get
prepared for catching the opportunities. Simply, it means that
entrepreneurs not only create opportunities but also seizes
them at the same time when it arises.
● The art of execution & delivery matters a
lot
o “Entrepreneurship is an art of execution.”
o It is not enough to have a bunch of ideas and a great team
unless and until the entrepreneur knows how to execute
everything. The venture can stay at the same level if there is
all talk and no execution of ideas. Successful entrepreneurship
needs to generate ideas and also obey the talk and not fake
promises or illusions.
o For instance, many startups established with huge ideas in
the Dotcom bubble in the United States during the 1990’s but
due to lack of proper execution of ideas they failed.
● Respect the customers & employees
o “Customers and employees are two phases of
entrepreneurship.”
o Customers are the king of any business and the employees
are also equally important. First of all, the customers need to
be treated like a guest and reflect respect as well as gratitude.
Successful entrepreneurship gives generosity to the customers
so that they can reciprocate and enable you to grow your
business.
o On the contrary, the employees deserve to get a better
working environment and not only the perks and increments.
It is a sign of good entrepreneurship that their employees feel
like their leaders and organization respects their dignity and
also value the contribution to business success.Apart from all
such principles, an entrepreneur should have the ability to
fulfill economic, environmental, as well as social
responsibilities along with the drive their business in the
cut-throat competitive business sphere. The most important
determinant for entrepreneurship is to maintain a balance
between internal aspirations and external expectations.
 Brookside School for Science Based on scholars, personal qualities in many cases are stable
Fall Semester 20XX and difficult to change (Driessen, Zwart, 2006), something fixed
and immutable (Sanchez, 2011), compared to capabilities,
Teacher: Ms. Wendy Writer
which can be developed or knowledge, which can be obtained.
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Broad personality traits are less related to the creation of
enterprises than specific personality traits (Sanchez, 2011), so

Personal analyzing the behavior of the entrepreneur more focus should

be put on specific personal traits. Certain specific attitudes and
personality traits predict intention and the way new

Entrepreneurial opportunities are perceived and pursuit.

Competencies One of the most widely used classification of personal

entrepreneurial competencies was created by Management
System International (MSI) and McBer and Company still in
1989. They identified 10 personal entrepreneurial
Notes
competencies: opportunity seeking, persistence, commitment
to work contract, risk-taking, demand for efficiency and quality,
goal seeking, information seeking, systematic planning and
Any competencies are defined as a cluster of related knowledge,
monitoring, persuasion and networking, self-confidence.
traits, attitudes and skills that affect a major part of one ‘s job,
According to MSI, entrepreneurial acumen can be predicted
that correlate with performance on the job, that can be
based on how strongly individuals manifest these personal
measured against well-accepted standards and that can be
entrepreneurial competencies.
improved via training and development. Personal
entrepreneurial competencies (PEC’s) are a set of qualities,
which help to outline the attitude and behavior of
entrepreneurs. In other words, personal characteristics are
traits that make people more or less capable of
entrepreneurship.

Other PEC’s
1. Hardworking
one of the most important characteristics of a good
entrepreneur is hardworking. This means working
diligently and being consistent about it. hardworking
people keep improving their performance to produce
good products and/or provide good services.
2. Disciplined
Successful entrepreneurs always stick to the plan and
fight the temptation to do what is unimportant.
3. Ability to accept change
Nothing is permanent but change. Change occurs
frequently. When you own a business, you should cope
with and thrive on change. Capitalize on positive
changes to make your business grow.
4. Creative
An entrepreneur should be creative and innovative to
stay in the business and in order to have an edge over
the other competitors.
5. Has initiative
An entrepreneur takes the initiative. You must put
yourself in a position where you are responsible for the
failure or success of your business.
6. Profit oriented
An entrepreneur enters the world of business to
generate profit or additional income. The business
shall become your bread and butter. Therefore, you
must see to it that the business can generate income.
Listed below are the important skills of a successful
entrepreneur:
1. Excellent planner – planning involves strategic thinking
and goal setting to achieve objectives by carefully maximizing
all the available resources. A good entrepreneur develops and
follows the steps in the plans diligently to realize goals. A good
entrepreneur knows that planning is an effective skill only
when combines with action.

2. Possesses people skills – this is a very important skill

needed to be successful in any kind of business. People skills
refer to effective and efficient communication and establishing
good relationships with the people working in and out of your
business. In day-to-day business transactions, you need to deal
with people. A well-developed interpersonal skill can make a
huge difference between the success and failure of the business.

3. Sound decision maker – successful entrepreneurs have the

ability to think quickly and to make wise decisions towards a
pre-determined set of objectives. No one can deny that the
ability to make wise decisions is an important skill that an
entrepreneur should possess. sound decisions should be based
on given facts and information and lead towards the
pre-determined objectives.
Brookside School for Science opportunities and constraints, and to take calculated risks. The
Fall Semester 20XX opportunities in the business environment are factors that
provide possibilities for a business to expand and make more
Teacher: Ms. Wendy Writer
profit. Constraints, on the other hand, are factors that limit
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business growth, hence reducing the chance of generating
profit. One of the best ways to evaluate opportunities and

Environment and constraints is to conduct strengths, weaknesses opportunities,

and threats (SWOT) analysis.

Market SWOT analysis is a managerial tool used to assess the

environment. It is used to gather important information which
is then used in strategic planning. Strengths and weaknesses
Notes are internal in an organization. they relate to resources owned
by an organization that you have control over and also the
extent of its marketing.
Introduction: Environment and Market
Opportunities and threats exist in the external environment.
Aspiring entrepreneurs need to explore the economic, cultural, Opportunities relate to the market, new technologies, and
and social conditions prevailing in an area. The needs and external factors such as government policies, climate, and
wants of the people in a certain area that are not met may be trends. Threats replace what the competitors are doing. It also
considered business opportunities. Identifying the needs of the includes legal and other constraints.
community, its resources, available raw materials, skills, and
appropriate technology can help a new entrepreneur seize Product Development
business opportunities.
When we talk of product development, we are referring to the
To be successful in any kind of business venture, potential process of making a new product to be sold by a business or
entrepreneurs should look closely at the environment and enterprise to its customers. Product development may involve
market. They should always be watchful of existing modification of an existing product or its presentation, or
formulation of an entirely new product that satisfies a
newly-defined customer’s needs, wants, and/or a marketplace.
The term development in this module refers collectively to the
entire process of identifying a market opportunity, creating a
product to appeal to the identified market, and testing,
modifying, and refining the product until it becomes ready for
production. There are basic, yet vital questions that you can ask
yourself about product development. When you find acceptable
answers to them, you may now say that you are ready to
develop a product and/or render services.
These questions include the following:
1. For whom are the product/services aimed at?
2. What benefit will the customers except from product/service?
3. How will the product/service differ from the existing brand?
From its competitor?
In addition, the needs and wants of the people within an area
should also be taken into big consideration. Everyone has
his/her own needs and wants. However, each person has
different concepts of needs and wants. Needs in business are
the important things that an individual cannot live without in a
society. These include:
1. Basic commodities for consumption
2. Clothing and other personal belongings
3. Shelter, sanitation and health
4. Education
Basic needs are essential to an individual to live with dignity
and pride in a community. These needs can obviously help you
generate business ideas and subsequently to product
development.
Wants are desires, luxury, and extravagance that signify wealth
and an expensive way of living. Wants or desires are considered
above all basic necessities of life. Some examples of wants or
desires are fashion accessories, expensive shoes, and clothes,
travels, eating in an expensive restaurant, watching movies,
concerts, having luxurious cars, wearing expensive jewelry and
perfume, living in impressive homes, among others.
The needs and wants of people are the basic indicators of the
kind of business that you may engage in because it can serve as
the measure of your success. Some other points that might be
considered in business undertakings are the kind of people,
their needs, wants, lifestyle, culture and tradition, and their
social orientation.
To summarize, product development entirely depends on the
needs and wants of the customers. Another important issue to
deal with is the key concepts of developing a product. The
succeeding topic shall enlighten you about the procedure in
coming up with a product.
 Concepts of developing a product
Concept development is a critical phase in the development of a
product. In this stage, the needs of the target market are
identified, and competitive products are reviewed before the
product specifications are defined. The product concept is
selected along with an economic analysis to come up with an
outline of how a product is being developed.
The process of product development follows the following
stages:
1. Identify customer needs: using survey forms, interviews,
researchers, focus group discussions, and observations, an
entrepreneur can easily identify customers’ needs and wants. In
this stage, the information that can be possibly gathered are
product specifications (performance, taste, size, color, shape,
life span of the product, etc.). This stage is very important
because it would determine the product to be produced or
provided.
2. Establish target specifications: based on customers’ needs
and reviews of competitive products, you can now establish
target specifications of the prospective new product and/or
services. a target specification is essentially a wish-list.
3. Analyze competitive products: it is imperative to analyze
existing competitive products to provide important information
in establishing product or service specifications. Other products
may exhibit successful design attributes that should be
emulated or improved upon in the new product or service.
4. Generate product concepts: after having gone through with
the previous processes, you may now develop a number of
product concepts to illustrate the types of products or services
that are technically feasible and will best meet the
requirements of the target specifications.
5. Select a product concept: through the process of evaluation
between attributes, a final concept is selected. After the final
selection, additional market research can be applied to obtain
feedback from certain key customers.
6. Refine product specifications: in this stage, product or
services specifications are refined on the basis of input from the
foregoing activities. Final specifications are the result of
extensive study, expected service life, projected selling price
among others are being considered in this stage.
7. Perform economic analysis: throughout the process of
product development, it is very important to always review and
estimate the economic implications regarding development
expenses, manufacturing costs, and selling prince of the
product or services to be offered or provided.
8. Plan the remaining development project: in this final stage of
concept development, you can prepare a detailed development
plan which includes a list of activities, necessary resources and
expenses, and a development schedule with milestones for
tracking progress.
Finding Value
People buy for a reason. There should be something in your
product or service that would give consumers a good reason to
go back and buy more. There must be something that will make
you the best option for target customers; otherwise, they have
no reason to buy what you are selling. This implies further that
you offer something to your customers that will make them
value your product or service.
The value you incorporate in your product is called a value
proposition. The value proposition is a believable collection of
the most persuasive reasons why people should notice you and
take the action you’re asking for. It is what gets people moving,
what makes people spend for your product or service.
Innovation
Innovation is the introduction of something new in your
product or service. This may be a new idea, a new method, or a
new device. If you want to increase your sales and profit, you
must innovate. Some of the possible innovations for your
products are change of packaging, improvement of taste, color,
size, shape, and perhaps price. Some of the possible
innovations in providing services are applicable to new and
improved methods, additionally featured services, and possibly
freebies.
Unique Selling Proposition (USP)
A unique selling proposition is a factor or consideration
presented by a seller as the reason that one product or service is
different from and better than that of the competition. Before
you begin to sell your product or service to your target
customers, you have to sell yourself in it. This is especially
important when your product or service is similar to your
competitors.
USP requires careful analysis of other businesses’ ads and
marketing messages. If you analyze what they say or what they
sell, not just their product or service characteristics, you can
learn a great deal about how companies distinguish themselves
from competitors. Here’s how to discover your USP and how to
use it to increase your sales and profit:
• Use empathy: put yourself in the shoes of your customers.
Always focus on the needs of the target customers and forget
falling in love with your own product or service. Always
remember, you are making/providing this product not for
yourself but for the target customers to eventually increase
sales and earn profit. The essential question such as what could
make them come back and ignore competition should be asked
to oneself. Most possible answers may be focused on quality,
availability, convenience, cleanliness, and reliability of the
product or service.
• Identify customers’ desires. It is very important for you to
understand and find out what drives and motivates your
customers to buy your product or service. Make some effort to
find out, analyze and utilize the information that motivates the
customers in their decision to purchase the product or service.
• Discover customers’ genuine reasons for buying the product.
Information is very important in decision-making.
competitive entrepreneur always improves their products or
services to provide satisfaction and of course retention of
customers. As your business grows, you should always consider
the process of asking your customers important information
and questions that you can use to improve your product or
service.
Generating ideas for business
The process of developing and generating a business idea is not
a simple process. Some people come up with a bunch of
business ideas that are not really feasible. There are two
problems that arise; the first is the excessive generation of
ideas that can forever remain as a dreaming stage and the
second is when they don’t have ideas and don’t want to become
entrepreneurs. The most optimal way is to have a systematic
approach in generating and selecting a business idea that can
be transformed into a real business. Here are some basic yet
very important considerations that can be used to generate
possible ideas for business:
1. Examine existing goods and services. Are you satisfied with
the product? What do other people who use the product say
about it? how can it be improved? There are many ways of
improving a product from the way it is made to the way it is
packed and sold. You can also improve the materials used in
crafting the product. In addition, you can introduce new ways
A of using the product, making it more useful and adaptable to
the customers’ many needs. when you are improving the
product or enhancing it, you are doing innovation. You can also
do an invention by introducing an entirely new product to
replace the old one. Business ideas may also be generated by
examining what goods and services are sold outside the
community. Very often, these products are sold in a form that
can still be enhanced or improved.

2. Examine the present and future needs. look and listen to

what the customers, institutions, and communities are missing
in terms of goods and services. sometimes, these needs are
already obvious and identified right away. Other needs are not
that obvious because they can only be identified later on, in the
event of a certain development in the community. For example,
a province will have its electrification facility in the next six
months. Only by that time will the entrepreneur could think of
electrically