ENT2101 LECTURE NOTE 1

Concepts of Entrepreneurship

There are 3 dimensions of entrepreneurship, namely;

1. Behavior

2. Processes

3. Outcomes

Process definition of Entrepreneurship

A process of identifying and developing an opportunity in form of vision. It is also a process of

implementing the business concept or venture.

Behavior required in Entrepreneurship

Entrepreneurship is the characteristics of seeking opportunities, taking risk beyond security and
having the zeal to push an idea to reality.

Outcomes of Entrepreneurship

Entrepreneurship is the dynamic force that facilitates the creation of incremental wealth. It is
also the introduction of new economic activity that leads to change in the market place.

Theories of Entrepreneurship

There are three (3) theories of Entrepreneurship, namely;

1. The functional perspective

2. The personality perspective

3. The behavior perspective

1. The functional approach: Deals with how the entrepreneur interacts with his or her
environment.
2. The personality approach: Holds that certain individual possess a distinctive range of
personality characteristics or traits which they claimed led them to entrepreneurial activities.
These characteristics include;

Risk taking, high need for achievement, propensity and self efficacy.

3. The behavior approach: The principal aim of this approach is to explain the functions,
activities and actions associated with the perceiving of opportunities and the creation of an
organization to pursue them. It focuses on what entrepreneurs do rather than who they are.

Who is an Entrepreneur?

An entrepreneur is a person who brings overall change through innovation for the maximum
social good. An entrepreneur is a visionary and an integrated man with outstanding leadership
qualities.

Entrepreneur is also defined as one who detects and evaluates a new situation in his
environment and directs the making of such adjustments in the economic systems, as he
deems necessary.

The 4 key elements involved in the viral definitions of entrepreneurship are;

1. Innovation

2. Risk taking

3. Vision

4. Organizational skills

Entrepreneurial Behaviors

1. Gasping opportunity

2. Taking initiative

3. Solving problems creativity

4. Taking responsibilities and ownership of things

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