Objectives Notes
7. Noted Regional and Chris Blackwell, Marley Family, Eddie Grant, Arthur Lok Jack, Vincent Hosang, Richard Branson, Joan
International Duncan, Yesu Persaud, JayZ, Anthony Sabga, Aleem Mohammed, Bill Gates, Hubert &Helen
Entrepreneurs Bhagwansingh, Reno Gajadhar, Mark Zuckerberg, Audrey Marks, James Husbands, Oprah Winfrey,
Edward Beharry, Adrian Augier, Sir Charles Williams, Ronald Ramjattan, Allen Chastanet, Steve Jobs,
Thalia Lyn.
8. Cultural Diversity of
Entrepreneurship
a. Gender and • Women’s entrepreneurial motivation is considered a necessity and not opportunity.
Entrepreneurship Women-owned businesses are largely concentrated in the small business sectors of the
economy focusing more on low technology and service-oriented business activities.
• Male entrepreneurs are usually confident and driven by visionary innovative idea.
• Females show a higher risk propensity compared to males. However, female has more
limited access to capital and financial support. Also, negative gender stereotyping which
may contribute towards a poor perception of female entrepreneurship.
• Women are likely to have lower self-belief in their abilities to establish successful business
ventures when equated to men. This explains why fewer women compared to men are
inclined to pursue entrepreneurial careers.
• Generally, the rate of women entrepreneur are lower than men. The percent of women
entrepreneurs is only higher in countries where women have no other option for making a
living.
b. Youth and Why do you want to become an entrepreneur?
Entrepreneurship
• This involves young entrepreneurs between the age of 15-25.
Young people engage in entrepreneurial activities because:
• Offers a solution to economic disadvantage for e.g many young people cannot find
employment.
• To deepen their human capital attributes (self-reliance, skill development) and increase
their levels of happiness (Independence, financial rewards).
• A young person setting up a new business may provide ‘demonstration’ for other young
people. This may be particularly advantageous in deprived communities as it may signal
that entrepreneurship is a mechanism for helping disadvantaged people.
• Family/ parent background influences the propensity of self-employment.
• The type of business ventures that young entrepreneurs are usually engaged in are: part-
time self-employment, or a focus on a particular (innovative) sector.
• Unfortunately, many young people face hardship in sourcing capital to start their business.
c. Ethnicity and This is business-ownership by immigrant and
Entrepreneurship ethnic-group members.
• Ethnicity and entrepreneurship predominantly exists when people migrate to another
territory.
• They set up a business that is based on their ethnic background. Business-ownership may
occur among temporary migrants with nothing to lose or among permanent disadvantaged
groups facing “blocked mobility” -- discrimination by employers.
Challenges they face?
-Difficulty with being acknowledge in the early stages due to lack of trust, long working/opening
hours, pricing items cheaper than local and limited local support.
d. Family and Businesses are often passed down through generations.
entrepreneurshi Family can be use as a source of funding by providing start up capital that can help launch
p and grow a business.
Collaborative ventures
Legacy- entrepreneurial families may have a strong sense of building a lasting legacy,
passing on not just wealth but also a sense of purpose for future generations.
Succession Planning- preparing family members to take over leadership roles.
NB#-
Effective communication and clear boundaries are essential for maintaining a healthy balance
between family and entrepreneurship.
e. Religion and This refers to one’s beliefs and affiliation affects which business ventures we engage in.
entrepreneurshi
p • For example with Muslims their religion requires them to be covered (hijab for females) in
front of anyone who is not family or a Muslim woman as a sign of respect.
So what effects will this have on employment?
Rastafarians- live by the principles of livity. That includes:
• Dressing in red, green, gold (yellow) and black.
• Eating ital (vegetarian) because its natural. Hindus are also vegetarian.
• Smoking of ganja (marijuana) to receive an “itation” (meditation).
So what effects will this have on employment?
f. Politics Political decisions and government policies can significantly impact entrepreneurship.
Tax policies, regulations, trade agreements, and economic incentives can either facilitate or
hinder business creation and growth.
Entrepreneurs often engage in political advocacy to promote their interests.
Some governments have programs to support entrepreneurship, offering funding, training, and
resources to help start and grow businesses.
International entrepreneurs can be affected by geopolitical factors, such as trade agreements and
tariffs, which are shaped by political decisions.
g. Socio Economics Socioeconomic status is the social standing or class of an individual or group. It is often measured as
Status a combination of education, income, and occupation.
-Individuals with higher SES often have more access to financial resources.
-Higher SES individuals typically have better access to quality education and training.
-People from higher SES backgrounds may have connections that provide support, mentorship, and
business opportunities.
-Those with higher SES may be more willing to take financial risks because they have a financial
safety net.
9. Myths of i. Entrepreneurship ventures and small businesses are the same thing
Entrepreneurship ii. All entrepreneurs are rich
iii. Entrepreneurs are born not made
iv. Entrepreneurship is easy
v. All you need is money
vi. Successful entrepreneurship needs only a great idea
vii. Entrepreneurs always generate new ideas
viii. All you need it luck
ix. Entrepreneurs are extreme risk takers
x. Entrepreneurs are motivated primarily by money or profit.
*NB: refer to textbook for notes on objective 9 and 10.
10. Mistakes of
Entrepreneurs
HRM failures:
*Lack of leadership- never: formulated a strategy/plan, vision and mission
a. Human Resource statements, employee management, decision making.
Management
Failures
*Judgement and knowledge- no: knowledge of environmental scanning,
selecting opportunities, formulating strategies, organizing resources, recruiting
and selecting.
*Lack of experience- how to start and operate a business, commercialize a
concept, communication and information systems.
b. Operation • Poor inventory management- no inventory systems such as EOQ in place.
Failures • Poor planning- product development, objectives that are not SMART.
c. Marketing Weak marketing strategy- Marketing knowledge such as; customers, sales promotions,
Failures selling and providing service.
Uncontrolled growth- ignored supply and demand concept.
Poor location- did not consider: geographical factors, site costs, labour supply and labour
costs, transport costs, quality of local infrastructure (communication, power, water, health
facilities and transport access), government regulation and planning restrictions.
Incorrect pricing- used pricing schemes that are not beneficial to the business. (Penetration,
skimming, cost-plus).
•
d. Financial Failures Poor financial control- financing salaries, purchasing material resources from suppliers.
Inadequate record keeping- no preparation of financial statements.
e. Failure as a
natural part of
the
entrepreneurial
process
f. Timing
The ability to identify the right timing and pivot when necessary is a key skill in
entrepreneurship.
11. Factors that (a) having an in-depth knowledge of the business;
contribute to the (b) building a viable business model;
Success of (c) using lean start-up principles;
Entrepreneurs (d) knowing when to pivot;
(e) having a solid business plan;
(f) effective management of financial resources;
(g) understanding financial statements;
(h) having the right team;
(i) effective management of people;
(j) having a competitive edge; and,
(k) maintaining a positive attitude.
