Chapter 1 - Introduction to

Entrepreneurship Skills
GENERAL
 THE ENTREPRENEUR
Our common understanding:

The boss The business

owner

One who starts

The risk a small business
taker

The resourceful
The pioneer guy
 WHY BE AN ENTREPRENEUR?
The four primary reasons that people become entrepreneurs and start their own companies:

Desire to
pursue their
own ideas
Desire to be
their own
boss

Entrepreneur
Financial
rewards

Doing work
they enjoy
ENTREPRENEURSHIP VS
ENTREPRENEUR
Entrepreneur
One who undertakes and operates a new
enterprise and assumes some
accountability for the inherent risks.
Often synonymous with founder.
The person who leads an enterprise
through leadership and motivation, by
coordinating all three elements of
production (land, labour and capital).
Entrepreneurship
The practice of starting and operating new
organizations, particularly new businesses
generally in response to identified
opportunities.
Ranges in scale from solo projects to major
undertakings creating many job
opportunities.
The coordination process maintained by an
entrepreneur and the way in which an
entrepreneur leads and motivates.
 ENTREPRENEURSHIP VS
ENTREPRENEUR
In short:

• Entrepreneur
A person pursuing or operating a business, usually with considerable
initiative and risks

• Entrepreneurship
The process or practice of pursuing or managing the business
FRENCH WORD ORIGIN

Entependre to undertake
 NO SINGLE DEFINITION

Entrepreneur

Richard Cantillon Adam Smith

A person who pays a certain An individual who undertakes

price to a product to resell it at the formation of an
an uncertain price, thereby organization for commercial
making decisions about purposes by recognizing the

YOUR TITLE
obtaining and using the potential demand for goods
resources while consequently and services, and thereby acts
admitting the risk of enterprise. as an economic agent and
transforms demands into
supply.
 Entrepreneur

Jean Baptiste Say Peter Drucker

Joseph Schumpeter
An entrepreneur is a coordinator Entrepreneur is the one who is
and organizer of resources to Entrepreneurs are involved in gathering and using
innovators who use this
design a business enterprise. process of shattering resources and opportunities to
the status quo of the produce results.

YOUR TITLE
existing products and
services, to set new
products, new services.
 FOR THIS COURSE:
• Entrepreneur
A vision-driven individual who undertakes significant personal and
financial risk to start, run and expand a business.

• Entrepreneurship
The pursuit of opportunity through innovation, creativity and hard
work without regard for the resources currently controlled.
THEORIES
 THEORIES OF ENTREPRENEURSHIP
• Entrepreneurs cause entrepreneurship
Entrepreneurship is a function of the entrepreneur:

E = f(e)

• For this course, we will discuss 5 theories of entrepreneurship

 Influence the
behavior of
individuals
Boost in a in a society
particular
social
culture

Sociological Theory

Role performer
 Psychological Theory

Entrepreneurshi Psychological
p gets a boost characteristics

Psychological
Theory

Keen
interest
 Entrepreneurship Innovation Theory

Emphasizes on
Entrepreneurs help
innovation,
the process of
ignoring the
development
risk taking
in an economy

Entrepreneur is a
large scale
businessman
 Economic Theory of Entrepreneurship

Economic
conditions Economic
are incentives
favourable

Taxation
policy,
industrial
policy and so
on
 High achievement
orientation
2 characteristics
of
entrepreneurship

Theory of High
Measure of Achievement
success and
competency

Not influenced
by money
or external
CHARACTERISTICS
 Curious
Perceptive Hardworking

Risk taker Goal-setting

CHARACTERISTICS

Self-confident Persistent

Flexible Imaginative
Independent
 Why study
ENTREPRENEURSHIP?
• There are two primary reasons why studying entrepreneurship makes
sense: you learn to think like an entrepreneur and you develop a
vision for your life.
• Thanks!

Any questions?