Entrepreneurship: Concept and Nature

Introduction to Entrepreneurship (EDP 111)

• The foundation of the field is explored.
• Dr. Emmanuel Ehimen Okoh is credited.

Reading List

• A Textbook for Tertiary Institutions by Akinnawo, T. (2020), Ibadan, University Press PLC.
• Entrepreneurship Development in Nigeria by Ameh, E. (2022), Makurdi, Aboki Publishers.
• Entrepreneurship: Text and Cases by Okpara, F.O. (2000), Enugu, Precision Printers and Publishers.
• Faith City by Osifeso, G. A. T. (2012), The Crawford University Press.

The Concept and Nature of Entrepreneurship

• Entrepreneurship involves innovation and risk-taking for profit in business ventures.
• It combines all factors of production in the right proportion to create a great output and make profit.
• According to Walter (1999), the attributes of entrepreneurship include perceiving business opportunities.
• It includes willingness to act on perceived opportunities, and the necessary organizing skills.

Requirements for Successful Entrepreneurship

• According to Akinnawo (2020), the requirements include identification of unmet needs and wants.
• It includes idea conceptualization (Ideation stage), creativity and innovation.
• Risk taking, the ability to organize and coordinate resources.
• Having team spirit and leadership also helps.

Characteristics of Entrepreneurship

• Includes economic activity: creation and operation of an enterprise to create value and wealth.
• It needs innovation which involves a continuous search for ideas.
• There should be profits potential: Profit is the reward for the risk taken to start a business venture.
• It can handle risk bearing: The willingness to bear the risk in creating and implementing a new idea.

Objectives of Entrepreneurship to Students

• Helps students consider starting a small business after graduation as a viable employment option.
• Helps appreciate the essence of business which is discovery and satisfying a need.
• It exposes students interested in the world of business and show them the opportunities to create their businesses.
• Introduces students to the requirements of starting and managing a new business venture.

Impact of Entrepreneurship on Society

• Contributes to wealth by creating new markets, industries, technologies, and jobs.
• The new jobs created leads to equitable distribution of income.
• It also improves the population's standard of living.
• It creates a positive correlation between the level of entrepreneurship activity and economic growth.
• Entrepreneurship fosters wealth creation and employment.

Who is an Entrepreneur?

• The term entrepreneur is from French.
• The term was first defined by Irish Economist Richard Cantilon.
• According to Osifeso (2012), an entrepreneur is a business person who assumes the risk of bringing together the means of production.
• An entrepreneur receives profit in the form of the product's market value.
• An entrepreneur coordinates other factors of production and bears the risk/uncertainty by investing scarce resources in business ventures (Ameh, 2022).

Types of Entrepreneurs

• Entrepreneurs can be divided into broad types.
• There are opportunistic entrepreneurs, that benefited from formal education and use strategies to run adaptive firms.
• There are craftsman entrepreneurs, that benefited from technical education.

Other Types of Entrepreneurs

• Future entrepreneurs
• Potential entrepreneurs
• Existing entrepreneurs
• Growth-oriented entrepreneurs

Qualities of Entrepreneurs

• Ability to identify and take opportunities
• Creativity in organizing resources
• Ability to generate new ideas
• Future oriented
• Possesses the ability to make economic decisions
• Possesses a high need for achievement
• Leadership ability

Functions of an Entrepreneur

• Identification of business opportunities
• Selection of opportunities
• Decision of the form of enterprise
• Allocation of resources
• Business management
• Risk bearing
• Mobilisation of local raw materials
• Innovation

Concept of Intrapreneurship

• Employees in private and public organizations can demonstrate entrepreneurial spirit in the management of their organizations.
• Intrapreneurs exhibit the same characteristics of an entrepreneur.
• "Intra" means within the organisation.
• Intrapreneurship means planting the spirit of entrepreneurship within the organisation.
• Intrapreneurs welcome change and aren't afraid of failure.
• They initiate creativity/innovation in the company's products, services, processes, and systems to transform them into a successful venture or enterprise.
• Intrapreneurs are employees that take risks, create new things, and are creative, thoughtful, and innovative.
• Intrapreneurship ensures organizational success, progress, and competitive edge.

Entrepreneur vs Intrapreneur

• Entrepreneurs set up businesses with their own ideas, whereas intrapreneurs act as managers within a company.
• Entrepreneurs create newly established firms while Intrapreneurs work within existing ones.
• Entrepreneurs are own bosses who take/execute decisions; Intrapreneurs are salaried employees with the concurrence of the owner.
• Entrepreneurs face uncertain/unlimited rewards while Intrapreneurs have fixed rewards and salaries.
• Entrepreneurs operate independently, while Intrapreneurs are dependent on the entrepreneur/business owner.
• Entrepreneurs raise funds, Intrapreneurs have funds not raised by them but by the company owner.
• Entrepreneurs use their own resources, but Intrapreneurs use resources from the company.
• Entrepreneurs bear the risk, whereas the business wears the risk for Intrapreneurs.

Assignment

• Entrepreneurship is an inescapable necessity which students must embrace to move away from unemployment and poverty.
• Benefits entrepreneurship has on students, government and the larger society should be explored.
• Written submission is to be no more than three pages.
• It should have font size 12, and double line spacing.
• It is to be submitted on a date to be decided.