Entrepreneurship Definitions and Evolution

Entrepreneurship Defined

• There is no single, universally agreed-upon definition of entrepreneurship.
• Diverse scholars have offered various definitions based on different aspects of entrepreneurship.
• Entrepreneurship encompasses a range of activities, including self-employment, organizational creation, innovation, resource combination, and market opportunity identification and exploitation.
• Entrepreneurship is essential for economic development.

Entrepreneurship: Evolution of Definitions

• Aruwa (2006): Entrepreneurship is the willingness and ability to seek investment opportunities and successfully establish and operate an enterprise.
• Penrose (1963): Entrepreneurship involves identifying opportunities within the economic system.
• Leibenstein (1968, 1979): Entrepreneurship includes activities necessary to create or operate an enterprise where markets are not well-established or clearly defined, or where parts of the production function are unknown.
• Gartner (1988): Entrepreneurship is the creation of new organizations.
• Okpara (2000): Entrepreneurship involves the willingness and ability to identify investment opportunities and successfully establish and manage an enterprise.
• Nwachukwu (1990): Entrepreneurship is a process involving recognizing and evaluating business opportunities, acquiring necessary resources, and taking appropriate action for success.

Entrepreneurship: Key Aspects

• Risk-taking: Entrepreneurs embrace uncertainty and potential losses in pursuit of opportunities.
• Team Formation: Entrepreneurs effectively assemble and manage teams to achieve business objectives.
• Resource Management: Entrepreneurs efficiently allocate and utilize resources like capital, labor, and technology.
• Planning & Vision: Entrepreneurs develop comprehensive plans, set goals, and have a clear vision for the future of their ventures.

Who is an Entrepreneur?

• Di-Masi (2010): Entrepreneurs identify market opportunities and possess the motivation, drive, and ability to mobilize resources to capitalize on them.
• Wikipedia (2010): Entrepreneurs are individuals who own and are accountable for new ventures, ventures, or ideas.
• Knight (1921): Entrepreneurs attempt to predict and act upon market changes.
• Business Dictionary (2010): Entrepreneurs conceive, organize, and manage ventures while seeking profit.
• Eze (2010): Entrepreneurs identify opportunities and mobilize resources to transform ideas into businesses.
• Envick & Langford (2000): Entrepreneurs own and operate their businesses.
• Bagby (1998): Entrepreneurs utilize instability or lack to create new products or modify existing ones for profit.
• Scarborough (2013): Entrepreneurs establish new businesses facing risk and uncertainty, aiming for profit and growth by identifying opportunities and assembling resources.

Attributes of Entrepreneurs

• Innovators (Schumpeter, 1934): Entrepreneurs introduce new products, services, or business models.
• Opportunity Exploiters (Shane & Venkataraman, 2000): Entrepreneurs identify and exploit market opportunities through creative resource utilization.
• Visionary Leaders (Hisrich & Peters, 2002): Entrepreneurs inspire others and create value by addressing market inefficiencies.
• Efficient Resource Allocators (Kirzner, 1973): Entrepreneurs effectively utilize scarce resources for business opportunities.
• Navigators of Uncertainty (Casson, 1982): Entrepreneurs make decisions under imperfect information.
• Pioneers (Gartner, 1988): Entrepreneurs enter new markets or segments, dealing with challenges and uncertainties.

Intrapreneurship: Corporate Entrepreneurship

• Intrapreneurs are individuals who exhibit entrepreneurial behavior within established organizations.
• They identify and exploit business opportunities within the organization.
• Jones, George, & Hill (2000): Intrapreneurs identify opportunities for product improvements and oversee product development.
• Pinchot (1985): Intrapreneurs are innovative employees.
• Intrapreneurs contribute to organizational competitiveness and profitability.
• Covin & Slevin (1986) & Burgelman (1983): Corporate entrepreneurship involves empowering employees to take initiative, think creatively, and pursue innovative projects.

Entrepreneurs vs. Intrapreneurs

• Entrepreneurs: Create new ventures independently, assuming all aspects of the business.
• Intrapreneurs: Innovate and drive change within existing organizations, working within the framework of the organization.

Origin of Entrepreneurship

• The term "entrepreneur" derives from the French word "entreprendre," meaning "to undertake" or "to pursue opportunities."
• Ricardo Cantillon (1723): First used "entreprendre" to describe economic agents coordinating inputs for uncertain profit.
• J.B. Say (1821): Coined the term "entrepreneur" to describe individuals creating new wealth.
• Schumpeter (1951): Suggested Cantillon was the first to introduce the concept of the entrepreneur.

Entrepreneurship Development in Nigeria: History

• Pre-Colonial Era: A thriving entrepreneurial culture existed with indigenous people engaging in farming and crafts.
• Colonial Era: Entrepreneurs faced challenges as they were relegated to serving as intermediaries for colonial masters.
• Post-Colonial Era: Policies and initiatives aimed to promote indigenous entrepreneurship for economic development.

Post-Colonial Era Initiatives

• Nigerian Enterprise Promotional Act of 1977: Reserved certain industries exclusively for Nigerians.
• Post-Independence Policies: Focused on promoting indigenous businesses and fostering economic growth.

Explore the multifaceted definitions of entrepreneurship through scholarly perspectives. This quiz examines various interpretations and the critical role entrepreneurship plays in economic development. Test your understanding of key concepts and historical definitions in the field of entrepreneurship.