Introduction to Entrepreneurship

Introduction to Entrepreneurship

• Entrepreneurship is a dynamic process of creating, developing, and managing a new business venture to generate profit while taking risks.
• It is crucial in developing economies like Nigeria for job creation, poverty reduction, and innovation.
• Understanding core principles is vital for aspiring entrepreneurs.

Learning Outcomes

• Students should be able to explain the historical evolution of entrepreneurship.
• Students should be able to define entrepreneurship in different contexts.
• Students should be able to identify and describe different types of entrepreneurs.
• Students should be able to list key characteristics of entrepreneurship and entrepreneurs.
• Students should be able to discuss principles guiding entrepreneurial practice.
• Students should understand entrepreneurship development's significance.

Evolution of Entrepreneurship

• Ancient civilizations (Mesopotamia, Egypt) saw early forms of entrepreneurial activity in trade and commerce.
• Middle Ages (5th-15th centuries) primarily comprised merchants, craftsmen, and explorers, often backed by monarchies.
• 17th and 18th centuries introduced the term "entrepreneur" (from French) to describe risk-taking individuals, including industrialists involved in the Industrial Revolution.
• 19th and 20th centuries saw entrepreneurship linked with innovation and technological advancement, highlighted by Joseph Schumpeter's "creative destruction" idea.
• 21st century entrepreneurship has been transformed by digital age and globalization creating new forms such as digital, social, and green entrepreneurship.

Definitions of Entrepreneurship

• Richard Cantillon (1730): Risk-bearing process while operating under uncertainty.
• Joseph Schumpeter (1934): Introducing new products, processes, or markets driving disruption.
• Peter Drucker (1985): Creating value through innovation, recognizing opportunities, and taking calculated risks.
• Modern Definition: Identifying opportunities, creating a business venture, and managing it profitably while taking risks.

Types of Entrepreneurs

• Innovative: Developing new ideas, products, or services (e.g., tech innovators).
• Imitative: Adapting successful ideas in local contexts.
• Social: Businesses aimed at solving social problems.
• Technopreneur: Use technology as a basis for their business.
• Serial: Continuously starting and managing new businesses.
• Lifestyle: Aligning businesses with personal passions or lifestyle goals.
• Intrapreneurs: Innovating within existing organisations.

Characteristics of Entrepreneurship

• Innovation: Developing new ideas, products, or methods.
• Risk-Taking: Willingness to take financial, personal, or social risks.
• Opportunity Recognition: Identifying unmet needs and market gaps.
• Value Creation: Providing value to customers.
• Proactiveness: Anticipating and seizing opportunities.
• Resourcefulness: Effective use of limited resources.
• Adaptability: Flexibility in responding to changes.

Characteristics of an Entrepreneur

• Visionary: Clear vision of business goals and the future.
• Self-Motivated: Driven to achieve goals without pressure.
• Risk-Tolerant: Comfortable with uncertainty.

Principles of Entrepreneurship

• Start Small, Dream Big: Begin with modest resources, aiming for long-term growth.
• Customer Focus: Understanding and satisfying customer needs.
• Innovation: Staying competitive through innovation.
• Value Creation: Providing products/services solving problems or meeting needs.
• Sustainability: Operating in an environmentally and socially responsible manner.
• Adaptability: Being flexible and open to change.
• Continuous Learning: Staying informed and improving skills.
• Ethical Conduct: Upholding integrity in business practices.

Entrepreneurship Development

• Training Programs: Workshops, seminars, and courses on business skills.
• Government Policies: Supporting policies such as loans and incentives for business.
• Mentorship and Networking: Support from experienced entrepreneurs.
• Access to Finance: Availability of funding through venture capital, angel investors, and microloans.
• Innovation Hubs and Incubators: Spaces for developing and supporting new ideas.
• Cultural and Institutional Support: Encouraging societal support for entrepreneurs.