Entrepreneurship Lecture 1 PDF

Entrepreneurship Lecture 1 Introduction The idea of entrepreneurship may sound exciting, but it may not necessarily be for everyone. There are number of questions you need to ask yourself as an entrepreneur to determine whether or not you should go ahead with your great business idea. In this cou...

Entrepreneurship Lecture 1 Introduction The idea of entrepreneurship may sound exciting, but it may not necessarily be for everyone. There are number of questions you need to ask yourself as an entrepreneur to determine whether or not you should go ahead with your great business idea. In this course, we will discuss the nature of entrepreneurship, differentiate between entrepreneurship and entreprise, look at the role that entrepreneurship plays in society and also discuss the characteristics of an entrepreneur. Entrepreneur - Businessman Introduction The word entrepreneur originates from the French word, entreprendre, which means "to undertake“. There has been a great deal of attention paid to the subject of entrepreneurship over the past few years, as many people realised that small firms contribute considerably to the economic growth of a country. Developing countries have established policies and tax incentives that encourage the planning and implementation of small businesses with the belief that a small business can potentially grow into a large business. Business Defined An organization operated with the objective of making a profit from the sale of goods or services. An enterprise, commercial entity, or firm in either the private or public sector, concerned with providing products (goods or services) to satisfy customer requirements. An economic system in which goods and services are exchanged for money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis. The common elements in most of the definitions described above are A business sells or buys services and products. The objective of a business is to make a profit. All business entities have customers with specific needs and wants. Business requires a solid financial footing. In most cases a potential entrepreneur will be creating a “small business” that he or she hopes to grow into a large and successful enterprise. Small Business A business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships. Entrepreneurship What is Entrepreneurship? A normal response to this question is that entrepreneurship is about creating or establishing a business. Entrepreneurship however is more than simply starting or operating a small business. Entrepreneurship It is true that entrepreneurship is both a science and an art. The science lies in the proven process of planning and managing business. The art lies in the innovative thought, implementation and growth of a business. Definitions of Entrepreneurship Entrepreneurship is a dynamic, social process where individuals, alone or in collaboration identify financial opportunities and act upon them by establishing new enterprises. Entrepreneurship however involves much more than just for a business to be successful and sustainable. Entrepreneurship is a dynamic, social process where individuals, alone or in collaboration identify opportunities for innovation and act upon them by transforming ideas into practical targeted activities whether in a social, cultural or financial context. Most popular entrepreneurial projects The above descriptions indicate that entrepreneurship: Has impact on individuals. Provides financial opportunities. Has an impact on the economic well‐being of a society. Requires Innovation. Is dynamic. What would you say are the main differences between the first definition and the second definition of entrepreneurship? The definitions explored so far imply that entrepreneurship is more than just about business success and sustainability. The first explanation is based on making business by establishing new enterprise, while in the second definition new dimensions are added, such as innovation and other areas of the environment e.g. the social, cultural and financial context.