Introduction To Entrepreneurship (UPSA) PDF

INTRODUCTION TO ENTREPRENEURSHIP  Learning Outcomes At the end of this lecture students should be able to: 1. Explain the concept of entrepreneurship 2. Discuss the need for entrepreneurship in Ghana 3. Identify the challenges of entrepreneurship...

INTRODUCTION TO ENTREPRENEURSHIP  Learning Outcomes At the end of this lecture students should be able to: 1. Explain the concept of entrepreneurship 2. Discuss the need for entrepreneurship in Ghana 3. Identify the challenges of entrepreneurship development in Ghana 4. Differentiate types of entrepreneurship 5. Demystify entrepreneurship 6. Describe the entrepreneurship process 9/2/2024 2  Concept of Entrepreneurship The word entrepreneurship was Entrepreneurship is the ability to adopted into the English language from create and build a vision from the French entreprendre, meaning to practically nothing; fundamentally undertake, launch or found something it is a human creative act Entrepreneurship may be defined as the visualization and realization of new ideas by creative individuals, who are able to mobilize resources (financial and non financial) within their environment and else where to implement their visions or dreams 9/2/2024 3  Concept of Entrepreneurship According to Shapero, in Exercise: what is your Entrepreneurship there is understanding of entrepreneurship agreement that we are talking about a kind of behavior that includes: – Initiative taking, – The organizing or reorganizing of socio-economic mechanisms to turn resources and situations to practical account, and – Accepting the risk of failure 9/2/2024 4  Entrepreneurship Defined Entrepreneurship is the dynamic process of creating incremental wealth Entrepreneurship is the ability to create and build a vision from practically nothing; fundamentally it is a human, creative act This vision requires a willingness to take calculated risk, both personal and financial, and then to do everything possible to reduce the chances of failure 9/2/2024 5  Entrepreneur Defined An entrepreneur is an Increasing number of educated innovator/developer who recognizes Unemployed Graduates and seizes opportunity; converts those opportunities into workable ideas; add – It is estimated that there is currently value through time, effort, money, or about 200,000 unemployed university skills; assumes the risks of the graduates competitive marketplace to implement these ideas; and realizes the rewards – UG’s Institute of Statistical, Social and from these efforts (Ronstadt, 1984) Economic Research (ISSER), has described the unemployed situation as a time bomb (Benjamin, 2016) Discussion: Because inventors are creative minded they turn out to be great entrepreneurs. Do you agree? Please explain why? 9/2/2024 6  The Need for Entrepreneurship in Ghana Increasing number of educated Increasing student numbers from Unemployed Graduates JHS/SHS worsens the unemployment situation – It is estimated that there is currently about 200,000 unemployed university graduates Unemployment has become political. Party manifestoes rank the issue high – UG’s Institute of Statistical, Social and Economic Research (ISSER), has described the unemployed situation as a time bomb High level of poverty (Benjamin, 2016) The realization that human resources can be redirected into entrepreneurial activities 9/2/2024 7  The Need for Entrepreneurship in Ghana The realization that the private sector is Entrepreneurial education in higher the engine of growth – entrepreneurs education institutions assuming the driving seat. Entrepreneurial culture can be nurtured by devising programs for the youth, retired and retrenched workers  This culture takes better roots when introduced early enough alongside formal education 9/2/2024 8  The Need for Entrepreneurship in Ghana Entrepreneurship is therefore a solution to graduate unemployment and poverty Studies have shown that entrepreneurship can be taught (Kirby, 2004; Kuratko, 2005) Discussion: How can you personally overcome unemployment after your university studies? 9/2/2024 9  Aspiring UPSA Entrepreneurs 9/2/2024 10  Challenges of Entrepreneurship Development in Ghana Infrastructural facilities: such as Financial support: lack of access to lack of roads, electricity etc. finance Legal and regulatory framework: Social: – Governments need to have positive – The concept is alien to our culture or society perception of entrepreneurial activity – The fear of failure can be a barrier – Creativity and innovation are not always – Huge administrative burden on valuable traits entrepreneurs – Ghana has social systems that create – Inadequate coordination among gov’t dependence and hopelessness agencies to ensure that resources are – A section of its citizen especially minorities directed where they are needed need role models to demonstrate the positive outcomes to innovation and risk taking 9/2/2024 11  The Benefits of Entrepreneurship 1. Create own destiny 2. Reach full potential 3. Generate impressive wealth 4. Contribute to society and be recognized for efforts 5. Make a difference Exercise: identify the challenges and benefits of entrepreneurship in Ghana 9/2/2024 12  Types of Entrepreneurship Traditional Self-employment Social Enterprise Lifestyle Firms enterprise Non- Entrepreneurial Governmental Intrapreneurship Firms Organization 9/2/2024 13  Traditional Enterprise Traditional enterprises are ventures with a mission to make profit They operate in all sectors Profits go to the owners Traditional Enterprises are mostly seen in the form of self-employment 9/2/2024 14  Self-Employment Self-employment has become an It can be part-or full time vocation increasingly form of entrepreneurship in (i.e., involving home production) modern economies closely related to hobbies, passion, or services in a unique niche of expertise Most entrepreneurs go through a phase or interest of self-employment in order to launch their ventures Their main activities are concentrated in the ‘informal economy’ 9/2/2024 15  Self-Employment The difference between self-employed Sometimes by the necessity to escape individuals and entrepreneurs lie mainly unemployment or underemployment in their personal characteristics Self-employed and entrepreneurs face For example, self-employed individuals the same challenges are not necessarily innovators, creative, cunning, or prone to insight or resourcefulness The self-employed are considered tough, down-to-earth, pragmatic people 9/2/2024 16  Social Enterprise Social entrepreneurship is about Social problems are most typically ventures with a mission to solve a associated with such sectors as health pressing social problem care, education, poverty, environment, waste, water, energy and related sectors Social enterprises are businesses that trade to tackle social problems, improve communities, enhance people’s life, or the environment 9/2/2024 17  Lifestyle Firms/Enterprises Lifestyle firms provide their owner(s) Lifestyle companies promote a the opportunity to pursue a particular particular sport, hobby, or pastime and lifestyle and earn a living while doing may employ only the owner or just a so. handful of people. They include personal trainers, golf and tennis pros, the owners of bed & breakfasts, and tour guides. These firms are not innovative, nor do they grow quickly. 9/2/2024 18  Non-Governmental Organization NGOs are not social enterprises Although some NGOs are for-profit enterprises, the vast majority are non- They are voluntary group of individuals or profit organizations organizations, usually not affiliated with any government (including Civil Society Exercise: name some NGOs and/or Organisations) CSOs Formed to provide services or to advocate a public policy 9/2/2024 19  Intrapreneurship Intrapreneurship is one method of stimulating and capitalizing on individuals in an organization, who think that something can be done differently and better It is the act of behaving like an entrepreneur while working within a large organization Pinchot (1984) defined intrapreneurs as ‘’dreamers who do. Those who take hands- on responsibility for creating innovation of any kind, within a business’’ 9/2/2024 20  Reasons for Rise of Intrapreneurship A rapidly growing number of new and An overall desire to improve efficiency sophisticated competitors and productivity A sense of distrust in the traditional Exercise: What is the importance of methods of corporate management intrapreneurship for your future corporate career An exodus of some of the best and brightest people who are leaving corporations to become small-business entrepreneurs International competition, downsizing of major corporations 9/2/2024 21  Entrepreneurial Firms Entrepreneurial firms bring new They may partner with other firms and products and services to market by organizations to obtain the boost they creating and then seizing opportunities. need to realize their full potential. Dropbox, Facebook, and LinkedIn are Give Examples of Entrepreneurial well-known, highly successful examples firms in Ghana of entrepreneurial firms. Create products and services that have worth, are important to their customers, and provide a measure of usefulness to their customers 9/2/2024 22  Demystifying Entrepreneurship Entrepreneurship should not be equated Entrepreneurs should be young and solely with new venture creation nor small energetic – FALSE business management. Rather, it is, about “making a change” - TRUE Entrepreneurship is not for the endowed only. It is a process. Just Entrepreneurs are born and not made – follow it to your dream destination. FALSE, Can be born or made TRUE Entrepreneurs are gamblers – FALSE. They Is it still a myth? take calculated risk by creating value in market. The gabbler creates no value Entrepreneurs are primarily motivated by money – NOT entirely TRUE 9/2/2024 23  Distinction between Entrepreneurial Venture and Small Business An entrepreneurial venture has the A small business (micro business), on the other principal objectives of profitability and hand, is any business that is independently growth owned and operated, is not dominant in its field, and does not engage in many new Thus, the business is characterized by innovative practices innovative, strategic practices and/or products It may never grow large. The entrepreneurs and their financial The owners usually prefer a more relaxed and backers seek rapid growth, immediate less aggressive approach to running the and high profits, and a quick sellout business with possibly large capital gain They manage their business in a normal way, 9/2/2024 expecting normal sales, profit and growth24  Entrepreneurship Process (Creativity, Innovation, Enterprise): The Continuum Idea Product Venture into generation development the market Creativity Innovation Enterprise 9/2/2024 25  Entrepreneurship Process – 1st Stage Creativity A phenomenon whereby something new is created, e.g: – an idea – a joke or comedy – an artistic or literary work – a painting or musical composition – a solution – an invention, etc. The ideas or concepts conceived can manifest in a number of ways, but most often, they become something we can see, hear, smell, touch, or taste 9/2/2024 26  Entrepreneurship Process – 2nd Stage Innovation is: Experimenting Running simulations Establishing small-scale pilot programmes Building prototypes Engaging in many other activities designed to verify that the new idea will work and is practical to implement and test market the product or service. 9/2/2024 27  Entrepreneurship Process – 3rd Stage Enterprise start-up 1. MOTIVATION, 2. MISSION, The process of starting a business or other 3. MERCHANDISE, organization 4. MARKET, 5. MARKETING, The entrepreneur develops a business plan 6. MATERIALS, based on TWELVE (12) Ms 7. MACHINE, 8. MANUFACTURE, 9. MONEY, The Entrepreneur is fully responsible for the 10. MANAGEMENT, venture’s success or failure 11. MORALITY, AND 12. MILESTONE 9/2/2024 28  Entrepreneurship Quotation  Thinking “In the gameAhead: Crafting a Personal of entrepreneurship, Entrepreneurial the process is more Strategythan the goal. When you start building a business, important you begin a journey, a process. This process has a beginning and an ending and between the beginning and end lays a lot of challenges. You will win only if you remain faithful to the process.” Rich Dad 9/2/2024 29  Assignment  Thinking Ahead: Craft a Personal Entrepreneurial Strategy 9/2/2024 30 9/2/2024 31