Entrepreneurship
Overview of Entrepreneurship
Learning outcomes
LO 1. Understanding of entrepreneurship skill
LO 2. Business ideas, opportunities and feasibility study
LO 3. Starting an Enterprise
LO 4. Employability skill
LO 1. Understanding of entrepreneurship skill
Learning Objectives
Understand Basic Concepts of Entrepreneurship
Know Developments of Entrepreneurial mindset
Develop entrepreneurial mindset
Understand Entrepreneurial Competencies and
Environment
Identify Entrepreneurial motivation and Decision
Basic concepts of Entrepreneurship
Pre lesson activities
What is an Entrepreneurship?
What is a Entrepreneur?
Do you know someone in your town who is an
Entrepreneur?
Entrepreneurship
The word “Entrepreneurship” is derived from the French
verb “entreprendre” which means “to undertake”.
The concept entrepreneurship refers “The process of
identifying opportunities in the market place, arranging
the resources required for pursuing these opportunities
and investing the resources to exploit the opportunities for
long term gains.
Entrepreneurship is the process of doing something new
(creative) and something different (innovative) for the
purpose of creating wealth for the individual and adding
value to society.
It involves creating wealth by bringing together resources
in new ways to start and operate an enterprise.”
Cont’d
Entrepreneurship is more than the mere creation of business.
Seeking opportunities
Taking risks beyond security
Entrepreneurship is creating and building something of
value from practically nothing.
Entrepreneurship may involve the definition, creation and
distribution of value and benefits to individuals, groups,
organisations and society.”
Entrepreneurship is a dynamic process that requires the
function of talents, ideas, capital, and know-how, the process
of which can be risky, uncertain and sometimes hazardous,
but always dynamic
Cont’d
The activity of setting up a business or businesses, taking
on financial risks in the hope of profit.
Entrepreneurship is defined as the act of starting and
running your own business or a tendency to be creative
and wish to work for yourself in your own ventures.
Entrepreneurship is the ability and readiness to develop,
organize and run a business enterprise, along with any of
its uncertainties in order to make a profit.
The most prominent example of entrepreneurship is the
starting of new businesses
Entrepreneurship is the process of creating something
new and assuming the risks and rewards.
Advantages of Entrepreneurship
Self-employment, offering more job satisfaction and flexibility of the
work force
Employment for others, often in better jobs
Development of more industries,
Encouragement of the processing of local materials into finished goods
for domestic consumption as well as for export
Income generation and increased economic growth
Healthy competition thus encourages higher quality products
More goods and services available
Development of new markets
Encouragement of more researches/ studies and development of modern
machines and equipment for domestic consumption
Freedom from the dependency on the jobs offered by others
The ability to have great accomplishments
Reduction of the informal economy
Elements (steps in the implementation) of
Entrepreneurship
1. Observing the environment/identifying gaps,
2. Identifying opportunities,
3. Gathering the necessary resources and resources classified
ECONOMIC RESOURCES
-Money and Equipment
HUMAN RESOURCES
- Energy, Skills , Knowledge, and Time
4. Implementing the activity and
5. Receiving rewards for engaging in the activity
Entrepreneurial Functions in Business
1. Identify gaps in the market and turn these gaps into business
opportunities.
2. Finances and mobilizes resources for the business
3. Organize and manage the business.
4. Bear /tolerate/ the uncertainties and risks of the business.
5. Encourage competition
6. Decision Making
7. Idea generation
8. Self-employed and applying entrepreneurship
9. Support to social environment
Entrepreneurial failures
Lack of a viable concept.
Lack of market knowledge
Lack of technical skills.
Lack of seed capital.
Lack of business know-how`
Competency-lack of motivation.
Social stigma.
Legal constraints and regulations.
Monopoly and protectionism.
Economic Features / Principles of Entrepreneurship
1. Works best in an open market economy
2. Promotes private enterprise
3. Adds value to products and services (creates wealth)
4. Providing needed products/service
5. Developing new markets
6. individual initiatives
7. Competition
8. seeking opportunities
Rewards for Being an Entrepreneur
1. Self-actualization /personal fulfillment
2. Feeling of freedom and independence
3. Providing jobs and benefits to others (investors,
suppliers, bankers, subcontractors, work force, and
customers)
4. Economic goods (product/service, incomes for
workers, profits for shareholders/partners)
Importance of entrepreneurship
The followings are the major benefits of entrepreneurship
1. Employment creation
entrepreneurs create employment for themselves and Other people.
It provides an entry-level job, required for gaining experience and training for unskilled
workers
2. Local resource utilization
when entrepreneurs utilize local resources, the value of these resources increases.
3. Decentralization and diversification of business
entrepreneurs are able to identify business opportunities, and locate these businesses in
suitable areas, including rural areas.
4. Promotion of technology
by being creative, entrepreneurs are able to contribute to the utilization and
development of technology
Cont’d
5. Capital formation
entrepreneurship increases capital formation and investment.
6. Promotion of an entrepreneurial culture
by projecting successful images, entrepreneurs become models
that can be copied by young people.
7. Increase Standard of Living
Entrepreneurship helps to improve the standard of living of a
person by increasing the income
8. Consumer’s demand
A wide range of products is produced by Entrepreneurs
according to the taste and demand of people
9. Infrastructure growth
10. Social benefit
Meaning of Entrepreneur
Entrepreneurs are individuals who undertake an economic
activity.
He/she is an individual who actively form or lead their own
business and nurture them for growth and prosperity
A person who creates and manages change by the recognition of
opportunities (needs, wants, people and manages resources).
to take advantage of the resources to take the opportunity and
creates a venture (profitable business).
The entrepreneur is defined as someone who has the ability and
desire to establish
The entrepreneurs are often known as a source of new ideas or
innovators, and
bring new ideas in the market by replacing old with a new
invention.
Types of entrepreneurs
Generally, there are four types of entrepreneurs as indicated here under:
1. Personal achiever
2. Super-salesperson
3. Real manager
4. Expert Idea Generator
1. Personal achiever
Personal achievers are the classic entrepreneurs.
They are the types of people that we picture when the term “entrepreneur” is
used.
They are the only types who must become entrepreneurs to succeed in life.
If they are placed in a non-entrepreneurial environment, they stand a good
chance of failure.
Cont’d
They possess seven characteristics that relate to
entrepreneurial success:
Need for high achievement
Need for performance feedback
Desire to plan and set goals
Strong individual initiative
Strong personal commitment
Internal locus of control
2. Super-salesperson
Generally, onlookers don’t view super sales people as having the potential
for entrepreneurial success.
Their entrepreneurial strength is their approach to selling. They truly cater to
the needs of clients and customers, thus placing a strong stress on service.
Super sales people are interested in managing the customer into a sale, not in
applying pressure tactics.
Capacity to empathize
Social interaction and relationships are important
Need to have strong positive relationships with others
Sales force is critical
Background: less education, more experience
3. Real manager
Real managers exhibit some of the traits of established
entrepreneurs and some of the abilities of corporate managers.
They possess the following traits
Desire to be corporate leader
Desire to compete
Decisive
Desire of power
Desire to stand out in a crowd
4. Expert Idea Generator
Expert idea generators are people who have ideas for a business
that can provide a real competitive advantage.
They become tremendously enthused about their ideas and spend
a great deal of time implementing them.
Unlike personal achievers, who spend energy on an overall
venture, expert idea generators tend to focus on the idea
exclusively.
Very often, they will try to persuade others to contribute to
implementation and, if unsuccessful, they will abandon the idea.
Cont’d
They possess a majority of the following five characteristics:
Desire to innovate
Love of ideas, curious
Belief that new products are crucial
Intelligence is the competitive advantage
Desire to avoid taking risks
Personal efforts to be an Entrepreneur
The nature of entrepreneurial activity requires the following
extra efforts from an entrepreneur
Works long hours
Always concerned about the business
Needs high energy
Sacrifices other important aspects of life
Limited social life
Not much time with family and friends
Financial investment
Assignment
Selected Ethiopian Entrepreneur
As the dynamism and momentum of Ethiopia’s
economy keep growing remarkably, here are the list of
Ethiopian entrepreneurs in different sectors of the
economy.
1. Bethlehem Tilahun Alemu, Sole Rebels
Cont’d
2. Ms. Tseday Asrat, Kaldi’s Coffee, coffee shop
chain
cont’d
3. Ms. Samrawit Fikru, Hybrid Design Plc and RIDE,
ride sharing app
Cont’d
Mr. Getaw Mekonnen Cherinet, Tulip Addis
Water Filter
Table 1: The relationship between entrepreneurship and entrepreneur
Table 2 Entrepreneur vs. manger
