CHAPTER ONE
SUMMARY
1. Concept of Entrepreneurship
2. Importance of Entrepreneurship
3. Function an characteristics of
Entrepreneurship
4. Entrepreneur Vs Manager
5. The entrepreneurship process
6. Ethics and Social Responsibility of
Entrepreneurship

1. Concept of
Entrepreneurship
It is the process of creating something new with
value by devoting the necessary time and
effort, assuming financial, psychic, and social
risks and receiving the resulting reward.
It is also defined as the dynamic process of
creating incremental wealth.
It is the ability to create and build a vision from
practically nothing.

Concept of . . .
In all the definitions of entrepreneurship, we
are talking about a kind of behavior that
includes;
i. Initiative taking
ii. Organizing and re-organizing of social and
economic mechanism to run resources
iii.The acceptance of risks of failure.

Who is Entrepreneur?
He/she is one who undertakes to organize,
manage and assume risks of a business.
(peter, 2008)
An innovator/developer
Recognize and seizes opportunities,
convert those opportunities into
workable/marketable ideas.
Add values through time, effort, money or
skills,
Assumes the risk of the competitive
market place to implement those ideas.

2. Importance of
Entrepreneurship
Helps entrepreneurs to fulfill their
personal needs
New venture has economical contribution
Increase national income by creating new
jobs
Act as a positive force in economic growth
Bridge the gap b/n innovation and the
marketplace.

3. Function of Entrepreneur
Innovation (material resources)
Bearing risk and uncertainty
Organization building
• Perception of market opportunities
• Purchasing
• Marketing
• Dealing with bureaucrats
• Managing etc.

4. Characteristics of . . .
(what personal qualities do they have?)
Clear vision and objective
Drive to achieve
Commitment
Initiative taking
Persistent problem solving
Self confidence
Tolerance of uncertainty & failure etc

Entrepreneurship Vs Small
Business Ownership
Entrepreneurship describes specific
approach to business dev’t and ownership
It is a way of thinking that focuses on
innovation /innovative product/
3-steps description of entrepreneurship
• Thinking new Ideas
• Dong new things
• Creating values in the market plae

5. Entrepreneur Vs Manager
Entrepreneur Manager
Involve in the start up
process
Involve with running
the business
Assumes different risks Doesn’t have to bear
risks
Drive by perception of
opportunity
Drive by the source he
currently posses
Initiate change Follow rules and
procedures
He is his own boss He is a hired employee
Gets uncertain rewards Gets fixed rewards and
salary

6. The entrepreneurial process
It is the process of pursuing a new venture,
/ new products into existing markets./
There are four phases:
1. Identification & evaluation of opportunity
2. Development of the business plan
3. Determination of the required resources
4. Managing of the resulting enterprise

Phase 1:
Identification & evaluation
of opportunity
a. Opportunity identification is the process
by which an entrepreneur comes up with
the opportunities for a new venture.
Sources of opportunity:
•Customers and business associates
•Member of the distribution system
•Technical people

Phase 1: . . .
B. opportunity evaluation: Identified
opportunities should be screened & evaluated.
It is the most critical element of the
entrepreneurial process. It involves:
• The length of the opportunities
• Real and Perceived value
• The risk and return
• Its fitness with personal skill & goal of the entre.
• Uniqueness/differential advantage/ in the env’t

Phase 1 . . .
Opportunity assessment plan: evaluating opp.
Similar to business plan but different in that
it focus on only opportunities not the entire
venture .
Deciding whether or not to act on the opport.
It includes:
• Description of the product/service
• Assessment of opportunities
• Assessment of the entrepreneur & the team
• Specification of all activities & resources needed
• The source of capital to finance the venture

Phase 2: developing BP
It is the general future direction of the
business.
It is written document describing all relevant
internal and external elements and strategies
for starting new venture.
It is one of the time consuming phase
In BP:
• Opportunity will be defined and exploited
• Resource required will be obtained & determined
• Help to manage the venture successfully

Phase 3: determining the
resource required
Focus on the variety and amount of resource
Identify and differentiate critical resources
from helpful resources
Determine resource required
Determine the existed resources
Identify the resource gap & possible supplier
Developing access to needed resources
Assessing the downside of insufficient or
inappropriate resources

Phase 4: managing the
resulting enterprise
All about implementing the BP
Examining the operational problems
• Implementing the management style and
structure
• Determining the key variables for success
Establishing controlling system

7. Ethics and social
responsibility
Business ethics concerns itself with the
investigation of business practice in light of
human value.
Ethics refers to the ‘study of whatever is right
and good for humans
Ethics is the study exploring the general nature
of morals and the specific moral choices to
be made by the individual in his relation
with others.

Ethics . . .
entrepreneurs have been shown to be
particularly sensitive to examine pressure
and general social norms in the community,
as well as pressures from their competitors.
A central question in business ethics:
whose Benefit and at whose expense should
the firm be managed?
In addressing this question the entrepreneur
ensures that resources are deployed fairly
between the firm and its Stakeholders.