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I. Introduction To Entrepreneurship: Objectives

This document provides an introduction to entrepreneurship. It discusses the relevance of entrepreneurship to economic development and job creation. It defines entrepreneurship as undertaking risks to create new enterprises by exploiting ideas. Core competencies of entrepreneurs include initiative, proactivity, problem solving, persuasion and risk taking. Personality and environmental factors both influence entrepreneurship. The key aspects of entrepreneurship are that it is an economic and dynamic activity, involves innovation and profit potential, and requires risk bearing. An activity is included to help readers self-assess if they have the qualities of an entrepreneur.

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Yessamin Villadares Petchay
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146 views3 pages

I. Introduction To Entrepreneurship: Objectives

This document provides an introduction to entrepreneurship. It discusses the relevance of entrepreneurship to economic development and job creation. It defines entrepreneurship as undertaking risks to create new enterprises by exploiting ideas. Core competencies of entrepreneurs include initiative, proactivity, problem solving, persuasion and risk taking. Personality and environmental factors both influence entrepreneurship. The key aspects of entrepreneurship are that it is an economic and dynamic activity, involves innovation and profit potential, and requires risk bearing. An activity is included to help readers self-assess if they have the qualities of an entrepreneur.

Uploaded by

Yessamin Villadares Petchay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

I.

Introduction to Entrepreneurship

LESSON 1
1.1. Relevance of Entrepreneurship to an Organization
1.2. Concept of Entrepreneurship
1.3. Core Competencies in Entrepreneurship.

OBJECTIVES:
1. Discuss the relevance of the course.
2. Explain the key concepts of common competencies.
3. Explain the core competencies in entrepreneurship
4. Describe typical behavior characteristics of an effective entrepreneur

INTRODUCTION
Entrepreneurial activities today have become very important and are keys to economic development. Growth, industrial
development, including employment generation, depend upon entrepreneurial behavior of a country.
Entrepreneurs are the reason or a large quantity of highly developed industries which result to greater employment
opportunities for unemployed youth, increase in per capita income higher standard of living and increased individual saving, revenue
to the government in the form of income tax, value added tax, export duties and balanced regional development.

CONCEPT OF ENTREPRENEURSHIP
The word “entrepreneur” was derived from the French verb enterprende, which means “to undertake.” This refers to those
who “undertake” the risk of new enterprises. An enterprise is created by an entrepreneur and the process of its creation is call
entrepreneurship.
Entrepreneurship is a process of actions of an entrepreneur who is always in search of something new to exploit new ideas
into gainful opportunities by accepting the risk and uncertainty of the enterprise.
Entrepreneurs are innovators, willing to take risk and generate new ideas to create unique and potentially profitable solutions
to modern day problems. Entrepreneurship is not so much a skill as a habitual state of mind.
When entrepreneurship describes activities within a firm or large organizations, it is referred to as intrapreneurship. This may
include corporate venturing, when large entities spin off organizations.
Entrepreneurship employs what Schumpeter called the “gate of creative destruction” to replace wholly or partly inferior
innovations across markets and industries. This destruction simultaneously creates new products and new business models.
Entrepreneurship ranges in scale from solo projects (even involving the part-time entrepreneur) to major undertakings that
create many job opportunities.
Entrepreneurial activities can be incremental or disruptive. Incremental innovations are a number of small changes that
transform process flows while disruptive innovations are entirely new approaches.

RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION


1. Development of Managerial Capabilities.
The greatest significance of entrepreneurship lies in the fact that it helps in identifying and developing managerial
capabilities of entrepreneurs. An entrepreneur studies a problem, identifies its alternatives, compares the alternatives in terms of cost
and benefit implications, and finally chooses the best alternative. These managerial capabilities are used by entrepreneurs in creating
new technologies and products in place of older technologies and products resulting in higher performance.
2. Creation of Organization
Entrepreneurship results in the creation of organizations when entrepreneurs assemble and coordinate physical, human and
financial resources and direct them towards achievement of objectives through managerial skills.
3. Improving the Standard of Living
By creating productive organizations, entrepreneurship helps in making a wide variety of goods and services available to the
society which results into higher standard of living for the people.
4. Means of Economic Development
Entrepreneurship involves creation and use of innovative ideas, maximization of output from given resources, and
development of managerial skills. All these factors are essential to the economic development of a country.

FACTORS AFFECTING ENTREPRENEURSHIP


Entrepreneurship is a complex phenomenon which is influenced by interplay of wide variety of factors that include
personality and environmental factors.
1. Personality Factors
Personal factors are entrepreneur core competencies which include:
a.) Initiative
b.) Proactive
c.) Persevere
d.) Problem solver
e.) Persuasion
f.) Self confidence
g.) Self critical
h.) A Planner
i.) Risk Taker
2. Environmental Factors
These factors relate to conditions in which an entrepreneur has to work. Environmental factors such as political climate, legal
system, economic and social conditions and market situations, contribute significantly towards the growth of entrepreneurship. For
example, political stability in aa country is essential for smooth economic activity.

CORE COMPETENCIES IN ENTREPRENEURSHIP


1. Economic and Dynamic Activity
Entrepreneurship is an economic activity because it involves the creation and operation of an enterprise with a view to
creating value or wealth by ensuring optimum utilization of scarce resources. This value creation activity is performed continuously in
the midst of uncertain business environment. Hence, Entrepreneurship is regarded as a dynamic force.
2. Innovation
Entrepreneurship involves a continuous search for new ideas. It compels an individual to continuously evaluate the existing
modes of business operations so that more efficient and effective systems can be evolved and adopted. In other words,
entrepreneurship is a continuous effort for synergy to ensure optimization of performance in organizations.
3.Profit Potential
Profit potential is the level of return or compensation to the entrepreneur for taking risk of developing an idea into actual
business venture. Without profit potential, the efforts of entrepreneurs will be merely an abstract and a theoretical leisure activity.
4. Risk bearing
The essence of entrepreneurship is the willingness to assume risk arising from the creation and implementation of new ideas.
New ideas are always tentative and their results may not be instantaneous and positive.

An entrepreneur has to have patience to see his/her efforts bear fruit. In the intervening period, the time gap between the
conception and implementation of an idea and its results, an entrepreneur does not have the willingness to assume risk, he/she will
never succeed.

ACTIVITY 1: Qualities of Entrepreneurs: A Self-Assessment


Find out if you are the sort of person that could set up and operate a business.

Check YES if the statement applies and check No if it doesn’t.

1 I think that a routine pattern of life with regular working hours suits me
best.
2 I have always thought and acted by myself.
3 Sometimes I think I seem to achieve nothing.
4 It is not good to start something unless you are going to finish it.
5 I am much happier when I do not have to rely on other people.
6 I often feel that I am the victim of events that I cannot control.
7 In any bad situation I always get something good from it.
8 It is very important to me that people recognize my success.
9 I am not too ambitious so that I can avoid being disappointed.
10 I am prepared to take risks only after I have thought about all of the
possible consequences.
11 When I talk to a senior person I do not usually say what I mean.
12 People often tell me that I am good at understanding their point of
view.
13 The amount of money that I earn is more important than how hard I
work to earn it.
14 I usually work later than I plan.

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