Entrepreneurship Notes

INTRODUCTION TO ENTREPRENEURSHIP Definition of Terms Definition of an entrepreneur  An entrepreneur is a person who identifies a business opportunity, harnesses and obtains the resources necessary to initiate a ...

INTRODUCTION TO ENTREPRENEURSHIP Definition of Terms Definition of an entrepreneur  An entrepreneur is a person who identifies a business opportunity, harnesses and obtains the resources necessary to initiate a successful business activity.  The entrepreneur implements the idea  Undertakes to operate the business  An entrepreneur is therefore a central key individual in the society who makes things happens for economic development. Entrepreneurship meaning  In the broader sense entrepreneurship refers to the means of stimulating innovative and creative undertakings for a better business community or world.  The act or process of identifying business opportunities and gathering the necessary resources to initiate a successful business activity.  Entrepreneurship is a French word meaning to undertake and focuses on a business enterprise  Entrepreneurship can exist in any situation – therefore it is the creation of values through establishing a business enterprise.  Entrepreneurship means having an idea of one’s own and trying to implement the idea to create values on it.  Entrepreneurship is a term which encompasses what entrepreneurs do i.e □ Identifying a business opportunity of a particular demand □ Look at the opportunity as a process of creating, something that did not exist. □ Constantly searching/ harnessing ones environment and resources to implement the activities. □ Creating a totally new product and using it in as new.  Entrepreneurship there is the practice of starting a new business or revitalizing existing businesses in response to identifying opportunities. Self-Employment  Working independently and earning a living from it.  This is a concept that arises when the entrepreneur relies on revenues from his business as a source of income  What is Unemployment? Advantages and disadvantages of Self Employment?  What is Salaried Employment? Advantages and Disadvantages of Salaried employment? Enterprise  A business undertaking by an individual for the purpose of making a profit. Factors impeding the growth of Entrepreneurship  High Taxation Levels  Corruption and Official Harassment  Unregulated competition from outside countries  Decline in personal incomes  The high cost of finance  Lack of entrepreneurial culture  Poor transport and communication networks  Lack of skills and knowledge  Explain the distinctions between an Entrepreneur and a Manager