Entreprenuership-Defined

          Definition of Entrepreneurship and Entrepreneurs

Definition an entrepreneur

•   An entrepreneur is basically a person who identifies a business opportunity, harshness and obtains the resources necessary to initiate a  successful  basis  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.

•   Entrepreneurship if French world 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 ones own and trying to implement the idea to create values on it.

•   Entrepreneurship is a term which encompasses what entrepreneurs do i.e

o    Identifying a business opportunity of a particular demand

o    Look at the opportunity as a process of creating, something that did not exist.

o    Constantly searching/ harnessing ones environment and resources to implement the activities.

o    Creating a totally new product and using it in as new.

•   Entrepreneurship there is the practice at starting of a new business or revitalizing existing businesses in response to identifying    opportunities.

         Types of Entrepreneurs

a)                  Craft entrepreneurs

•   Exploits and utilizes personal skills to start a business without thinking of its growth or the expansion objectives

•   Often times than in this type of entrepreneurship

i.      There is no expanding even after along time

ii.      It is not business expansion  oriented.

iii.      The skills can be technical skills, professional skill e.t.c

b)                 Opportunistic entrepreneurs

•   This is a person who starts a business, acts as a manager and with a view to expand the business to maximum.

• He might not have the sill to profession but he has the opportunity to start and direct others.

•  He sees beyond and has abilities to initiate and venture into business that will expand and grow.

•  He is innovative I,e somebody able to delegate activities to others , ready and able to see, scan the environment.

         Entrepreneurship

i.      Entrepreneurship looks at particular individuals in a business set-up. It operates in large business or organization which is business minded to make profit.

ii.      Entrapreneurs operate autonomously for the welfare of the organization.

iii.      The term Intra – refers to within – therefore Entrapreneurship is a  process  whereby an individual or group within a large  organization  creates  something  new or different to maximize on the available opportunities to that organization.

iv.      Intra can therefore be equated to entra within the context of a large organization where the workers are a leeway to be creative or innovative on their own.

v.      They become competitive, socially and economically the idea is to allow individuals within the organization to act and think independently.

         Entrepreneurial Behavior

•   Several theories have been developed to  explain  why  entrepreneurs  behave the way they   do.

•   There has been debate on whether entrepreneurs are born or   made

•   Born-hereditary, entrepreneurs are environmental influenced by  where  they are born.

•   These are;

i)                   Economic

•   The theory explains entrepreneurial behavior as influenced by economic factors through which.

a)                  It is possible to introduce new   methods

b)                 It is possible to find new sources of   materials

c)                  It is possible to open new   markets

•   The economic prospective is important since they create enabling environment for the entrepreneur to combine the factors of    production.

ii)                 Psychological factors

•   The theory states that entrepreneurs have unique values, attitudes and needs within which drive them.

•   It is mostly concerned with personality traits as the main determinants of entrepreneurial behavior

•   People are likely to become entrepreneurs because of high liking of say.

a)                  Independence

b)                 Attitude

c)                  Need to satisfy certain needs.

iii)              Sociological factors

• Maintains that environmental factors such as beliefs, culture, social structures  determine  entrepreneurial behavior.

iv)               Management factors

•  Emphasizes on the organization of resources in a specific way to attain profits

•   Leadership impacts on behavior and facilitates pioneership, achieving of goals and provides vision.

         The Functions of an Entrepreneur

i)                   The bearing of uncertainty is the primary function of the entrepreneur i.e losses or profits.

ii)                 The management of the business enterprise can    delegate

iii)               Provision of risk capital and invention.

iv)               Identifying gaps in the market and turning such gaps to business opportunities i.e to initiate a business.

v)                 Financing the businesses, through raising and mobilizing the necessary resources to exploit opportunity.

vi)               Searching for business opportunities through environmental scans.

vii)             Mobilization of resources needed to start and run a business e.g. from

a)      Personal savings

b)     Friends & relatives

c)      Financial institutions e.t.c

viii)           Evaluation of business opportunities to access viability and any other benefits that might accrue to the business.

ix)                Provide the necessary leadership for the business and those working in it.