MODULE 1

ENTREPRENEURSHIP AND THE ENTREPRENEUR Table 1.2 Causes of Business Failures

Causes %
ENTREPRENEURSHIP Neglect 3.0
Fraud 1.1
Is the act of creating a business or businesses while Lack of Technical Expertise 8.5
building and scaling it to generate profit. Basically it Lack of Management Expertise 17.4
gear someone towards self-employment. Lack of Experience 21.2
Generally pertains to engaging in small and Incompetence 44.9
medium-sized businesses. Disaster and other reason 3.9
In the modern world, entrepreneurship definition is 100.0
all about transforming the world by solving big
problems. Like initiating social change, creating CONCEPT OF ENTREPRENEURSHIP
an innovative product, or presenting a new life
changing solution. Entrepreneurship started in France after the
French revolution. It was the start of Capitalism
At present, many businesses experiencing failure, this and end of Feudalism. The word entrepreneur
is an indication that only the competent entrepreneurs was coined by Jean Baptiste Say, a renowned
stand a better chance of succeeding in today’s highly French economist.
competitive marketplace. Say argued that the concept of
Entrepreneurship, though closely tied with the
Table 1.1 Age of Business Failures theory of economics and society, is independent
Age of Business Failure Rate Cumulative of the classical and is unable to co exist with it.
(Years) (%) (%) 20th Century, Joseph Schumpeter, also an
Under 1 27.6 27.6 economist, used Say’s ideas as the groundwork
1-2 13.8 41.4 of his book The Theory of Economic Dynamics.
2-3 11.2 52.6 He postulated that it is not optimization and
3-4 10.1 62.7 equilibrium but rather the dynamic disequilibria,
4-5 6.4 69.1 brought about by the innovative entrepreneur
5-10 9.3 78.4 that brings a healthy economy and is the central
10-20 8.7 87.1 reality for economic theory and practice.
Over 20 12.9 100 In entrepreneurship, there is an agreement
about a kind of behaviour that includes
 initiatives taking, organizing, or re-organizing of
social economic mechanisms to turn resources
and situation to practical account and the
acceptance of risk.
WHO IS THE ENTREPRENEURS?
WHAT MAKES THE SUCCESSFUL ENTREPRENEUR?
The word entrepreneur originated from the French
word entreprende, which means, “To undertake”.
It as an individual who shifts economic resources
out of an area of lower and into an area of higher
productivity and greater yield.
Entrepreneurs take and accept risks
Entrepreneurs own ventures
Entrepreneurs are Managers
o The entrepreneurs are creator, manager is a
custodian
o The entrepreneurs take risks, the manager
seeks stability
o The entrepreneur is personally responsible,
the manager is merely responsible
o The entrepreneurs achieve, managers attain
targets.
o The entrepreneurs are future oriented,
managers are now oriented
o The managers thrive on chaos, managers
thrive on structure
o o Need to achieve
Entrepreneurs establish new ventures and develop
existing ones
Entrepreneurs identify opportunities in the market
Entrepreneurs apply their expertise
Entrepreneurs process market information
Entrepreneurs bring innovation
Entrepreneurs provide market efficiency
Entrepreneurs maximize investment returns
Entrepreneurship provide Leadership
Entrepreneurs are in Good Physical Health
Entrepreneurs have Superior Conceptual Abilities
Entrepreneurs have the broad thinking of the
generalist
Entrepreneurs have high self-confidence
Entrepreneurs have strong personal drive
Entrepreneurs need to control and direct
Entrepreneurs have moderate interpersonal skill
Entrepreneurs are moderate risk takers
Entrepreneurs have a realistic outlook
Entrepreneurs have a high degree for emotional
stability
Entrepreneurs have a low need-level for status.
Other characteristic of an Entrepreneur:
o Perseverance
o Energy, diligence
o Resourcefulness
o Ability to calculate risk
o Dynamism, leadership
o Optimism
o Versatility
o Initiative
o Flexibility
o Creativity
 o Intelligence THE MYTHS, FEARS, AND EXCUSES OF PEOPLE
o Profit-orientation WHO ARE NOT ENTREPRENEURS
o Cooperativeness
o Commitment Entrepreneurs are born
o Aggressiveness Entrepreneurs are super human
Entrepreneurs are inventors
Examples of Entrepreneurs Entrepreneurs inherit business traits
Entrepreneurs possess a definite characteristic
A. Walt Disney profile
- Co founded the Walt Disney Company as one of the The gender-difference myths (Men are better
leading motion picture studios. He was also the entrepreneurs)
visionary of theme parks like Disneyland and Walt Entrepreneurs are academic and social misfits
Disney World. Entrepreneurs are gamblers and risk takers
- His brand started with the creation of Mickey Mouse Luck and money are the only things needed to
character and eventually expanded to include other become entrepreneurs
characters such as Snow White, Cinderella and more. Entrepreneurs experience a lot of failures
- As an entrepreneur, he overcome adversity with
challenges such as people stealing his work, THE ADVANTAGES OF BECOMING AN
commercial failures and more. However, he kept ENTREPRENEUR
pushing through staying committed to his vision.
Have the opportunity to create your own destiny
B. Mark Zuckerberg Have the opportunity to be financially well-off
- Created several products before building Facebook. Have the opportunity of knowing yourself better
He created an instant messaging tool that his father Have the opportunity to excel, be recognized and
used in the dentistry practice to communicate with the contribute to society
receptionist.
- He also created music software that Microsoft and IMPORTANCE OF ENTREPRENEURS
AOL were interested in buying. Then Facebook
created with 1 million users in the first run and now with Entrepreneurs create jobs
68.3 billion net worth. Entrepreneurs create change
Entrepreneurs give to society
WHY DO PEOPLE BECOMES ENTREPRENEUR

To change the world

They don’t want a boss
They want flexible hours
They’re the risk-takers
They don’t fit into corporate environment
They’re curious
They’re ambitious
They’re can’t get a job