Food

testing Grocery
Farm-to- Labs delivery
table
restaurateur Healthy
Foods
Sweets Patient-
Vegan Baked
foods and tailored
Candy goods
Food
Baby
Restaurant
Food
franchise
Specialty owner
food / Food Organic
gluten truck produce Catering
free vendor
Nutrition
Coach Food
delivery
Door-to-Door
Waste
Grain segregation
processing Food waste and collection
management Packaging
waste
management
Biodegradable
Cooking Calorie packaging
class counting
Apps
 How do you interpret
‘Entrepreneurship’?
Entrepreneurship begins
with action, the creation of
a new organisation including
the antecedents to its
creation, scanning the
environment for
opportunity, the
identification of the
opportunity to be pursued,
the evaluation of the
feasibility of the new
venture.
The Schumpeterian model of the theory of entrepreneurship.
It treated entrepreneurship as a distinct and separate function of the firm and
identified five ways of revolutionising the pattern of production:

• The development of a new product i.e., a product never introduced before, or

the substantial improvement of quality of an existing product.
• The discovery of a new production method. The term discovery does not
necessarily mean scientific discovery but the genuine application of an existing
method to an industry
• The discovery and exploitation of a new market. The term discovery does not
necessarily apply to a new geographical market or an unknown market, but
rather a market that an industry has not explored before.
• The discovery and exploitation of a new source of supply of raw materials.
Again the term "discovery" does not necessarily apply to a new geographical
resource market or an unknown resource, but rather a resource that was never
used in a certain industry.
• The discovery/development and implementation of a new way of organisation.
Various perspectives of Entrepreneurship
• The term “entrepreneurship” has historically referred to the efforts of an
individual who takes risks in creating a successful business enterprise.
• More recently entrepreneurship has been conceptualised as a process that can
occur in organizations of all types and sizes.

It is thus important to remember that:

• No person, act, or product is creative/entrepreneurial or non-creative/non-
entrepreneurial in itself.
• Judgments of creativity are inherently communal, relying heavily on individuals’
expertise within a domain.
• In business it is necessary to have an appropriate, useful and actionable idea
before it can be accepted as creative.
• It must somehow influence the way business gets done – for instance by
improving a product or by opening up a new way to approach a process
 The Entrepreneurship Process
• The entrepreneurial process is divided into three
parts: the entrepreneurial job, the promotion, and
the operation.
• Entrepreneurial job is restricted to two steps, i.e.,
generation of an idea and preparation of feasibility
report.
1. Idea Generation: To generate an idea, the
entrepreneurial process has to pass through three
stages:
a. Germination (seeding process):
• Most creative ideas can be linked to an individual’s
interest or curiosity about a specific problem or
area of study.
b. Preparation:
• Once curiosity has taken the shape of a focused
idea, creative people start a search for answers to
the problems, so as to logically rationalize the idea.
• Inventors will go on for setting up laboratories;
designers will think of engineering new product
ideas and marketers will study consumer buying
habits.
 The Entrepreneurship Process
c. Incubation:
• This is a stage where the entrepreneurial process
enters the subconscious intellectualization, and
creates links between unrelated ideas so as to find
a resolution.

2. Feasibility study: It is conducted to analyze if the

idea is commercially viable. It passes through two
steps:
a. Illumination:
• After the generation of idea, this is the stage when
the idea is thought of as a realistic creation. The
stage of idea blossoming is critical because ideas
by themselves have no meaning.
b. Verification:
• This is the last thing to verify the idea as realistic
and useful for application. Verification is
concerned about practicality to implement an idea
and explore its usefulness to the society and the
entrepreneur.
 Qualities of an Entrepreneur
• Kaufmann and Dant (1998) in a landmark study categorised the
definitions of entrepreneurship as having to do with the following
perspectives
• Traits
• Processes
• Activities
Trait perspective of Entrepreneurship
In the trait approach, the entrepreneur is
assumed to be a particular personality type.
The point of much entrepreneurship research
has been to enumerate a set of characteristics
describing the entity known as the
entrepreneur.
Examples of definitions from the traits
perspective are the following:
• An entrepreneur is an individual who
possesses qualities of risk-taking, leadership,
motivation, and the ability to resolve crisis

• Entrepreneurs are leaders and major contributors to the process of creative

destruction
• An entrepreneur is an individual who undertakes uncertain investments and
possesses an unusually low level of uncertainty aversion. (Kaufmann & Dant 1998)
Process perspective of Entrepreneurship
Two broad dimensions of the entrepreneurial process include:
Opportunity recognition and information search
Resource acquisition and business strategies.

Definitions of Entrepreneurship (Kaufmann & Dant 1998) using the process

perspective:
• Entrepreneurship is the creation of a new enterprise
• Entrepreneurship is the creation of new organisations
• Entrepreneurs introduce new combinations of the factors of production that,
when combined with credit, break into the static equilibrium of the circular flow
of economic life and raise it to a new level
• Entrepreneurship is the process of extracting profits from new, unique and
valuable combinations of resources in an uncertain and ambiguous environment
Behavioural Perspective of Entrepreneurship

Shapiro (1983) defined an entrepreneurial

activity as an activity with the objective to
change the system, by increasing the
productivity of the system, decreasing the
cost of part of the system, producing
increase in personal wealth and/or
producing an increase of social values.
He included the following assessment
measures:
• The magnitude of the attempted
change
• The success of the attempt
• The cost of the attempt, and
• The risk of the attempt
Gartner (1985) listed the following six
common behaviours of entrepreneurs:
• Locating a business opportunity
• Accumulating resources
• Marketing products and services
• Producing the product
• Building an organisation, and
• Responding to the environment
(government and society).
 Entrepreneurial Behaviour
According to Johnson (2001), Entrepreneurial
attitudes and behaviour also include:
• openness to new information and people,
motivation, making independent and self-
directed decisions,
These theories are difficult to test
• the ability to see opportunities in a rapidly
changing and uncertain environment, It has not been proven that a set of
essential entrepreneurial
• persistence, characteristics exist
• the motivation to achieve, Several types of entrepreneurs
• technical know-how, personal integrity, exist
• taking ownership and being accountable,
• the capacity to manage and organise
Activities Perspective of Entrepreneurship
Definitions emphasising the activities perspective (Kaufmann & Dant 1998) are:
• Entrepreneurship is the purposeful activity to initiate, maintain and develop a
profit-oriented business
• An entrepreneur performs one or more of the following activities:
• connects different markets
• meets/overcomes market deficiencies
• creates and manages time-binding implicit or explicit contractual arrangements and
input-transforming organisational structures,
• supplies inputs/resources lacking in the marketplace
• Entrepreneurs perceive profit opportunities and initiate actions to fill currently
unsatisfied needs or to do more efficiently what is already being done
• Entrepreneurs are residual claimants with operational control of the
organization.
 The characteristics of
an entrepreneur versus the average small business owner
Small/Medium Business Owner Dynamic Entrepreneur
Static Growing
Status quo Vision, opportunistic

Local Global

Limited Expanding

Internal resources External Resources

Self employed Professional Team

Avoids competition Seeks competition

Risk averse Risk taking and sharing

Survival Success
De Klerk and Kruger
(2003) summarised
Alertness
the determinants of Reward
entrepreneurship : Foresight
Adaptability
Risk Bearing

Values
Sufficient capital

Sufficient
Dedication Entrepreneur
Entrepreneur Knowledge

Judgement
Determination

Creativity
Decisiveness

Innovations
Vision
Ambition
 Importance of Entrepreneurship
1. Development of managerial capabilities:
• An entrepreneur studies a problem, identifies its alternatives, compares the
alternatives in terms of cost and benefits implications, and finally chooses the best
alternative.
• It helps in sharpening the decision making skills of an entrepreneur. Besides,
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 organizations:
• Entrepreneurship results in creation of organizations when entrepreneurs assemble
and coordinate physical, human and financial resources and direct them towards
achievement of objectives through managerial skills.
3. Means of economic development:
• Entrepreneurship involves creation and use of innovative ideas, maximization of
output from given resources, development of managerial skills, etc., and all these
factors are so essential for the economic development of a country.