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ENTREPRENEURSHIP

AND THE
ENTREPRENEUR
A. Entrepreneurship as Self Employment
Decision
Entrepreneurship is basically aimed to gear
someone towards self employment. It also
generally pertains to engaging in small and
medium sized business.
An entrepreneur learns the tenets of
entrepreneurship so he can put up and operate
his own business, whatever the size or
magnitude. But it is not an easy thing to
undertake, especially if one is fresh form college
or has no business experience.
If an individual merely desire independence for
the sake of independence or wants to go into
business because he wants to be his own boss,
he may be sorely disappointed

Another study was conducted to determine the
causes of business.
Causes of Business Failures
%
Neglect 3.0
Fraud 1.1
Lack of Technical Expertize 8.5
Lack of Management Expertize 17.4
Lack of Experience 21.2
Incompetence 44.9
Disaster and other reasons 33.9
100.0
Source: A.J Williams Small Business Caught in Squeeze. The Sun-Herald 8 May 1997. P122
The Concept of
Entrepreneurship
Historical Context
Entrepreneurship
started in France after the French Revolution.
It was the start of Capitalism and end Feudalism
The word entrepreneur was coined by Jean Baptiste Sy,
a renowned French economist.
Say argued that the concept of entrepreneurship, though
closely tied with the theory of economics and society, is
independent of the classical economics and is unable to
coexist with it.




The Classical Capitalism
Which was propagated by Adam Smith, spouses the
optimization of what already exists
It focuses on acquiring the most out of the existing
resources and establishing equilibrium or balance.
Entrepreneurship on other hand, sees change as normal
and healthy.
It promotes doing something different rather than
making the existing better
Entrepreneurship is a manifestation of opposition as it
upsets and disorganizes the existing market

In the early twentieth century, Joseph Schumpeter also
economist , used Say ideas as the groundwork of his book
The theory of Economic Dynamics.
He postulated that it is not optimization and equilibrium
but rather the dynamic disequilibria brought about the
innovative entrepreneur that brings a healthy economic
and his the central reality for economic theory and
practice

Entrepreneurship
Entrepreneurship is what the entrepreneur
actually does
Entrepreneurial is the approach and
entrepreneurial process is where the ventures
are engaged in
Webster Dictionary Definition
Entrepreneur one who organizes manages
and assumes the risk of business or
enterprise,
Enterprise
1. a project or undertaking that s especially
difficult
2. (a) unit of economic organization or activity;
esp. a business organization
(b) a systematic purposeful activity
3. readiness to engage in daring action:
Initiative

Economists Description:
consist in doing things that are not generally
done in the ordinary course of business routine,
it is essentially a phenomenon that comes under
a wider aspect of leadership ( Cantillon 1725)
at least in all non authoritarian societies,
constitutes a bridges between society as a
whole, especially the non-economic aspects of
that society, and the profit oriented institutions
established to take advantage of its economic
endowments and to satisfy as best as they can,
its economic desires ( Jean Baptiste Say 1803)
The Entrepreneur: The Individual
that Steers
Who is the Entrepreneur?
The person behind entrepreneurship is the
entrepreneur possessing certain
characteristics and different traits which make
him unique. In order to have a better
understanding of who the entrepreneur is, we
must identify the tasks, roles, characteristics
and approaches that allowed him to create
new wealth and generate value.



The word entrepreneur originated from the
French word entreprende , which means to
undertake.
Who is the Entrepreneur?
1. Entrepreneurs take and accept risks
2. Entrepreneurs own ventures
3. Entrepreneurs are managers
4. Entrepreneurs establish new ventures and develop existing
ones
5. Entrepreneurs identify opportunities in the market
6. Entrepreneurs apply their expertise
7. Entrepreneurs process market information
8. Entrepreneurs bring innovations
9. Entrepreneurs provide market efficiency
10. Entrepreneurs maximize investment returns
11. Entrepreneurs provides leadership



Characteristics of the
Entrepreneurs
1. Entrepreneurs are in good physical health
2. Entrepreneurs have Superior conceptual abilities
3. Entrepreneurs have the broad thinking of the generalist
4. Entrepreneurs have high self confidence
5. Entrepreneurs have strong personal drive
6. Entrepreneurs need to control and direct
7. Entrepreneurs have moderate interpersonal skill
8. Entrepreneurs are moderate risk takers
9. Entrepreneurs have realistic outlook
10. Entrepreneurs have a high degree for emotional stability
11. Entrepreneurs have a low need level for status
Characteristics Often Attributed to the
Entrepreneur
1. Confidence
2. Perseverance
3. Energy, diligence
4. Resourcefulness
5. Ability to take calculated risks
6. Dynamism, leadership
7. Optimism
8. Need to achieve
9. Versatility, knowledge of product, market, machinery, technology
10. Creativity
11. Ability to influence others
12. Ability to get along well with people

13. Initiative
14. Flexibility
15. Intelligence
16. Orientation to clear goals
17.Positive response to challenges
18. Independence
19. Responsive to suggestion and criticisms
20. Time competence, efficiency
21. Ability to make decisions quickly
22 Responsibility
23.Foresight
24. Accuracy, thoroughness
25. Cooperativeness
26. Profit orientation
27. Ability to learn from mistakes
28 Sense of power
29 Pleasant personalities
30. Egotism
31.Courage
32. Imagination
33. Perceptiveness
34.Tolerance for ambiguity
35. Aggressiveness

36. Capacity for enjoyment
37. Efficacy
38. Commitment
39. Ability to trust workers
40. Sensitivity to others
41. Honesty, integrity
42. Maturity, balance
The advantage of Becoming
Entrepreneurs
Have the opportunity to create your own destiny
Employee are subject to what the company
has to offer. Most often, along period has to
pass you by before getting a significant
promotion. Often times, you work hard and feel
that your work went unnoticed. Being an
entrepreneur allows you to hold your destiny.
Success depends on how much effort your
exert

Have the opportunity to be financially well off
Money has become the measure of success
and the measure of hard that has been spent.
However money is not the ultimate goal of
entrepreneurs. It is a proof that your dreams
have merits. Money is just a means of bringing
you the needed resources to fulfill your
dreams. In the final analysis, it will be the
accomplishment and not the money.
Have the opportunity of knowing yourself better
Employees work eight hours a day or more. A
lot of times they feel that their lives are not
moving on. This is the feeling of discontent
brought about by not optimizing your
potentials. As entrepreneurs, you have the
chance to explore yourself, test your limits and
manage your life. It is a self gratifying
experience to overcome the obstacles that
come your way in being an entrepreneur.
Have the opportunity to excel be recognized and
contribute to society.
It is always inspiring to hear stories of
successful entrepreneurs who had modest
beginnings. Unlike employees, entrepreneurs
may be known beyond the confines of their
offices. They may be able to employ other
people. They serve as contributors to the
society by the lasting impact they make.

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