Overview Of Entrepreneurship And The entrepreneur Flashcards
What is entrepreneurship
Much of our American progress has been the product of the individual who had an idea; pursued it; fashioned it; tenaciously clung to it against all odds; and then produced it, sold it and profited from it.”
–Hubert Humphrey, 1966
State the definition of entrepreneur according to Richard Cantillon (France 1680-1734)
Who was generally acknowledged as the first to use the word entrepreneur?
Where is the word entrepreneur coined from?
Entrepreneurship: A Mindset
•Entrepreneurship is more than the mere creation of business. It is about:
•Seeking opportunities
•Taking risks beyond security
•Having the tenacity to push an idea through to reality
•Entrepreneurship is an integrated concept that permeates an individual’s business in an innovative manner.
Richard Cantillon-
Generally acknowledged as the first to use the word “entrepreneur” in a commercial sense – he coined entrepreneur (undertaker) or from the root word entreprendre).
The entrepreneur “buys at a certain price and sells at an uncertain price.”
State the definition of entrepreneurship according to Adam smith, British Economist,
(1723-1790)
State the definition of entrepreneurship according to Hisrich (2014, p. 9)
No single universally accepted definition of entrepreneurship
•Economists, psychologists, sociologists, management scientists, have different ideas about what “entrepreneurship” and the “entrepreneur” is.
True or false
The “enterpriser” is a person with unusual foresight and could recognize the potential for goods and services;
Profits are the reward for risking capital (virtually no separation between Capital and Entrepreneurship as factors of production).
Hisrich (2014, p. 9):
Entrepreneurship is the ‘process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risks and receiving the resulting rewards of monetary, personal satisfaction and independence’.
State six forms of entrepreneurship and explain them
Small Business Entrepreneurship:
Small business entrepreneurship is the idea of opening a business without turning it into a large conglomerate or opening many chains. A single-location restaurant, one grocery shop, or a retail shop to sell your handmade goods would all be an example of small business entrepreneurship.
Transformational Entrepreneurship: He explained transformational entrepreneurship to mean the setting up of an enterprise with the main goal of progressing from micro to small business by employing about 30 people, then to a medium enterprise that employed about 100 and then to large enterprise to engage more than 500 people. Or Transformational Entrepreneurs earn their name by creating innovative solutions to the world’s biggest problems that are scalable, sustainable and systematic. Transformational entrepreneurship is a relatively nascent concept that has emerged due to the need to achieve effective and efficient entrepreneurial behaviours that address global challenges, including unemployment, economic underperformance and societal evolution. So more global
High Growth Entrepreneurship: A widely accepted definition of high growth entrepreneurs identifies these enterprises as exhibiting an average annual growth (number of employees or by turnover) greater than 20% over a 3 year period.
Scalable Start-up Entrepreneurship: A scalable startup is one that aims to become an extremely high growth, profitable company but is only just beginning. Scalable startup entrepreneurship can be defined as a business model where an organization is started on the basis of a unique idea. It involved everything that ranges from creating a plan to all the way up launching the business. Scalable startup stems from existing businesses, and their founders believe the company has the potential for infinite growth after identifying a market opportunity.
Example Facebook
Corporate Entrepreneurship: Corporate Entrepreneurship, or Intrapreneurship, is the creation of new businesses, products, or services from inside an organization to generate new revenue growth through entrepreneurial action. Intrapreneurship is the act of behaving like an entrepreneur while working within a large organization
Large Company Entrepreneurship: Large company entrepreneurship
The concept of this type of entrepreneurship refers to the advancement of new opportunities and ideas within larger and already established companies. This development is seen later on in the life of a company. Some forms of this include creating a new design or product in order to compete with surrounding new technologies and legislation among competitors. Large company entrepreneurship is a new business division created within an existing company. The term denotes larger businesses with a series of lifecycles from consistent innovation (which we’ll touch on below) by creating new products and services to meet evolving customer needs and demands. These businesses are already established and can grow from smaller companies
Subsistence Entrepreneurship: Subsistence entrepreneurs use scarce resources to create new business opportunities, often in developing or emerging economies. In crude terms, subsistence entrepreneurs are solely concerned about their survival, and are tiny businesses and unlikely to grow or create new jobs.
Social Entrepreneurship: A social entrepreneur is a person who pursues novel applications that have the potential to solve community-based problems. These individuals are willing to take on the risk and effort to create positive changes in society through their initiatives.
So ideas for society’s benefit or to solve societal problems
Explain the role of entrepreneurship in economic development
The link between the roles of “small business” and entrepreneurship
•New venture creation
•Creation of jobs through entrepreneurial action
•Raising productivity through new product innovation
•Commercialisation of new inventions
•Harnessing resources that were previously lying idle
•Redistribution of wealth – the poor getting richer?
•Entrepreneurs giving back to the community
State five benefits and five drawbacks of entrepreneurship
Benefits of Entrepreneurship
The opportunity to:
•Create your own destiny
•Make a difference
•Reach your full potential
•Reap impressive profits
•Contribute to society and to
be recognized for your efforts
•Do what you enjoy and to have fun at it
Drawbacks of Entrepreneurship
•Uncertainty of income
•Risk of losing your entire investment
•Long hours and hard work
•Lower quality of life until the business gets established
•High levels of stress
•Complete responsibility
•Discouragement
How do you avoid the pitfalls of business and fam the flame of entrepreneurship
Avoiding the Pitfalls of
Small Business Failure
•Know your business in depth
•Develop a solid business plan
•Manage financial resources
•Understand financial statements
•Learn to manage people effectively
•Set your business apart from the competition
•Maintain a positive attitude
Feeding the
Entrepreneurial Fire
•Entrepreneurs as heroes
•Entrepreneurial education
•Demographic and economic factors
•Shift to a service economy
•Technology advancements
•Independent lifestyle
•E-commerce and the Internet
Who is Jeff Bezos
Who is William Henry Bill Gates III
“If you never want to be criticized, for goodness’ sake don’t do anything new.”
Jeff Bezos is an American technology and retail entrepreneur, investor, computer scientist, and philanthropist who is best known as the founder, chairman, and chief executive officer of Amazon.com, the world’s largest online shopping retailer.
Net worth $159.6 billion (September 2019)
William Henry Bill Gates III
“It’s fine to celebrate success but it is more important to heed the lessons of failure,”
Bill Gates discovered his interest in software and began programming computers at age 13. He is the chief software architect of Microsoft Corporation, the worldwide leader in software, services and solutions that help people and businesses realize their full potential
Net worth $103.5 billion (September 2019)
Who is Warren Buffet
Who is Mark Zuckerberg
Warren Buffett 85
I’m 15 percent Fisher and 85 percent Benjamin Graham. The basic ideas of investing are to look at stocks as business, use the market’s fluctuations to your advantage, and seek a margin of safety. That’s what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing.
is an American investor, businessman, and philanthropist. He is one of the most successful investors in the world, the primary shareholder and CEO of Berkshire Hathaway
$79.7 billion ( September, 2019)
Zuckerberg founded the Facebook in 2004 and dropped out of Harvard to move the company to Silicon Valley. Facebook now has nearly 11,000 employees in 48 offices around the globe. Since launching its Internet.org initiative in July 2014, Facebook has given free basic Internet services to more than a billion people in 17 countries in Asia, Africa and Latin America.
$69.9 billion (September, 2019)
Who is Alikote Dangote and Dr. Alhaji Asuma Banda
Dr. Alhaji Asuma Banda
Creating jobs for over 500,000 people globally, Dr. Alhaji Asuma Banda heads as CEO of Antrak Group of Companies, which has 146 branches worldwide.
In his early twenties, he bought cattle from Mali, Niger, and Burkina Faso and transported to Kumasi on foot, which opened the door of wealth for him.
He later entered into private business and established partnership with a shipping company in London, OTA Africa line.
Alikote Dangote - the Nigerian founder and president of Dangote Group. He is known to be one of the richest men in Africa , but he said “I think I have to be rated by Forbes magazine first before I can be called the richest man in Africa,” says Mr Dangote, modestly. The Dangote Group provides cements ,sugar, salt, flour , rice, spaghettis, textile etc at competitive prices.
$9.2 billion (2019)
Who is Mrs. Grace Amey-Obeng and Dr. Osei Kwame Despite
Mrs. Grace Amey-Obeng
She took the initiative to educate Ghanaian women on skincare.
Upon discovering that market women all over Africa were destroying their skin with several bleaching products on the market, she ventured into cosmetic manufacturing.
Over the past twenty years, she has grown FC from cosmetic retailing to a conglomerate comprising FC Perfumery and Cosmetics, FC Salon and Beauty Supplies, and FC Beauty College.
Dr. Osei Kwame Despite
He started life as a petty trader, dealing in music cassettes, padlocks, feeding bottles, and other merchandise.
He later begun a timber business which saw its premature collapse, as his chainsaw crushed. He returned to his music cassette business until he started Peace FM.
He now owns Despite Group of Companies, comprising Neat Foods Company Ltd., Atona Food Production Limited, Best Point Savings and Loans and a number of media related businesses. He also deals in real estate, importation and exportation of commodities.
Who is David Osei
Who is Tonyi Senayah
David Osei
An award winning entrepreneur from Ghana and co-founder of Dropifi Lt., Africa’s first technology startup to be accepted into Silicon Valley’s 500 startups Accelerator program.
In 2012, Kauffman foundation’s startup open competition named Dropifi as the world best startup company for the year, after beating startup companies from over 120 countries. He has been featured on CNN among the other reputable news media outlets.
Tonyi Senayah
“the key to success is overcoming the fear of failure”.
He is the CEO of Horseman shoes, a manufacturing company in Kumasi, Ghana that makes quality and fashionable leather footwear.
He founded the company 2010, and it took off. Over the years, he has won several awards including award for the most influential young entrepreneur in 2016.
State five other entrepreneurs
Kwabena Darko
• Ken Ofori-Atta
•Daniel J. Otoo
•Ernest Bediako
•Samuel Amo Tobbin
Who is an entrepreneur?
What do entrepreneurs do
•A person who sets up a business or businesses, taking on financial risks in the hope of profit.
•Someone who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what, how, and how much of a good or service will be produced.
•According to economist Joseph Alois Schumpeter (1883-1950), entrepreneurs are not necessarily motivated by profit but regard it as a standard for measuring achievement or success.
Entrepreneurs:
•Recognize opportunities where others see chaos or confusion
•Are aggressive catalysts for change within the marketplace
•Challenge the unknown and continuously create the future
What are the classes of entrepreneurs and define them
Opportunist Entrepreneurs-they take advantage of every situation or every opportunity
Craft entrepreneurs(their competence reflects in their output or skills):
Growth oriented entrepreneurs-Have expansion strategies. They start small and expand
Income oriented entrepreneurs-Make money and feed on it as the money comes. Example shoe repairers
Nascent entrepreneurs:They are actively involved in the creation of new ventures or businesses
Novice entrepreneurs : is a newcomer with less experience in entrepreneurship
Serial entrepreneurs :establish business,makes sure it’s well developed and moved on to another one by selling the business or giving it out
Portfolio entrepreneurs:Multiple businesses at the same time
Explain the entrepreneur process
The entrepreneur is surrounded by opportunity ,organization and resources
The opportunity is the gap within the market that the entrepreneur wants to pursue
Organization is the collection of resources under the control of the entrepreneur or resources collected by the entrepreneur that are under the control of the entrepreneur
Resources: What the entrepreneur uses to pursue his opportunity or the materials the entrepreneur uses to pursue his opportunity
