Session 1

Learning Outcome: At the end of this session, you should be able to explain the theories and concepts of entrepreneurship and discuss their importance.

CONCEPTS OF

ENTREPRENEURSHIP ________________________________________________________________________________________ Photo by Sabriirmak – Creative Commons Attribution License - www.flickr.com/photos/sabriirmak/2195784591

Learning objectives

Participants will be able to do the following:

Explain different theories and concepts of entrepreneurship and discuss their importance

Differentiate different types of entrepreneurships

Identify major characteristics of successful entrepreneur

Introduction A country with many successful entrepreneurs is

considered as most successful country in terms of economy.

Because the entrepreneurs play a vital role in the

economic development of a country such as generate employment, increase production, increase innovation, and so on.

But do we understand the meaning of

entrepreneurship. In this session we will learn about the theory and concepts of entrepreneurship

What is entrepreneurship?

• The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit.

• The most obvious example of entrepreneurship is the starting of new businesses.

Source: http://www.businessdictionary.com/definition/entrepreneurship.html#ixzz36

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Who is an entrepreneur?

• An Entrepreneur is a person who is willing to take risks which is normally financial in the pursuit of business or social works.

• This term refers to anyone who is developing or organizing a new project or opportunity, usually in the business or even social works. They are always innovative, independent, optimistic, creative, risk taking and hard-working.

• In short an entrepreneur is a person who sees opportunity, makes plan, starts the business or social works, manages the business, assuming the risk for the sake of profit.

Please refer to the following website to find out more details. Read More : http://www.jetangels.co.za/resources/all-about- entrepreneurs/

The entrepreneurial process

Discovery of Opportunity

Decision to Exploit

Resource Acquisition

Critical Strategy

Organising Processes

Performance

Existence of Opportunity

Shane, 2003

http://www.soi.wide.ad.jp/class/20090054/slides/03/18.html

Economic theories of entrepreneurship

• This concept describes the relationship

between entrepreneurship and economic theory with regard to

• “The problem of explaining why some succeed

while others fail is crucial to the study of economic development, the growth of the firm and the distribution of income( Casson, 1982 in EAS, 2012).”

• Joseph Schumpeter the main scholar in this field introduced the concept of creative destruction which refers to

• “The entrepreneur reforms or revolutionizes the pattern of production by exploiting an invention or an untried technology for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials, or a new outlet for products, or by reorganizing an industry” (Schumpeter, 1934)

Entrepreneurial self-efficacy

• The degree of self belief of the entrepreneur whether he/she could handle the project or otherwise is an important success factor.