ELATE: E-Learning and Teacher Education
TEACHER’S GUIDE
Subject: Entrepreneurship Education
Unit:
1
Class:
S.1
Topic:
The entrepreneur
Time Required: Minimum: 560 min (14 lessons), Maximum: 640 min (16 lessons).
Introduction
Entrepreneurship Education is a study that is concerned with providing students
with the knowledge and skills of creating and operating their own businesses
successfully, using the available resources to develop themselves and the country in
general. The Kauffman Foundation (www.kauffman.org) defines it as “the process of
providing individuals with the concepts and skills to recognize opportunities that
others have overlooked and to have the insight, self-esteem and knowledge to act
where others have hesitated. It includes instruction in opportunity recognition,
marshaling resources in the face of risk, and initiating a business venture. It also
includes instruction in business management processes such as business planning,
capital development, marketing, and cash flow analysis.”
In this topic, we shall discuss the meaning of entrepreneurship, an entrepreneur, the
functions of an entrepreneur, how to become a successful entrepreneur, the qualities
of a successful entrepreneur and the benefits as well as the challenges of being an
entrepreneur.
Main Content and Concepts to Emphasize
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
Meaning of entrepreneurship

Meaning of an entrepreneur

Functions of an entrepreneur

How to become a successful entrepreneur

Qualities of a successful entrepreneur

Benefits and challenges of an entrepreneur
By the end of this topic, students should be able to:
(a) Define entrepreneurship
(b) Define an entrepreneur
(c) Discuss the functions of an entrepreneur
(d) Describe how to become a successful entrepreneur
(e) Outline the qualities/characteristics of an entrepreneur
(f) Discuss the benefits and challenges of being an entrepreneur
Teaching/Learning Materials, Activities and Guidance

Markers

Flip charts
1.1 Meaning of entrepreneurship
Entrepreneurship is the quality and skill required to become an entrepreneur. It
refers to the capacity required for identifying and generating innovative business
ideas, mobilizing resources, organizing production, marketing the products, managing
the risks and constantly working for growth and excellence of the business.
The word ‘entrepreneurship’ comes from a French word entreprerudes which refers
to a person who undertakes risks of a new business. The attributes underlying
entrepreneurship include:

Self-direction
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
Self-nurturing

Action-oriented

High energy level

Tolerant of uncertainty
Several factors affect entrepreneurship in an area. Some of these are financial capital,
human capital, infrastructure, local economy size, and natural amenities.
Student Activity 1
1) Ask students what they think entrepreneurship is.
2) Ask students to list the attributes of an entrepreneur.
3) Divide the students into groups of three or four and give them markers and
paper.
4) Ask them to discuss some of the pros and cons for each factor affecting
entrepreneurship (i.e. financial capital, human capital, infrastructure, local
economy size, and natural amenities).
1.2 Meaning of an entrepreneur
The term entrepreneur has had varied meanings. The term entrepreneur is a French
word which literally means ‘between’ or ‘go-between’. A female entrepreneur is
sometimes known as an entrepreneuse. An entrepreneur is a person who operates a
new enterprise or venture and assumes some accountability for the inherent risks.
An entrepreneur is simply an individual who has the ability to see and evaluate
business opportunities, gather the necessary resources, start a business and once
started to take appropriate actions to ensure its success. Entrepreneurs are people who
have a high drive and creativity. They constantly strive to achieve success using their
own efforts and they take credit of whatever outcome. Likewise, they take
responsibility for any failure that may befall their businesses. In other words, an
entrepreneur is a person who:
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
Perceives his/her needs, analyses him/herself in relation to what he/she would
like to be in future

Scans the environment and identifies business opportunities that he/she could
possibly do in order to achieve his/her goals in life

Conducts a market survey to assess the feasibility and viability of the
identified business opportunities to select the most suitable one

Calculates the risks involved in doing the selected business opportunities so as
to find out if he/she can reduce them to manageable levels, and if not, leave
and choose another alternative

Mobilizes the necessary resources to start the selected business

Sets an organization or arrangement through which the planned business will
be operated

Regularly monitors business performance against set or planned targets

Takes corrective actions to achieve his/her targets.
Student Activity 2
1. Ask students what they think an entrepreneur is.
2. Ask them to identify any entrepreneurs they know or any famous entrepreneurs in
their local communities.
3. Ask students if any one of them consider themselves to be entrepreneurs.
1.3 Functions of an entrepreneur
Entrepreneurs perform a number of functions from the stage of starting a business to
its level of success. These functions include:
1. Planning
This is the first step in setting up an enterprise. The planning process involves:

Scanning for the best suitable idea

Selection of the product line
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
Determining the type of business organization (individual or partnership or
corporate)

Estimation of capital resources

Selection of location/site

Studying the government policies and regulations

Studying the availability of labour force

Studying of the market and marketing strategy to be adopted
2. Organization
An entrepreneur co-ordinates, assembles and supervises other factors of production land, labour and capital during the promotion and performance stage for optimum
utilization of resources.
3. Decision-making
As a decision maker, an entrepreneur takes various decisions regarding the following
matters:

Determining the objectives of the business enterprise

Procurement of machinery, material, men, etc

Acquisition of efficient technology and new equipment

Development of a market for the product
4. Management
This involves the operations of the venture and managing of day-to-day activities. It
involves direction of men, machine, material and other resources.
5. Innovation
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This may involve:

Launching of a new product on the market

Introduction of new technology in production

Creation of new markets

Discovery of new and better sources of raw materials
6. Risk bearing
An entrepreneur undertakes the responsibility for loss that may arise due to un
foreseen circumstances in the future.
7. Uncertainty bearing
There are some risks which cannot be insured against and incalculable, for example
uncertain trends in the market.
Student Activity 3
1. Outline the functions of an entrepreneur.
1.4 Characteristics/qualities of a successful entrepreneur
Qualities
or
Personal
Entrepreneurial
Characteristics
(PEC)
of
successful
entrepreneurs refer to the desired traits, which enable an entrepreneur to do what is
expected of him/her and succeed in business. It is the combination of these
characteristics that is required to enable any one to perform effectively as an
entrepreneur. It is possible for people to develop these characteristics and succeed in
their careers as entrepreneurs. Successful entrepreneurs have common characteristics,
which are divided into three clusters namely achievement, planning and power.
1. Achievement Cluster
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
Opportunity seeking
This refers to the quality that enables the entrepreneur to see and act upon new
business opportunities even in situations where other people see nothing but
problems/hopelessness only. It also encourages him/her to seize unusual
opportunities for obtaining the necessary resources such as financing, equipment,
land, workspace, technical assistance, etc, which will enable him/her to implement
his/her business ideas.

Commitment to the work contract
This is the ability to accept final responsibility for completing a job for the
customers. Customers expect entrepreneurs to perform and honour their
commitments. It follows therefore that the entrepreneur should do everything
possible to ensure that he/she fulfils the commitment with his/her customers. It
means joining the workers to work with them to ensure that contractual
commitments are fulfilled, the entrepreneur will do it.

Persistence
This is the quality, which enables the entrepreneurs to develop determination to
have a thorough job done at any cost in terms of personal sacrifice. By doing this,
the entrepreneur remains working towards the achievement of his/her set goals.

Risk taking
Entrepreneurs are people who prefer taking moderate risks. Before they commit
themselves and their resources, they assess the risks that are associated with a
business opportunity that they have selected, and their ability to manage them, the
benefits that they will realise and the challenges that they will face from the
venture to be undertaken.
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Entrepreneurs can earn profits as a result of taking risks and the higher the risks,
the higher the profits. However, entrepreneurs will always prefer to take on those
risks that they can manage.

Demand for efficiency and quality
This is the quality that enables an entrepreneur to do things that meet or surpass
existing standards of excellence or improve on performance by striving to do
things faster, better and cheaply. By doing this, the entrepreneur remains ahead of
others, makes more profits and retains a growing market share.
2. Planning Cluster
The planning cluster is made up of the following characteristics:

Goal setting
This refers to the ability of an entrepreneur to set clear and specific goals and
objectives. These goals and objectives are normally high and challenging but at
the same time, realistic and can be attained, given the resources that one has got at
his/her disposal.

Information seeking
This is having the urge to look for the required information in order to make an
informed decision, for example, selecting, starting and successfully managing the
desired business. This calls for the concerned person to personally seek and obtain
information regarding customers, suppliers, competitors as well as any other
relevant information that is required to enable the entrepreneur make decisions
and improve knowledge on his/her business.

Systematic planning and monitoring
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This is the ability to develop plans that will be used in monitoring and evaluating
the progress of the business. This helps the entrepreneur to carefully monitor
his/her business’ actual performance against desired performance and turn to other
alternatives whenever the need arises; so as to achieve his/her set goals.
3. Power Cluster

Persuasion and networking
This is the ability to link, convince and influence other individuals, agencies and
other groups in order to maintain business contacts at a high level. This will help
or work for the cause of the business in a positive manner to accomplish own
objectives.

Self-confidence
This refers to having a strong belief or confidence in oneself and the ability to
complete a difficult task or meet a challenge.
Student Activity 4
1. Ask students to name the various characteristics of an entrepreneur and list these
characteristics on a board or flip chart.
2. Divide the students into groups of three or four and give them markers and paper.
3. Ask them to draw a picture showing an entrepreneur.
4. Tell them the picture can be of anything (a person, a tree, etc.), but it should show
as many characteristics of an entrepreneur as possible.
5. Have each group present their completed picture explaining the characteristics they
interpreted.
6. Ask students to think about how they might have demonstrated some of the
entrepreneurial characteristics in through their school work, extra-curricular activities,
or part-time job.
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7. Ask students to record their personal entrepreneurial characteristics in their exercise
books.
Reflection
Ask students questions to help them discover that they have many of the
characteristics of the entrepreneur they have shown in their pictures.
Guidance to Teachers

Be enthusiastic about all the pictures.

Give each student in every group the chance to talk.

Focus on how basic, important, useful and attainable entrepreneurial
characteristics are.

Encourage students to talk more than you do by asking them open-ended
questions such as ‘When being an entrepreneur, is curiosity an important
characteristic?’
Checklist: Characteristics of an entrepreneur
Self-confident
Able to make decisions
Determined
Independent
Energetic
Able to lead
Resourceful
Versatile
Achievement-oriented
Able to take calculated risks
Responsive to criticism
Profit-oriented
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Initiative-taker
Perceptive
Flexible
Responsive to change
Eager to learn
Responsible
Competitive
Optimistic
Impatient
Goal-oriented
Efficient
1.5 How to become a successful entrepreneur
Like in many other professions, careers and occupations, some who try to become
entrepreneurs succeed while others fail. Today the question that one may ask is; what
makes one to succeed as an entrepreneur while others fail? Can we pinpoint the key
traits of successful entrepreneurs? If we could, we may then predict what kinds of
men and women are most likely to be overachievers. Such people burn with the desire
to excel and they are found to have the six traits to enable them do well. These key
traits are discussed below:
1. The need to win
A successful business is about winning, we all love to win and hate to lose.
Entrepreneurs want to succeed; they feel they should be the best.
2. Innovation
This is generally the most distinctive entrepreneurial trait, which enables an
entrepreneur to tackle the unknown, to do things in new and different ways, to weave
old ideas into new patterns; to offer more solutions than excuses and to always be a
market leader, ahead of others.
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3. The need for achievement
Related to the need to win is the strong desire to achieve. Entrepreneurs are people
who want to set high goals and go for them.
4. Risk taking
Any new business poses risks for entrepreneurs. They may succeed or fail, in their
new business ventures. As a precaution, entrepreneurs are likely to shun ventures in
which the odds against them are high and they are not manageable. At the same time,
most entrepreneurs also shun a sure thing because the satisfaction from getting along
with the routine would be too small to justify the effort. Entrepreneurs are not likely
to be found performing routine chores or doing businesses which everyone else is
doing in the same way.
Even though entrepreneurs generally choose ventures that fall between these two
extremes, they tend to go in the direction of risk. They are likely to prefer ventures in
which the risk of failure is high but not too high to be managed. This is because, they
recognise that they are more likely to gain both satisfaction and success from tasks
that offer opportunity but also fit their skills. Entrepreneurs take reasonable risks, by
choosing the risks for which their skills are suited.
5. Self-confidence
Entrepreneurs believe in themselves. They have confidence that they can outdo
anyone else in their field. They tend not to accept the status quo, believing instead that
they can change the facts. Often, they insist the odds are better than the facts would
justify.
6. Hard work
Few people in our society work harder than entrepreneurs. Many big business
executives put in even longer hours, driven by their strong desire to excel. One
measure of just how hard entrepreneurs work is normally looked at by the number of
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hours that they spend doing their work and the commitment with which they do their
work. At least in the first year of their ventures, most entrepreneurs tend to work
much more than 50 hours a week.
7. Goal setting
Many people often express happiness after setting meaningful goals, not necessarily
after achieving those goals. This cannot be said of entrepreneurs. To entrepreneurs,
merely choosing a new meaningful goal is self-renewing. Planning and carrying out
the steps needed to reach the goal is stimulating. And the result often opens a door
that leads to still another goal. Entrepreneurs are compulsive achievers. Once they
have met a goal, they loose interest in further effort in that area because it gives them
little sense of achievement. They work hard only if they feel challenged.
8. Accountability
Entrepreneurs generally want full credit for their success- or will assume full blame
for their failure. To measure their performance, entrepreneurs may use an of the
several yardsticks, among them return on investment and the rate of profit growth.
These yardsticks measure profitability. Profits tell entrepreneurs how well they are
doing in the market place.
9. They love independence
Entrepreneurs love independence; they do not want to be controlled. They want to do
what they feel like doing and normally do not want restrictions on the way they do
things and are usually impatient with bureaucratic procedures.
10. Creativity
Creativity is the generation of new ideas. Entrepreneurs are usually creative people
who come up with different ideas. Creative people love change, cause change and
love ambiguous situations. Creative people want to be challenged and love complex
problems from which they can think up systematic ideas.
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Student Activity 5
1. Ask students to identify examples of successful entrepreneurs in their communities.
2. Ask students to collect information from one successful entrepreneur on:
(a) How they became entrepreneurs
(b) What makes them succeed as entrepreneurs
(c) What advice they give for one to become a successful entrepreneur.
1.6 Benefits and challenges of an entrepreneur
Entrepreneurs enjoy a range of benefits for being in business. At the same time, they
are confronted by a range of challenges in the course of doing their work as
entrepreneurs. Table 1.1 shows the benefits entrepreneurs enjoy and the challenges
they face.
Table 1.1 Benefits and challenges of being an entrepreneur
Benefits
Challenges
1. Social recognition
1. Long and irregular hours of work
2. Increased income
2. Low level and insecurity of income
3. Improved standard of living
3. Low life style due to hard and demanding work
4. Flexibility in decision-making
4. Potential loss of resources invested in business
5. Developing self-confidence
6. Self-employment
Challenges refer to the major activities undertaken in a business, whereas tasks are
specific pieces of work that can be done to meet the challenges. Examples of
challenges and tasks are given in Table 1.2 below.
Table 1.2 Tasks and challenges in business
Challenges
Raising capital
Tasks undertaken to meet challenges

Applying for a loan

Sourcing credit facilities from suppliers

Reducing expenditure so as to save, etc.
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Marketing goods/services
Managing funds
Maximizing profits
Acquiring stock

Advertising

Costing and products

Market assessment, etc

Budgeting and budget control

Record keeping, etc

Controlling costs

Sales promotion, etc

Contacting suppliers

Choosing best suppliers

Transporting goods

Storage, etc

Installing effective and efficient production
processes producing high quality products
At times, many tasks can be undertaken in meeting a challenge. Table 1.2 above
shows some of the challenges and the related tasks in business.
Student Activity 6
1. Ask students to interview a local entrepreneur on:
(a) The benefits they enjoy as entrepreneurs.
(b) The challenges they face as entrepreneurs.
(c) The mechanisms they use to overcome the challenges.
References:
Bagatya, W.Z.K. 2007. The Principles and Practices of Advanced Level
Entrepreneurship Education. Kampala, Uganda. p.2-4.
Kabatire, S. and Mutyaba, S.V. 2007. Entrepreneurship Skills. Netsoft Publishers.
Kampala, Uganda. p.1
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Kigenyi, F.D. 2007. Entrepreneurship Education for UACE and Colleges. Kampala,
Uganda. p.10
National Curriculum Development Centre (NCDC). 2002. Entrepreneurship for
Secondary Schools. Book 1. National Curriculum Development Centre, Kampala,
Uganda. p.14-17.
National Curriculum Development Centre (NCDC). 2002. Entrepreneurship for
Secondary Schools. Book 5. National Curriculum Development Centre, Kampala,
Uganda. p.26.
Sempijja, M. 2006. Entrepreneurship Education for Advanced Level and Business
Institutions. Kampala, Uganda. p.8-9.
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