ENTREPRENEURSHIP
CHAPTER 1: CAREER
OPPORTUNITIES IN ENTREPRENEURSHIP
LESSON 1
CONCEPT OF ENTREPRENEURSHIP
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Entrepreneurship is the ability and
readiness to develop, organize and run a
business enterprise, along with any of its
uncertainties in order to make a profit.
In economics, entrepreneurship connected
with land, labour, natural resources and
capital can generate a profit.
The entrepreneurial vision is defined by
discovery and risk-taking and is an
indispensable part of a nation’s capacity to
succeed in an everchanging and more
competitive global marketplace
WHAT IS ENTREPRENEURSHIP?
a. The activity of setting up a business or
businesses, taking on financial risk in the hope of
profit is called entrepreneurship (Oxford
Dictionaries).
b. It is an act of being an entrepreneur.
Entrepreneur - define as a person who
organizes and operates a business or
businesses, taking on greater than normal
financial risk to do so. It can also be
defined as “one who undertakes
innovations, finance and business acumen
in an effort to transform innovations into
economic goods”
TYPES OF ENTREPRENEURSHIPS
1. Small Business Entrepreneurship
- They are mostly barely
profitable, but they make profits
only to make a living and
support their families. Such
businesses lack the scale to
attract venture capital and they
are funded via friends/family or
small business loans.
Examples: hairdressers, grocery stores,
electricians, carpenters, plumbers,
consultants, etc
2. Large Company Entrepreneurship
- Large companies through
sustaining innovation, offering
new products that are variants
around their core products.
Examples: Google, Microsoft, Samsung,
Sony etc.
3. Scalable Startup Entrepreneurship
- entrepreneurs start their
company believing that their
vision can change the world.
Their funding comes from
venture capitalists, and they
hire the best employees.
Finding a scalable and
repeatable business model is
their goal. Once they find it,
further funding from venture
capitalists is required for
growing their business.
Examples: Facebook, Instagram, Online
shopping for electronics, etc
4. Social Entrepreneurship
- where an entrepreneur creates
products and services to solve
social needs and problems.
Their only goal is to make the
world a better place and not to
make profits or acquire wealth.
They can be non-profit, profit or
hybrid.
QUALITIES OF AN ENTREPRENEUR
1. Disciplined – focused on making
business work and eliminate any
hindrances or distractions top their goals.
Successful entrepreneurs are disciplined
enough to take steps every day toward the
achievement of their objectives.
2. Confidence - do not asks questions
whether they can succeed or whether they
are worthy of success. These individuals
are confident with the knowledge that they
will make their business succeed.
3. Open-Minded - Entrepreneurs realize that
every event and situation is a business
opportunity. Ideas are constantly being
generated about workflows and efficiency,
people
skills
and
potential
new
businesses. They have the ability to look
at everything around them and focus it on
their goals.
4. Self-Starter - Entrepreneurs know that if
something needs to be done, they should
start it themselves. They set the
parameters and make sure that projects
follow that path. They are proactive, not
waiting for someone to give them
permission.
5. Competitive - Many companies are
formed because an entrepreneur knows
that they can do a job better than another.
They need to win at the sports they play
and need to win at the businesses that
they create. An entrepreneur will highlight
their own company’s track record of
success.
6. Creativity - One facet of creativity is being
able to make connections between
seemingly unrelated events or situations.
Entrepreneurs often come up with
solutions which are the synthesis of other
items. They will repurpose products to
market them to new industries.
7. Determination - Entrepreneurs are not
thwarted by their defeats. They look at
defeat as an opportunity for success. They
are determined to make all of their
endeavors succeed, so will try and try
again
until
it
does.
Successful
entrepreneurs do not believe that
something cannot be done.
8. Strong people skills - The entrepreneur
has strong communication skills to sell the
product and motivate employees. Most
successful entrepreneurs know how to
motivate their employees, so the business
grows overall. They are very good at
highlighting the benefits of any situation
and coaching others to their success.
9. Strong work ethic - The successful
entrepreneur will often be the first person
to arrive at the office and the last one to
leave. They will come in on their days off
to 10 make sure that an outcome meets
their expectations. Their mind is constantly
on their work, whether they are in or out of
the workplace.
10. Passion - Passion is the most important
trait of the successful entrepreneur. They
genuinely love their work. They are willing
to put in those extra hours to make the
business succeed because there is a joy
their business gives which goes beyond
the money. The successful entrepreneur
will always be reading and researching
ways to make the business better.
Successful entrepreneurs want to see
what the view is like at the top of the
business mountain. Once they see it, they
want to go further. They know how to talk
to their employees, and their businesses
soar as a result.
IMPORTANCE OF AN ENTREPRENEUR
1. Provides employment to the people
Entrepreneurs, in addition to
employing themselves, also create
a number of job opportunities with
their business venture. And as their
businesses grow, more job
opportunities are created, thereby
reducing unemployment.
2. Contributes towards research and
development system.
Almost 2/3rd of all innovations is
due to the entrepreneurs. Without
the boom of inventions, the world
would have been a much dry place
to live in. Inventions provide an
easier way of getting things done
through better and standardized
technology.
3. Creates wealth for the nation and for
the individuals as well.
All individuals who search
business opportunities usually,
create wealth by entering
entrepreneurship. The wealth
created by them plays a significant
role in the development of the
nation. The entrepreneurs
contribute to the economy, in the
form of products, and services
Their ideas, thoughts, and
inventions are also of a great help
to the nation.
economies to grow in those
countries where there is a welldeveloped system of providing
capital at every stage i.e. seed
capital, venture capital, private
equity as well as stock and bond
markets
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FACTORS AFFECTING ENTREPRENEURSHIP
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Political Factors
o The market in a place can be
capitalistic, communistic or a
mixture of both. Capitalism
requires innovation while
communism requires
entrepreneurs and the political
class to be well connected with
each other. Ideally, a country
should be capitalistic for
entrepreneurship to flourish in the
region.
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Legal Factors
o The strength and fairness of the
judicial system in a country has a
big role to play in the quality of
entrepreneurship. This is because
entrepreneurs in many cases might
require the courts to enforce the
contracts agreed between two
parties. But in many countries,
such contracts are not enforced
properly, and this risk prevents the
development of entrepreneurship
in those countries
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Taxation
o Governments sometimes resort to
excessive taxation as they adopt
the policy of taking from the rich
and giving it to the poor. However,
the basic principle of
entrepreneurship believes in the
survival of the fittest and the
excessive taxation rule contradicts
it. Hence, entrepreneurs want to
set up businesses in places where
there is very little interference from
the government on taxation.
Labor and raw materials
o Availability of skilled labour and
required raw materials at
reasonable prices are an important
factor for the launching of a
business venture in a region.
Countries like India, Bangladesh
and China have witnessed a huge
rise in entrepreneurial activities
because of the labour markets
being favorable for them.
FUNCTIONS OF AN ENTREPRENEUR
Main Functions of an Entrepreneur in Three
(3) Categories
1. Risk bearing function
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It is the most important and specific
function of an entrepreneur.
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Every business involves some amount of
risk.
The production of goods and services is
always related to future demands.
The future demand is uncertain and
unpredictable by the changes in fashion or
taste and liking of the consumers.
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Factors affecting demand
- taste and preferences
- price structure
- value of money
- climatic conditions
- government policies
2. Administrative and Decision-Making
Functions
Capital Availability
o Capital is the first requirement to
start risky ventures and they might
also require instant capital to scale
up the business once an idea
becomes successful. Therefore,
entrepreneurship helps the
a. Conceiving the Idea of Business
 suits their nature, skill, and
resources
 make a thorough (intensive and
extensive) study of the market
condition
b. Estimation of Details of Business
and Implementation of the Same
 what, how and when to produce
and from where the resources are
to be arranged.
c. Supervision and Control of
Business Activities
 supervise and control the day-today business activities
 properly connected between
various factors of production
d. Innovation
 one of the most important functions
of being an entrepreneur
 come up with new products, new
methods of reducing methods
3. Distributive Functions
 The entrepreneur organizes different
factors of production and sets them to
work.
Remuneration
- refers to an important decision
as to what should be the share
of each factor of production in
the sale proceeds of the entire
product
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Business Consultants.
How long does it take to start a career in
entrepreneurship?
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It takes amount of time to make as an
entrepreneur depends on the field you
choose to venture into.
YOU CANNOT DEFINE A SINGLE
TIMEFRAME FOR CAREERS IN
ENTREPRENEURSHIP
What are the requirements for a career in
entrepreneurship?
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Find the right business idea and get
education according to it.
Make a BUSINESS PLAN
Define your TARGET MARKET
How much can I make with a career in
entrepreneurship?
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Salary varies according to the field they
venture and how idea sells in the market.
If your idea is unique, you might end up
making A LOT OF MONEY!
REMEMBER!
Job Opportunities for Entrepreneurship as a
Career
What kind of education do I need?
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Several colleges offer traditional oncampus and online degrees in
ENTREPRENEURSHIP including
Bachelor’s, Master’s and Doctoral
degrees.
Students can specialized in an area such
as INDUSTRIAL MGT.
o establishing new ventures and
arranging finance, international
business management, strategy
development, marketing, venture
capital, mergers and acquisitions
and technological innovation.
o Microeconomics, entrepreneurship
theory, economics of technological
change and organizational theory.
What are the different careers in
Entrepreneurship?
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Commercial Bankers
Franchise Operators
Research and Development
Executives