ENTREPRENEURSHIP

DR. SHEIK MUMUNI ISHAWU

EMAIL: MUMUNIISHAWU@KTU.EDU.GH / 0243784071
 1.0 MEANING OF ENTREPRENEURSHIP

 DREAM IT! PLAN IT! DO IT

 Entrepreneurship is the cornerstone of the free enterprise system around the world. In fact

more than 500 million adults around the globe are engaged in some form of entrepreneurial
activity each year.

 IT IS A FRENCH WORD “ ENTREPREDRE” MEANING TO UNDERTAKE

 Definition of Entrepreneurship by Different Scholars;

 These views may be classified as follows:

 CONT. DIFFERENT VIEWS OF ENTREPRENEURSHIP

 Entrepreneurship as risk-taking capacity.

 Entrepreneurship as an organization building ability.
 Entrepreneurship as a Managerial Skills
 Entrepreneurship as an innovative Function
 Working Definition of Entrepreneurship
 1. ENTREPRENEURSHIP AS RISK BEARING CAPACITY

 Scholars like Richard Kentilam, Knight, Musselman and Jackson, Gaikwad and Spenek,
etc. have regarded risk-bearing capacity as an important function of entrepreneurship.
According to them, entrepreneurship is:
 Investment of time, money and efforts for starting and making any venture successful and
taking risk in entrepreneurship.
 The person purchasing and selling products at an uncertain price is an entrepreneur.
 The group of specific persons, who were the uncertainties is entrepreneurs.
 The ability to take risks and the power to provide the guarantee against the desire and
uncertainties is entrepreneurship.
 CONT.

 This is the institution of desire to take risks to face the uncertainties.

 The capacity to bear risks for any enterprise, ability to organize, carrying out diversifications
and the desire for making innovations, is entrepreneurship.
 Hence, this view is related to the capacity to bear risks and promotion of the business.
 2. ENTREPRENEURSHIP AN ORGANIZATION BUILDING ABILITY VIEWS

 Regarding organization building in the context of entrepreneurship are of Frederick

Harbison, Higgins, Frantz, Richman, and Copen, etc.
 They have regarded the following basis for their views:
 Entrepreneurship is the quality of developing the resources for the enterprise, developing
human capabilities and the leadership ability to coordinate new ideas.
 Leadership and ability to develop creativity are more important for entrepreneurship, because
such ideas may be put to more uses. Hence, an entrepreneur should not be only an innovator,
he should also be a good leader and an efficient administrator.
 The entrepreneurs perform various organizational and managerial functions, like searching for
production opportunities, arranging raw materials and their new sources.
 CONT.

 Entrepreneurship is the ability of organization and planning of various sources of production, in

the form of a production unit.
 Entrepreneurship indicates some creative, as well as external and open systems. It performs the
functions of innovations, reducing risk burdens, and providing dynamic leadership.
 Thus, it is not essential that an entrepreneur should be an innovator, rather he should be a good
leader and an efficient administrator.
 He may build organizations with his leadership qualities, administrative skills, and creativity.
 3. ENTREPRENEURSHIP AS MANAGERIAL SKILLS

 Scholars, like B.F. Haslez, and J.S. Mill and Marshal, etc. have viewed entrepreneurship in
terms of managerial skills.
 They have following views to express entrepreneurship.
 Financial ability is not the man’s ability as an entrepreneur.
 Managerial skill is an important aspect of entrepreneurship.
 Inspection, control, and direction are the important functions of entrepreneurship.
 Entrepreneurship also includes the ability to direct, along with the capacity of bearing risks in
the business.
 CONT.

 Entrepreneurship includes bearing risks in the business, arranging labour and capital,
formulating general plans, establishing new Enterprises, investing various resources, selecting
high-quality managers for the day to day operation of the business and ability to take various
decisions for the efficient and gainful operation of the business and keeping supervision on
various business-related activities.
 According to Marshall, “An entrepreneur plays the role of a manager, after the establishment
of the enterprise.”
 Thus, entrepreneurship is Managerial skills, which facilitates easy achievements of the
determined objectives of the Institution.
 4. ENTREPRENEURSHIP AS INNOVE FUNCTION

 Ability: according to Schumpeter, “Entrepreneurship works for making any new invention and
implementing it, improving the method of production or bringing revolution in that.”
 For the first time, Schumpeter defined entrepreneurship as Innovative ability.
 He was of the view that production of any new product, use of any new method of production,
development of New Market, the search of new sources of raw materials and semi-finished
products, the operation of new Organization in any industrial, all such activities are included in
entrepreneurship.
5. 5.WORKING DEFINITION OF ENTREPRENEURSHIP

“ Is the process of creating something new with value, by devoting the necessary

time and attention , and assuming the accompanying financial, psychic and social

risks and achieving the resulting reward of monetary , personal satisfaction and

independence” (Hisrich and Peters 2002)

 EXAMPLES OF ENTREPRENEURS

• Bill Gates, founder of Microsoft. ...

• Steve Jobs, co-founder of Apple computers, which produces Macs, iPods and
iPhones, as well as Apple TV.
• Mark Zuckerberg, the founder of Facebook.
• Pierre Omidyar, founder of eBay.
• Arianna Huffington, founder of the Huffington Post, a well-known online news
site.
• Add more examples from Ghana
 BENEFITS / IMPORTANCE OF ENTREPRENEURSHIP.

 Entrepreneurs, powered by their dreams and passions, have been the engine for :

1. Creating new jobs,

2. Generating revenue,
3. Advancing / promotes innovation,
4. Enhancing productivity,
5. Improving business models and processes.
6. Can Promotes Social Change
7. Promotes Research and Industrial Development
8. Develops and Improves existing Industries
 .

1.

1. CREATING NEW JOBS

 By creating new products and services, they stimulate new employment, which ultimately
results in the acceleration of economic development. So public policy that encourages and
supports entrepreneurship should be considered important for economic growth.
 A large number of new jobs and opportunities are created by entrepreneurship.
Entrepreneurship creates a huge amount of entry-level jobs that are very much important to
turn unskilled jobholders into skilled ones. It also prepares and provides experienced
workers to large industries. The increase in the total employment of a country largely
depends on the rise of entrepreneurship. So the role of entrepreneurship in creating new job
opportunities is huge.
 2. GENERATE REVENUE

 Entrepreneurship helps to generate revenue to both the individual entrepreneur and the

government.

 The revenue is generated through the sale of the products, services or projects of the

entrepreneur whiles the revenue of the government is earned through the payment of taxes
by the entrepreneur to the state.

 In other words, when people set up businesses , they are require to pay taxes which serves as

income or revenue for the state to be use for developmental projects.

 . 3. ENTREPRENEURSHIP PROMOTES INNOVATION

 Through the right practices of research and development, entrepreneurs bring new

innovation that opens the door of new ventures, markets, products, and technology.
Entrepreneurs have a role to play in solving problems that existing products and
technology have not yet solved. So by producing new products and services or bringing
innovation to existing products and services, entrepreneurship has the potential to improve
peoples’ lives.
DISCUSS THE REMAINING POINTS IN CLASS WITH STUDENTS

1. Enhancing productivity,

2. Improving business models and processes.

3. Can Promotes Social Change

4. Promotes Research and Industrial Development

5. Develops and Improves existing Industries

1.1. FORMS OF ENTREPRENEURIAL ACTIVITIES

 There are basically two (2) forms of Entrepreneurial activities. These

includes;
 1. INTRAPRENEURSHIP
 2. EXTRAORENEURSHIP
 1.1.1 WHAT IS INTRAPRENEURSHIP?

 Intrapreneurship is simply entrepreneurship in an existing organization.

 In other words, Intrapreneurship, is a form of entrepreneurship that occurs within

existing organizations.

 According to Martiarena (2013) “the recognition of intrapreneurial activities has

widened the notion of entrepreneurship by incorporating entrepreneurial activities

undertaken within established organizations to the usual view of entrepreneurship
 CONT.

 Corporate entrepreneurship is another name for Intrapreneurship. internal

corporate entrepreneurship.

 That is Entrepreneurial activities within an organizational setting.

 Intrapreneurs are generally considered to be “significantly more risk-averse than

entrepreneurs, earn lower incomes, perceive fewer business opportunities in the

short term and do not consider that they have enough skills to succeed in setting
 Intrapreneurships foster autonomy and independence, while attempting to find

the best resolution.

 In many ways, intrapreneurship is easier for an individual than entrepreneurship

because it has the support of an existing organization

 For example, an intrapreneurship may require an employee to research and

recommend a more efficient workflow chart to a company's brand within a target

group or implement a way to benefit company culture.
 CONT.

 Merriam-Webster (n.d.) defines an intrapreneur as “a corporate executive who

develops new enterprises within the corporation” (Intrapreneur, n.d.);

 However, some might consider some employees who are not corporate executives

to also be intrapreneurs if they demonstrate entrepreneurial behavior within the

company they work for.
 Another example of an intrapreneur could be an employee or a director

and an organization that sees a problem within that organization and

knows that a change needs to happen and then what they do is to define
the rationale and create the opportunity for that change to happen and see
it through.
1.2 IMPORTANCE OF INTRAPRENEURSHIP

 1. Fostering innovation.

 Intrapreneurship is vital for fostering qualities like creativity,

vision, adaptability and initiative in your workforce. It's an

empowering approach to fostering innovation and entrepreneurial
behavior within an existing organization.
CONT.

 2. Intrapreneurship Increases Accountability.

 Instead of limiting employees through rigid management structures

that struggle to cope with uncertainty and fast evolving contexts,

intrapreneurship opens the door to an approach where individual
responsibility and ownership are key to drive the company forward.
CONT.

 3. Competitive Advantage.
 Companies that embrace intrapreneurship have a significant edge
in a highly competitive business landscape.
 This is because they can respond swiftly to market changes, adapt to
customer preferences, and seize emerging opportunities.
 By having a forward-thinking and innovative intrapreneur, businesses
may enter a market that wasn’t thought of before.
 This agility helps companies to maintain a competitive advantage and
stay relevant in their industry.
4. ATTRACTING AND RETAINING TALENT

 Talented individuals are drawn to organizations that encourage innovation

and provide opportunities for personal and professional growth.

 Businesses can attract top talent and retain their best employees by

promoting intrapreneurship.

 Intrapreneurs are often driven by the chance to work on exciting projects

and make a meaningful impact, making them more likely to stay with the
company.
5. ENHANCED PROBLEM-SOLVING

 Intrapreneurs are natural problem solvers.

 They thrive on tackling complex challenges and finding innovative

solutions.

 By nurturing an intrapreneurial spirit within the organization, businesses

can tap into the collective problem-solving abilities of their employees,

which can lead to quicker and more effective solutions.
 6. INCREASED EMPLOYEE ENGAGEMENT

 Intrapreneurship empowers employees by giving them a sense of ownership and

responsibility for their projects.

 Those who feel their ideas and contributions matter are generally more engaged

and motivated to perform at their best.

 This heightened engagement can lead to higher job satisfaction, lower turnover

rates, and a more positive work environment.

7. DIVERSE PERSPECTIVES

 Intrapreneurship encourages employees from various backgrounds and

departments to collaborate and share their perspectives.

 This diversity of thought can lead to more well-rounded solutions and

innovations. When people with different skill sets and experiences come
together to work on a project, they often generate more creative and
robust ideas.
 1.2 WHAT IS EXTRAPRENEURSHIP

 According to Jason Clay, Senior VP at WWF, extrapreneurs can be described as

“change agents” that “solve problems by moving between companies,

organisations and sectors, spreading ideas and solutions from one to another like
bees pollinating flowers”.
 CONT.

 Extrapreneurship is the concept of thinking like an entrepreneur while working as

part of a company.

 Rather than being confined to the walls of your job scope, you are the change

agent, devising processes and strategies to improve the way a firm operates to
become more efficient or profitable.

 This requires the mind of an entrepreneur, which many believe is innate and

cannot be taught.
1.2.1 IMPORTANCE OF EXTRAPRENEURSHIP

 Work in groups to find out the benefits or importance of extrapreneurship