I.

INTRODUCTION:

This chapter provides you with an overview of entrepreneurship and of the language of
entrepreneurship. The challenges associated with defining entrepreneur and
entrepreneurship are explored, as is an overview of how entrepreneurship can be
studied.

The objective is to enable you to apply current concepts in entrepreneurship to the

evaluation of entrepreneurs, their ventures, and the venturing environment. You will
develop skills, including the capability to add value in the new venture sector of the
economy. You will acquire and practice evaluation skills useful in consulting, advising,
and making new venture decisions.

“Whilst there is no universally accepted definition of entrepreneurship, it is fair to say

that it is multidimensional. It involves analyzing people and their actions together with
the ways in which they interact with their environments, be these social, economic, or
political, and the institutional, policy, and legal frameworks that help define and
legitimize human activities.”

– Blackburn
(2011, p. xiii)

Entrepreneurship involves such a range of activities and levels of analysis that no single
definition is definitive.

– Lichtenstein
(2011, p. 472)

It is complex, chaotic, and lacks any notion of linearity. As educators, we have the
responsibility to develop our students’ discovery, reasoning, and implementation skills
so they may excel in highly uncertain environments.

– Neck and
Greene (2011, p. 55)

II. OBJECTIVES:

 Compare Entrepreneur and Entrepreneurship 

 Discuss the concepts of Entrepreneurship

Chapter 1: The following needs to be on Chapter 1 parts: 

 Entrepreneurship: An Introduction 
 The Historical Usage of Entrepreneurship
 The Entrepreneur and the Innovator 
 Who is an Entrepreneur? 
  5 concepts of Entrepreneurship

Entrepreneurship: An Introduction

Entrepreneurship has traditionally defined as the process of designing, launching, and

running a new business, which typically begins as a small business.

The Historical Usage of Entrepreneur 

 Entrepreneurs is loanword from French. First used in 1723, today the term
“entrepreneurship” implies qualities of leadership, initiative and innovation in new
venture design 
 In 20th century, entrepreneurship was studied by Joseph Schumpeter in the
1930s and other Australian economists such as Carl Menger, Ludwig von Mises
and Friedrich von Hayek. 
 For Schumpeter entrepreneurship resulted in new industries and in new
combinations of currently existing inputs 
 For Schumpeter, the entrepreneur did not bear risk, the capitalist did. He
believed that the equilibrium ideal was imperfect Schumpeter (1934)
demonstrated that changing environment continuously provides new information
about the optimum allocation to enhance profitability some individuals acquire the
new information before others, recombine the resources to gain an
entrepreneurial profit.

The Entrepreneur and the Innovator

 Because of the capacity for challenging status quo or for changing rules of
business, entrepreneurs are often described as innovators, or creative minds that
can make things happen, while some entrepreneurs are also innovators, this is
not always the case, it is important to make distinction as making things happen
is not the same as making new thing happen

Who is an Entrepreneur?

 An entrepreneur is the owner of the business who invests his/her resources to

bring an idea in to life, setting direction that transforms that idea into reality, thus
providing and gaining value that balances effort, purpose and profit. 
 The description is different from a corporate entrepreneur who does everything
like an entrepreneur but does not have a financial stake in the business. i.e.
intrapreneur with an entrepreneurial spirit.

5 concepts of Entrepreneurship

1. The Entrepreneur as A missionary

  The entrepreneur is a missionary perceives opportunities inherent in the
exchange of goods with great desire for profit.

2. The Entrepreneur as an Extra Ordinary Business Man

 Has knowledge which ordinary people do not have

 This additional knowledge leads the entrepreneur to exploit the opportunities to
make profit

3. The Entrepreneur is Goal Driven

 The entrepreneur is goal driven and self-confident as he exercises the locus of

control
 He sets high goals and strive to attain the projected target and accomplishments

4. The Entrepreneur is Marketing Man

 The marketing environment is identified by entrepreneur and thus he marshals

his resources to pursue the opportunities and makes immediate action to exploit
his personal gain
 The needs and wants of the customers are properly identified.

5. The Entrepreneur Starts small to become big

 He perceives risk as opportunity and makes innovation or modifications as he

exploits the resources available to make it happen.