Entrepreneurship( Notes 1)

ENTREPRENEURSHIP
What is Business?
Before a potential entrepreneur starts a business, he or she must understand what the essence
of a business is. The term business has a variety of definitions.
1. “An organization operated with the objective of making profit from the sale of goods or
services.” (http://www.finet.com.hk/accounting/b.htm)
2. ‘The buying and selling of products or services in order to make a profit.”
(Mariotti, 2006).
Introduction
The word entrepreneur originates from the French word, ’entreprendre’, which means "to
undertake" and was first defined by the Irish‐French economist Richard Cantillon.
What is Entrepreneurship?
A normal response to this question is that entrepreneurship is about creating or establishing a

business. Entrepreneurship however is more than simply starting or operating a small business.
This is evident in the responses from the people in the cartoon below.
The art of entrepreneurship lies in innovative thought, implementation, and growth of a

business.
Let’s examine some different definitions of entrepreneurship
1. Entrepreneurship is a dynamic, social process where individuals, alone or in
collaboration identifies financial opportunities and acts upon them by establishing new
enterprises.
2. Entrepreneurship describes the process of creating, developing, and managing a new
business or project to turn innovative ideas into reality.
Page | 1 ENTREPRENEURSHIP
Examples of Entrepreneurship
 Mark Zuckerberg - Facebook:
Mark Zuckerberg started Facebook as a college project, which then developed into one of the
largest social networks in the world. His ability to identify trends and leverage technological
innovations has been a key factor in the company's success.
 Elon Musk - Tesla and SpaceX & Star Links:
Elon Musk is a modern example of visionary entrepreneurship. He founded Tesla, pioneering

electric mobility and transforming the automotive industry. Additionally, with SpaceX, he
revolutionized the space industry through innovations like reusable rockets. A significant
extension of his vision is the Star link project, which aims to provide global internet coverage
using a constellation of low Earth orbit satellites. This initiative not only seeks to connect
underserved areas but also supports SpaceX's broader goal of making space more accessible.
Together, these ventures highlight Musk's impact on technology and infrastructure.
Important aspects of entrepreneurship

Building upon the definition, Nieman et al, (2004:9) identified the following concepts as integral
to the understanding of entrepreneurship. Entrepreneurship means that an individual must be
able to:
 Identify an opportunity ‐ This means that there must be a real business opportunity.
 Be innovative and creative ‐ Something new and different is required that is needed by
a target audience.
 Gather resources ‐ Capital, labor and operating equipment must be found.
 Create and grow a business ‐ This means the start of a new business venture or the
conversion of an existing business.
 Take risks ‐ There will be both personal and financial risks.
 Create rewards ‐ Reward can be in the form of profit or increased value of the business.
 Manage a business ‐ This means that there must be planning, organization,
leadership, and control of all the functions.
So, if entrepreneurship is a process of starting a new business, generally there also needs to be
someone who undertakes such a process. That is the entrepreneur.
The Entrepreneur
The person who plans, implements, and manages a small business is usually called an
entrepreneur. This person must be able to embrace the concepts described by Nieman above.
Some additional definitions of an entrepreneur are:
An entrepreneur can be defined as "one who undertakes innovations, finance, and business
acumen to transform innovations into economic goods”.
(Wikipedia)
M. Gerber (1986) in his book “The E-Myth” describes the entrepreneur in these terms:
“The entrepreneur is the visionary in us. The dreamer.
The energy behind every human activity. The imagination that sparks the fire of the future.
The catalyst for change. The entrepreneur lives in the future, never in the past, rarely in the
present. He (or she) is happiest when left free to construct images of ‘what if’ and ‘if‐when’”.
So, based on the above definitions an entrepreneur must:
 Be a risk taker.
 Be innovative.
 See potential opportunities in the community.
Why Do People Become Entrepreneurs?

8 reasons why people become entrepreneurs
Though people may have different personal and professional motivations for going into
entrepreneurship, there are a few common reasons why people go for entrepreneurship,
including:
1. Their creativity doesn’t fit the corporate environment

Perhaps one of the biggest reasons people become self-employed is because they find it difficult
and frankly unnatural to fit the corporate mold, work for someone else, or on someone else’s
timetable. As someone with great ideas, it can be challenging to convince others to invest in your
plans or see the value of your career goals. This is often a big reason why people become
entrepreneurs, taking a great idea and all their creativity and putting it towards their businesses.
As an entrepreneur, you can marry your creativity with opportunity, fueling a great business idea
with passion and determination to make it a reality.
2. They want a lifestyle that isn’t nine-to-five
Another perk of entrepreneurship is that you are your boss, and you can set your work hours.
The days of clocking in at 9 a.m. and clocking out at 5 p.m. every day are over. As an
entrepreneur, you get to embrace odd work hours and report to only yourself. This means you
may find yourself working 10-hour days one week and six-hour days another, with the freedom
to do your job as needed.
You can also set your work schedule to complement your best working hours, such as starting
late in the evening if you find you do your best thinking at night. Or you may decide to get an
early start and work in the mornings.
3. They’re passionate about learning

Entrepreneurship is probably a great match for you if you love to discover new information or
study the latest innovations. Successful entrepreneurs are often consummate learners,
researching the biggest trends in their field and staying on top of great ideas that are already in
the marketplace. Curiosity is a crucial skill for an entrepreneur, as it can lead to the next great
idea or innovation.
Entrepreneurs are often drawn to work for themselves because they are curious about what is
beyond their nine-to-five job. They desire to be challenged and always be learning, even when
they achieve success in their field. From reading business books to staying up to date on the latest
innovations, entrepreneurs are hungry for knowledge so they can make their mark in their field.
4. They have unconventional ideas

Many entrepreneurs struggle with thinking like everyone else. They might feel a bit abnormal or
strange in their approach to the world. This unconventional approach is one of the key skills for
an entrepreneur to possess, as it allows them to think outside the box and do things differently.
This could be as small as how they approach marketing a product or how they run their social
media accounts. It can be as large as how they build community with other businesses or how
they create jobs for employees at their company.
Most entrepreneurs embrace the unconventional way of doing things, which means they are not
thinking like other businesses already operating in the marketplace or falling into the same old
way of running a business. They may stick out in society or buck the trend, but this is also what
makes them such great entrepreneurs.
5. They want to take action

The entrepreneurship mindset is often a good fit for those who struggle with having a job with a
boss they have to report to or get permission from to take action. As an entrepreneur, the only
person you have to obtain permission to do something is yourself, which allows you to create
your opportunities.
Many entrepreneurs thrive in a can-do environment, where they have the freedom to make their
own decisions and carve their path in life. This may sound risky, and it is, but it’s also an essential
part of entrepreneurship. Though you will face many challenges and experience failure, being an
entrepreneur allows you to blaze your trail and learn from your mistakes on your own terms.
6. They want to change the world

Changing the world may sound like a tall order, but many entrepreneurs are motivated by a
desire to make a change in their community. They often get into entrepreneurship because they
question the status quo and wonder if there might be a better way to do things. They may also
identify a gap in services, knowledge, or support in their community and decide to address it with
a great business idea or an unconventional solution.
Entrepreneurs know that making a change in the world doesn’t come from simply doing what’s
expected or what everyone else is doing. Instead, it comes from embracing one challenge after
another and coming up with the idea to make the world a better place, even in small ways.
7. They embrace opportunity

As an entrepreneur, you are good at spotting opportunities and running towards them
wholeheartedly. Though there are usually risks involved in any opportunity, entrepreneurs are
willing to take them on if they feel it will be worth their time and grow their business.
Opportunities such as a new contact or a new client, or access to a better supplier or vendor, are
the lifeblood of an entrepreneur. Where some people may run away from an opportunity out of
fear, entrepreneurs are motivated enough to know when it feels right to say yes and dive in
headfirst.
8. They seek freedom and control

As an entrepreneur, you seek the freedom to be your boss while also exercising complete control
over every facet of your business. This preference is often why conventional jobs aren’t a great
fit for entrepreneurs, as they offer neither and may not feel like much of a challenge.
Like anything in life, being a successful entrepreneur requires a healthy balance between
freedom and control, especially as the business grows and the work becomes more challenging.
Entrepreneurs often have to weigh the freedom and control of being their boss with their
responsibility.
References
1. Introduction to Entrepreneurship Commonwealth of Learning Edition 1 (https://oasis.col.org/serve
r/api/core/bitstreams/24fc6ce7-028e-48b7-8b48-15670a5a5223/content)
2. https://www.munich-business-school.de/en/l/business-studies-dictionary/entrepreneurship

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ENTREPRENEURSHIP

A normal response to this question is that entrepreneurship is about creating or establishing a

The art of entrepreneurship lies in innovative thought, implementation, and growth of a

 Elon Musk - Tesla and SpaceX & Star Links:

Elon Musk is a modern example of visionary entrepreneurship. He founded Tesla, pioneering

Important aspects of entrepreneurship

So, based on the above definitions an entrepreneur must:

 See potential opportunities in the community.

Why Do People Become Entrepreneurs?

1. Their creativity doesn’t fit the corporate environment

3. They’re passionate about learning

4. They have unconventional ideas

5. They want to take action

6. They want to change the world

7. They embrace opportunity

8. They seek freedom and control

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