GHANA COMMUNICATION TECHNOLOGY UNIVERSITY

Lecture 1: Introduction to Entrepreneurship

BY: Dr Bayuasi Nammei Luki

[email protected]

MAY, 2025
 Learning Objectives
1. Describe entrepreneurship, corporate entrepreneurship, and the
characteristics of entrepreneurial firms.
2. Discuss three main reasons people decide to become
entrepreneurs.
3. Identify four main characteristics of successful entrepreneurs.
4. Explain five common myths regarding entrepreneurship.
5. Describe three types of start-up firms.
6. Discuss the positive effects of entrepreneurship and
entrepreneurial firms on economies and societies.
7. Explain the entrepreneurial process.
8. Learn how understanding entrepreneurship and the
entrepreneurial process can facilitate career success.
Quotes From Entrepreneurial Icons That Will
Inspire You to Crush 2025
1. I like thinking big. If you’re going to be thinking
anything, you might as well think big. -- Donald
Trump
2. Move fast and break things. Unless you are
breaking stuff, you are not moving fast enough. --
Mark Zukerberg
 Entrepreneurship

• What is entrepreneurship?
• Can we define it?
• What do you think?
 What is Entrepreneurship?

• Scott Shane (Case Western) – “Entrepreneurship is

an activity that involves the discovery, evaluation
and exploitation of opportunities to introduce new
goods and services, ways of organizing, markets,
processes, and new materials through organizing
efforts that previously had not existed.”
• Howard Stevenson (Harvard) – “.. The pursuit of
opportunity without regard to resources currently
controlled.”
• W. Gibb Dyer, Jr. (BYU) – “The founding of new
businesses is the essence of entrepreneurial
activity.”
An entrepreneur is one who bears uncertainty, buys labour
and materials, and sells products at certain prices
Cantillon (1725)

The entrepreneur is an innovator. He does new things in a

new way. He supplies new products; makes new
techniques of production, discovers new markets, and
develops new sources of raw materials
Schumpeter (1934)

Entrepreneurs are people who have the ability to see and

evaluate business opportunities; to gather the necessary
resources and to take advantage of them; and to initiate
appropriate action to ensure success…Meredith, Nelson,
Meck..(1991)
 Entrepreneurs
Business expert Peter Drucker (1909-2005) took
this idea further, describing the entrepreneur as
someone who actually searches for change, responds
to it, and exploits change as an opportunity. A quick
look at changes in communications – from typewriters
to personal computers to the Internet – illustrates
these ideas.
 Entrepreneurs
Entrepreneurs are people that notice
opportunities and take the initiative to mobilize
resources to make new goods and services.
Many simply equate it with starting one's
own business.
 Common Myths About Entrepreneurs

• Myth 1: Entrepreneurs Are Born, Not Made

– This myth is based on the mistaken belief that some people
are genetically predisposed to be entrepreneurs.
– The consensus of many studies is that no one is “born” to
be an entrepreneur; everyone has the potential to become
one.
– Whether someone does or doesn’t become an
entrepreneur is a function of their environment, life
experiences, and personal choices.
 Common Myths About Entrepreneurs

Although no one is “born” to be an entrepreneur, there are common

traits and characteristics of successful entrepreneurs
• A moderate risk taker • Optimistic disposition
• Persuasive • A networker
• Promoter • Achievement motivated
• Resource assembler/leverager • Alert to opportunities
• Creative • Self-confident
• Self-starter • Decisive
• Tenacious • Energetic
• Tolerant of ambiguity • A strong work ethic
• Visionary • Lengthy attention span
 Common Myths About Entrepreneurs

• Myth 2: Entrepreneurs Are Gamblers

– Most entrepreneurs are moderate risk takers.
– The idea that entrepreneurs are gamblers originates from
two sources:
• Entrepreneurs typically have jobs that are less
structured, and so they face a more uncertain set of
possibilities than people in traditional jobs.
• Many entrepreneurs have a strong need to achieve
and set challenging goals, a behavior that is often
equated with risk taking.
 Common Myths About Entrepreneurs

• Myth 3: Entrepreneurs Are Motivated Primarily by Money

– While it is naïve to think that entrepreneurs don’t seek
financial rewards, money is rarely the reason
entrepreneurs start new firms.
– In fact, some entrepreneurs warn that the pursuit of
money can be distracting.
 Common Myths About Entrepreneurs

• Myth 4: Entrepreneurs Should Be Young and Energetic

– Entrepreneurial activity is fairly evenly spread out over
age ranges.
– While it is important to be energetic, investors often cite
the strength of the entrepreneur as their most important
criterion in making investment decisions.
• What makes an entrepreneur “strong” in the eyes of
an investor is experience, maturity, a solid reputation,
and a track record of success.
• These criteria favor older rather than younger
entrepreneurs.
 Born or made?
• Entrepreneurs can be divided in six groups
– “Novice” entrepreneur (without entrepreneurial experience)
– “Habitual” entrepreneur (a person with previous entrepreneurial
experience)
– “Nascent” entrepreneur (a person who is in the process of
creating a new organization – he or she can be “novice” and
“habitual”
– “Serial” entrepreneur (a person who constantly establishes and
sells organizations)
– “Portfolio” entrepreneur ( a person who owns several
organizations at the same time)
– “Intrepreneur “(a person who acts entrepreneurially in the
context of an existing organization).
 THE NEW EQUATION (1/2 X 2 X 3)

• Half of people working would lose their jobs in the

next 10 years of the advent of the 21st century.
• Those that would retain their jobs would be paid
twice as much as their current salaries
• Those that retain their jobs would be required to
produce 3 times as much.
• Implications
– Fewer jobs
– Higher pay
– Extremely long hours for the employed
– No time to enjoy the purse.
– Those without jobs would have all the time at their disposal but no money to spend.
– To combat this paradox, we need to generate new ideas.
 Intrapreneur vrs Entrepreneur
• There is a new school of thought on the
“Intrapreneur” who is a person within a large
corporation who takes direct responsibility for
turning an idea into a profitable finished product
through assertive risk-taking and innovation“
• Employees are urged to be entrepreneurial, “take
ownership” of particular components of the
company's work and be remunerated accordingly
for success
 How Similar or Different?
Similarities Differences

Both require a unique business concept that Intrapreneurs make risky decisions by using the resources of the
takes the form of a product, process, or service company while entrepreneurs make risky decisions using their own
resources

Both require that the entrepreneur be able to In start-up entrepreneurship, the entrepreneur takes the risk in
balance vision with managerial skill, passion intrapreneurship and the company takes the risk other than career-
with pragmatism, and proactiveness with related risk
patience

Both are predicated on value creation In a start-up, potential rewards for the individual entrepreneur are
and accountability to a customer theoretically unlimited whereas in intrapreneurship an organizational
structure is in place to limit rewards/ compensation to the entrepreneur/
employee

Both require the entrepreneur to develop Entrepreneurs prefer to develop tacit knowledge, instead of using
creative strategies for leveraging resources procedures and mechanisms from other companies. On the other hand
intrapreneurs work in organizations that have their own policies,
procedures and bureaucracy
 Who can become an entrepreneur?
There is no one definitive profile. Successful
entrepreneurs come in various ages, income levels,
gender, and race. They differ in education and
experience. But research indicates that most
successful entrepreneurs share certain personal
attributes, including: creativity, dedication,
determination, flexibility, leadership, passion, self-
confidence, and "smarts.
Characteristics of Successful Entrepreneurs
Figure 1.1 Four Primary Characteristics of Successful Entrepreneurs
Characteristics of Successful Entrepreneurs
• Passion for the Business
– The number one characteristic shared by successful
entrepreneurs is a passion for the business.
– This passion typically stems from the entrepreneur’s belief that
the business will positively influence people’s lives.
• Product/Customer Focus
– A second defining characteristic of successful entrepreneurs is a
product/customer focus.
– An entrepreneur’s keen focus on products and customers
typically stems from the fact that most entrepreneurs are, at
heart, craftspeople.
Characteristics of Successful Entrepreneurs
• Tenacity Despite Failure
– Because entrepreneurs are typically trying something new,
the failure rate is naturally high.
– A defining characteristic for successful entrepreneurs is
their ability to persevere through setbacks and failures.
• Execution Intelligence
– The ability to fashion a solid business idea into a viable
business is a key characteristic of successful entrepreneurs.
 Creativity
Creativity is the spark that drives the development of
new products or services, or ways to do business. It is
the push for innovation and improvement. It is
continuous learning, questioning, and thinking
outside of prescribed formulas
 Dedication
Dedication is what motivates the entrepreneur to
work hard, 12 hours a day or more, even seven days a
week, especially in the beginning, to get the endeavor
off the ground. Planning and ideas must be joined by
hard work to succeed. Dedication makes it happen
 Determination
Determination is the extremely strong desire to
achieve success. It includes persistence and the ability
to bounce back after rough times. It persuades the
entrepreneur to make the 10th phone call, after nine
have yielded nothing. For the true entrepreneur,
money is not the motivation. Success is the motivator;
money is the reward.
 Flexibility
Flexibility is the ability to move quickly in response to
changing market needs. It is being true to a dream
while also being mindful of market realities. A story is
told about an entrepreneur who started a fancy shop
selling only French pastries. But customers wanted to
buy muffins as well. Rather than risking the loss of
these customers, the entrepreneur modified her
vision to accommodate these needs
 Leadership
Leadership is the ability to create rules and to set
goals. It is the capacity to follow through to see that
rules are followed and goals are accomplished
 Passion
Passion is what gets entrepreneurs started and keeps
them there. It gives entrepreneurs the ability to
convince others to believe in their vision. It can't
substitute for planning, but it will help them to stay
focused and to get others to look at their plans
 Self-confidence
Self-confidence comes from thorough planning, which
reduces uncertainty and the level of risk. It also comes
from expertise. Self-confidence gives the
entrepreneur the ability to listen without being easily
swayed or intimidated
 "Smarts"
"Smarts" is an American term that describes common
sense joined with knowledge or experience in a
related business or endeavor. The former gives a
person good instincts, the latter, expertise. Many
people have smarts they don't recognize. A person
who successfully keeps a household on a budget has
organizational and financial skills. Employment,
education, and life experiences all contribute to
smarts.
key competencies and personal characteristics of
successful entrepreneurs

• This drives the development of new products or services or ways to do business. It

Creativity and is the push for innovation or improvement
Innovation • It is continuous learning, questioning, and thinking outside the box

• This is the extremely strong desire that motivates the entrepreneur to work hard
Dedication and and achieve success
determination • It includes persistence and the ability to bounce back after setbacks

• This is the ability to move quickly in response to changing market needs. Be

Adaptability & willing to improve, refine and customize services to continually give customers
Flexibility what they want.

• This is the capacity to follow through so that goals are accomplished

• Entrepreneurs seek opportunities, initiate projects, gather the physical, financial
Leadership and human resources needed to carry out projects

• The planning, organizing, directing and controlling of the firm’s financial resources
• The entrepreneur needs to determine the sources of funds for his enterprise
Financial Management

Decision Making • The process of selecting among available alternatives

 Can one have all qualities?
Every entrepreneur has these qualities in different
degrees. But what if a person lacks one or more?
Many skills can be learned. Or, someone can be hired
who has strengths that the entrepreneur lacks. The
most important strategy is to be aware of strengths
and to build on them
 Why Become an Entrepreneur?
Entrepreneurs are their own bosses. They make the
decisions. They choose whom to do business with and
what work they will do. They decide what hours to
work, as well as what to pay and whether to take
vacations. He combines the other factors of
production
 Prestige
It offers the prestige of being the person in charge.
It gives an individual the opportunity to build equity,
which can be kept, sold, or passed on to the next
generation
 Self involvement
It provides the ability to be involved in the total
operation of the business, from concept to design and
creation, from sales to business operations and
customer response.
 Financial rewards
Entrepreneurship offers a greater possibility of
achieving significant financial rewards than
working for someone else
 Creates an opportunity for a person
Entrepreneurship creates an opportunity for a person
to make a contribution. Most new entrepreneurs help
the local economy. A few – through their innovations
contribute to society as a whole. One example is
entrepreneur Steve Jobs, who co-founded Apple in
1976, and ignited the subsequent revolution in
desktop computers
 A Quote
“It is not the critic who counts, not the man who points
out how the strong man stumbled or where the doer of
deeds could have done them better. The credit belongs
to the man who is actually in the arena, whose face is
marred by dust and sweat and blood; who strives
valiantly; who errs and comes short again and again;
who knows the great enthusiasms, the great devotions,
and spends himself in a worthy cause; who, at the best,
knows in the end the triumph of high achievement, and
who, at worst, if he fails, at least fails while daring
greatly, so that his place shall never be with those cold
and timid souls who know neither victory nor defeat.” -
Theodore Roosevelt (1858 – 1919)
 Succeeding as an Entrepreneur
• Have a written plan. Without a plan, it is merely a dream. It
doesn't have to be a book, but you need a few pages outlining
specific objectives, strategies, financing, a sales and marketing
plan, and a determination of the cash you need to get things done
• Don't marry your plan. Every great military general in history has
known that even the best-laid plan sometimes has to be thrown
in the fire when the bullets start flying. Adjust, confront and
conquer.
• Keep your ego in check. This isn't about you; it's about the
business. Don't take things personally and stay out of emotion. Do
not let your ego take control.
• Listen to others. Advisors are crucial because you need people to
bounce ideas off, inspect what you're doing, and push you to
greater accomplishments, holding you accountable for what you
are committing to do.
 Succeeding as an Entrepreneur
• Keep track of everything, and manage by the numbers. Know
your numbers and check them daily and make all decisions
based on what they tell you. One of the most important
calculations is cash flow pro forma. Determine how much cash
you need to do the business, and do not start without the
required cash on hand.
• Delegate to employees and avoid micromanaging them. A
manager's job is to delegate and then inspect progress. So don't
be a control freak. Use an incentive-based rewards system, and
maintain a no-problem attitude about issues that crop up.
• Connect with your customers. Build rapport with your market.
• Reinvent your business. It is net profit, not gross revenue, that
you want to focus on. Separate yourself from your history and
create a new competitive advantage, but not by discounting
 Decisions and Downfalls
Entrepreneurship is an attractive career choice. But
many decisions have to be made before launching and
managing a new business, no matter its size. Among
the questions that need to be answered are:
 Decisions and Downfalls
• Does the individual truly want to be responsible for a business?

• What product or service should be the basis of the business?

• What is the market, and where should it be located?

• Is the potential of the business enough to provide a living wage for its
employees and the owner?

• How can a person raise the capital to get started?

• Should an individual work full or part time to start a new business?

 The Way Forward
Preparatory work includes:
• Evaluating the market opportunity
• Developing the product or service
• Preparing a good business plan
• Figuring out how much capital is needed
• Making arrangements to obtain that capital
 Go It Alone or Team Up?

One important choice that new entrepreneurs have to

make is whether to start a business alone or with
other entrepreneurs. They need to consider many
factors, including each entrepreneur's personal
qualities and skills and the nature of the planned
business. In the United States, for instance, studies
show that almost half of all new businesses are
created by teams of two or more people. Often the
people know each other well; in fact, it is
 Advantages of Teamwork

There are many advantages to starting a firm with

other entrepreneurs. Team members share
decision-making and management responsibilities.
They can also give each other emotional support,
which can help reduce individual stress
 Lower Risks
Companies formed by teams have somewhat lower
risks. If one of the founders is unavailable to handle
his or her duties, another can step in
 Creativity

Team interactions often generate creativity. Members

of a team can bounce ideas off each other and
"brainstorm" solutions to problems
 Credit Facilities
Studies show that investors and banks seem to prefer
financing new businesses started by more than one
entrepreneur. This alone may justify forming a team
 Complementary Skills
Other important benefits of teaming come from
combining monetary resources and expertise. In the
best situations, team members have complementary
skills. One may be experienced in engineering, for
example, and the other may be an expert in
promotion
 Lower Rate of Failure

In general, strong teams have a better chance at

success. In Entrepreneurs in High Technology,
Professor Edward Roberts of the Massachusetts
Institute of Technology (MIT) reported that
technology companies formed by entrepreneurial
teams have a lower rate of failure than those started
by individuals. This is particularly true when the team
includes a marketing expert
 Blend of Age Differences
Entrepreneurs of different ages can create
complementary teams also. Optimism and a "can-do"
spirit characterize youth, while age brings experience
and realism. In 1994, for example, Marc Andreessen
was a talented young computer scientist with an
innovative idea. James Clark, the founder and
chairman of Silicon Graphics, saw his vision. Together
they created Netscape Navigator, the Internet-
browsing computer software that transformed
personal computing.
Great Entrepreneurs in Ghana?
 Disadvantages of Teamwork

First, teams share ownership. In general,

entrepreneurs should not offer to share ownership
unless the potential partner can make a significant
contribution to the venture. Teams share control in
making decisions. This may create a problem if a team
member has poor judgment or work habits.
• Most teams eventually experience serious
conflict. This may involve management plans,
operational procedures, or future goals. It may
stem from an unequal commitment of time or
a personality clash. Sometimes such conflicts
can be resolved; in others, a conflict can even
lead to selling the company or, worse, to its
failure.
 The Entrepreneurial Process

The Entrepreneurial Process Consists of Four Steps

Step 1: Deciding to become an entrepreneur.
Step 2: Developing successful business ideas.
Step 3: Moving from an idea to an entrepreneurial firm.
Step 4: Managing and growing the entrepreneurial firm.
Steps in the Entrepreneurial Process

Step 1 Step 2
Developing Successful Business Ideas
Steps in the Entrepreneurial Process
Step 3 Step 4
THANK YOU