ENTREPRENEURSHIP AND COMMUNITY DEVELOPMENT
SUMMARY INTRODUCTION NOTES, MAY 2021
Introduction to entrepreneurship
Basic terminologies used in entrepreneurship
Definition of an entrepreneur
1. An entrepreneur is basically a person who identifies a business opportunity and obtains
the resources necessary to initiate a successful business activity.
o The entrepreneur implements the idea.
o Undertakes to operate the business.
An entrepreneur is therefore a central key individual i n the society who makes things happens
for economic development.
2. An entrepreneur is someone who consciously moves economic resources from an area of
lower, and into an area of higher productivity and greater yield (J.B. Say). In other words, the
entrepreneur takes existing resources, such as people, materials, buildings and money, and
redeploys them in such a way as to make them more productive and give them greater value.
3. An entrepreneur is someone who always searches for change, responds to it and exploits it as
an opportunity (Peter Drucker).
Meaning of entrepreneurship
o In the broader sense entrepreneurship refers to the means of stimulating innovative
and creative undertakings for a better business community or world.
o Entrepreneurship means to undertake and focuses on a business enterprise.
o Entrepreneurship can exist in any situation-therefore it is the creation of values through
establishing a business enterprise.
o Entrepreneurship means having an idea of one’s own and trying to implement the idea to
create values on it.
o Entrepreneurship is a term which encompasses what entrepreneurs do. That is;
, Identifying a business opportunity of a particular demand.
Look at the opportunity as a process of creating, something that did not exist.
Constantly searching/ harnessing ones environment and resources to implement the
activities.
Creating a totally new product and using it in as new.
o Entrepreneurship is the practice of starting a new business or revitalizing existing businesses
in response to identified opportunities.
o Entrepreneurship involves a transformative process of social and market change that creates
value for individuals and for society. This process can take place in a wide range of contexts
with the progression from opportunity identification through to realizing value (Stokes &
Wilson, 2010). This value can take many forms-personal wealth, family security, social
inclusion or perhaps cultural aesthetic pleasure.
o Entrepreneurship is the process of creating something new of value by devoting the
necessary time and effort, assuming the necessary financial, psychic and social risks, and
receiving the resulting rewards of monetary and personal satisfaction and independence
(Hisrich & Peters, 2002).
o Stokes and Wilson (2010) note that Entrepreneurship is a process of change comprising three
behavioural components:
i) The identification, evaluation and exploitation of an opportunity;
ii) The management of a new or transformed organization so as to facilitate the
production and consumption of new goods and services; and
iii) The creation of value through successful exploitation of a new idea (i.e. requiring
both creativity and innovation).
Entrepreneurship is not a process confined to the small profit-making enterprise.
Entrepreneurship takes place in a wide variety of contexts.
Entrepreneurship in different contexts
Entrepreneurs can exist in large as well as small economic units, and in the public as well as the
private sector. Small business does not have a monopoly of entrepreneurial talent. There is a
perception, to some extent confirmed by research, that small business is innovative, and therefore
SUMMARY INTRODUCTION NOTES, MAY 2021
Introduction to entrepreneurship
Basic terminologies used in entrepreneurship
Definition of an entrepreneur
1. An entrepreneur is basically a person who identifies a business opportunity and obtains
the resources necessary to initiate a successful business activity.
o The entrepreneur implements the idea.
o Undertakes to operate the business.
An entrepreneur is therefore a central key individual i n the society who makes things happens
for economic development.
2. An entrepreneur is someone who consciously moves economic resources from an area of
lower, and into an area of higher productivity and greater yield (J.B. Say). In other words, the
entrepreneur takes existing resources, such as people, materials, buildings and money, and
redeploys them in such a way as to make them more productive and give them greater value.
3. An entrepreneur is someone who always searches for change, responds to it and exploits it as
an opportunity (Peter Drucker).
Meaning of entrepreneurship
o In the broader sense entrepreneurship refers to the means of stimulating innovative
and creative undertakings for a better business community or world.
o Entrepreneurship means to undertake and focuses on a business enterprise.
o Entrepreneurship can exist in any situation-therefore it is the creation of values through
establishing a business enterprise.
o Entrepreneurship means having an idea of one’s own and trying to implement the idea to
create values on it.
o Entrepreneurship is a term which encompasses what entrepreneurs do. That is;
, Identifying a business opportunity of a particular demand.
Look at the opportunity as a process of creating, something that did not exist.
Constantly searching/ harnessing ones environment and resources to implement the
activities.
Creating a totally new product and using it in as new.
o Entrepreneurship is the practice of starting a new business or revitalizing existing businesses
in response to identified opportunities.
o Entrepreneurship involves a transformative process of social and market change that creates
value for individuals and for society. This process can take place in a wide range of contexts
with the progression from opportunity identification through to realizing value (Stokes &
Wilson, 2010). This value can take many forms-personal wealth, family security, social
inclusion or perhaps cultural aesthetic pleasure.
o Entrepreneurship is the process of creating something new of value by devoting the
necessary time and effort, assuming the necessary financial, psychic and social risks, and
receiving the resulting rewards of monetary and personal satisfaction and independence
(Hisrich & Peters, 2002).
o Stokes and Wilson (2010) note that Entrepreneurship is a process of change comprising three
behavioural components:
i) The identification, evaluation and exploitation of an opportunity;
ii) The management of a new or transformed organization so as to facilitate the
production and consumption of new goods and services; and
iii) The creation of value through successful exploitation of a new idea (i.e. requiring
both creativity and innovation).
Entrepreneurship is not a process confined to the small profit-making enterprise.
Entrepreneurship takes place in a wide variety of contexts.
Entrepreneurship in different contexts
Entrepreneurs can exist in large as well as small economic units, and in the public as well as the
private sector. Small business does not have a monopoly of entrepreneurial talent. There is a
perception, to some extent confirmed by research, that small business is innovative, and therefore
