Entrepreneurship

ENTERPRENUERSHIP
- Entrepreneurship is the act or process of identifying business opportunities and getting the
necessary resources to start a business such as a welding, bicycle repair, plumbing etc
- An entrepreneur is the person who identifies business opportunities and get the necessary
resources holder to start the business
- Entrepreneurship is a discipline which is growing at a faster rate because formal employment are
decreasing
- The course in art equipping the trainee with necessary skills knowledge and attitude that will
enable them to start operate and manage personnel and group business successfully.
- The trainee therefore is supposed to achieve the following ideas
i. Is demonstrate the attitude towards self employment
ii. To identify a viable business opportunity
iii. To understand the factors that are likely to affect business either the business succeed or fail
iv. The trainee should have desire to venture in the business

THEORIES OF ENTERPRENUERSHIP
(a) Trait Theory
- These are the entrepreneurs who are born but are not made
- According to this theory it is emphasized the entrepreneurs are born with talents of venturing
to business, such people are aggressive in exploiting their talents which is a business venture.
Example
A child brought up in a business environment tend to become like the parents and hence getting
entreprenual skills

b) Station theory/opportunist theory
Some people are able to recognize a business opportunity use the opportunity to gain advantages for
themselves without considerately or rightness. They look a situation as it is decide the action as it is
and make profits one of it.

NB
The above is the general observation by the scholars but the entrepreneurship can also be trained to
realize, busy and exploit there talents.

TYPES OF ENTREPRNUERSHIP
i. Craft entrepreneurship
This is a person who exploits and use his personal skills without expandency the business eg a
blacksmith who makes fabrics without expanding.

ii. Opportunists entrepreneurship
People who take advantage of situation, there are more or less of considerations. There interest is
to make business grow and expand they delegate responsibilities to others hence they open any
branches of businesses.

iii. Investors
- This are people who take calculated risks as they put there mostly into business projects.
- They accuse more to work for them but nor work for money
- These are people who attain finances freedom, they advance well is the social well being; because
of finances freedom

, iv. Traders merchants
They engage of buying and selling of commodities

v. Visionaries
Are people who have a fore sight than any other person, they are people to see what is likely to
happen and take an advantage to make money out of it eg having boom harvested they may buy
maize in large quantities and sell them during famine.

vi. Organizer
These are leaders who are able to manipulate other people and get at there advantage. Thus
making money one of people.

Characteristics of entrepreneurship
i. Desire to achieve
A entrepreneur is a person who wishes to excel and has a strong derive while competing with
others, always he or she tries to accomplish something.

ii. Ability to solve problems
He should be or problems solves and struggle with determination even under difficult situations
so that the business can succeed

iii. Readiness to take risk
A risk is a situation which involves a potential gain and a potential loss
The out come of such a situation is not actually known
The entrepreneur should be able to access the risk and take calculated risk

iv. Initiative
He should be aggressive in implementary ideas used ahead of other people so that he/she can
remain a head of them

v. Time consciousness
As entrepreneur should be able to use time economically and avoid wasting a wise and quick
implemented decision may incur success in business where lose time would mean business
failure

vi. Creativity and innovation
Refers to imagination of thoughts and investor, (originality and new methods and ideas, a good
entrepreneur generates a good idea and put them in base way of putting into practice

vii. Self confidence
Should have a strong believe of him or herself and abilities, he should be expressed to complete
a task.

ADVANTAGES OF ENTREPRENEURSHIP/REASONS OF JOINING SELFEMPLOYMENT
i. Independence
Entrepreneurship are where own bosses as they free to control others, they are able to use the
skills and knowledge the way they fill comfortable

, ii. Entrepreneurship enjoys the profits from the business and they look forward for success to
enjoy more profits

iii. Job security
Its an assurance that one will continue to be employed at earning income and this assurance can
only be guaranteed it self employment where a person is not subject to retrenchment to be fired
or retiring after attaining certain age.

iv. Personal satisfaction
The entrepreneurship was right to choose the project in which he or she is interested in and
hence he or she works better to the up move satisfaction from the business venture

v. Status and pride
Status refer to social rank of an individuals in society. A save point person enjoys a high position
in society above other ordinary people.
People tend to feel proud when they find themselves owning something or being associated with
success others they derive pressure by dividing there names written or business premises or even
there advertisement

vi. Gain power
Entrepreneur get power from achievement and they can be ready to lead others as they follow
they become opinion leader and adds ability to influence others

REASONS/DISADVANTAGES PEOPLE MAY NOT ENTER SELF EMPLOYMENT
i. Tear of possible loss/invested funds
Incase the business venture fails the entrepreneur state frustrations of losing money to business
and this is disadvantage especially it the money was borrowed eg loan
The asset which was used as a security may end up being salary to pay for loan.

ii. Long working hours
Entrepreneur tend to work for long hours because the success of their business depend on their
commitments therefore they tend to arrive very early to morning and frees the workplace at
right. This leaves them with little time for recreation, social life is interfered to and may lead to
breaking up of the family. This is because business loans are set to suite customer at expense of
the family.

iv. Uncertainty income
As like salaried person a self-employed person may not have regular income because profits keeps or
frustration.
At times entrepreneur may find the net profit is a lot enough to meet his day-to-day expenses.

v. Routine cover
Self-employed people engage in one activity that is specialized which is associated with boredom and in
day out. As a deduct operation of the same cover.
- Clear problems include;

vi. Broad responsibility- entrepreneur may have more than what he/she is able to handle as responsibility
as his dispose. This decreases the efficiency of a person.

, vii. No extra benefits- No extra benefits the entrepreneur gets as a result of hard work i.e. the reward is
only the profits other thing take multificial are not there.

viii Uncertain future of business- a business might be performing at one season and due to dynamic
finative to employment of entrepreneur.

PAID EMPLOYMENT
ADVANTAGES
i. There are specific duties and enabling to him/her to perform the base
ii. Steady flow of income and hence one can be for income
iii. They are other extra benefits being employed such as paid annually leave, maternity leave,
paternity leave, insurance cover
iv. They are fixed number of hours enabling one to please for leisure/ recreation, time for family
etc (parentally)
v. There is move certain future earning regular income
vi. There is minimum risk since the person is employed not a risk taker

DISADVANTAGES
i. There is no self control one less to follow the orders as they come, one has not have a right to
make his
ii. The salary is fixed hence extra effort of an individual may not be rewarded equitably
iii. Limited responsibilities
May have ability and talent to absorb more responsibility but its expected to do what is ordered
iv. Lack of independence – employees depends or the employer for their daily meal
v. Lack of job security – she employee can be fired retrenched any time or can be forced into
retirement after a certain age

FACTORS TO CONSIDER WHEN STARTING
There are many factors that influence failure or success of a business and an entrepreneur needs to know
them to match this capabilities and challenges he intends to start.
These factors can be categorized into groups i.e.
i) Personal factors.
ii) Resources factors
iii) Environments

1) PERSONAL FACTORS
These are factors that include personally traits and characteristics that enable the entrepreneur to start and
continue with the business e.g.
i) Is the entrepreneur?
Hard working, risk taking or lower person.
ii) Skills – skills are necessary personal factors that determine the success of a business.
An entrepreneur should start a business in which he has relevant knowledge, skills and experience.
iii) Family support – family and business are separable and therefore good family relationship support are
necessary for the success of the business.
iv) Health – enterprise should be physically and mental fit to operate a business effectively.

2) RESOURCE FACTORS
These are factors which relates to
i. Financial Resource.
To start he is supposed to have capital.