ENTREPRENEURSHIP
CPA SECTION 1
TOPIC 1: INTRODUCTION
ENTREPRENEURSHIP – Is the process of developing, organizing, and running a new business to
generate profit while taking on financial risk.
An Entrepreneur - is someone who has an idea and who works to create a product or service
that people will buy, as well as an organization to support that effort. He/She takes most of the
risk and initiative for their new businesses.
Types of entrepreneurs.
Entrepreneurs are classified into different types based on different classification which include:
a) Based on types of business
i. Trading entrepreneurs – These undertake trading activities. They provide the
finished products to manufacturers.
ii. Manufacturing entrepreneurs – These manufactures products. They identify the
needs of the customers and then explore the resources and technology to be
used to manufacture the products to satisfy customers’ needs.
iii. Agricultural entrepreneurs – They do agriculture for business reasons.
b) Based on the use of technology
i. Technical entrepreneurs – These establish and run science and technology
based industry.
, ii. Non-Technical entrepreneurs – These are entrepreneurs who are not technical.
Are concerned with the use of alternatives of marketing and distribution
strategies.
c) Based on ownership
i. Private entrepreneurs – Is one who is an individual setting up a business
enterprise. Is a sole owner of the enterprise and bears all the risks.
ii. State entrepreneur – Is a state whereby trading or industrial venture is
undertaken by the state or government.
iii. Joint Venture – Is when a private entrepreneur and government jointly run a
business enterprise.
d) Based on enterprise.
i. Small scale entrepreneur – Is one who has made investment in plant and
machinery (Whose assets are few and the member of employees ranges
between 0-20)
ii. Medium scale enterprise – Is one who has made investment in assets and the
number of employees exceeds 10.
iii. Large Scale enterprise – These are those who run large businesses.
Others include;
1) Fabian Entrepreneurs – These are skeptical in their approach in adopting or innovating
new technology in their enterprise. They are not adoptable in changing their
environment.
2) Imitative entrepreneurs – Are characterized by small innovation. They seizes
opportunities for introduction of new ideas.
3) Innovative entrepreneurs – Are those who introduce new goods or methods of
production.
4) Drone entrepreneurs – They are conservative in outlook. They never like to rid their
traditional businesses or traditional machineries or systems of their businesses.
5) Self-employed entrepreneurs – Is one who does all the work and enjoys all products but
suffers losses alone.
CPA SECTION 1
TOPIC 1: INTRODUCTION
ENTREPRENEURSHIP – Is the process of developing, organizing, and running a new business to
generate profit while taking on financial risk.
An Entrepreneur - is someone who has an idea and who works to create a product or service
that people will buy, as well as an organization to support that effort. He/She takes most of the
risk and initiative for their new businesses.
Types of entrepreneurs.
Entrepreneurs are classified into different types based on different classification which include:
a) Based on types of business
i. Trading entrepreneurs – These undertake trading activities. They provide the
finished products to manufacturers.
ii. Manufacturing entrepreneurs – These manufactures products. They identify the
needs of the customers and then explore the resources and technology to be
used to manufacture the products to satisfy customers’ needs.
iii. Agricultural entrepreneurs – They do agriculture for business reasons.
b) Based on the use of technology
i. Technical entrepreneurs – These establish and run science and technology
based industry.
, ii. Non-Technical entrepreneurs – These are entrepreneurs who are not technical.
Are concerned with the use of alternatives of marketing and distribution
strategies.
c) Based on ownership
i. Private entrepreneurs – Is one who is an individual setting up a business
enterprise. Is a sole owner of the enterprise and bears all the risks.
ii. State entrepreneur – Is a state whereby trading or industrial venture is
undertaken by the state or government.
iii. Joint Venture – Is when a private entrepreneur and government jointly run a
business enterprise.
d) Based on enterprise.
i. Small scale entrepreneur – Is one who has made investment in plant and
machinery (Whose assets are few and the member of employees ranges
between 0-20)
ii. Medium scale enterprise – Is one who has made investment in assets and the
number of employees exceeds 10.
iii. Large Scale enterprise – These are those who run large businesses.
Others include;
1) Fabian Entrepreneurs – These are skeptical in their approach in adopting or innovating
new technology in their enterprise. They are not adoptable in changing their
environment.
2) Imitative entrepreneurs – Are characterized by small innovation. They seizes
opportunities for introduction of new ideas.
3) Innovative entrepreneurs – Are those who introduce new goods or methods of
production.
4) Drone entrepreneurs – They are conservative in outlook. They never like to rid their
traditional businesses or traditional machineries or systems of their businesses.
5) Self-employed entrepreneurs – Is one who does all the work and enjoys all products but
suffers losses alone.
