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INTRODUCTION
The words entrepreneur and entrepreneurship have acquired special significance in the
from country to country as well as from period to period and the level of economic
development thoughts and perceptions. A concise and universally accepted definition has
has attained. Thus, the nature and focus of entrepreneurship in a factor driven
economy, efficiency driven economy and innovative driven economy varies significantly in
focus.
From subsistence agriculture to Increased industrialization & R&D, knowledge intensity, and
extraction of natural resources, economies of scale. Large firms expanding service sector.
creating regional scale-intensive dominate, but supply chain Greater potential for innovative
agglomerations niches open up for small & entrepreneurial activity
medium enterprises.
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Financial Market sophistication
Technological readiness
Market size
Innovation and sophistication Business sophistication
factors- (Key to innovation-driven Innovation
economies)
Source: GEM report, 2014
As the industrial sector develops further, institutions start to emerge to support further
industrialization and the buildup of scale in the pursuit of higher productivity through
economies of scale. Typically, national economic policies in scale intensive economies
shape their emerging economic and financial institutions to favor large national
businesses. As increasing economic productivity contributes to financial capital
formation, niches may open in industrial supply chains that service these national
incumbents. This combined with the opening up of independent supplies of financial
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capital from the emerging banking sector, would spur opportunities for the development
of small-scale and medium-sized manufacturing sectors. Thus, in a scale intensive
economy, one would expect necessity-driven industrial activity to gradually fall and give
way to an emerging small-scale manufacturing sector.
As an economy matures and its wealth increases, one may expect the emphasis in
industrial activity to gradually shift toward an expanding service sector that caters to the
needs of an increasingly affluent population and supplies the services normally expected
of a high-income society.
The industrial sector service evolves and experiences improvements in variety and
sophistication. Such a development would be typically associated with increasing
research and development and knowledge intensity, as knowledge-generating institutions
in the economy gain momentum. This development opens the way for the development of
innovative, opportunity seeking entrepreneurial activity that is not afraid to challenge
established incumbents in the economy. Often, small and innovative entrepreneurial firms
enjoy an innovation productivity advantage over large incumbents, enabling them to
operate as “agents of creative destruction”. To the extent the economic and financial
institutions created during the scale-intensive phase of the economy are able to
accommodate and support opportunity-seeking entrepreneurial activity, innovative
entrepreneurial firms may emerge as significant drivers of economic growth and wealth
creation.
incremental wealth
market place, marshaling resources required to exploit the opportunities for the
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It is the ability to see economic opportunities and transform them into business
things are destroyed by the creation of new and better ways to get things done.
o Creative Destruction: the process by which existing products, processes, ideas and
businesses are replaced with better ones. Entrepreneurs are driving forces behind
o According to him, not all businesspeople are entrepreneurs but all entrepreneurs
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The propensity of calculative risk taking
entrepreneurship.
2. Entrepreneurship is easy
and hard work. And even if you have these qualities, it still is not effortless!
calculated risks, not unnecessary ones. In fact, there are times when
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Entrepreneurial ventures: An organization that is pursuing opportunities; is
forming a new enterprise. The entrepreneurial decision process consists of the following
The decision that both external and internal factors make the
Venture possible.
The decision to leave a present career and life-style is not an easy one. It takes a great
deal of energy and courage to change and create something new and different. The two
most important incentives to leave a present life-style and start a business are working
The perception that starting a new company is desirable results from an individual's
The entrepreneurial process comprehends all functions, activities, and actions that
are connected to the perception of the possibilities and the construction of the
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The entrepreneurial process in general involves the following steps:
or simply put the desire to become one‟s own boss; pursue one‟s own dream
Observing trends
Solving problems
Risk taking
Innovation
Self–disciplined
Unusual creativeness
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Integrity and reliability
oriented)
Who create something new and different with value by creating profitable
venture.
SUPPLEMENTARY REMARK
The most important characteristics of successful entrepreneurs
Dedication (scarifies )
Devotion (loving what they do, the power of love of what they do sustain the
venture )
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It is combination of knowledge, skills, and appropriate motives or traits that an
In the 1980s, the research and analysis made by Management System International
control outcomes).
and take initiatives to optimize; the acts to extend the business to new areas,
products or services)
Commitment to the work and contract (extent of exerting personal sacrifices and
Demand for efficiency and quality (find ways to do things better, faster and
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PLANNING COMPETENCIES
Goal setting ( proactive move, setting meaningful and challenging goals;
Systematic planning and monitoring ( create time bounded tasks ; revise plans in
track records )
IMPLEMENTATION COMPETENCIES
Persuasion and networking
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What are entrepreneurship start-up motives? (increased income, independence,
experiences…)
The reasons /factors for small firm formation can be divided between "Pull" and"
Push" influences.
Pull Influence
Some individuals are attracted towards small business ownership by positive motive such
as a specific;
1. Desire for independence: In several research studies, this future is prominently taken
as the key motivator. The bolon report singled out the need to gain and keep
female entrepreneurs in Britain found that women were motivated particularly by the
need for autonomy, which had been frustrated by the individual‟s prior training and
background.
place through personal observation or experience is also a common reason for starting
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a business. Entrepreneurs may seek to exploit this opportunity through special
knowledge, product development or they may hire the appropriate technology and
skills.
other factors.
Push influence
Many people are pushed into finding a new enterprise by variety of factors including;
1. Redundancy (Being without a job, idleness): This has proved a considerable push in
by prevailing economic climate. The latest researches shows that at least 50% of
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1.6. CLASSIFICATION OF ENTREPRENEURSHIPS
Types of entrepreneurs
organizations)
time)
Significance of Entrepreneurship
following areas:
Innovation
Capital formation
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Improvement of living standards
Socio-political stability
SUPPLEMENTARY READING
An entrepreneur A manager
Launches a new business Operates an existing enterprise
Is more than an innovator Is neither an innovator nor inventor
Is a change agent Is the product of change
Is strategic oriented to survive Short term oriented to meet quotas and
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budgets
Is her/his own boss Is not independent of his/her employer
Follows dreams in making decisions Usually aggressive with upper management
positions
Involves directly more than delegation Delegates and supervises more than direct
of tasks involvement
Takes calculated risk Does not share in the business share
directly
Faces uncertainty Is less tolerant of uncertainty
Is motivated by perception of Is motivated by externally imposed
opportunities and profit goals(office, promotion, power)
Profits are uncertain and irregular, Is paid fixed and regular salary
which may be negative
Is self employed Is salaried person.
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