INTRODUCTION TO

ENTREPRENEURSHIP
An overview
 Learning Outcomes

1. Theories and Concepts of Entrepreneurship

2. Entrepreneurial behaviour & competencies
3. Creativity & Innovation
4. Identification, evaluation and selection of opportunities
Definition
• Entrepreneurship is a process of innovation and
new venture creation through four major
dimensions – individual, organizational,
environmental and process.
• The entrepreneurship process is aided by
collaborative networks in government, education
and institutions.
Importance of Entrepreneurship
• Self development
– Opportunity to control direction in life,
maximize self-potential, unlimited financial
rewards
• Family development
– Increases family income, raises living
standards, improves social status
Importance of Entrepreneurship (2)
• Society Development
– Improves standard of living/lifestyle of society
– Opportunity to contribute to society
– Fulfils society’s needs and wants
– Creates choices thru innovative and creative
products
Importance of Entrepreneurship (3)
• National Development
– Essential for economic development of country
– Creates jobs
– Generated income to county
– Catalyst to national development
Entrepreneurial Motivation
• Entrepreneurial motivation is viewed as the
willingness of entrepreneurs to sustain his/her
entrepreneurial behaviour
• What makes people responsive to opportunity?
• What drives them to entrepreneurship?
Entrepreneurial Motivation (2)
• David McClelland’s Acquired Needs Theory
– Need for Achievement
• Individual with high need for achievement is found in most
successful business founder
– Need for Power
• Individual with high need for power normally seeks position of
leadership
– Need for Affiliation
• Entrepreneurs are usually low on affiliation because they are
expected to be innovative, trendsetters and tradition
breakers.
Common characteristics of Entrepreneur

Persistence
Self-
Independent and Creative
confidence
determination

Organized Goal Oriented Visionary Risk taker

Tolerance for Integrity and Seeks Internal locus

failure Reliability feedback of control
Competencies of Successful Entrepreneur
• Competencies are referred to as the knowledge,
skills and attitude necessary to perform a job
Sees and acts Concern for
Efficiency
Initiative on high quality of
orientation
opportunities work

Systematic Problem- High work

Persuasive
planning solving quality

Commitment Use of
towards work influence
agreements strategies
Creativity and Innovation
• Creativity
– Ability to use imagination to develop new ideas,
things and solutions
– Process of generating unique and useful ideas
• Innovation
– Taking the new idea and turning it into
something valuable.
Components of Creativity

Knowledge
- Intuitive Motivation
Creative thinking skills - Imaginative - Intrinsic
-Inspirational -Extrinsic
-Innovation
Blocks to Creativity
• Perceptual blocks
• Emotional blocks
• Cultural blocks
• Environmental blocks
• Intellectual blocks
Types of Innovation
• Technological
• Operational
• Organizational
Business Ideas and Opportunities Identification
• Opportunity
– Situation that enables an entrepreneur to offer
marketable products or services to interested
buyers
• Types of Situation
– Product not in existence
– Product already in market but failed to satisfy
the customers
Opportunity Identification

Observe Recognize
changes in the needs Find ways to Discovery of
the that is not solve Opportunity
environment satisfied
END OF CHAPTER 1