Entrepreneurship- The Entrepreneur

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The Entrepreneur  

Meaning of entrepreneurship

Entrepreneurship is the quality and skill required to become an entrepreneur. It refers to the capacity required for identifying and generating innovative business ideas, mobilizing resources, organizing production, marketing the products, managing the risks and constantly working for growth and excellence of the business.

The attributes underlying entrepreneurship include:

• Self-direction
• Self-nurturing
• Action-oriented
• High energy level
• Tolerant of uncertainty

Several factors affect entrepreneurship in an area. Some of these are financial capital, human capital, infrastructure, local economy size, and natural amenities.

Student Activity 1

• What do you think entrepreneurship is?
• Llist the attributes of an entrepreneur.
•  Discuss some of the pros and cons for each factor affecting entrepreneurship (i.e. financial capital, human capital, infrastructure, local economy size, and natural amenities).

Meaning of an entrepreneur

The term entrepreneur has had varied meanings. The term entrepreneur is a French word which literally means ‘between’ or ‘go-between’. A female entrepreneur is sometimes known as an entrepreneuse. An entrepreneur is a person who operates a new enterprise or venture and assumes some accountability for the inherent risks.

An entrepreneur is simply an individual who has the ability to see and evaluate business opportunities, gather the necessary resources, start a business and once started to take appropriate actions to ensure its success. Entrepreneurs are people who have a high drive and creativity. They constantly strive to achieve success using their own efforts and they take credit of whatever outcome. Likewise, they take responsibility for any failure that may befall their businesses. In other words, an entrepreneur is a person who:

• Perceives his/her needs, analyses him/herself in relation to what he/she would like to be in future
  
• Scans the environment and identifies business opportunities that he/she could possibly do in order to achieve his/her goals in life
  
• Conducts a market survey to assess the feasibility and viability of the identified business opportunities to select the most suitable one
  
• Calculates the risks involved in doing the selected business opportunities so as to find out if he/she can reduce them to manageable levels, and if not, leave and choose another alternative
  
• Mobilizes the necessary resources to start the selected business
  
• Sets an organization or arrangement through which the planned business will be operated
  
• Regularly monitors business performance against set or planned targets
• Takes corrective actions to achieve his/her targets.

Students' Activity 2

1. What do you think an entrepreneur is?

2. Identify any entrepreneurs you know or any famous entrepreneurs in your local communities.

3. Do you consider yourself to be an entrepreneur?

Functions of an entrepreneur

Entrepreneurs perform a number of functions from the stage of starting a business to its level of success. These functions include:
1. Planning
This is the first step in setting up an enterprise. The planning process involves:

• Scanning for the best suitable idea
•  Selection of the product line
• Determining the type of business organization (individual or partnership or corporate)
• Estimation of capital resources
• Selection of location/site
• Studying the government policies and regulations
• Studying the availability of labour force
• Studying of the market and marketing strategy to be adopted

2. Organization
An entrepreneur co-ordinates, assembles and supervises other factors of production - land, labour and capital during the promotion and performance stage for optimum utilization of resources.
3. Decision-making
As a decision maker, an entrepreneur takes various decisions regarding the following matters:

• Determining the objectives of the business enterprise
• Procurement of machinery, material, men, etc
• Acquisition of efficient technology and new equipment
• Development of a market for the product

4. Management
This involves the operations of the venture and managing of day-to-day activities. It involves direction of men, machine, material and other resources.

5. Innovation

This may involve:

• Launching of a new product on the market
• Introduction of new technology in production
• Creation of new markets
• Discovery of new and better sources of raw materials

6. Risk bearing
An entrepreneur undertakes the responsibility for loss that may arise due to un foreseen circumstances in the future.

7. Uncertainty bearing

There are some risks which cannot be insured against and incalculable, for example uncertain trends in the market.

Student Activity 3

1. Outline the functions of an entrepreneur.

Benefits and challenges of an entrepreneur

Entrepreneurs enjoy a range of benefits for being in business. At the same time, they are confronted by a range of challenges in the course of doing their work as entrepreneurs. Table 1.1 shows the benefits entrepreneurs enjoy and the challenges they face.

Table 1.1 Benefits and challenges of being an entrepreneur

Benefits	Challenges
1. Social recognition	1. Long and irregular hours of work
2. Increased income	2. Low level and insecurity of income
3. Improved standard of living	3. Low life style due to hard and demanding work<
4. Flexibility in decision-making	4. Potential loss of resources invested in business
5. Developing self-confidence
6. Self-employment

Challenges refer to the major activities undertaken in a business, whereas tasks are specific pieces of work that can be done to meet the challenges. Examples of challenges and tasks are given in Table 1.2 below.

Table 1.2 Tasks and challenges in business

Challenges	Tasks undertaken to meet challenges
Raising capital	Applying for a loan Sourcing credit facilities from suppliers Reducing expenditure so as to save, etc.
Marketing goods/services	Advertising Costing and products Market assessment, etc
Managing funds	Budgeting and budget control Record keeping, etc
Maximizing profits	Controlling costs Sales promotion, etc
Acquiring stock	Contacting suppliers Choosing best suppliers Transporting goods Storage, etc Installing effective and efficient production processes producing high quality products

At times, many tasks can be undertaken in meeting a challenge. Table 1.2 above shows some of the challenges and the related tasks in business.

Student Activity 6

1. Interview a local entrepreneur.
(a) What benefits do entrepreneurs enjoy?
(b) What challenges do entrepreneurs face?
(c) What mechanisms do entrepreneurs use to overcome those challenges?
Characteristics/qualities of a successful entrepreneur
Qualities or Personal Entrepreneurial Characteristics (PEC) of successful entrepreneurs refer to the desired traits, which enable an entrepreneur to do what is expected of him/her and succeed in business. It is the combination of these characteristics that is required to enable any one to perform effectively as an entrepreneur. It is possible for people to develop these characteristics and succeed in their careers as entrepreneurs. Successful entrepreneurs have common characteristics, which are divided into three clusters namely achievement, planning and power.

1. Achievement Cluster

Opportunity seeking

This refers to the quality that enables the entrepreneur to see and act upon new business opportunities even in situations where other people see nothing but problems/hopelessness only. It also encourages him/her to seize unusual opportunities for obtaining the necessary resources such as financing, equipment, land, workspace, technical assistance, etc, which will enable him/her to implement his/her business ideas.

Commitment to the work contract

This is the ability to accept final responsibility for completing a job for the customers. Customers expect entrepreneurs to perform and honour their commitments. It follows therefore that the entrepreneur should do everything possible to ensure that he/she fulfils the commitment with his/her customers. It means joining the workers to work with them to ensure that contractual commitments are fulfilled, the entrepreneur will do it.

Persistence

This is the quality, which enables the entrepreneurs to develop determination to have a thorough job done at any cost in terms of personal sacrifice. By doing this, the entrepreneur remains working towards the achievement of his/her set goals.

Risk taking

Entrepreneurs are people who prefer taking moderate risks. Before they commit themselves and their resources, they assess the risks that are associated with a business opportunity that they have selected, and their ability to manage them, the benefits that they will realise and the challenges that they will face from the venture to be undertaken.
Entrepreneurs can earn profits as a result of taking risks and the higher the risks, the higher the profits. However, entrepreneurs will always prefer to take on those risks that they can manage.

Demand for efficiency and quality

This is the quality that enables an entrepreneur to do things that meet or surpass existing standards of excellence or improve on performance by striving to do things faster, better and cheaply. By doing this, the entrepreneur remains ahead of others, makes more profits and retains a growing market share.

2. Planning Cluster

The planning cluster is made up of the following characteristics:

Goal setting

This refers to the ability of an entrepreneur to set clear and specific goals and objectives. These goals and objectives are normally high and challenging but at the same time, realistic and can be attained, given the resources that one has got at his/her disposal.

Information seeking

This is having the urge to look for the required information in order to make an informed decision, for example, selecting, starting and successfully managing the desired business. This calls for the concerned person to personally seek and obtain information regarding customers, suppliers, competitors as well as any other relevant information that is required to enable the entrepreneur make decisions and improve knowledge on his/her business.

Systematic planning and monitoring

This is the ability to develop plans that will be used in monitoring and evaluating the progress of the business. This helps the entrepreneur to carefully monitor his/her business’ actual performance against desired performance and turn to other alternatives whenever the need arises; so as to achieve his/her set goals.

3. Power Cluster

Persuasion and networking

This is the ability to link, convince and influence other individuals, agencies and other groups in order to maintain business contacts at a high level. This will help or work for the cause of the business in a positive manner to accomplish own objectives.

Self-confidence

This refers to having a strong belief or confidence in oneself and the ability to complete a difficult task or meet a challenge.

Student Activity 4

1. Name the various characteristics of an entrepreneur and list these characteristics on a board or flip chart.

2. Draw a picture showing an entrepreneur. [I.e. the picture could be of anything (a person, a tree, etc.), but should show as many characteristics of an entrepreneur as possible.]

3. Interpret your completed picture to other people explaining the characteristics being potrayed.

6. Think about how you might demonstrate some of the entrepreneurial characteristics in school work, extra-curricular activities, or part-time job.

7. Record your personal entrepreneurial characteristics in your exercise books.

Reflection

Try to discover that you may have many of the characteristics of the entrepreneur they you potrayed in your picture(s).

Checklist: Characteristics of an entrepreneur

Self-confident	Independent
Determined	Able to make decisions
Versatile	Able to take calculated risks
Achievement-oriented	Resourceful
Energetic	Able to lead
Efficient	Goal-oriented
Impatient	Optimistic
Competitive	Responsible
Eager to learn	Responsive to change
Flexible	Perceptive
Initiative-taker	Responsive to criticism

References:

Bagatya, W.Z.K. 2007. The Principles and Practices of Advanced Level Entrepreneurship Education. Kampala, Uganda. p.2-4.
Kabatire, S. and Mutyaba, S.V. 2007. Entrepreneurship Skills. Netsoft Publishers. Kampala, Uganda. p.1
Kigenyi, F.D. 2007. Entrepreneurship Education for UACE and Colleges. Kampala, Uganda. p.10
National Curriculum Development Centre (NCDC). 2002. Entrepreneurship for Secondary Schools. Book 1. National Curriculum Development Centre, Kampala, Uganda. p.14-17.
National Curriculum Development Centre (NCDC). 2002. Entrepreneurship for Secondary Schools. Book 5. National Curriculum Development Centre, Kampala, Uganda. p.26.
Sempijja, M. 2006. Entrepreneurship Education for Advanced Level and Business Institutions. Kampala, Uganda. p.8-9

Learners’ Activities

Activity one

Group work

Ask students to select a name from the List of famous entrepreneurs, which should contain a list of well-known firms and their original owners.

Task learners to prepare a five-minute oral presentation on this entrepreneur.

Key components of the assignment
This assignment will require library and/or internet search.
 Encourage the students to use visual aids, including the product itself.
Students should stress the particular trait or characteristic that was dominant in the entrepreneur they choose.

Students should include an annotated list of all research materials used in their presentations.

Activity two

Reading and discussing

Ask students to read the life stories of four entrepreneurs from the List of famous entrepreneurs.

Have students analyze, compare and evaluate personal characteristics of the four entrepreneurs.

Students should determine what type of character traits the four entrepreneurs have which made them successful.

Ask students if they have dreams of becoming a successful entrepreneur and to discover what it takes by reading and identifying with the life stories of the four entrepreneurs. 

References
Bagatya, W.Z.K. 2007. The Principles and Practices of Advanced Level Entrepreneurship Education. Kampala, Uganda. p.2-4.
Kabatire, S. and Mutyaba, S.V. 2007. Entrepreneurship Skills. Netsoft Publishers. Kampala, Uganda. p.1
Kigenyi, F.D. 2007. Entrepreneurship Education for UACE and Colleges. Kampala, Uganda. p.10
National Curriculum Development Centre (NCDC). 2002. Entrepreneurship for Secondary Schools. Book 1. National Curriculum Development Centre, Kampala, Uganda. p.14-17.
National Curriculum Development Centre (NCDC). 2002. Entrepreneurship for Secondary Schools. Book 5. National Curriculum Development Centre, Kampala, Uganda. p.26.
Sempijja, M. 2006. Entrepreneurship Education for Advanced Level and Business Institutions. Kampala, Uganda. p.8-9