The Concept of Entrepreneurship

The C formerlypt of EntrepreneurshipINTRODUCTIONCONCEPT OF ENTREPRENEURSHIPThe importance of the increase of enterpriserial expertnesss by every graduate screwing non be over-emphasized because g unity be the days when jobs were available everywhere both in the private and public sector of the economy and employers go about spirit for authorization employees to employ. Indeed, in the past, it is the employers that go round universities in this country to hunt for latent employees. Then there were fewer universities and low university enrolment. But today, things dep allowe changed and very drastically too such(prenominal) that umteen graduates atomic number 18 now sellers of recharge cards and some work as bus conductors. What an economic tragedy and waste The marvel of choice of job or employer is gradually being eroded each year. M some(prenominal) graduates are desperate to get any job to keep be and soul going. Indeed there is a paradigm shift in the labour market n ow. Even the professional disciplines are now fast getting into that problem of unemployment. use upment prospects for the youths are changing with a lot of increasing competition the openings are equally limited. Also, employment in the public sector is too decreasing and job prospects are diminishing by the day. Added to this ugly situation are the increasing trend of job outsourcing, casualization of labour in the oil and bobble industry and the increasing phenomenon of rightsizing of labour among big firms and corporations in the country. As a side effect, the figure of tertiary graduates who have not been able to secure the starting line employment since graduation for upward of five years is on the increase and even those with professional qualifications like MBA, ICAN, COREN, Medicine and Pharmacy are not spared from the ugly phenomenon. Others are paid peanuts if they are lucky to secure paid job. Some now fall back on their lower qualifications like WASC and OND to sec ure baseborn jobs.The recent economic melt drink also has made matters worse. Some companies are as a result operating below expected capacity. The current troubles in the financial sector, particularly the money and the neat markets and their subsequent effects on the economy, particularly on the real sector as well as the curative efforts of the CBN are very visibly glaring, instructive and challenging.Nevertheless, entrepreneurship and indeed the need for developing the requisite entrepreneurial skills have been suggested to help redress the aforementioned problems by devising people not only to be job creators but wealth creators (Midea, 2004 Izedonmi, 2009). According to Small Business Service (2005), the possession of entrepreneurial skills to create untried knowledge based social enterprises is vital to addressing social and environmental issues effectively. Our res publica cannot afford to toy with it. Our tertiary institutions essential respond fast and positively t owards entrepreneurship education. However, popular line of work skills and general knowledge are considered insufficient to turn graduates into entrepreneurs (Kisby, 2004). Hence, the need to develop specific entrepreneurship skills cannot be overemphasized .This is because entrepreneurship has been vital to creating employment and therefore a supererogatory form of employability (Moreland, 2004). both the government and the academia have been attr proceedinged to it. In particular, universities are re-designing their curricula and the ways they operate to create opportunities for the teach of their students in pr performanceical entrepreneurial skills. out-of-pocket to the way entrepreneurial programmes have assumed a global pro carriageration and dimension, it was suggested by Volkmann (2004) that it has become the major academic discipline for business education in the twenty-first century. I totally agree with him.Economic Growth And EntrepreneurshipRecent Survey Report in 2008 by the Kauffman Foundation in connection with the relationship amidst economic beginth and entrepreneurship found that all nations with high level of employment activities had above average rate of economic growth. What this translates into is that entrepreneurial deficient economy pull up stakes have low growth while entrepreneurially good economy melt downs to enjoy good growth. Hence, Government has come to recognize the importance of entrepreneurship in economic development that entrepreneurial ventures have in-built capacity to promote employment and economic growth.Literature ReviewOne of the first courses specifically addressing entrepreneurship was grounded at the Harvard Business domesticate in 1947.In the U.K, the first courses in entrepreneurship were launched in the 1980s together with the UKs first initiative for enterprise in higher education (Elton, 1991, Kirby, 1989 2005, Volkmann, 2004). Along this line, Fry (1992) remarks that entrepreneurship has been one of the fastest growing disciplines in the U.S.A in the 1990s.By the turn of the 21st century, as many as 1600 universities in the North-America were offering courses in entrepreneurship compared to merely two wads in the 1970s (Inegbenebor, 2005). The growth of entrepreneurship education and the subsequent inclusion into the curricula of universities in the United Kingdom has been attributed to the sheer need to serve the regeneration need of businesses and to set about graduates with transferable skills for businesses.iENTREPRENEURSHIP IN NIGERIAAccording to Ekanem (2005), the history and development of entrepreneurship in Nigeria started in the 1960s as supported also by some of the earlier studies such as Schatz and Edok affordi (1962), Harris (1969), Olakanpo (1968) and Akeredolu-Ale (1972). Therefore, the concept of entrepreneurship development in Nigeria is not new(a). Since the 1970s, several government agencies and institutions in the country have been engaged in di fferent aspects of fostering entrepreneurship in Nigeria, though with short-lived and varied successes. For instance, the Centre for copement Development (CMD), National Directorate of Employment (NDE), former Nigeria Industrial Development jargon (NIDB), Nigerian Bank for Commerce and Industry (NBCI), Nigeria Youth Service Corps (NYSC), among new(prenominal)s had programmes for entrepreneurship development in Nigeria. Other entrepreneurial development agencies include government sponsored entrepreneurial Development curriculum (EDP). NGOs, Nigerian Employers Consultative Association (NECA).The vigor with which it was pursued then is a different issue for our assessment. If the proofs are available even the blind and deaf can feel it. Only fools dont proof.What Does Entrepreneurship Really Entail?Basically, what entrepreneurship entails includesThe building of skills in negotiationBuilding lead skillNew product developmentCreative and progressive thinking andExposure to techno logical innovation, (Kuratko, 2003).It shows students and graduates how to believe and behave entrepreneurially. It encourages them to get involved in networking, create and manage businesses of their own and facilitate progress and success in entrepreneurial career.Entrepreneurship could satisfy status and social needs and leads to self-satisfaction and actualization.It can also meet the financial needs for the entrepreneurs and their families. In fact, entrepreneurship is a satisfying wait on even though it can be risky and whitethorn even lead to loss of wealth at times (Fry, 1992). Society-wise, entrepreneurship has made substantial impacts end-to-end history because of numerous inventions, massive job creations made through small and medium scale enterprises (SMES) in both developed and developing countries.DEFINITIONS OF ENTREPRENEURSHIPVarious definitions have been given for entrepreneurship. For instance Inegbenebor and Igbinomwanhia (2008) say that Entrepreneurship is the process of performing the roles of an entrepreneur. It has been defined as the process of planning, operating and assuming the risk of a business venture. It may also be defined as the process of creating a clique value of pulling together a unique package of resources to exploit an opportunity. Entrepreneurship encompasses various activities which are carried out to ensure the survival and growth of the businessInegbenebor (2006) defines it as it is about bearing the skills needed to assume the risk of establishing a business. It is about developing the harming strategies and executing them with all vigour, persistence and passion needed to win any gameEkanem (2005) Entrepreneurship is the process of or capacity for organizing, operating and assuming risk for a business venture. It is dynamic risk-taking, creative and growth oriented behavior which involves the use of various resources to create wealthEkwe (1992) observes that, Entrepreneurship involves the1. ability to perceive profitable business opportunities.2. willingness to act on what is perceived and3. necessary organizing skills associated with a projectsFry (1992) says that Entrepreneurship involves action rather than static events. It involves taking action necessary to analyze opportunities to launch and/or grow business, to finance the venture and possibly even to invest the venture.Izedonmi (2009) placed entrepreneurship in a continuum form with economic entrepreneurship at the end of the continuum and social entrepreneurship at the other end. In between these you will find some varying characteristics of combinations. The process is also dynamic.In summary, the central issues in entrepreneurship involve uncertainty and risk-taking, innovation, perception and change. For instance, Drucker (1985) posits that innovation is the specification instrument of entrepreneurship. He argued further that the entrepreneurs must always change to respond to it, and exploit it as an opportunity.CHARACTERISTIC S OF A DWINDLING ECONOMYThe characteristics include naughty unemployment rateHigh inflation rate showtime average real income moo saving ratio or high consumption ratioLow levels of technologyLow levels of productivityLow per capita income and downward trend of livingHigh poverty rate of a large proportion of the populationLow economic growth ratePoorly developed financial and stock marketsHigh level corruption and instability and insecurity of lives and propertyAlthough the above factors and many others can be observed in a dwindling economy, they also provide good basis for entrepreneurial development. In fact, of these factors listed above, some can act as either pull or push entrepreneurial factors. Very often they provide good windows of opportunities for entrepreneurial-minded individuals.ROLES OF ENTRENEURSHIP IN REVIVING A DWINDLING companionshipSome of the roles includeGenerating employmentIncreases productivity through innovationFacilitates the transfer/ adoption of tech nologyEnsures increase resource utilizationStimulates growth in the bestow marketRenovates large scale enterprises and public enterprisesEncourages and sustains economic dynamism that enables an economy to adjust successfully in a rapidly changing global economy.gene linkage effects of various sections of the economy is facilitatedGenerate income and wealth occur fasterEncourages training and developmentEnsures rapid developmentDevelops indigenous entrepreneurshipProvides a training understanding for indigenous managers and semi-skilled workersReduces rural-urban migrationConstitutes a vital engine for economic growth development of a nation- increase GDPSkyrocketing of the emergence of SMES andPromotion of self-reliance and economic sustainabilityELEMENTS OF ENTREPRENEURSHIPEntrepreneurship may involve the following elementsIDEA GENERATION AND SCREENINGThis is actually the starting point of many new entrepreneurial ventures. Sources of ideas are many and varied. The sources notwi thstanding, the would-be entrepreneur must cultivate the habit of documenting those ideas. It should be packaged in form of feasibility report, no matter what.STARTING A BUSINESSThis could involvea. purchasing an vivacious businessb. Starting from the scratch or start-up businessc. Through Franchised. By InheritanceCREATIVITY AND INNOVATIONInnovation is the development and knowledgeability of a new product, a new process, or a new service to a market. Creativity is the link between pure imagination and the entree of an innovative product, process or service.Both are necessary ingredients for entrepreneurship. However, creativity is behind innovation. Creativity alone, does not define entrepreneurship. Creativity without innovation does not baffle results. And innovation without effective management does not produce marketable products, processes or services. Although creativity and innovation are necessary ingredients, they are not sufficient of themselves to establish successf ul entrepreneurship (Fry, 1992, Izedonmi, 2009). There must be effective and efficient administrative structure on the ground and a healthy dose of management as well.3. SEEKING FINANCINGFinancing could either be debt or equity financing, traditional or venture, internal or external capital. The would-be venture must consider financing the venture. Availability, cost and timeliness must be balanced. Starting small attracts small capital input. However, not all entrepreneurial ventures require start-up capital or equal amount eitherCreative financing is a basic tenet of entrepreneurship.A growth-oriented venture uses multiple sources of financing. You must be brisk to make your personal sacrifice in this respect. Too often, the banks will request to see your personal inputs in terms of financial commitment.Finance institutions only summate to ventures that have proven records, and history, and those ventures that are also promising economically.4. ASSUMING RISKEvery entrepreneur mu st assume one risk or the other. However, entrepreneurship is not necessarily risk-taking but risk-assuming.Corporate management deals in risk minimization, entrepreneurship deals in risk management.Corporate management too often generally tends to be risk-averse. They require to reduce risk to a minimum during production so as to be profitable. Entrepreneurship manages risk since it cannot be reduced significantly in entrepreneurial situations whether new or existing ventures.However, entrepreneurs are calculated risk-takers.Risk management involves the acknowledgement that risk exists and the actions that are taken to shift as much risk as possible to others and then control the remainder.Some risk Management ventures includeRenting rather than owning equipment and facilitiesUsing multiple sources of financing.Building an entrepreneurial team with typical skills.Undertaking multiple ventures simultaneously with varied degrees of risk.Committing a portion of the total resources t o any one project.Assigning a team member the responsibility of supervise short-term performance with the anticipation of cutting losses of early performance indicates unfavorable results.THE PULL AND PUSH ENTREPRENEURSHIP FACTORSThere are various factors (negative or positive) which tend to provide the needed motivation in getting into entrepreneurship or becoming an entrepreneur. While the negative factors are called push factors the positive factors are pull factors. Both factors provide the fundamental attraction either by necessity or by desire and opportunity into the entrepreneurial world.The push factors areUnemployment / loss of job.Dissatisfaction with pay and job situation.Discrimination and victimization by boss in work place.Middle-age crises.Divorce / widowhood.Relocation.The positive pull factors areDesire for independence.Desire for increase in wealth.Increased social status and prestige.Spouse support and motivation.Provision of market opportunity.Franchise.Provisi on of licenses by parent company.Favorable government policies etc.THE ENTREPRENEURSHIP DECISIONThe entrepreneurial motivation to launch a venture has been grouped into three variables (Fry, 1992) asAntecedent variables.Triggering variables.Enabling variables.The antecedent factorsThey cause the individual to begin to consider the possibilities of entrepreneurship either consciously or unconsciously. This could take into consideration the variables listed belowCreativity.Background.Personality.Past experience.Education.Current job.Triggering factorsThese are the events or situations that specifically trigger the entrepreneurial act. They are salient life events may be quite personal , professional or for instance, financial changes in an entrepreneurs life that are perceived as very historic to entrepreneurial decision may set off the alarm to take step. They involveLoss of JobInvention or IdeaOffer from partnerentrepreneurial motivation or willingness to start a venture (M) = Ante cedent Variables (A) X Triggering Variables (T).The enabling factorsThese factors make the actual launching of the venture possible. They include opportunity and resources which are very critical to the successful launch of the venture. The likelihood of a venture launch is made up of these three factors combined. Our youths look outside instead of looking inward. Those who look inward first tend to travel faster on the outside. Several entrepreneurial opportunities exist in the environment. They need to look well to strike some opportunities. Our youths must be ready to start small, learn the ropes and grow up. Hard work, patience and deep commitment are necessary.ENTREPRENEURSHIP OPPORTUNITIESEntrepreneurship tends to be opportunity-driven rather than resource-driven. This is because that once opportunities are identified and properly evaluated resources are deployed to capture them. Opportunity creates or generates its kind of resources.There are thousands of opportunities avail able to would-be entrepreneurs who present high potential for wealth, growth, self-employment, independence, social status, and prestige. The would-be entrepreneur must conduct a thorough scanning and survey of the environment strategically. But if you do not have any readily available opportunity, you can creatively and innovatively come up with one. However, some of the sources of these opportunities could includeSelf-discoveryImprovement in the quality of existing product/ service.Use of an existing product/service in an untapped marketInventionConsultancyTrade magazines, Journal and Business NewspapersSocietal needsSurvey of natural resourcesGovernment Agencies investigate Institutes, Universities, e.t.cSpin-offWork experienceHobby and VocationENTREPRENEURIAL SKILLS REQUIRED TO TRANSFORM CHALLENGES INTO OPPORTUNITIESGENERAL BUSINESS SKILLSEntrepreneurial skills of successful entrepreneurs includeSales and merchandising skillsFinancial Know-how skillsSelf-motivation skillTime man agement skillAdministrative skillSales and marketing skillsTo get the right customers and subsequently make target revenues and clamsInclude communication skillsFinancial know-how skillsTo know how to handle money well. After all, not everybody can effectively manage money.Source and manage funds and coin flowsSelf-motivation skillsInternal locus of controlSelf-starter with a clear desired goal in mindConfidence in yourself and in your ideasDiligent and hardworking spare drive and commitment to set goalsTime management skillsTime is moneyTime is lifeEntrepreneurship opportunity has time-limitTime management is very important for business successSelf-management is very critical for effective time managementTYPES OF BUSINESSES AND TIME MANAGEMENT TECHNIQUESHave a time table, schedule of activities to be doneEmploy delegation freely without fearDetermine priorities into urgent and important activities asUrgent activities demand immediate attentionUrgent but not important activitiesNo t urgent but important activitiesNot urgent not importantGive priority to (i) and (iii) because by performing them, time is reduced for activities (ii) and (iii)Manage meetings and relationship with othersAdministrative skillsOrganizing, coordinating, directing, planning and general management, etc.B). TECHNICAL, ANALYTICAL AND HUMAN RELATION SKILLSEntrepreneurs are expected ordinarily to be sound by training normally technically skilled. They must also develop and possess conceptual, analytical and human relation skills to be successful.Others are business planning, idea creation, negotiation, risk summary and management skills etc.C). ICT SKILLSThey must also have computer and information Technology (CIT) skills because of the era we are and the environment they will have to operate.ENTREPRENEURSHIP OPPORTUNITY AND SKILLSS/NENTREPRENEURSHIP OPPORTUNITYSKILLS AND ATTITUDES1.Business/consultancy in area of professional specialization or working as a contractorGeneral Business skill s such as marketing, time management e.t.cConfidence enthusiasm, hardworking2.Sonet EntrepreneurshipIdea development, leadership, negotiation, planning, organizing, self belief, confidenceGeneral business skill3.IntrapreneurshipIdea development recognizing opportunities for improvementsAlliance building, confidence, leadership4.Non-traditional specialist businessGeneral BusinessIdea development, creativity, confidenceWillingness to work hard5.General Business VenturesIdeas development, creativity, confidence, willingness to work hardGeneral Business skillSource Andrea Developing Entrepreneurship skills in the context of higher education. http//cfiweb.cf.uk/news/past.events/bee/files/Andea. on 16/3/2010DEVELOPMENT OF ENTREPRENEURIAL SKILLSThese could be throughAttending Entrepreneurial training classes, development programme, seminars, workshops, etc.UniversitiesJob rotationSpecial (intensive) trainingArticle ship or apprenticeshipOrganizational learningR D debutConsultantsNational and international agencies and bodiesNGOsProfessional bodiesENTREPRENEURIAL SUCCESS FACTORSSuccessful entrepreneuring depends on four (4) major factors namelyKnowledgeHard workSkillsAttitude(character/ integrity)Lifematics Question Created by (Izedonmi, 2010)Now let us work out this lifematics question together. There are basically four (4) attributes or factors that can enhance our success in life viz Skills, Knowledge, Hard work and character (Attitude). They are all essential to ingredients of entrepreneurial success. How much does each contribute? Which of these is superior and why? For easy understanding, let us replace character with attitude.SolutionOur current roman alphabets are made up ofA B C D E F G H I J K L M1 2 3 4 5 6 7 8 9 10 11 12 13N O P Q R S T U V W X Y Z14 15 16 17 18 19 20 21 22 23 24 25 26The alphabets together with their numerical values are stated above. permit us take each attribute one after the other and link up the corresponding numerical value. Start with skill, then knowledge follow this with hard work and finally character but remember to substitute attitude for character.Let us replace numeric value to each alphabet and see their results as indicated below(i)S K I L L S19 + 11 + 9 + 12 + 12 + 19 = 82%(ii)K N O W L E D G E11 + 14 + 15 + 23 + 12 + 5 + 4 + 7 + 5 = 96 %(iii)H A R D W O R K8 + 1 + 18 + 4 + 23 + 15 + 18 + 11 = 98 %(iv)A T T I T U D E1 + 20 + 20 + 9 + 20 + 21 + 4 + 5 = c %SolutionSkills secure only 82 %, Knowledge 96 %, hard work 98 % and Attitude 100 % in that order. Only Attitude which I equate to character for this purpose secures 100 % success in the race of high profile entrepreneurship.ConclusionI must admit that professional credential is good but character is a lot better. Character is the true collateral security of our values, learning and entrepreneurial success. It keeps the society and system going. It prevents a nation from decaying and checkmates unnecessary crisis and even civil war. Therefore in a ll our entrepreneurial pursuit, character development should be given a prominent place.When character breaks down everything breaks down. True certification in life is only evidenced by character and not papers called certificates or entrepreneurial success alone or quantity of wealth.