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Entrepreneurship Level 22

The document provides an overview of entrepreneurship including 4 key learning outcomes: understanding entrepreneurship skills, identifying business opportunities and feasibility studies, starting an enterprise, and employability skills. It defines entrepreneurship and entrepreneurs, discusses types of entrepreneurs including personal achievers, super salespeople, real managers, and expert idea generators. The document also covers advantages and importance of entrepreneurship as well as personal efforts required to be a successful entrepreneur.

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Ab Abel
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191 views29 pages

Entrepreneurship Level 22

The document provides an overview of entrepreneurship including 4 key learning outcomes: understanding entrepreneurship skills, identifying business opportunities and feasibility studies, starting an enterprise, and employability skills. It defines entrepreneurship and entrepreneurs, discusses types of entrepreneurs including personal achievers, super salespeople, real managers, and expert idea generators. The document also covers advantages and importance of entrepreneurship as well as personal efforts required to be a successful entrepreneur.

Uploaded by

Ab Abel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Entrepreneurship

Overview of Entrepreneurship
Learning outcomes

LO 1. Understanding of entrepreneurship skill

LO 2. Business ideas, opportunities and feasibility study

LO 3. Starting an Enterprise

LO 4. Employability skill
LO 1. Understanding of entrepreneurship skill
Learning Objectives
 Understand Basic Concepts of Entrepreneurship

 Know Developments of Entrepreneurial mindset

 Develop entrepreneurial mindset

 Understand Entrepreneurial Competencies and

Environment
 Identify Entrepreneurial motivation and Decision
Basic concepts of Entrepreneurship
Pre lesson activities
 What is an Entrepreneurship?

 What is a Entrepreneur?

 Do you know someone in your town who is an

Entrepreneur?
Entrepreneurship
 The word “Entrepreneurship” is derived from the French
verb “entreprendre” which means “to undertake”.
 The concept entrepreneurship refers “The process of
identifying opportunities in the market place, arranging
the resources required for pursuing these opportunities
and investing the resources to exploit the opportunities for
long term gains.
 Entrepreneurship is the process of doing something new
(creative) and something different (innovative) for the
purpose of creating wealth for the individual and adding
value to society.
 It involves creating wealth by bringing together resources
in new ways to start and operate an enterprise.”
Cont’d
 Entrepreneurship is more than the mere creation of business.

Seeking opportunities

Taking risks beyond security


 Entrepreneurship is creating and building something of
value from practically nothing.
 Entrepreneurship may involve the definition, creation and
distribution of value and benefits to individuals, groups,
organisations and society.”
 Entrepreneurship is a dynamic process that requires the
function of talents, ideas, capital, and know-how, the process
of which can be risky, uncertain and sometimes hazardous,
but always dynamic
Cont’d
 The activity of setting up a business or businesses, taking
on financial risks in the hope of profit.
 Entrepreneurship is defined as the act of starting and
running your own business or a tendency to be creative
and wish to work for yourself in your own ventures.
 Entrepreneurship is the ability and readiness to develop,
organize and run a business enterprise, along with any of
its uncertainties in order to make a profit.
 The most prominent example of entrepreneurship is the
starting of new businesses
 Entrepreneurship is the process of creating something
new and assuming the risks and rewards.
Advantages of Entrepreneurship
 Self-employment, offering more job satisfaction and flexibility of the
work force
 Employment for others, often in better jobs
 Development of more industries,
 Encouragement of the processing of local materials into finished goods
for domestic consumption as well as for export
 Income generation and increased economic growth
 Healthy competition thus encourages higher quality products
 More goods and services available
 Development of new markets
 Encouragement of more researches/ studies and development of modern
machines and equipment for domestic consumption
 Freedom from the dependency on the jobs offered by others
 The ability to have great accomplishments
 Reduction of the informal economy
Elements (steps in the implementation) of
Entrepreneurship
1. Observing the environment/identifying gaps,

2. Identifying opportunities,

3. Gathering the necessary resources and resources classified

 ECONOMIC RESOURCES

-Money and Equipment


 HUMAN RESOURCES

- Energy, Skills , Knowledge, and Time

4. Implementing the activity and

5. Receiving rewards for engaging in the activity


Entrepreneurial Functions in Business
1. Identify gaps in the market and turn these gaps into business

opportunities.
2. Finances and mobilizes resources for the business

3. Organize and manage the business.

4. Bear /tolerate/ the uncertainties and risks of the business.

5. Encourage competition

6. Decision Making

7. Idea generation

8. Self-employed and applying entrepreneurship

9. Support to social environment


Entrepreneurial failures
Lack of a viable concept.
Lack of market knowledge
Lack of technical skills.
Lack of seed capital.
Lack of business know-how`
Competency-lack of motivation.
Social stigma.
Legal constraints and regulations.
Monopoly and protectionism.
Economic Features / Principles of Entrepreneurship

1. Works best in an open market economy

2. Promotes private enterprise

3. Adds value to products and services (creates wealth)

4. Providing needed products/service

5. Developing new markets

6. individual initiatives

7. Competition

8. seeking opportunities
Rewards for Being an Entrepreneur
1. Self-actualization /personal fulfillment

2. Feeling of freedom and independence

3. Providing jobs and benefits to others (investors,

suppliers, bankers, subcontractors, work force, and


customers)
4. Economic goods (product/service, incomes for

workers, profits for shareholders/partners)


Importance of entrepreneurship
The followings are the major benefits of entrepreneurship
1. Employment creation
 entrepreneurs create employment for themselves and Other people.

 It provides an entry-level job, required for gaining experience and training for unskilled

workers
2. Local resource utilization
 when entrepreneurs utilize local resources, the value of these resources increases.

3. Decentralization and diversification of business


 entrepreneurs are able to identify business opportunities, and locate these businesses in

suitable areas, including rural areas.


4. Promotion of technology
 by being creative, entrepreneurs are able to contribute to the utilization and

development of technology
Cont’d
5. Capital formation
 entrepreneurship increases capital formation and investment.

6. Promotion of an entrepreneurial culture


 by projecting successful images, entrepreneurs become models
that can be copied by young people.
7. Increase Standard of Living
 Entrepreneurship helps to improve the standard of living of a
person by increasing the income
8. Consumer’s demand
 A wide range of products is produced by Entrepreneurs
according to the taste and demand of people
9. Infrastructure growth
10. Social benefit
Meaning of Entrepreneur
 Entrepreneurs are individuals who undertake an economic
activity.
 He/she is an individual who actively form or lead their own
business and nurture them for growth and prosperity
 A person who creates and manages change by the recognition of
opportunities (needs, wants, people and manages resources).
 to take advantage of the resources to take the opportunity and
creates a venture (profitable business).
 The entrepreneur is defined as someone who has the ability and
desire to establish
 The entrepreneurs are often known as a source of new ideas or
innovators, and
 bring new ideas in the market by replacing old with a new
invention.
Types of entrepreneurs
Generally, there are four types of entrepreneurs as indicated here under:
1. Personal achiever
2. Super-salesperson
3. Real manager
4. Expert Idea Generator
1. Personal achiever
 Personal achievers are the classic entrepreneurs.

 They are the types of people that we picture when the term “entrepreneur” is

used.

 They are the only types who must become entrepreneurs to succeed in life.

 If they are placed in a non-entrepreneurial environment, they stand a good

chance of failure.
Cont’d
They possess seven characteristics that relate to
entrepreneurial success:

 Need for high achievement

 Need for performance feedback

 Desire to plan and set goals

 Strong individual initiative

 Strong personal commitment

 Internal locus of control


2. Super-salesperson
Generally, onlookers don’t view super sales people as having the potential

for entrepreneurial success.


Their entrepreneurial strength is their approach to selling. They truly cater to

the needs of clients and customers, thus placing a strong stress on service.
Super sales people are interested in managing the customer into a sale, not in

applying pressure tactics.


 Capacity to empathize
 Social interaction and relationships are important
 Need to have strong positive relationships with others
 Sales force is critical
 Background: less education, more experience
3. Real manager
Real managers exhibit some of the traits of established
entrepreneurs and some of the abilities of corporate managers.
They possess the following traits
 Desire to be corporate leader

 Desire to compete

 Decisive

 Desire of power

 Desire to stand out in a crowd


4. Expert Idea Generator
 Expert idea generators are people who have ideas for a business

that can provide a real competitive advantage.


 They become tremendously enthused about their ideas and spend

a great deal of time implementing them.


 Unlike personal achievers, who spend energy on an overall

venture, expert idea generators tend to focus on the idea


exclusively.
 Very often, they will try to persuade others to contribute to

implementation and, if unsuccessful, they will abandon the idea.


Cont’d

They possess a majority of the following five characteristics:


 Desire to innovate

 Love of ideas, curious

 Belief that new products are crucial

 Intelligence is the competitive advantage

 Desire to avoid taking risks


Personal efforts to be an Entrepreneur

The nature of entrepreneurial activity requires the following


extra efforts from an entrepreneur
 Works long hours

 Always concerned about the business

 Needs high energy

 Sacrifices other important aspects of life

 Limited social life

 Not much time with family and friends

 Financial investment
Assignment
Selected Ethiopian Entrepreneur
As the dynamism and momentum of Ethiopia’s
economy keep growing remarkably, here are the list of
Ethiopian entrepreneurs in different sectors of the
economy.
1. Bethlehem Tilahun Alemu, Sole Rebels
Cont’d
2. Ms. Tseday Asrat, Kaldi’s Coffee, coffee shop
chain
cont’d
3. Ms. Samrawit Fikru, Hybrid Design Plc and RIDE,
ride sharing app
Cont’d
Mr. Getaw Mekonnen Cherinet, Tulip Addis
Water Filter
Table 1: The relationship between entrepreneurship and entrepreneur
Table 2 Entrepreneur vs. manger

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