Hawassa University

Department of Management
Entrepreneurship & small Business
Management

CHAPTER ONE
Entrepreneurship & Entrepreneur: Meaning and
importance

1
 1.1 Concept of Entrepreneurship
• Entrepreneurship is defined as:
• a dynamic process undertaken by an entrepreneur to
create incremental value and wealth by:
 discovering investment opportunities,
 organizing an enterprise,
undertaking risk and economic uncertainty
and there by contributing to economic growth

• Ability of people to bring the necessary inputs together

and produce something valuable.

2
• Entrepreneurship is the process of creating something different
with value by:
– devoting the necessary time and effort,
– assuming the accompanying financial, psychic and social
risks, and
– receiving the resulting rewards of monetary & personal
satisfaction and independence.
• Entrepreneurship is indeed the process of creating and building
something of value from practically nothing.

• It involves the definition, creation, and distribution of value and

benefits to individuals, groups, organizations, and society at
large.
• Is also defined as a career in your own business [YOB] rather
than wage employment [JOB]
3
•
 1.2 THE CONCEPT OF ENTREPRENEUR
• The term ‘Entrepreneur’ is derived from the French word
‘Enterprendre’ meaning one who undertakes or one who is
a ‘go-between’
• In fact, in the 16th century, the Frenchmen who undertook
military expedition were referred to as ‘Entrepreneurs.’
• Later on, in the 18th century, this term got associated with
persons who started their own enterprises.

• Richard Cantillon, an Irish man living in France, was the

first economist who introduced the term ‘entrepreneur’
referring to the :
• risk taking function of establishing a new venture. 4
• Generally speaking, entrepreneur refers to a person
who establishes his own business or industrial
undertaking with a view to making profit.

• An entrepreneur is a person who starts an enterprise,

searches for change and responds to it.

• An entrepreneur is considered to be an originator of a

business venture.
• He takes the role of an organizer in the process of
production.

5
• Different Definitions of Entrepreneurs by Different
People:
Adam smith
• Describe enterpriser as an individual who undertook the
formation of an organization for commercial purposes.
• He viewed the entrepreneur as a person with unusual
foresight who could recognize potential demand for
goods and services.

• Carl
• The entrepreneur becomes the change agent who
transforms resource into useful goods and services, often
creating the circumstances that lead to industrial growth.
6
 1.3. History of Entrepreneurship
• The word ‘entrepreneur’ is derived from the French
word entreprendre.
• It means ‘to undertake’.
• Thus, entrepreneur is the person who undertakes the
risk of new enterprise. Its evolution is as follows:
• Its origin:
 lies in 17th century France, where an entrepreneur was an
individual commissioned to undertake a particular commercial
project.
• Earliest Period:
• In this period, the money person (forerunner of the capitalist) entered into a
contract with the merchant to sell his goods.
• While the capitalist was a passive risk bearer, the merchant bore all the physical
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and emotional risks.
risks
 Middle Ages:
In this age, the term entrepreneur was used to
describe both an actor and a person who
managed large production projects.

 In such large production projects, this person

did not take any risks, but managing the project
with the resources provided.

 A typical entrepreneur was the cleric who

managed architectural projects
8
 17th Century:
In the 17th century, the entrepreneur was a person
who entered into a contract with the government to
perform a service.

Richard Cantillon, a noted economist of the

1700s, developed theories of the entrepreneur
and is regarded as the founder of the term.

He viewed the entrepreneur as a risk taker who

"buy[s] at certain price and sell[s] at an uncertain
price, therefore operating at a risk."
9
19th Centuries:
The entrepreneurs were not
distinguished from managers
Here, entrepreneurs were viewed
mostly from an economic perspective.
The entrepreneur "contributes his
own initiative, skill and ingenuity in
planning, organizing and administering
the enterprise, assuming the chance of
loss and gain." 10
 20th CENTURY:
• During the early 20th century Dewing
equated the entrepreneur with business
promoter and viewed the promoter as one
who transformed ideas into a profitable
business.

• It was Joseph Schumpeter who described

an entrepreneur as an innovator.

• According to him an entrepreneur is an

innovator who develops untried
technology. 11
 21th CENTURY
• Researchers pointed out that it is
not always important that an
individual comes up with an entirely
new idea to be called an entrepreneur,

• but if he is adding incremental value

to the current product or service, he
can rightly be called an entrepreneur.

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 1.4. Kinds of Entrepreneurs
• The field of small business encompasses a
great variety of entrepreneurs and
entrepreneurial ventures.

• There are various ways by which

entrepreneurs have been classified.

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 A. Clarence Danhof’s Classification
• Clarence Danhof, in his study of American
agriculture, classified entrepreneurs into four
categories:

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1. Innovating entrepreneurs: is one who introduces new
goods, inaugurates new method of production,
discovers new market and reorganizes the enterprise.

- is characterized by:
– aggressive assemblage of information and the
analysis of results derived from sound combination
of factors.
– such entrepreneurs can work only when a certain
level of development is already achieved, and
people look forward to change and improvement.
– Generally, they are typical of developed countries.

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– Innovating entrepreneurs played the key role in
the rise of modern capitalism, through their
enterprising spirit, hope of money making, ability
to recognize and exploit opportunities, etc.

– The innovating entrepreneur does not invent

rather commercializes the inventions or
implements the inventor’s ideas.

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2. Adoptive or imitative entrepreneurs: These are
characterized by:
– readiness to adopt successful innovations
inaugurated by successful innovating
entrepreneurs.
– do not innovate the changes themselves, they only
imitate techniques and technology innovated by
others.
– lap up innovations originated by innovating
entrepreneurs.
– are particularly suitable for the underdeveloped
regions for bringing a mushroom drive of imitation
of new combinations of factors of production

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• In highly backward countries there is shortage
of imitative entrepreneurs also.

• Imitative entrepreneurs face lesser risks and

uncertainty than innovative entrepreneurs.
While innovative entrepreneurs are creative,
imitative entrepreneurs are adoptive.

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3. Fabian entrepreneurs: Entrepreneurs of this
type are:
– have neither the will to introduce new changes nor
the desire to adopt new methods innovated by the
most enterprising entrepreneurs.
– imitate only when it becomes perfectly clear that
failure to do so would result in a loss of the relative
position in the enterprise.
– very cautious and skeptical while practicing any
change.

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– are lazy and shy and lack the will to adopt to new
methods of production.
– are not much interested in taking risk and they try
to follow the footsteps of their predecessors..
– Their dealings are determined or dominated more
by customs, religion, tradition, and past practices.

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• 4. Drone entrepreneurs: Drone entrepreneur is
characterized by:
– a refusal to adopt and use opportunities to make
changes in production formulae even at the cost of
severely reduced returns relative to other like
producers.
– may even suffer losses but they are not ready to
make changes in their existing production methods.
– struggle to exist, not to grow. Thus, they are
laggards as they continue to operate in their
traditional way and resist changes.

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– They blindly follow traditional methods of
production even when it causes loss to them.
– When their product loses marketability and their
operations become uneconomical they are
pushed out of the market.
– They are conventional in the sense that they stick
to conventional products and ideas.

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 B. Classification according to foundation of the
business
• Although categories tend to overlap,
entrepreneurial leadership may be classified
into three types:
1. Founders
2. General managers, and
3. Franchisees

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 1. Founding Entrepreneurs
• Founders refer to entrepreneurs who bring
new firms into existence.
• Generally considered to be the “pure”
entrepreneurs,
• founders may be inventors who initiate
businesses on the basis of new or improved
products or services.
• Whether acting as individuals or in-groups,
these people bring firms into existence by
surveying the market, raising funds and
arranging for the necessary facilities. 24
 2. General Managers
• As new firms become well established, founders
become less innovators and more
administrators.
• General managers preside over the operation of
successful on going business firms.

• They manage the week-to-week and month-to-

month production, marketing, and financial
functions of small firms.

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• In small cases, small firms grow rapidly, and
their orientation is more akin to the founding
than to the management process.

• Nevertheless, it is helpful to distinguish those

entrepreneurs who found and substantially
change firms (the “movers and shakers”) from
those who direct the continuing operations of
established firms.

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 3. Franchisees
• Franchisees differ from general managers in
the degree of independence.

• Because of the constraints and guidance

provided by contractual relationships with
franchising organizations, franchisees
function as limited entrepreneurs.

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 C. Classification according to Firm’s potential
for growth & profit
• Small business ventures differ greatly in their
potential for growth and profits.
• Some create millionaires, while others produce
less spectacular results.
• To account for these differences, we may
distinguish firms according to the following
categories:
1. Marginal firms
2. Attractive small companies, and
3. High potential ventures
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 Marginal Firms
• Marginal firms are only small firm that provide
insignificant profits to its owner(s).
• Very small-dry cleaners, independent garages, beauty
shops, service stations, appliance repair shops, and
other small firms that provide very modest returns to
their owners are marginal firms.
• We do not call them “marginal” because they are in
danger of bankruptcy.

• Some marginal firms, it is true, are on “thin-ice”

financially, but the distinguishing feature is their
limited ability to generate significant profits.
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 2. Attractive small companies
• Are any small firms that provide substantial
profit to its owner(s).
• In contrast to marginal firms, numerous
attractive small firms offer substantial rewards
to their owners.
• These are the strong segment of small business
–the “good” firms that can provide rewarding
careers.

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 3. High-potential ventures
• Are firms that have great prospect for growth.
• Frequently these are also high-technology
ventures.
• At the time of the firm’s founding, the owners
often anticipate-rapid growth, a possible merger,
or “going public” within a few years.
• Some of the spectacular examples within recent
years include
– Microsoft,
– Wal-Mart, and
– McDonalds.
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 D. Classification according to their styles
of doing business
• Perhaps because of entrepreneurs varied
backgrounds, entrepreneurs display great
variation in their styles of doing business.
• They analyze problems and approach decision-
making in drastically different ways.
• Norman R. Smith has suggested two basic
entrepreneurial patterns:
I. Artisan entrepreneurs, and
II. Opportunistic entrepreneurs
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 I. The Artisan entrepreneur
• According to Smith the artisan entrepreneur is
a person who starts business with primarily
technical skills and little business knowledge.
• Artisan entrepreneur is limited to technical
training.
• Such entrepreneurs have technical job
experience, but they lack good communication
skills.

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• Their approach to business decision making is
characterized by the following features:
– They are paternalistic (this means they direct their
business much as they might direct their own families)
– They are reluctant to delegate authority
– They use few (one or two) capital sources to create
their firms.
– They define marketing strategy in terms of the
traditional price, quality, and company reputation.
– Their sales efforts are primarily personal
– Their time orientation is short, with little planning for
future growth or change.
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 ii. The Opportunistic entrepreneur
• is one who has supplemented technical education
by studying such non-technical subjects as
economics, law or English.
• is an entrepreneur who enters business with both
sophisticated managerial skills and technical
knowledge.
• Opportunistic entrepreneurs :
– delegate authority as necessary for growth,
– employ various marketing strategies and types of sales
efforts,
– obtain original capitalization from more than two
sources, and
– plan for future growth.
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 E. classification according to motivation
• Motivation is the force that influences the
efforts of the entrepreneur to achieve
his/her objectives.
• An entrepreneur is motivated to achieve or
prove his excellence in job performance.
• He is also motivated to influence others by
demonstrating his power thus satisfy his ego.

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• Hence, according to the motivation of
entrepreneurs, we can broadly classify these
entrepreneurs as follows:
1. Pure entrepreneur
2. Induced entrepreneur
3. Motivated entrepreneur
4. Spontaneous entrepreneur

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 1. Pure entrepreneur
• is an individual who is motivated by
psychological and economic rewards.
• He undertakes an entrepreneurial activity for
his personal satisfaction in work, ego, or
status.

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 2. Induced entrepreneur
• Induced entrepreneur is one who is induced to
take up an entrepreneurial task due to the
policy measures of the government that
provides assistance, incentives, concessions and
necessary overhead facilities to start a venture.
• Most of the entrepreneurs are induced entrepreneurs
who enter business due to
– financial,
– technical and
– several other facilities provided to them by the state
agencies to promote entrepreneurship.
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 2. Motivated entrepreneur
• New entrepreneurs are motivated by the desire
for self-fulfillment.
• They come into being because of the possibility
of making and marketing some new product for
the use of consumers.
• If the product is developed to a saleable stage,
the entrepreneur is further motivated by
reward in terms of profit.

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 2. Spontaneous entrepreneur
• These entrepreneurs start their business out of
their natural talents.
• They are persons with initiative, boldness, and
confidence in their ability, which motivate
them to undertake entrepreneurial activity.
• Such entrepreneurs have a strong conviction
and confidence in their ability.

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 Classification according to the
stage of development
• Depending upon the stage of development
entrepreneurs may also be classified as:
1. First-generation entrepreneur
2. Modern-entrepreneur
3. Classical entrepreneur

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 1. First-generation entrepreneur
• A first generation entrepreneur is one who
starts an industrial unit by `means of an
innovative skill.
• He is essentially an innovator, combining
different technologies to produce a marketable
product or service.

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 2. Modern entrepreneur
• A modern entrepreneur is one who
undertakes those ventures which go well
along with the changing demand in the
market.
• They undertake those ventures which suit
the current marketing needs.

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 3. Classical entrepreneur
• A classical entrepreneur is one who is
concerned with the customers and marketing
needs through the development of self-
supporting ventures.
• He is a stereotype entrepreneur whose aim is
to maximize his economic returns at a level
consistent with the survival of the firm with
or without an element of growth.

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 1.5. Functions of an Entrepreneur
• The main functions of an entrepreneur are as
follow:
• 1. Innovation: implies doing new things or doing
things that are already being done in new ways.
• An entrepreneur introduces new combinations
in any branch of economic activity.

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• It may occur in the following forms:
1. Introduction of a new product or new quality of an
existing product.
2. Introduction of new methods of production or
distribution.
3. Opening of a new market
4. Conquest of a new source of raw materials
5. New form of organization of industry

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• 2. Risk-taking: Risk taking or uncertainty
bearing implies assuming the responsibility for
loss that may occur due to unforeseen
contingencies of the future.

• An entrepreneur provides or invests capital in order to

establish and run the enterprise.

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• 3. Organization building: implies bringing
together the various factors of production.
• organization and management of the
enterprise is considered as the main function of
an entrepreneur.
• Thus, as an organization builder, the
organization and management function of an
entrepreneur includes
– (a) planning of an enterprise,
– (b) coordination, administration, and control; and
– (c) routine type of supervision.
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 Characteristics of Entrepreneurs
• 1. Need for Achievement
• Psychologists recognize that people differ in
their need for achievement.
• Individuals with a low need for achievement are
those who seem to be contented with their
present status.
• On the other hand, individuals with a high need
for achievement like to compete with some
standard of excellence and prefer to be
personally responsible for their own assigned
tasks, 50
• i.e. need for achievement- a desire to succeed, where
success is measured against a personal standard of
excellence.
• A leader in the study of achievement motivation is
David C. McClelland, a Harvard Psychologist.
• He discovered a positive correlation between the need
for achievement and entrepreneurial activity.

• According to him, those who become entrepreneurs

have, on the average, a higher need for achievement
than do members of the general population.
•

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2. Willingness to Take Risks
• The risks that entrepreneurs take in starting
and/or operating their own business are
varied.
• By investing their own money, they assume a
financial risk.
• If they leave secured jobs, they risk their
careers.

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• The stress and time required in starting and running a
business may also place their families at risk.

• And entrepreneurs who identify closely with particular

business ventures assume psychic risk as they face the
possibility of business failure.

• individuals with a high need for achievement also

have moderate risk-taking propensities.

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3. Self-Confidence
• Individuals who possess self-confidence feel they
can meet the challenges that confront them.

• They have a sense of mastery over the types of

problems they might encounter.

• Studies show that successful entrepreneurs tend to

be self-reliant individuals who see the problem in
launching a new venture but believe in their own
ability to overcome these problems.

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• According to J.B. Rotter, a psychologist, those
who believe that entrepreneurs’ success
depends upon their own efforts have an
internal locus of control.
• In contrast, those who feel that their lives
are controlled to a greater extent by luck or
chance or fate have an external locus of
control.

• A strong a desire for independence is

commonly recognized as prevalent among
entrepreneurs and owner managers as well. 55
4. Innovation
• Innovative activity is a hallmark of
entrepreneurship, but not necessarily of the
owner-manager.
5. Total commitment
• Hard work, energy, and single mindedness
are all essential elements in the
entrepreneurial profile, such as running your
own business in a 24-hours-a-day, 7-days-a-
week commitment

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6. All - rounders
• At least in the early stages of the business,
entrepreneurs need to be able to ‘ make the
product, market it and count money’.

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7. A Need to Seek Refuge
• Although most people go into business to obtain the
rewards of entrepreneurship (benefits of
entrepreneurship), there are some who become
entrepreneurs to escape from environmental factors.
• Professor Russell M. knight of the University of
Western Ontario has identified a number of
environmental factors that encourage or “push”
people to found new firms and has labeled such
entrepreneurs as “refugees”.

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• a) The “Foreign Refugee”
• Foreign refugee- a person who leaves his/her
native country and later becomes an
entrepreneur.

• There are many individuals who escape the

political, religious, or economic constraints of
their homelands by crossing national
boundaries.

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b) Corporate Refugee
• Individual who flee the bureaucratic environment of
big business (or even medium-size business) by going
into business for them selves are identified by
professor knight as corporate refugees.

• Employees of large corporations often find the

atmosphere, decisions, or relocations required by
their jobs to be undesirable.

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c) Other Refugees
• 1) The parental (paternal) refugee- who leaves a
family business to show the parent that “I can do It
alone”.
• 2) The feminist refugee- who experiences
discrimination and elects to start a firm in which she
can operate independently to start a firm in which
she can operate independently of male chauvinists.

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• 3) The housewife refugee- who starts her
own business after her family is grown or at
some other point when she can free herself
from household responsibilities.

• 4) The society refugee - who senses some

alienation from the prevailing culture and
expresses it by indulging in entrepreneurial
activity- selling paintings to tourists or
operating an energy-saving business.

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• Society refugee-a person who chooses to
operate a business to escape societal
expectations.

5) The educational refugee - who tires of an

academic program and decides to go into
business.

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 1.6. What motivates entrepreneurs to start a
business?
• The reason for small firm formation can be
divided between “pull” and “push” influences.
i. Pull Influences
• Some individuals are attracted towards small
business ownership by positive motives such as
a specific idea which they are convinced will
work.
• “Pull” motives include:

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• 1. Desire for Independence
• This features prominently in several research studies
as the key motivator.
• A study of female entrepreneurs in Britain found that
women were motivated particularly by the need for
autonomy, which had been frustrated by the
individuals prior training and background.

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• 2. Desire to Exploit an Opportunity
• The identification of a perceived gap in the market
place through personal observation or experience is
also a common reason for starting a business.

• Entrepreneurs may seek to exploit this

opportunity through special knowledge,
product development or they may hire the
appropriate technology and skills.

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• 3. Turning a Hobby or Previous Work
Experience Into a Business.
• Many new entrepreneurs seek fulfillment by
spending more time involved in a cherished
hobby, or part of their work that they
particularly enjoy.

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4. Financial Incentive
• The rewards of starting a business can be high,
and are well publicized by those selling ‘how to’
information to would-be entrepreneurs.
• The promise of long term financial
independence can clearly be a motive in
starting a new firm, although it is usually not
quoted as frequently as other factors.

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ii. ‘Push’ Influences
• Many people are pushed into founding a new
enterprise by a variety of factors including:
1. Redundancy: is condition of joblessness
2. Threat of Unemployment: job insecurity and
employment varies in significance by region, and by
prevailing economic climate
3. Disagreement with previous employer:
Uncomfortable relations at work have also pushed
new entrants in to small business

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 1.6. Success Factors for Entrepreneurs
1. The Entrepreneurial Team
• Entrepreneurs do not start business by them
selves; they have teams, partners, close
associates, or extensive networks of advisers.
• In major studies of entrepreneurs in the United
States, Canada, and Europe, between 60and 70
percent of all technology based ventures were
started by founders with at least one partner or
cofounder.

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• Those in non-technical enterprises (e.g.,
personal services or merchandising) were
less likely to have partners or cofounders, yet
they were well networked with associates or
expert advisers.

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 2. Venture Product or Services
• Products tend to have strong profit potential
with high initial margins rather than small
margins that require a substantial volume of
sales to meet profit objectives.
• In each instance, products and services tend to
display a distinctive competency in their
industries.
• This is important because very few
entrepreneurs start businesses in already
competitive situations.
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 3. Markets and Timing
• Successful entrepreneurs tend to have a clear
vision of both existing and potential customers.
• A crucial aspect of planning is to have a well-
documented forecast of sales based on sensible
projections at each stage of incremental
growth.
• Markets evolve, and as noted early, there are
windows of opportunity that can lead to
exceptional success.
• Misjudging those windows can result in dismal
failure. 73
• Market potential is critically influenced by
timing of new products or services.
• Timing pertains to-
– when products or services are introduced,
– how they are priced,
– how they are distributed, and
– how they are promoted.

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 4. Business Ideology
• A business ideology is defined as a system of
beliefs about how one conducts an enterprise.

• From an entrepreneur’s perspective, every

venture has an ideology, a philosophy or
rationale for existing.
• Although the ideology may be extremely
difficult to quantify, it is nevertheless
important.

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• These beliefs include-
– a commitment to providing customers with
value,
– the ability to take calculated risks,
– the determination to grow and to control the
fate of the business,
– the propensity to elicit cooperation among team
members, and the perspective of creating wealth
realistically.

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 1.7 Role of Entrepreneurship in Economic
Development
. Entrepreneurship is the life blood of any economy and it
applies more to a developing economy like Ethiopia.
Following are among the importance of entrepreneurship
1. Capital formation: Entrepreneurs mobilize the idle
savings of the public through the issue of industrial
securities.
• Investment of public savings in industry results in
productive utilization of national resources.
• Rate of capital formation increases which is essential
for rapid economic growth. Thus, an entrepreneur is
the creator of wealth. 77
 2. Improvement in per capital income
• Entrepreneurs locate and exploit opportunities.
• They convert the latent and idle resources like
land, labour and capital into national income
and wealth in the form of goods and services.

• They help to increase Net National Product and

per capita income in the country, which are
important yardsticks for measuring economic
growth.

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 3. Generation of employment
• Entrepreneurs generate employment both
directly and indirectly.
• Directly, self-employment as an entrepreneur
offers the best way for independent and
honorable life.
• Indirectly, by setting up large and small-scale
business units they offer jobs to millions.
• Thus, entrepreneurship helps to reduce the
unemployment problem in the country
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 4. Balanced regional development
• Entrepreneurs in the public and private sectors
help to remove regional disparities in economic
development.
• They set up industries in back ward areas to
avail of the various concessions and subsidies
offered by the Central and State Governments.

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 5. Improvement in living standards:
• Entrepreneurs set up industries which remove
scarcity of essential commodities and introduce
new products.
• Production of goods on mass scale and
manufacture of handicrafts, etc. in the small
scale sector help to improve the standard of life
of a common man.
• These offer goods at lower costs and increase
variety in consumption.

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 6. Economic independence:
• Entrepreneurship is essential for national self-reliance.
• Industrialists help to manufacture indigenous
substitutes of hitherto imported products thereby
reducing dependence on foreign countries.

• Businessmen also export goods and services on a large

scale and thereby earn the scarce foreign exchange for
the country.
• Such import substitution and export promotion help
to ensure the economic independence of the country
without which political independence has little
meaning.
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 7. Backward and forward linkages:

• Setting up of an enterprise has several backward

and forward linkages.
• An entrepreneur initiates change which has a
chain reaction.

• Entrepreneurial behaviour is critical to the long-

term vitality of every economy.
• The practice of entrepreneurship is as important
to established firms as it is to new ones.
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 8. Agents role
• Entrepreneurs are aptly called ‘Agents of
change’.
• Entrepreneurs act as catalyst or agent of
economic development by perceiving
opportunities and putting them into action.
• Entrepreneurs, seizing opportunities, set-up
business undertakings and industries and
thereby make economic transformation.
• Thus, economic development is an effect for
which entrepreneurship is the cause.
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 9. Role of innovation
• Innovation implies the commercial application
of an invention.
• Innovation is a key to entrepreneurship.
• Entrepreneurs have contributed many
innovations in developing new products and in
the existing products and services.

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 10. Imitating role
• Entrepreneurs in developing countries take the role of
“imitators” who generally copy the innovations
introduced by the “innovative” entrepreneurs of the
developed countries.
• They copy the organization, technology, and the
products of innovation from other developed regions.

• Imitative entrepreneurship seems to be the best

medicine for under developed countries to overcome
their entrepreneurial ills and bring about substantial
economic development.

86
 1.8. ENTREPRENEURSHIP AS A CAREER OPTION
• After finishing your graduation you will be at the
crossroads of life.
• You will face the dilemma of choosing what you have to do
in life.
• You can choose your career from two broad categories of
options – Wage Employment or Entrepreneurship.
• The term ‘career’ signifies a continuous, ever evolving,
ever expanding opportunity for personal as well as
business growth and development.

• We may define entrepreneurship as a career in your

own business [YOB] rather than wage employment
[JOB] . 87
• If you opt for a job then you will work for others.
• In case you opt for entrepreneurship you will be your
own boss.

• In case of wage employment one is engaged in routine

work carried on for others for which he receives salary
or wages.

• He has to follow instructions and execute plans laid

down by his superior.

• One can choose to be employed in Government Service

or the Public Sector or the Private sector. 88
Difference between Wage Employment and
Entrepreneurship

89
THE END OF
CHAPTER ONE

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