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"Principles Of Entrepreneurship

Updated on August 1, 2019

What is Entrepreneurship?

Entrepreneurship is the ability to assume risks in undertaking an activity so as to create and build something from completely nothing. It can also be defined as the process of devoting the time and effort so as to come up with something that is of value in order to produce and supply goods and services at a cost.

Who is an Entrepreneur?

An entrepreneur is most viewed as a person who can:

1. Come up with new organizational methods, that is, new management skills

2. Come up with new markets for the various goods and services

3. Come up with new sources of supply

4. Innovate new and unique processes ways of doing things

5. Come up with new products in the market.

Entrepreneurial Process

Entrepreneurship has five distinct stages which include;

1. Identification and evaluation of an opportunity

2. Development of a business plan

3. Determination of the required resources

4. Launching of the enterprise

5. Management and growth of the enterprise

Types of entrepreneurship


1. Corporate entrepreneurship

This comes about whereby an already existing organization together with an individual comes up with a new venture or becomes innovative in a certain way.

2. Social entrepreneurship

This is a type of entrepreneurship that aimsat solving a certain social problem in a sustainable way. This mostly involves a group of people coming together to change how a particular thing is done or introduce something that is of great benefit to their society mostly in places where people are living in abject poverty

Roles Of Entrepreneurship

  • Creation of jobs because more human labor is required for the day to day activities of the new venture
  • Creation of new products and services since entrepreneurship is all about creativity and innovation
  • Contribution to social and economic mobility that comes as a result of the sustainability of the business
  • Serves as an agent of change by steering competition amongst the entrepreneurs in the market offering the same product or service
  • Earns the country tax and revenue from the statutory deductions done monthly and even annually
  • Leads to the efficient and effective utilization of resources
  • Promotes social welfare and social responsibility whenever the new ventures give back to society

Characteristics Of Successful Entrepreneurs

Flexibility

Successful entrepreneurs are highly flexible to the highly ever-changing environment and they are fast learners

They are persistent and they have an approach of never say die whatsoever

They have an internal locus of control. They believe that their actions can directly affect the outcome of an event or undertaking

They possess a high need for achievement and that is why they work round the clock to see to it that everything is done perfectly according to their strategy to succeed.

They take initiatives and responsibilities upon themselves without expecting anyone to do their part

They are optimistic such that they adopt a positive mental attitude and approach and always believe in themselves no matter what.

They have calculated risk-takers who are always willing to take the bull by its horns.

They are opportunity oriented in that they grab every opportunity that comes their way even if there are no resources or faced by other challenging situations.

Entrepreneurial Competences

  • Need for fundraising skills needed for a startup in every opportunity that arises
  • Need for excellent negotiation skills with employees and even customers
  • Need for interpersonal skills so as to tackle the needs of the customers effectively
  • Need for management and leadership skills to run the enterprise well
  • Need for excellent communication skills to maintain a good rapport with all the people involved in the business
  • Need for decision-making skills to avoid making bad decisions
  • Need for good analytical skills so as to figure out what is best for the enterprise

Entrepreneurship Needs


  • Need for power
  • Need for affiliation
  • Need for achievement

In as much as an entrepreneur already sees the opportunity, they need other tipping factors which include;

  • Availability of resources
  • Availability of the market
  • Changing lifestyle
  • Loss of a job
  • Bad economic recessions

Categories of entrepreneurial behaviors

Compelling factors

This is normally what really pushes so many people towards entrepreneurship and they mostly are unemployment, available resources, and job dissatisfaction.

Entrepreneurial ambitions

Some of the ambitions could be to make money, self-actualization reasons or to help other people in society

  • Facilitating factors

These factors could come in the form of favorable government policy, inheritance of business or property, previous experience or employment or even a previous association

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2019 Dora

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