PERSPECTIVE ON ENTREPRENEURSHIP

WHAT IS ENTREPRENEURSHIP
Entrepreneurship refers to the economic activity of a
person who starts, manages, and assumes the risk of
a business enterprise.
An entrepreneur identifies an economic need,
considers offering a business solution, proceeds to
assemble the resources required, and assumes the
risk of either succeeding or failing.
 THE ENTREPRENEURS TASK
1. Development of our economy
2. Provide training ground for future entrepreneurs.
3. Assemble a production unit complete with manpower and equipment, the
quality and quantity of which shall be determined by the entrepreneur.
4. Determine and make decision on the rate of output the firm must produce.
Specific function of an entrepreneur to make profits
i. Supply necessary capital
ii. Organize production by buying and combining inputs like materials and
labor
iii. Decide on the rate of output, in the light of his expectation about demand
iv. To bear the risk inherent to the venture
ENTREPRENEURSHIP & INNOVATION
Innovation introduction of new method, procedure, custom, device etc.
1. New product
2. New process of production
3. Substitution of a cheaper material in an unaltered product
4. Reorganization of production, internal function, or distribution arrangement
leading to increased efficiency, better support for a given product, or lower cost
5. Improvement in instruments or methods of doing innovation.
ENTREPRENEURSHIP & INNOVATION
Innovation may also be viewed as the last stage in an important process
consisting of
1. Invention discovery or devising of new products and processes
2. Development process by which the ideas and principles generated from
the stage of invention are embodied in concrete products and techniques;
3. Innovation actual introduction of a new product or process.
Innovation must provide value to the buyers over and above those offered by
competitors. Innovation must reduce costs or improve the quality of products or
services offered for sale.
NEW VENTURES TO LONG-TERM ENTERPRISES

Late
Early Growth
growth Stage
Start-up
stage stage
Pre
start-up
stage
START UP STAGE
1. Formation of the business
2. Generation of necessary capital
3. Purchase of facilities and equipment
4. Constructing prototype products
5. Testing the market
FACTORS OF PRODUCTION AND THEIR REWARDS
FACTORS OF ECONOMIC REWARD LIMITING FACTORS
PRODUCTION FOR REWARDS
RECEIVED
LAND RENT SUPPLY AND DEMAND
CAPITAL INTEREST INDUSTRY RATES/
GOVERNMENT
MANDATED RATES
LABOR WAGES/SALARY SUPPLY AND DEMAND
LEGISLATION
ENTREPRENEUR PROFITS SKILL OF ENTREPRENEUR