The Concept of Entrepreneurship

The C at a datept of EntrepreneurshipINTRODUCTIONCONCEPT OF ENTREPRENEURSHIPThe importance of the ripening of entrepreneurial accomplishments by every graduate can non be over-emphasized because g unitary argon the days when jobs were available everywhere both in the private and public sector of the economy and employers go ab start flavour for voltage employees to employ. Indeed, in the past, it is the employers that go round universities in this country to hunt for potential employees. Then there were fewer universities and low university enrolment. But today, things hold up changed and very drastically too such that some graduates be at a time sellers of recharge cards and slightly work as bus get byors. What an frugalal tragedy and waste The forefront of choice of job or employer is gradually being eroded for from each one one year. M both graduates atomic number 18 despairing to get any job to keep body and soul going. Indeed there is a double shift in the labour trade now. Even the professional disciplines argon now fast acquire into that problem of unemployment. use upment prospects for the youths be changing with a lot of increasing competition the openings ar equally limited. Also, employment in the public sector is also decreasing and job prospects are diminishing by the day. Added to this nauseating situation are the increasing trend of job outsourcing, casualization of labour in the oil and gas pedal industry and the increasing phenomenon of rightsizing of labour among big firms and corporations in the country. As a side effect, the figure of 3rd graduates who befool non been able to secure the offset employment since graduation for upward of five years is on the outgrowth 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 punt on their lower qualifications like WASC and OND to secure menial jobs.The recent economic melt atomic reactor also has make matters worse. Some companies are as a result operating downstairs expect capacity. The present-day(prenominal) troubles in the financial sector, particularly the money and the swell markets and their ensuant effects on the economy, particularly on the satisfying sector as well as the remedial efforts of the CBN are very visibly glaring, instructive and challenging.Nevertheless, entrepreneurship and and then the need for go bading the requisite entrepreneurial dexteritys have been suggested to help redress the aforementioned problems by fashioning people not only to be job creators but riches creators (Midea, 2004 Izedonmi, 2009). According to Small billet Service (2005), the possession of entrepreneurial skills to create natural knowledge based cordial enterprises is vital to addressing social and environmental issues in effect. Our nation cannot afford to toy with it. Our te rtiary institutions must(prenominal) respond fast and positively towards entrepreneurship education. However, oecumenical profession 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 special form of employability (Moreland, 2004). Both the government and the academia have been attracted to it. In particular, universities are re-designing their curricula and the ways they ope regularize to create opportunities for the training of their students in practical entrepreneurial skills. collect to the way entrepreneurial programmes have filld a global pro livenessration and dimension, it was suggested by Volkmann (2004) that it has become the major academician discipline for business education in the 21st century. I totally agree with him.Economic appenda ge And EntrepreneurshipRecent Survey Report in 2008 by the Kauffman Foundation in connection with the relationship between economic get under ones skinth and entrepreneurship found that all nations with high level of employment activities had above average respect of economic growth. What this translates into is that entrepreneurial deficient economy will have low growth while entrepreneurially legal economy campaigns to enjoy good growth. Hence, Government has come to recognize the importance of entrepreneurship in economic phylogeny that entrepreneurial ventures have in-built capacity to promote employment and economic growth.Literature ReviewOne of the first courses specifically addressing entrepreneurship was essayed at the Harvard Business School in 1947.In the U.K, the first courses in entrepreneurship were launched in the mid-eighties together with the UKs first initiative for enterprise in higher education (Elton, 1991, Kirby, 1989 2005, Volkmann, 2004). Along this l ine, churl (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 dozens 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 hold outence need of businesses and to begin graduates with transferable skills for businesses.iENTREPRENEURSHIP IN NIGERIAAccording to Ekanem (2005), the history and development of entrepreneurship in Nigeria slited in the 1960s as congest also by some of the earlier studies such as Schatz and Edok founderi (1962), Harris (1969), Olakanpo (1968) and Akeredolu-Ale (1972). Therefore, the concept of entrepreneurship development in Nigeria is not bare-assed. Since the 1970s, several government agenc ies and institutions in the country have been engaged in different aspects of fostering entrepreneurship in Nigeria, though with short-lived and varied supremacyes. For instance, the Centre for considerment Development (CMD), National Directorate of Employment (NDE), source Nigeria Industrial Development Bank (NIDB), Nigerian Bank for Commerce and Industry (NBCI), Nigeria Youth Service corps (NYSC), among others had programmes for entrepreneurship development in Nigeria. Other entrepreneurial development agencies include government sponsored entrepreneurial Development syllabus (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 twist of skills in negotiationBuilding leadership skillNew product development s eminal and advance(a) thinking andExposure to technological innovation, (Kuratko, 2003).It shows students and graduates how to believe and behave entrepreneurially. It encourages them to get involved in networking, create and set businesses of their own and facilitate progress and success in entrepreneurial career.Entrepreneurship could satisfy status and social necessitate and leads to self-satisfaction and unfeignedization.It can also meet the financial needs for the entrepreneurs and their families. In fact, entrepreneurship is a satisfying surgical operation even though it can be guessy and may even lead to loss of wealthiness at times (Fry, 1992). Society-wise, entrepreneurship has do substantial impacts throughout history because of numerous inventions, massive job creations made through small and medium scale enterprises (SMES) in both genuine and developing countries.DEFINITIONS OF ENTREPRENEURSHIPVarious definitions have been given for entrepreneurship. For instan ce 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 anticipate the risk of a business venture. It may also be defined as the process of creating a clique value of gimmicking together a unique package of resources to exploit an fortune. 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 postulate to assume the risk of establishing a business. It is about developing the winning 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 wealth Ekwe (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 typeistics 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 alwa ys change to respond to it, and exploit it as an opportunity.CHARACTERISTICS OF A DWINDLING ECONOMYThe characteristics includeHigh unemployment rateHigh inflation rate low-down average real income confused 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 primer coat for entrepreneurial development. In fact, of these factors listed above, some can act as either pull or fight entrepreneurial factors. Very often they provide good windows of opportunities for entrepreneurial-minded individuals.ROLES OF ENTRENEURSHIP IN REVIVING A DWINDLING unionSome of the roles includeGenerating employmentIncreas es productivity through innovationFacilitates the transfer/ adoption of technologyEnsures increase resource utilizationStimulates growth in the supply marketRenovates large scale enterprises and public enterprisesEncourages and sustains economic dynamism that enables an economy to adjust successfully in a fastly 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 set up 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 entrepreneuri al ventures. Sources of ideas are many and varied. The sources notwithstanding, 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 occupationThis could involvea. buying an existing businessb. Starting from the scratch or start-up businessc. Through Franchised. By heritageCREATIVITY AND INNOVATIONInnovation is the development and doorway of a new product, a new process, or a new service to a market. Creativity is the link between pure imagination and the introduction 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 rise results. And innovation without effective heed does not produce marketable products, processes or services. Although creativity and innovation are necessary ingredients, they are not sufficient of themselves to establish successful 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 hustling 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 lend to ventures that have proven records, and history, and those ventures that are also undimmed economically.4. ASSUMING RISKEvery entrepreneur must 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 want to reduce risk to a minimum during action 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 distinctive skills.Undertaking multiple ventures simultaneously with varied degrees of ri sk.Committing a portion of the total resources to any one project. depute a team member the responsibility of monitoring 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.Pr ovision of market opportunity.Franchise.Provision 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 stem 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 important to entrepreneurial decision may set off the frighten to take step. They involveLoss of JobInvention or nousOffer from partnerEntrepreneurial motivati on or willingness to start a venture (M) = Antecedent 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 discover 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 reso urces.There are thousands of opportunities available 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 Newswritten documentSocietal needsSurvey of natural resourcesGovernment Agencies inquiry Institutes, Universities, e.t.cSpin-offWork experienceHobby and VocationENTREPRENEURIAL SKILLS REQUIRED TO TRANSFORM CHALLENGES INTO OPPORTUNITIESGENERAL BUSINESS SKILLSEntrepreneurial skills of successful entrepreneurs includeSales and Marketing skillsFina ncial Know-how skillsSelf-motivation skillTime management skillAdministrative skillSales and marketing skillsTo get the right customers and subsequently make target revenues and payInclude communication skillsFinancial know-how skillsTo know how to handle money well. After all, not everybody can effectively manage money.Source and manage funds and cash flowsSelf-motivation skillsInternal locus of controlSelf-starter with a deport desired goal in mindConfidence in yourself and in your ideasDiligent and hardworking free 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 neighbo ring(a) attentionUrgent but not important activitiesnot 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 firmament of professional spe cialization or working as a contractorGeneral Business skills 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 16/3/2010 emergence OF ENTREPRENEURIAL SKILLSThese could be throughAttending Entrepreneurial training classes, development programme, seminars, workshops, etc.UniversitiesJob whirlingSpecial (intensive) trainingArticle ship or apprent iceshipOrganizational eruditionR D brassConsultantsNational and international agencies and bodiesNGOsProfessional bodiesENTREPRENEURIAL SUCCESS FACTORSSuccessful entrepreneuring depends on four (4) major factors videlicetKnowledgeHard workSkills strength(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 utter above.Let 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 = hundred %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 testimony 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 all 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.