Business Information zoner: BIZ

The infozoner gives you the best business information and entreprenuer education for your world veiw.

Breaking

Post Top Ad

6/19/22

THE CONCEPT OF ENTREPRENUERSHIP

Concept of entreprenuership:

Entreprenuership



Entreprenuership is the willingness an ability of a person to identify an seek out Business ideas or investment opportunities, establish an run the venture successfully. It is not just an economic functions but also a social functions with roots in the culture and the environment of a particular society. Thus , there are society which cherish an encourage entreprenuerial spirit more than the others. Entreprenuership is a function of many variables. When depicted mathematically it gives the following equation
E=f(E,C,W,A,E,S,K, etc).
Where E represent Entreprenuership
E=economy, C=culture, W=willingness, A= ability,
E=environment, S=social factor K=knowledge, skills etc.

From the equation above , entreprenuership is a dependent variables. It is the strength of these independent variable that determine the development of entreprenuers in a particular society.

Entreprenuership consists of two major aspect , human an institutional. The human aspect is the stock o trained skills, procedure, risk taking and innovative persons capable of creating a business or industrial activities where non existed before. The institutional aspect refers to the available organizational structure and processes such as Public policies , tradition and culture as well as the democratic environment of the entreprenuers, the enabling environment and commitment of government to end the development of entreprenuership through the provision of physical infrastructure and appropriate policies both micro and macro.

Definition of entreprenuership:

Entreprenuership like other concept in social and behavioural science, has no single acceptable definition. Infact there are many definitions of entreprenuership as there are researchers and diverse interests and opportunities in the areas of business organization. It is therefore not expected that any single definition will accommodate all the divergent views.

Infact, any attempt to do that will amount to the demonstration of ignorance of the subject as important as entreprenuership. To aviod this mistake ,the following definition by expert in this field have been presented below;
  1. According to drucker (1963) entreprenuership is the process of identifying, developing and bringing life, vision and mission to business opportunities.
  2. Marku (2001) defines entreprenuership as a dynamic process, created and managed by an individual (the entreprenuer) who strives to create new values in the market. It therefore stands to reason that entreprenuership is the key element in the world production, distribution, storage, exchange, marketing and consumption.
  3. Richard (2000) defines entreprenuership as self employment of any sort. This definition is misleading and shallow, because this restricted knowledge of entreprenuership has led many people to believe that anybody who owns any type of business is automatically an entreprenuer. The individuals who litered the street with one form of business activities or the other are not necessarily entreprenuers, especially those dealing with buying and selling of smuggled goods as well as those dealing in an unethical activities.
  4. According to the author of this article, entreprenuership is the ability of an individual or a firm or group of firms to invent and innovate, translating vision an mission. This vision may be an innovative idea, an opportunity or a better way of doing old things. The end result of this process is formed under conditions of risks and consideration (Mike longji 2022).

Theories of entreprenuership:

Globalization has placed greater reliance on entreprenuership for national development, technological innovation, and expanded employment opportunities all over the world today. According to nwachuku(2000) research had shown that all entreprenuers tend to be people with tremendous amount of determining effort of commitment. They are people high in achievement motivation and they have to make things happen.

This brings us to the theories of entreprenuership as compounded by various authorities. These theories are constructed from psychological, sociologically and behaviouralistic theoriest perspective. For the purpose of this article we will take a few entreprenuership theories:

Max Weber entreprenuership theory;

A German protestant Max Weber theory of entreprenuership believes that the protestant ethics encourage hard working. Which leads to the accumulation of capital and investment. According to him, certain religious beliefs create either a positive or negative attitude towards profit generation and accumulation of wealth. He surveyed the main participants of different religious, Catholic, Islam and protestant in order  to find out their attitude and behavior towards profit , and concluded that the protestant ethics tends to go well with high profit generation and accumulation of capital than the other two religions.

Frank young theory of entreprenuership;

Another sociological theorist of entreprenuership, his theory is one of change, based on society's incorporation of reactive sub groups. He believes that entreprenuers are not super normal individuals. This indicate that inter group relationship affect enterprenuerial activities.

According to young, a group will become reactive and tend towards entreprenuership activities when two conditions coincide. These conditions are;
  • A group that is experiencing low status in terms of recognition and deniel of access to important political or civil position or been rejected by the people.
  • A group that possess a greater range of institutional resources, more creative and innovative than the other groups in a society at the same level. According to young, the group will work harder and strive to be Independence in those conditions that they are being denied, there by become much more successful as entreprenuers.

Thomas Cochran theory of entreprenuership;

A sociological theorist of entreprenuership. Cachran agured that, the environment in which individuals are brought up determines the entreprenuership urge in him. Apart from environment, biological factor in individuals determines the entreprenuership urge in person.
He believes that, the key factors or forces in entreprenuership are cultural values, expectation of returns an social environment o an individual. He agured that the entreprenuers performance can be influenced by the following factors:
  1. His own attitude towards his career 
  2. The role expectations held by sanctioning groups 
  3. The operational requirements of the job.

John kunkel theory of entreprenuership;

A behavioral theorist, kunkel argues that entreprenuership behavior is a function of the surrounding social structure. He further agues that the type of social values that exist in the particular society determine the type of entreprenuerial skills and urge to be self reliant. He also, believes that entreprenuership entails risk bearing and as such, should be rewarded residually. That government controls on enterprises should be at minimum level, since certain government policies can be major constraints to entreprenuerial venture. Such Policies like devaluation of currencies and liberalization of trade can be injurious to domestic young industries.

Joseph schumpeterian theory of entreprenuership;

A psychological theorist of entreprenuership, according to schumpeterian theory an entreprenuer is a special person. The entreprenuer is an innovator who brings about ideas from the introduction of new technological process and products. Schumpeter considerd economic development as discrete, dynamic change brought about by entreprenuer, by instituting new combinations of production therefore innovation. The introduction of new combination of factors of production, according to him, may occur in any of the following five forms;
  1. The introduction of a new product in the market.
  2. The instituting of new production technology, which is not yet tested by experience branch of manufacture concerned.
  3. The opening of new market into which the specific product has previously entered.
  4. The discovery of a new source of supply of raw materials.
  5. The carrying out of the new form of organization of any industry by creating a monopoly position or the breaking up of it.
Schumpeter also made a distinction between an innovator and an inventor is one who discovers new methods and new materials,while an innovator utilizes inventions and discoveries in order to make new combinations. Schumpeter believe that only extra ordinary people have the ability to be entreprenuers. Schumpeter predicts the demise of the functions of the entreprenuer as a factor of production, because large monopolistic firms and large multinational corporation have advantage over small firms in the technological process and seems to diminishing the functions of entreprenuer as a factor of production.

Is entreprenuership a factor of production?

At one time the activities of entreprenuer were considerd to be so different from those of other human beings, that entreprenuers were regarded as a separate factor of productive process. The development of the limited liability company as the chief type of business unit has led to careful examination of the activities of entreprenuers, for in this form of organization different persons perform different activities, which were formerly performed by the sole proprietor, or partners.
Entreprenuership is one of the factors of production, which is responsible for driving the other factors of production, this include land, labour, capital. Without the entreprenuer all this factors will not be effectively utilise, the owner of idea is the sole proprietor of the business, at this point we can say entreprenuership is a very important factor of production.

Activities undertaking by entreprenuership;

Entreprenuership


Ownership;

The early entreprenuer was the source of the capital of the enterprise, which he had accumulated by postponing consumption. In placing that claim against the goods an services available at the disposal of the business, he ran the risk that the business would prove to be a failure. The function of ownership is to carry risk to bear the uncertainties of business life. The entreprenuer controls and own the business, whether the business is doing well or not entreprenuership take the responsibility it may include paying of taxes and other levies that will allow the organization move forward, also the charge of employees motivation by providing incentive to the workers that are in the organization.

Management;

Early entreprenuers, and sole proprietor, even today control their own business. They make major decisions of what to produce, in what quantity, whom to employ, when and where to market the output. Whether to expand or contract the activities of the firm. In the limited liability company such activities are performed by the board of directors,who are not the owners of the company. The manager who is the entreprenuer is the  representative of entreprenuership and ha the sole responsibility of managing, organizing and co-ordinating the activities going on in the firm he take decisions consining transactions that will benefit the company and the goal is to maximize profit and be able to increase production.

12 concepts of entreprenuership:

  1. The concept of risk taking
  2. The concept of innovation
  3. The concept of management skills
  4. The concept of leadership
  5. The concept of creativity
  6. The concept of the capacity to achieve
  7. The concept of proffesionality
  8. The concept of organization
  9. The concept of co-ordinating
  10. The concept of business orientation
  11. The concept of motivation
  12. The concept of profit making.

The concept of risk taking;

Entreprenuership involves risk taking, the enterprenuer must be willing to take risk in business transactions because the higher the risk the higher the profit to be made in the business, this concept of entreprenuership is very important for the growth of the business.

The concept of innovation;

The innovation concept sees entreprenuership as innovative and is a founder of new production that provides goods and services to the general market and is seen as a form of economic development

The concept of management skills;

Entreprenuership has to do with the management skill of the entreprenuer he or she must be a good manager who is ready to manage and grow the business and take it to the next level of production this concept of entreprenuership believes that management is the key to success for any enterprenuer.

The concept of leadership;

The concept take into consideration the entreprenuership is responsible for human resources development, providing leadership to Business firms, taking critical decisions that will affect the growth of the organization such leadership qualities is needed to take difficult actions when it is necessary.

The concept of creativity;

Entreprenuership is a catalyst for more creative minds in the business world, this concept uphold an gives creativity an important role for the development of new ideas that affect the growth of the economy accommodating all the various Business opportunities around the globe.

The concept of the ability to achieve;

This concept look at how the entreprenuer I able to surpass the challenges associated with the business and provide good results at the end of the day, the ability to achieve certain goals and objectives is a concept in entreprenuership that will determine the growth of the business because when a goal is achieve this means that the organization is on the right path.

The concept of proffesionality;

Being proffesional in any thing entreprenuers do is very vital for the business to survive, this concept must be given the desired attention, the way you present you brand is the way clients will react to your products and services, pakaging your self and business will help in marketing and advertising your goods and services to the general public, which will in turn increase your profit and sales, as an entreprenuer endeavor to present your business proffesionally.

The concept of organization;

To be organized mean the entreprenuer knows what he or she is doing this concept take into consideration how businesses are being organized and how the performance of employees are being management, having different department with thier respective duties, this concept can be associated with the division o labour were each sector of the business is organised to perform its own role for the general growth of the business.

The concept of co-ordinating;

This deals with arranging an controlling the business taking critical decisions for the growth and development of the organization hanled by the entreprenuer who is the manager and sole proprietor of the business, he or she must coordinate the transactions and activities of the business. Putting the necessary things that will determine how an when to make a major input for the survival or the business, it could be monetary or technically.

The concept of business orientation;

Every entreprenuer need orientation on how the business world is going, this may include how to manage a business, how to resgister a business name, how to brand the product and also how to market the products or services. Having a knowledge of what you are about to do is very important so that you may not be taken unaware, this will keep the entreprenuer prepared for any unforeseen circumstances that may arise in the cause of running the business.

The concept of motivation;

This concept in entreprenuership deals with the workers welfare, motivation is a driving force in any business venture as an entreprenuer providing incentive periodically for your member staff is very important to keep them active and in the long run the business will enjoy the benefits of the concept of motivation. When a worker is motivated he or she tends to perform optimally, because a man that is hungry cannot be happy when doing his job. One of the goal of entreprenuership is to increase production an the only way to do that is by empowering and motivating the workers and member staff that are employed under your organization.

The concept of profit making;

All entreprenuers aimed at is making profit from their businesses and maximising production to increase income, the concept gives the entreprenuer the chance to forcast his expected revenue or profit that will be generated at the end of the business transactions it could annually, monthly or daily. This will provide an insight to the targeted customers and the expected sales that will be made, also the number of goods to be produce according to the demand of such product in the market

Related search:






No comments:

Post a Comment

Post Top Ad