Entrepreneurship:
• Entrepreneur decides what, how, by whom and for whom the products and services be
produced.
• Someone who starts a business with the intention of making profit and assumes the risk of
losing all of resources if venture fails.
• Factor that mobilizes the other three resources (land, labour and capital) and harness different
combinations meet needs and wants of society.
• The process of creating and building something of value from practically nothing during
uncertainty and risk and having determination succeed against odds.
• Entrepreneurship is constituted by individuals in a society use their initiative and take the risk of
harnessing the factors of production to provide products and services.
DIFFERENT CONCEPTS OF WHAT ENTREPRENEUR IS
• Economists to the view that entrepreneurs combine different resources in specific combinations
to generate products and services to make a profit. Seen as entrepreneurs are driven by profit
motive.
• Behaviourists view entrepreneurs from a behavioural perspective.
o Marxists regard entrepreneurs as exploiters.
o Corporate managers see entrepreneurs as small operators who lack the potential to
manage large enterprises.
o Proponents of market economy see entrepreneurs as the economic force responsible
for prosperity of a country.
• Entrepreneurs described as:
o Creative (can produce new and original ideas to solve a problem).
o Innovative (use new ideas to develop a better product, service, process or technique)
o Identify opportunities (created by the unlimited needs of people and trends that appear
in the environment).
o Find resources (natural resources, human resources, financial resources and
entrepreneurship).
o Take financial risks (run the risk of potential loss or failure of business start)
o Bring about change, growth and wealth in the economy (winning nations have
entrepreneur-driven economies)
o Re-energise economies and create jobs.
o Start, manage and grow sustainable small businesses.
ENTREPRENEURSHIP IN SOUTH AFRICA
• To sustain and improve the economic development of the country a growth rate of over 7% per
year in real terms is needed.
• Contribution of entrepreneurs relied on for large part of growth needed.
• Combinations of all businesses – small, medium, and micro-enterprises and large national and
international businesses.
• Reason for unemployment is SA is because of labour laws.
• The freer the market is, the lower the unemployment rate is.
, THE ROLE OF ENTREPRENEURS AND SMALL BUSINESS OWNERS IN SOCIETY
• Entrepreneurial activity is essential source of economic growth and social development.
• Entrepreneurship is mobilised by the self-efficiency, creativity, skills and expectations of
individuals.
• SMME’s exist as a way of earning income that is alternative to working as an employee. They
satisfy their owners needs for independence, as they have no intention growing and developing
their business.
• Congnisance taken of the fact that the definition of a small business can vary from countries –
defines a small business as a company with a labour force of fewer than 50 employees.
WHY DO ENTREPRENEURS DO WHAT THEY DO?
• Categories why are their traits and characteristics, their skills and industry experience and the
opportunities arising owing to international trends towards outsourcing.
ENTREPRENEURS TRAITS AND CHARACTERISTICS
ACHIEVEMENT MOTIVATION
• Is characterised by actions of intense prolonged and repeated effort to accomplish something
difficult.
• They work single-mindedly towards their goal and will have the determination to win and do
everything well.
• Enjoys competition, it goes hand in hand with ambition and competitiveness.
• People with a high need to achieve are attracted to jobs that challenge their skills and their
problem-solving abilities.
• Entrepreneurs high need for achievement:
o The need to be personally responsible for solving problems.
o The need to set one’s own goals and reach these goals through one’s own effort.
o The need to have feedback on the degree of success with tasks being accomplished.
o The need to have personal accomplishments.
o They need to have control over their own time, and to use time and money creatively.
AN INTERNAL LOCUS OF CONTROL
• This indicates a person’s need to oversee their own destiny whereas an external locus of
control indicates that a person believes that the outcome of an event is primarily out of their
personal control.
• People with an external locus of control regard luck and fortune rather than personal ability and
hard work as reasons for success.
• People with strong internal locus of control believe that they have control over their own
behaviour are successful in persuading and motivating other people.
INNOVATION AND CREATIVITY
• Innovation helps existing businesses to improve their products and services are made and
delivered or to introduce new ones to the market.
• Entrepreneurs identify opportunities in the marketplace and visualise creative new ways to take
advantage of them.
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