Summary
Summary Varsity College BCOM Year 1 Business Management 1A LU 2
Varsity College BCOM Year 1 Business Management 1A LU 2
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Seller
Follow
Content preview
BMNG – Business LU 2LU 2 – Entrepreneurship
2.1 Introduction
In order to understand how the business organisation satisfies the needs and wants of a nation in a market economy, one needs
to understand the driving force behind the business organisation: the entrepreneur.
It is the entrepreneur who decides what, how, by whom and for whom products and services should be produced.
The entrepreneur is the source of one of the factors of production – human resources. Entrepreneurship is the factor that
mobilises the other three resources (land labour and capital) to meet the needs and wants of society.
Entrepreneurship is the process of creating and building something of value from practically nothing in the midst of uncertainty
and risk, having the determination to succeed against all odds.
2.2 Different concepts of what an entrepreneur is
Many people will view the same person differently. Scientists have different views of what an
entrepreneur is:
Economists see entrepreneurs as combining different resources to generate products and
services to make profit. Entrepreneurs, to them, are people who are driven primarily by the
profit motive.
Behaviourists describe entrepreneurs according to their characteristics such as creativity and
risk taking.
Marxists(Karl Marx – distribute wealth) regard them as exploiters.
Corporate managers see entrepreneurs as small operators who lack the potential to manage
large enterprises.
Proponents of a market economy see entrepreneurs as the economic force responsible for the
prosperity of a country.
In the field of management and entrepreneurship alone, writers give differing definitions of what an
entrepreneur is. They have been described as people who are:
- Are creative
- Are innovative
- Identify opportunities
- Find resources to pursue these opportunities for profit
- Take financial risks
- Bring about change, growth and wealth in the economy
- Re-energise economies and create jobs and
- Start, manage and grow sustainable small businesses.
The following shows that the field of entrepreneurship is inclusive of many disciplines as follows:
- The field of entrepreneurship and new venture creation has been approached from many
different perspectives and disciplines.
- Historians document entrepreneurial activity and attempt to relate it to the major political and
economic events of the ages
- Anthropologists see entrepreneurship in terms of the development of civilisations.
, BMNG – Business LU 2
- Geographers try to find patterns of entrepreneurial activity based on regional and geographic
differences. Their goal is to explain these patterns in terms of the natural and physical resources
available to the entrepreneurs.
- Sociologists try to understand the origins of groups of entrepreneurs and the population of
organisations.
- Psychologists study individual entrepreneurs. They seek to understand the mind of an
entrepreneur and how they make decisions.
2.3 The Renaissance Of Entrepreneurship
Entrepreneurs are revitalising economics because of the establishment of new businesses and the
growth of existing ones that are responsible for most of the products and services that are changing
people’s lives. They generate jobs.
Employment is closely linked to the state of the economy, when there is no growth in the economy,
fewer employment opportunities are available. Unemployment and poverty have direct effects on the
social instability of any country, such as crime, violence and all forms of social unrest.
2.4 Entrepreneurship in South Africa
Growth in the South African economy has declined over the past decades. Growth of Gross Domestic
Product (GDP) averaged 6% in 1960. It reduced to 1,5 % in 2014. A growth of 7% per year is needed to
sustain and improve economic development. High potential entrepreneurs are responsible for growth
and employment creation.
One of the reasons for high unemployment in South Africa is the country’s labour law. Investors would
rather go to China where It is more stable. The more flexible the labour market is the lower the
employment is.
Another reason for high unemployment is that SA does not have enough business people involved in
small businesses to create employment. Entrepreneurship is a scarce resource.
In 2011 SA ranked 29 out of 54 countries in terms of Total Early-stage Entrepreneurial Activity(TEA) at
9.1%
There are some successful entrepreneurs in SA. This is not to say that there is no hope for our country.
The following are well known entrepreneurs in SA and abroad:
- Ernest Oppenheimer- Anglo American
- Raymond Ackerman- Pick n Pay
- Patrice Motsepe- African Rainbow minerals
- Tokyo Sexwale- Mvelaphanda Holdings
- Cyril Ramaphosa- Shanduka
- Mark Zuckerberg- Facebook
- Richard Maponya- Maponya Mall
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller jennamortonx. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R100,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now