Meaning of entrepreneurship
This is the process of identifying business opportunities and gathering the necessary resources to start and run a business.
An entrepreneur who identifies business opportunities and gets the necessary resources in order to start and run a business. The entrepreneur therefore creates new businesses or transform the existing ones in the face of risks and uncertainties in order to make profits.
An entrepreneur is therefore a business owner; he starts and organizes the business (the factors of production in appropriate combination)
Importance of entrepreneurship to an economy
Characteristics of an entrepreneur
A good entrepreneur should have the following characteristics;
Generating Business Ideas
For an entrepreneur, the first step in starting a business begins with an idea (business idea)
Business ideas are all about thoughts on possible businesses an entrepreneur can start or improve. It indicates among other things;
Sources of Business Ideas
A good business plan is not necessarily a business opportunity. A business idea becomes a business opportunity if it is viable i.e. it can be developed into a successful/profitable business enterprise
A business opportunity is a favourable chance that an entrepreneur accepts for investment. It exists where there is a gap to be filled in the needs of the market. Examples of such gaps include;
Evaluating a business opportunity
This means assessing whether the identified opportunity is viable or not. This helps in arriving at the best decision concerning the business idea to implement
Evaluation should be done carefully, systematically and without emotions. Evaluation is necessary even where there is only one business idea. This will help in avoiding starting a business that cannot succeed.
Factors to consider when evaluating a business opportunity
The following are the factors to consider when evaluating a business opportunity.
a. Personal consideration
These are the abilities and expectations of an entrepreneur. They include the following;
These are external factors that are likely to affect the operations of the business and they include;
This is a written document that highlights the objectives of the business and steps to be followed in order to achieve these objectives. It indicates where the business is, where it wants to move to, how and when.
Contents of a good business plan
Need for the business plan
A business plan is necessary to an entrepreneur for the following reasons:
Factors that influence entrepreneurship practices.
There are many conditions or factors which may encourage or discourage entrepreneurship. Some of these factors are:
Causes of Business success
A business is considered as being successful if it makes consistent profit and experiences progressive growth in the scale of its operations.
Some of the factors that lead to the success of business may include;
ETHICAL ISSUES IN BUSINESS
Need for Ethical issues in Business
The need for ethical issues in business includes the following;