Key concepts of entrepreneurship

• Entrepreneurship – is the process of recognizing a viable business opportunity and

creating and managing a business venture in order to gain profit.
• Entrepreneur -is a person who starts and run a business or businesses, taking on
financial risks in the hope of profit.
• Enterprise -this is a for-profit business started and run by an entrepreneur
• Business-this is the activity of producing and selling products in order for one to make
money
• Viability/Viable - this refers to a business working successfully over a sustained period
of time

Benefits of entrepreneurship

• Economic growth- Entrepreneurship is the engine that drives economic growth. It creates
new markets, products, and services, which lead to increased economic activity.
Entrepreneurs also pay taxes, which contribute to the local and national economy
• Entrepreneurship is the primary source of job creation. Entrepreneurs create new
businesses, which lead to the creation of jobs. These jobs, in turn, help to reduce
unemployment rates and increase the standard of living
• Innovation-Entrepreneurship is synonymous with innovation. Entrepreneurs are
constantly looking for new and better ways to solve problems. They create new products,
services, and business models that disrupt traditional industries. This innovation drives
progress and creates a better future for everyone.
• Brings technological advancement
• Brings improvement to the education sector
• Improves people’s standards of living
• Helps to alleviate poverty
• Brings infrastructure development

Different types of entrepreneurs

Pushed and pulled entrepreneurs

A "pushed" entrepreneur is someone who starts a business primarily due to negative life and
career factors.

Motives/reasons to become a push entrepreneur

• Unemployment
• Lack of education
• Lack of entrepreneur family background
• Poverty
• Family obligations/ taking care of siblings and relatives
• Job insecurity
• Job dissatisfaction
a "pulled" entrepreneur is actively drawn to entrepreneurship by a positive opportunity in a
business idea.

Motives/ reasons to become a pull entrepreneur

• Desire to be independent/ autonomy – alone decision making

• Desire to be self-fulfilled / self-actualization and achievement
• Desire for higher income
• Desire to be a role model in the community
• Desire for a higher social status
• Government assistance
• To gain rewards from a business venture
• Challenging oneself
• Rejecting social stereotyping e.g. a woman cannot be a millionaire. A disables person
cannot own a workshop, a man cannot own a hair saloon
• Having good education /skills to start a particular business
• Having an entrepreneur family back ground

Other types of entrepreneurs

• Social Entrepreneurs -A social entrepreneur is motivated by a desire to help, improve and

transform social, environmental, educational and economic conditions.
• A lifestyle entrepreneur places passion before profit when launching a business in order
to combine personal interests and talent with the ability to earn a living.
• Tech entrepreneurship is the exciting world of building businesses around innovative
technology products or services. entrepreneurship involves various technical aspects that
are crucial for success, such as product development, software development, hardware
development, data management, cybersecurity, user experience design, artificial
intelligence and machine learning, cloud computing, internet of things, blockchain
technology, networking and infrastructure, quality assurance, testing, etc.
• A serial entrepreneur is someone who starts multiple businesses in a row. They are often
driven by a strong entrepreneurial mindset and a desire to create new markets and drive
innovation.
• Capital Aggregator -This is an entrepreneur with insatiable “appetite” for mobilizing
capital, which is then ploughed into enterprise development.
• Key Partner - This is an entrepreneur who may not be directly involved in the operations
of the enterprise, but provides key resources to the continued survival of an enterprise.
• Professional -The Professional is an entrepreneur who uses his/her professional
competencies for entrepreneurship purposes.
• Conglomerator - This is an entrepreneur with highly diversifiable skills and believes in
building business conglomerates.
• Soloist - A Soloist basically operates alone.
 • Acquirer -The Acquirer is an entrepreneur who inherits a business and develops it to
prosperity.
• Grouper -A Grouper Identifies different talents and brings them together to form a vibrant
group.
• Inventor - This is an entrepreneur who invents something and discovers that it is on high
demand and sets up an enterprise based on his/her discovery.
• Speculator - This is an entrepreneurs who develops entrepreneurial traits through trial
and error and speculation. He/she is a chancer.
• Manipulator - A manipulator is an entrepreneur who manipulates various business
stakeholders and gets things going.

Characteristics/ competences of Entrepreneurship

Entrepreneurship is not defined by skills only but also by its characteristics. Skills and
characteristics go hand in hand in making a successful entrepreneur. Here are some essential
characteristics:
• Innovation and Creativity
A creative mind helps entrepreneurs see gaps in the market, unmet needs, or room for
improvement in existing products. This lets them identify opportunities to create something
entirely new or develop innovative solutions. Creativity also fuels innovation, allowing
entrepreneurs to create unique selling points that differentiate their business.

In a crowded marketplace, having a fresh idea helps your business stand out from competitors,
catches the eye of potential customers, and draws them towards your products or services.
Therefore, entrepreneurs who welcome innovation and creativity propel themselves forward.
• Risk-taking Ability
Taking risks is important for entrepreneurs because it helps them develop new ideas and grow
their businesses. Entrepreneurs who are willing to take risks are more likely to spot opportunities
others might miss. Plus, it helps them bounce back from tough times and learn from their
experiences, making them better at what they do. But it's not about being reckless – it's about
being smart and planning things carefully so that those risks pay off.

• Motivation
Building a business is a marathon, not a sprint. Intrinsic motivation, the drive from within, keeps
entrepreneurs energized and focused on their long-term goals. It helps them persevere through
inevitable challenges and setbacks. Motivation is the bridge between dreams and reality. It
propels entrepreneurs to take action, turn ideas into plans, and put in the hard work required to
make their ventures successful.
• Decisiveness
In the business world, many opportunities come and go fast. Entrepreneurs who make decisions
quickly can spot these opportunities and grab them before others, helping them stay ahead of
competitors who take too long to decide. Being decisive means, entrepreneurs can change
direction fast, adjust plans when needed, and handle unexpected problems. Sometimes, decisions
don't turn out as expected, but decisiveness can weigh options, assess risks, and take decisive
action, even in the face of uncertainty.
Adaptability and Flexibility
Unexpected obstacles and setbacks are inevitable in businesses, but with adaptability and
flexibility, entrepreneurs can assess the situation, find creative solutions, and even turn challenges
into opportunities. Adaptable and flexible entrepreneurs are open to new ideas, embrace new
technologies, and readily adjust their approach based on new information. This helps them stay
resilient and keep moving forward, even when faced with unexpected changes or obstacles.
• Strong Leadership and Management Skills
Entrepreneurs must possess strong leadership and management skills to inspire and empower
their teams, set clear goals and priorities, and effectively allocate resources. They should lead by
example, communicate effectively, and foster a culture of innovation and collaboration within
their organizations.
• Networking and Relationship Building
Entrepreneurs should build relationships and networks to support their ventures. They should
actively seek opportunities to connect with mentors, advisors, investors, and potential
collaborators to gain insights, access resources, and expand their reach. Networking and
relationship building create a supportive ecosystem that helps entrepreneurs succeed and thrive
in their venture
Barriers to Entrepreneurship

The list of some such major barriers that may arise while starting or running a new business is
given below:

Barriers in Managing Finances

A great barrier that arises while starting a new business is managing the finances that can make
things difficult for the entrepreneurs. There are lots of ideas that come to the entrepreneurs'
minds but converting those ideas into the business needs enough amount of finance. There should
be a stable and regular source of finance to keep the production process smooth. If this first and
the most critical barrier can be solved easily then the future barriers can also be tackled.

Inadequate Market Experience

One of the most common barriers that are faced by many entrepreneurs is not having adequate
knowledge about the respective field of their business. An entrepreneur must have enough
experience related to the industry by working in the required sector. So, before starting a new
venture, it is required to collect enough knowledge about the market conditions, nature of the
business firm, demand and supply of that particular good or service, etc., instead of rushing into
the business by seeing the success of others.

Human Resource Problem/ lack of skilled labour

A person can't perform all the tasks by himself/herself even if he/she has enough knowledge. In
the same manner, an entrepreneur can't do all the jobs alone to run the organization. A business
needs to have a strong base of skilled and knowledgeable human resources or
employees. Employees are the most important assets for an organization. They help in the
growth of the business. The organizations may have similar fixed and current assets but these
are the human assets that make the organization different from its competitors. But for this
purpose, the employees must be enough experienced and dedicated to the organization so that
top-level productivity and efficiency can be achieved.

Non-strategic Planning

Having inadequate planning regarding strategies can also create a great barrier in the path of
success of entrepreneurship. There are lots of entrepreneurs who started a business just as a
hobby without having a long-term vision and plan. Bad strategies and planning may lead to the
failure of the business or can cause a huge loss to the business. It is the prime reason why most
entrepreneurs give up in the first year of business operation.
Lack of education Capacity

Many entrepreneurs can't use the opportunities perfectly because of their limited capacity. It can
be a major hurdle in the success of entrepreneurship. This hurdle can be arising due to the lack
of education, knowledge, willingness, and other important aspects. In simple terms, the absence
of zeal and motivation may lead to the failure of most of the new ventures.

Political Barriers

The politics of a country or region can also become a barrier to the success of entrepreneurship.
So an entrepreneur should check out the policies of the government and the incentives offered
by the government to the entrepreneurs. This is because every government does not
provide socio-economic facilities to entrepreneurs. Other than this, it is also required to take the
interest in economic development seriously.

Corrupt Business Problems

One of the most common problems with a business especially with new ventures is the corrupt
environment. If the environment of the country is corrupt then it does not inspire the young
employees and entrepreneurs. In many countries or regions, the unhealthy and non-supportive
government creates lots of issues.

Difficulty in Reaching to More People

One more barrier that an entrepreneur can face is the difficulty in reaching more people or
attracting more customers to inform them about the products or services in which the firm is
dealing. No advertising media available.

Fear of Failure

when a new venture is set up then there is always a fear about the arrangement of initial funds,
investors, and many other things. This fear creates pressure on the minds of the entrepreneurs
and increases their tension of being failed. The fear of failure can become a huge barrier in
starting a new business or running it smoothly.
Few Opportunities

When a new business is started, there are very fewer opportunities available for the entrepreneur.
It is also not easy for an entrepreneur to figure out these limited opportunities in the beginning.
To get more opportunities, a business must start growing. Limited opportunities can be a hurdle
to entrepreneurship. There is almost zero possibility of being successful without having
opportunities. Opportunity is also one of the major factors of SWOT analysis.

No entrepreneurial Training

There is always a great demand in the market for a trained employee. A company always searches
for such employees who are trained in their particular job. But for an entrepreneur, it is not
enough to have the knowledge or training of a particular field. He/she must be the package of
knowledge in all the fields. If the entrepreneurs will not have perfection in a particular field then
they will not be able to decide what business they should start. So in this way, it can be said that
an entrepreneur should be trained in all works related to the business environment but must have
mastery in a particular field also.

No Backup Plan

Before starting a new thing, we must have a backup plan in the case of the failure of our main
plan otherwise it can create huge trouble for us. In the same manner, when an entrepreneur
starts a new venture then he/she must be ready to face the failure, and to deal with them the
entrepreneur must have a backup plan or can say plan B. But most entrepreneurs start their
business without having a backup plan which can create a barrier for them as they are always at
a high risk of failure. Plan B is not only required for the failure of a project but also for the failure
of the whole business plan.

Limited Technical Skills

Nowadays, most business ideas are based on technology. In such an era, it is easy to start a
business for a technical guy but if you have a lack of technical knowledge or skills then it can be
a great barrier to you. Limited technical skills can cause a loss to the business. The entrepreneur
may hire a particular person to get advice on the issues related to the technical field but it is not
always beneficial for the business. Also, it demands additional costs to the organization.

Lack of Motivation

The biggest motivation for any business is Money. When an entrepreneur starts a business then
it takes some time to make the market value of the business. During this period the profit earned
by the business is not so high which may reduce the motivation of the entrepreneur as well as of
the employees of the organization

Lack of resources to successfully start and run a business.