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• Lack of the proper location of the business/ accessibility
• Failure to recognize customer service as a priority
Weeks 5-8 Product:
• Failure to develop new products to attract existing and new
After this module students should be able to: customers
• Ability to maintain a quality product
Identify common mistakes made by entrepreneurs. • Lack of creativity
Differentiate between the different types of ownership. • Inability to meet customers’ needs
Discuss the Myths of Entrepreneurship. Financial:
Lesson 1 Mistakes of Entrepreneur • Poor recordkeeping
• Limited or no financial control management
As an entrepreneur, there are many tasks involved in managing a business. In this lesson, • Using business funds for personal use
you will learn about some of the challenges experienced in operating a business. Therefore, to facilitate • Uncontrollable costs, cash flow issues
smooth operations, there are several mistakes an entrepreneur must be wary that can affect the • Limited capital
profitability and sustainability of the venture. The lesson will discuss some of the areas in managing of Operational:
the business where these challenges or mistakes can occur. The entrepreneurial process encounters • Poor inventory control
challenges that affect the sustainability of the business and lead to business failure. The entrepreneur • Lack of technical training/competence
must be vigilant in observing areas of the managing aspect of the business that may hinder efficiency • Wastage of resources
and the ability of the venture to remain competitive and profitable. The growing stages of the venture • Failure to monitor performance and productivity checks.
require the entrepreneur to transition to manager. This transition requires the entrepreneur to transfer Legal:
creative and innovative skills and incorporate these into the planning and organizing of the venture • Tax regulations of host country
process. The entrepreneur must, therefore, balance these attributes as failure to do so will reduce • Failure to hire expertise in handling legal issues
competitiveness and productivity. Some areas within the business where challenges/mistakes can occur Economic:
are: • Inability to monitor and identify changes in the economy that may affect or be advantageous in the
Management: strategic decision-making
• The absentee manager who believes the business will run itself of the business.
• Lack of proper leadership
• Poor planning strategies Mistakes of Entrepreneurs
• Lack of knowledge and managerial experience 1. Entrepreneurial biases
Human Resources: We all fall in love with our ideas. It is a natural phenomenon: we invest our time and money in an idea
• Improper allocation of human resources within the organization because we think it will be successful, and we are reluctant to admit anything otherwise. While faith in
• Lack of training and expertise of employees an idea is good, it becomes problematic when confirmation bias starts, especially in areas such as
• Conflict customer validation. So what is this dangerous confirmation bias? It is when we have a preconceived
idea of what customers want and how our product is a perfect solution, and we search for and interpret
Marketing: data to fit with these beliefs. It is one of the most significant hurdles our teams have had to battle
• Failure to conduct a market research through – confronting the feeling of weakness that comes when
• Failure to focus on a target market your assumptions do not match the data is a terrifying prospect.
• Failure to advertise the product 2. Not fully validating the market
It seems logical that if we provide something that solves a problem, everyone with that problem will
automatically want to buy it. When people ask questions like, ‘how do you know?’ I hear time and time

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again, ‘because it just makes sense.' However, the assumptions we rely on being the biggest threat to Here are three common mistakes that small business owners often encounter in the decision-making
the success of a company. Things that seem intuitive, such as, ‘everyone wants to pay for convenience’ process:
may not apply to those who, for example, are not tech savvy, or are set in their ways. In fact, we’ve seen
some pivots in the Lightning Lab, which resulted from conversations with customers. Companies 1. Underestimating or overestimating the value of information received from others. People have a
realised they were solving the wrong problem, or not solving it in a way that customerswant to buy into. tendency to overestimate the value of some individuals and underestimate the value of others, without
3. Not asking for and accepting help good cause. For example, it is easy to place too much credence in the opinion of experts, authority
We all like to think we know what we are doing. No one wants to be told that his or her strategy is not figures, high-status groups.
working – that pesky ego gets in the way, as asking for help can be seen as a sign of failure. One of the
most well-worn pieces of advice from entrepreneurs is to leverage the skills of those around you by In matters of opinion, even experts can have a flawed analysis. Similarly, it is easy to discount
asking other people for help. Afraid that they’ll turn you down? information received from perceived lower status groups. Entry-level employees, for example, may still
4. Confused pitches have penetrating insights to another side of the problem which you had never considered Make sure
When you pour your days and weeks into creating a company and know everything about it and your that you seek out information from a wide variety of sources, and always double check your reasons for
industry, it can be very hard to distil that down into a 30-second pitch to give to someone who knows accepting or disregarding outside opinions.
nothing. 30 seconds dragsCode:
Course out, and by the
Gen Ed end
110the listener sometimes still isn’t sure what your product
does! Pitches areDescriptive
so, so important, 2. Hearing only what you want to hear or seeing what you want to see.Run a quick psychological
Title:asEntrepreneurial
we are learning inMind
the Lightning Lab. The whole programme
Instructor:
culminates in Demo Day, where teams deliver a 7-minute pitch to hundreds of investors – which pitch Esperanza experiment.
G. Pusayen Tell a friend or colleague to look around and try to remember everything that is green. Then
can make or break your company. have them close their eyes, and ask them about the red objects in their surroundings. Chances are they
5. Not working as a team will not be able to tell you very much. Our perceptions work in a similar manner. We see what we expect
No one can succeed alone. Having a strong, tight-knit team makes such a difference: if you’re away to see, so it is critical to be aware of your biases and preconceived ideas to mitigate them and come to
sick, others can keep everything moving forward; if you need advice or other skill sets, you have them an objective decision-making process.
on-hand; when it’s Friday evening, and you’re working late in the office, you have people around you to
3. Not listening to your feelings or gut reactions:
crack a joke and get you smiling again. Teams are no easy feat to assemble – it has taken some of our
companies weeks and weeks to find the right people. Sometimes things seem like a very good idea, but you still feel bad about it for one reason or another.
6. Not looking after yourself Don’t ignore these feelings! We are constantly processing more information than we are ever aware of.
When we find ourselves in situations of stress, our health usually drops to the lowest level of priority. We If something “feels” wrong, stop and take a minute to consider why. By tuning into your intuition, you will
skip lunch because we think our time is more productively spent working, or stay up late, because who be equipped to make much better decisions in the long run.
needs sleep? We place immense pressure on ourselves without giving our body a chance to recover.
Here’s the thing: as an entrepreneur, you cannot afford to let the pace or the level of intensity fall – you Challenges for Entrepreneurship
have to find a way to keep yourself healthy while maintaining a high-pressure, highperformance lifestyle.
Setting up a business is not an easy or smooth process. The process involves different decisions to be
made with accompanying plans and implementation after that. Challenges can involve:
Mistakes to avoid
● Finding the right idea and opportunity to break into the market
Running a business means making many decisions. Some decisions come easily and obviously; others
require more complex analysis, offering a variety of best outcomes. When trying to process all the ● Difficulties acquiring the resources (including land or raw materials, financial resources, labour and
relevant information to come to the best decision, it is easy to get overwhelmed. It is easy to make entrepreneurial ability) necessary for the production and distribution of goods and services
flawed decisions when we fail to realize that many of our preconceptions are based on what outside
institutions teach us, and not what we know to be true. ● The high costs of creating internal roles, relationships and operating routines in new organisations

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● The time and investment required to establish external relationships that are conditioned on ● He or she must find the start-up capital him- or herself, and this can sometimes be hard.
experience, reputation, and trust, and competition, often with very limited resources, with mature ● The business is dependent on one person to continue and can close down or suffer losses if the
organisations that already have goods or services in the marketplace and that enjoy established owner dies or becomes very ill.
customer relationships. ● Because there is no difference according to law between the proprietor and the business, the owner
can lose even his or her personal belongings if the business fails. He or she thus carries all the risks
Lesson 2 - Entrepreneurship and Small Business and responsibilities.
● The owner must take all decisions him- or herself; there is no one to consult and assist him or her.
The major legal forms of business organizations are a proprietorship, partnership, and corporation. ● It's hard for the proprietor to take time off when he or she is ill or for a holiday
When an entrepreneur decides to launch a business venture, selecting the correct form of business to Partnerships
operate can be a tedious task. Small business owners must examine each form of business and assess The form of ownership that we will look at next has more than one owner. A sole trader has
which is most appropriate. As the business grows, it may move from one form to another. This section only one owner, while a partnership can have between two and twenty people as owners. A partnership
will discuss the types of business, forms, advantages and disadvantages of main forms. means to come together with someone else for a specific purpose, in this case, to start a
Forms of Ownership business.Partners come together and agree what each one will contribute whether it is money, assets or
There are different forms of
Course Code: Gen Ed 110ownership. The decision on the type of ownership of a business skills. All partners of a partnership are responsible for the losses of the business and can lose
depends on the person who hasTitle:
Descriptive identified the business opportunity.
Entrepreneurial Mind His or her decision on the form of everything as in the case of a sole trader. When profits are made, the members will divide the profits
ownership will be based on different factors which will be uncovered as we discuss each Instructor: Esperanza amongst
form in detail. G. Pusayen them according to a proportion on which they should agree in advance. If one or more of the
Every form of ownership has advantages and disadvantages. In the end, you will weigh these against partners decide to leave the partnership or die, the present agreement comes to an end, and a new
each other before you make a final decision on which form to use. agreement must be made.
Sole Traders Advantages
The sole means only one. In other words, we have only one person who owns this type of ● Because there is more than one partner, the responsibilities such as buying, selling and
business. The business is started by only one person, and he or she usually runs the business him or administrative work are divided among them.
herself. The owner will in most cases uses his or her own money to start the business or borrow the ● The more partners, there are, the more start-up capital can be available.
money from friends, family or the bank. The owner will take all profits. However, in case the business ● Partners share the risks of the business. When partners have different skills, everyone can do what
goes bankrupt and is not successful, the owner has to pay or carry all the losses and will be responsible he or she is best skilled at. For example, one can do the sales, another one the books and another one
for paying all the outstanding debts of the business. the purchasing (buying).
Advantages ● More people can help to manage the business when it starts
● The owner has all the control over the business, makes decisions on his or her own and can make
fast decisions without consulting others. Disadvantages
● Profits belong to the owner alone and are not shared with anyone else. ● The wrong actions of one partner can influence the business and the other partners negatively
● Healthy relationships are established with customers because the owner is involved directly in the because the business and the other partners are bound to such wrong actions.
business and comes in contact with the customers. In most cases, the customers become loyal to the ● The danger exists that the partners can even lose their personal belongings if the business fails and
business because of such relationships. goes bankrupt. Partners do not have limited liability.
● Because the business belongs to the owner alone, he or she will ● If one of the partners leaves the business, or dies, the business must close down until a new
work very hard and make personal sacrifices to make the businesssuccessful. The owner becomes agreement is made. During this period, the business can lose valuable business deals.
multi-skilled because he or she has to learn to be knowledgeable and do all types of activities in the ● The partners share the profits, so the more partners, the less the profit.
business, e.g., Buying, selling, administrative work and keeping books. ● It might be time-consuming to consult all partners when business decisions must be taken.
● It is easy to establish a sole trader because there are no major legal requirements.
● The owner can keep business secrets to himself and do not have to share it with others unless he Close Corporations (CC)
wants to. This is a new type of ownership that is winning ground very fast and is becoming very popular. The
Disadvantages letters “CC” must appear in the name of a close corporation. This is a form of business ownership where

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the minimum is one member, and the maximum is ten. Owners enter into an agreement using a and each member has one vote, while the common interest is the binding factor. The aim of a
founding statement which contains each member’s particulars and their percentage interest in the cooperative is not to make a profit, but to render a service to members. Income generated must only
business. The members are not liable for the losses of the business because a CC is a legal entity. This cover the expenses or it must be distributed amongst the members.
means that the CC can enter into agreements and contracts in the name of the CC. Advantages
Advantages ● Each member has only one vote, which makes it impossible for one person to run the business,
This type of business is easy to establish using an application for registration with the Ministry of Trade according to his or her will, and democracy will prevail.
and Industry. ● The co-operative is owned and controlled by its members.
● A close corporation is considered a legal entity. Members are not liable for the losses of the business ● It is not based on profit-making principles, but rather on service -rendering principles to its members,
and cannot lose personal property when the business goes bankrupt. Members, therefore,have limited and as such, members are sure of the highest quality of service at the lowest possible prices.
liability. ● The members work together because they have the same needs and goals. They are united around
● More capital can be collected since there can be up to ten members. these goals and needs, and management comes from the members.
● The business does not have to cease to exist when one of the members resigns or dies. ● Free business advisory services are available from the office of the Registrar of Cooperatives.
● Members agree in advance on the proportion according to which profits will be distributed. ● If the co-operative does more than 70% of its business with its members, the tax is lower than that of
● The financial statements of a CC do
Course Code: Gen Ed 110 not need to be audited by law. other businesses.
● It is cheaper Descriptive
to start a CC Title:
than a Entrepreneurial
company, which makesMindit very suitable for a small or medium ● The co-operative is a voluntary organisation and thus easy to form or end.
enterprise. Instructor: Esperanza Disadvantages
G. Pusayen
● The owners (members) manage the business themselves. ● Cooperatives have a longer decision-making process — decisions to be made can take very long
Disadvantages because of the principle that all members have voting power.
● The amount of capital can be limited since the number of members is limited to a maximum of ten. ● People do not work very hard because the incentive to earn profits is not present.
● There are more rules and regulations than for a sole trader or a partnership. ● Unfortunately, people (including members of close co-operatives) have a negative attitude because
● There is the possibility of conflict between members if they have different ideas on the running of the we have to be motivated by profits and money instead of by the fact that we can render a better service
business. or conditions or even have a job. This is a bad habit and attitude that should change.
● Reaching decisions can take longer because many people want to give their opinions. This can make ● There is a possibility of conflict between members.
the business slow to react when a sense of urgency is important. ● The participation of members is required for success.
● All members need to be equally committed and work equally hard for the corporation to be ● Extensive recordkeeping is necessary.
successful. ● There is less incentive to invest additional capital.
● A lot of recordkeeping is necessary to make sure that everything is done fairly and transparently. ● Meeting both cooperative aims and business needs require complex management.
(Each member has the right to know what the corporation is doing.) ● They can limit your choice of external financing.
● Sometimes, members are less willing to put profit back into the business, preferring to use it for their ● Employment benefits often can't match those offered by other
own needs. This is reasonable, but it means that the corporation will not grow as quickly as other forms business types. Workers' cooperatives can enjoy tax incentives, such as employee
of business. share schemes, but most small co-operatives find these too costly to run.
● The limit of ten members can hamper the growth of the business. Nature of Small Business
● Banks might not want to lend money to a CC if the financial statements are not audited. Small businesses are privately owned corporations, partnerships, or sole proprietorships that
● A bookkeeper must be appointed for the CC by law. This might bring a lot of extra costs. have fewer employees and/or less annual revenue than a regular-sized business or corporation. What
Cooperatives businesses are defined as "small" regarding being able to apply for government support and qualify for
The word co-operative is derived from the word “to cooperate”, which means that a preferential tax policy varies depending on the country and industry. Small businesses can also be
cooperative is a form of business set up by some persons who desire to achieve a common objective. classified according to other methods such as annual revenues, sales, assets, or net profits.Small
People with similar needs for a service or for creating employment will come together and form a businesses in many countries include service or retail operations such as convenience stores, small
cooperative. We get service cooperatives that provide various services to its members like lower prices grocery stores, a bakery or delicatessen, hairdressers or trades people (carpenter), restaurants,
or workers’ cooperatives that provide work to its members. The cooperative is owned by its members, guest houses, photographers, very small-scale manufacturing, and Internet-related businesses such as

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web design and computer programming. Some professionals operate as small businesses, such as • The speed of wealth creation - while a successful small business can generate several million dollars
lawyers, accountants, dentists and medical doctors (although these professionals can also work for of profit over a lifetime, entrepreneurial wealth creation often is rapid; for example, within 5 years.
large organizations or companies). Small businesses vary a great deal regarding size, revenues, and • Risk - the risk of an entrepreneurial venture must be high; otherwise, with the
regulatory authorization, both within a country and from country to country. Some small businesses, incentive of sure profits many entrepreneurs would be pursuing the idea and the opportunity no longer
such as a home accounting, business, may only require a business license. On the other hand, other would exist.
small businesses, such as a restaurant may require inspection and certification from a public health  Innovation - entrepreneurship often involves substantial innovation beyond that a small
board or other authority. business might exhibit. This innovation gives the venture the competitive advantage that
A small business is a business employing fewer than 20 people.Categories of small businesses include: results in wealth creation. The innovation may be in the product or service itself, or in the
● Non-employing businesses (sole proprietorships and partnerships without employees)
business processes used to deliver it.
● Micro-businesses (businesses employing between 1 and 4 people, including non-employing
businesses)
Entrepreneurs Versus Small Business Owners: A Distinction
Other small businesses (businesses that employ between 5 and 19 employees)Small businesses are
more likely to have independent ownership and be operated independently. Owners or managers of
• Small Businesses Owners
small businessesCourse
tend to Code: Gen Ed 110
have close control of operations,
Descriptive undertake
Title: principal decision
Entrepreneurial Mind making and contribute most of the
• Manage their businesses by expecting steady sales, profits, and growth
operating capital. Instructor: Esperanza •G.Entrepreneurs
Pusayen
Small Business • Focus their efforts on innovation, profitability, and sustainable growth
Entrepreneurship is more than simply “starting a business”. Entrepreneurship is a process
Small businesses come in all shapes and sizes. One thing that they all share, however, is experience through which individuals identify opportunities, allocate resources, and create value. This creation of
with common problems that arise at similar stages in their growth and organizational evolution. value is often through the identification of unmet needs or identifying opportunities for change. In
Predictable patterns can be seen. These patterns “tend to be sequential, occur as a hierarchical support of the assertion, Calvin (2003) said it is one of “today’s most potentially rewarding avenues to
progression that is not easily reversed, and involve a broad range of organizational activities and gaining control over life and career.” Therefore, entrepreneurs see “problems” as “opportunities,” then
structures.” The industry life cycle adds further complications. The success of any small business will take action to identify the solutions to those problems. Entrepreneurial success is a function of the
depend on its ability to adapt to evolutionary changes, each of which will be characterized by different entrepreneur’s ability to see possibilities in the marketplace, initiate change (or take advantage of
requirements, opportunities, challenges, risks, and internal and external threats. The decisions that change) and creates value through solutions. They are an integral part of the renewal process that
need to be made and the priorities that are established will differ through this evolution. pervades and defines market economies. They are also the essential mechanism by which millions of
people enter the economic and social mainstream of society. Entrepreneurs can be generalized as risk-
Entrepreneurship vs. Small Business
bearers, coordinators and organizers, gap fillers, leaders, and innovators or creative limitators.
Many people use the terms "entrepreneur" and "small business owner" synonymously. While they may Individuals are being encouraged to form new businesses in the form of tax incentives, buildings, roads,
have much in common, there are significant differences between the entrepreneurial venture and the and a communication system to facilitate this creative process. Ideally, the encouragement by the
small business. Central Government is a factor to realize new enterprises. Governments should develop innovative
industrial strategies for fostering entrepreneurial activity.
Entrepreneurial ventures differ from small businesses in these ways:
Lesson 3 - Cultural diversity of Entrepreneurship
• The amount of wealth creation - rather than simply generating an income stream that replaces
traditional employment, a successful entrepreneurial venture creates substantial wealth, typically in This topic explores culture diversity in relations to entrepreneurial activities as well as the importance of
excess of several million dollarsof profit. embracing diversity within the workplace. Also, the prominent entrepreneurs learn the definition of

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culture, diversity, and cultural diversity as well as, the elements of culture, barriers of culture and the through acceptance, respect, and learning—a frame that he calls the “respectful mind.” We must
challenges the entrepreneur encounters. Also, you will learn the importance of developing a positive engage in intercultural situations and activities fully; we need to immerse ourselves and experience the
culture in the workplace, discover the importance of youths in the entrepreneurial process, and explore “flow” to harness the emotions required to perform and learn from our cultural interactions. Leaders
the effects of ethnicity, family, and religion in entrepreneurship. We will begin by brainstorming and must be willing to explore and create new ways of thinking and interacting with the flow of culture.In this
coining a definition of culture and diversity. Moreover, cultural diversity as well as other related terms age of social transformation, cultural intelligence is a topic of urgency for organizational leaders.
that will broaden your knowledge and provide assistance for the analysis and interpretation of data Environmental, political, and technological factors are quickly shifting the ways we work and interrelate
shared. with one another.

Culture: shared beliefs, values, and assumptions of a group of people who learn from one another and Cultural shifts are happening at a faster rate than organizations are ready for and capable of managing,
teach to others that their behaviours, attitudes, and perspectives are the correct ways to think, act, and thus creating mental and emotional havoc in managing and leading through cultural transitions. In many
feel. cases, the result is a tighter hold on the invisible aspects of culture and stronger emphasis on “the ‘right’
way to do the work.” More and more, people ask for the tools and information that help carry them
Diversity: distinct Course
and unlikeCode:
elements
GenorEdqualities
110 (interests, people, ideas, perspectives, ability, region); through intercultural and cross-cultural interactions. There are multitudes of tools and methodologies
can be visible andDescriptive
invisible.NowTitle: Entrepreneurial
that you are exposed to theMind
definition of both culture and diversity letEsperanza
Instructor: us that are useful for managing and leading on a global level—the cultural intelligence framework is one of
G. Pusayen
brainstorm a definition that is suitable for cultural diversity. them. It is only one component in the equation for improving the management and leadership of cultural
interactions. I tell leaders, “You need to recognize that no matter what tool or method you use, who you
Culture, in the broadest sense, refers to how and why we think and function. It encompasses all sorts of
are and how you use the tool or method is the biggest part of the equation.”There are external factors
things—how we eat, play, dress, work, think, interact, and communicate. Everything we do, in essence,
that also constitute a culture—manners, mindsets, values, rituals, religious beliefs, laws, arts, ideas,
has been shaped by the cultures in which we are raised. Similarly, a person in another country is also
customs, beliefs, ceremonies, social institutions, myths and legends, language, individual identity, and
shaped by his or her cultural influences. These cultural influences impact how we think and
behaviours, to name a few. While these factors are less structured and do not provide a comparative
communicate.
framework, they are helpful in completing our understanding of what impacts a particular culture. When
Cultural intelligence (CI) principles help to facilitate awareness for, and understanding of, cultural we look at these additional factors, we are seeking to understand how each culture views and
frames. When applied, they bring our frameworks to a conscious level. At a level where we can see the incorporates each of them. For example, are there specific ceremonies or customs that impact the
frames, we can then identify what it will take to learn new patterns of thought—new ways to reframe. To culture and for our purposes its business culture?
be culturally intelligent is to reframe or rewire your brain. You create new patterns and new frames by
Gender and Entrepreneurship
suspending your judgments and assumptions, by considering the old patterns in the face of the new or
unfamiliar, and by choosing to change your behaviour and attitudes based on reflection and new When we talk about masculine or feminine cultures, we are not talking about diversity issues. It is about
interpretation. Cultural intelligence is the openness to emerge, not just about the unfamiliar and new how society views traits that are considered masculine or feminine. This value dimension refers to how
culture,but about you—who you are and whom you could become. a culture ranks on traditionally perceived “masculine” values: assertiveness, materialism, and less
concern for others. In masculine-oriented cultures, gender roles are usually crisply defined. Men tend to
Cultural Diversity
be more focused on performance, ambition, and material success. They cut through an independent
The changes we see in societies around the globe necessitate a new and ifferent paradigm for how we persona, while women cultivate modesty and quality of life. Cultures in Japan and Latin American are
come to think about culture. All this makes it harder and more challenging to think and practice cultural examples of masculine-oriented cultures.
competence in the same way. Gardner says we need to approach the challenges that differences bring

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In contrast, feminine cultures are thought to emphasize “feminine” values: concern for all, an emphasis be successful – may signal that entrepreneurship is a mechanism for helping disadvantaged people
on the quality of life, and an emphasis on relationships. In feminine-oriented cultures, both gender swap break out of social exclusion. Indeed, one of the reasons why youth entrepreneurship is so attractive is
roles, with the focus on the quality of life, service, and independence. The Scandinavian cultures rank that it offers an indigenous solution to economic disadvantage. Youth entrepreneurship is also attractive
as feminine cultures, as does cultures in Switzerland and New Zealand. The United States is actually to policy makers because of the high rates of latent entrepreneurship amongst young people. The
more moderate, and its score is ranked in the middle between masculine and feminine classifications. entrepreneurial outcomes of youth entrepreneurs are often explained by the presence of market failures,
For all these factors, it is important to remember that cultures do not necessarily fall neatly into one push and pull factors and a lack of human, social and financial capital.
camp or the other.
Youth business characteristics
Women play a major role in entrepreneurship, although feminine entrepreneurship is lower than
masculine entrepreneurship. However, the distance between both entrepreneurship rates (male–female) Because the labour market experiences of young people have become increasingly delayed and
varies across countries because of the influence of different roles and stereotypes on entrepreneurial fractured, one expectation might be that young people have increasingly adopted differing forms of work
behavior. Since entrepreneurship is considered as a source of economic development, innovation, and and business activity. Regarding entrepreneurship, this may have led to the adoption of differing
growth, the studyCourse
of factorsCode: Gen Ed
that influence 110by creating new companies have become an important
rates ‘business models’ such as part-time self-employment; some formof the co-operative or social
Descriptive Title: Entrepreneurial Mind
issue on the agendas of economists, researchers, and politicians in most countries. Instructor: Esperanza enterprise;
G. Pusayen or a focus on a particular (innovative) sector.

Understanding the role played by the social, cultural and economic factors in entrepreneurship is key to On average, the typical new business focuses on sectors in which the entrepreneur has prior
comprehend how to encourage culture and entrepreneurial behaviour. experience of; tend to be service rather than manufacturing orientated; and have relatively low entry
barriers and low capital requirements.
Secondly and closely related to the above, understanding the national culture is essential to analyze
how each country values and rewards the behaviours that promote entrepreneurial behaviour. In this Ethnicity and Entrepreneurship
sense, in those countries where social roles are closer to competitiveness, ambition and achievement,
Entrepreneurship is not only about the job creation, but also about enhancing upward mobility,
that is to say, where to highlight the roles attributed to the male group would be expected lower rates of
developing social leadership, increasing individuals’ self-confidence by enabling them to become active
female entrepreneurship.
agents of their own destiny, increasing the social cohesion of ethnic communities, and revitalising
Youth and Entrepreneurship streets and neighbourhoods through innovation of social and cultural life. Ethnic entrepreneurship has
not played a role in the strategy of cities to support the employment and societal integration of
One potential way of integrating young people into the labour market is to increase youth immigrants into local communities. The ethnic and socio-cultural make-up of many advanced economies
entrepreneurship. Becoming an entrepreneur potentially offers benefits to the young person through havesignificantly changed as flows of long-distance migration from ever more locations increased in the
deepening their human capital attributes (self-reliance, skill development) and increasing their levels of second half of the twentieth century. Immigrants from both developed and less-developed countries
happiness. It also provides societal benefits. Entrepreneurs create jobs, increase innovation, raise moved to advanced economies, embodying the complex process of globalisation in a very palpable
competition and are responsive to changing economic opportunities and trends. Entrepreneurship offers sense. These two highly visible aspects of globalisation – the international mobility of capital and labour
other positive externalities. A young person setting up a new business may provide ‘demonstration’ or – are often directly related as immigrants themselves introduce their products and services to far-off
learning places. They start businesses in their countries of settlement and become ‘self-employed’, ‘new
entrepreneurs’, ‘immigrant entrepreneurs’ or ‘ethnic entrepreneurs’.
externalities in that they may act as a role model for other young people. This may be particularly
advantageous in deprived communities because setting up a new business – especially if it goes on to Importance of ethnic entrepreneurship

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The self-employment of immigrants is (or can be) important for several reasons. This is first of all related thus broaden the range of goods and services in a country and hence expand the consumers’ choice.
to the fact that they play a different role from immigrant workers. The flip side, of course, is that ethnic entrepreneurs sometimes gravitate to the same economic sectors
and, in doing so, undermine their competitiveness.
● By starting their own business, ethnic entrepreneurs create their ownjobs. This enables them to
circumvent some of the barriers they may encounter in looking for a job. Immigrants from less- ● Analogous to the last point, ethnic entrepreneurs can be instrumental in giving certain sectors a new
developed countries were particularly likely to come up against these obstacles. They may lack or be lease of life. In some industries, because of their specific skills, knowledge or social capital, ethnic
felt to lack educational qualifications; they may not have sufficient access to relevant social networks for businesses can be at a comparative advantage.
transmitting information on vacancies, or local employers maysimply discriminate against them.
Becoming self-employed does not mean all these barriers have become irrelevant, but entrepreneurs Notwithstanding the apparent diversity of both the origins of the entrepreneurs and the types of
seem to be less vulnerable. businesses they have been established in various countries, there are clearly similar underlying
processes. Lacking, in most cases, access to significant funds of (financial) capital and also deemed
● If they are successful, ethnic entrepreneurs can create jobs for others as well. This can benefit lacking in appropriate educational qualifications, most fledgling ethnic entrepreneurs can, so it seems,
relatives, friends and acquaintances
Course Code: Gen and,Ed
more
110generally, co-ethnics, as social networks are often only set up shop in markets with low barriers to entry regarding capital outlays and required
Descriptive
interfaced for information on theTitle: Entrepreneurial
recruitment of new workersMind
in small firms. Instructor: Esperanza educational
G. Pusayen qualifications. In these markets, production is mainly small-scale, low in added value, and
usually very labour intensive. Consequently, earnings are typically relatively low, and days are long and
Creating jobs – even poor jobs – helps alleviate unemployment among immigrants. The same holds for hard for many ethnic entrepreneurs. This very fact, to be sure, points to a distinct divergence of forms of
providing apprenticeships, which in some countries is seen as an important vehicle for a labour market ethnic entrepreneurship, and this makes it harder to get a sharp and coherent profile of ethnic
career. This does not exclude, of course, the creation of jobs for people from other ethnic groups, entrepreneurship.
including the native mainstream.
Family and Entrepreneurship
● Ethnic entrepreneurs can also contribute different forms of social capital to ethnic immigrant
communities. Because of their links to suppliers and customers, ethnic entrepreneurs can be useful in Economy, business, and entrepreneurship are related to the world of men. Home, nurturing, and the
constructing bridges to other networks outside the inner circle, thus improving chances of upward family belongs to women's world, so the story goes. On the other hand, family entrepreneurship and its
mobility. outcome, the family business, are probably the most traditional way of conducting business, being thus
a universal phenomenon. However, in comparison to other economic and entrepreneurial activities, the
● Ethnic entrepreneurs show that immigrants from less-developed countries are not necessarily field of family entrepreneurship has been only recently addressed by economists, researchers, and
restricted to filling vacancies on the job market. They can be active agents and shape their own academicians..
destinies by setting up their own businesses.
Family business makes possible the idea of perpetuating the founder's name and actions over time. It
Secondly, ethnic entrepreneurs don't only differ from immigrant workers, but can also be different from permits, if well managed, to preserve and amplify assets accumulated in life, entrusting the economic
indigenous entrepreneurs. potential associated with the business entity for future generations.Family businesses are the engines of
both industrialized countries and developing economies. They contribute to the socioeconomic
● They may provide goods and services that indigenous entrepreneurs are less likely to offer. Ethnic
development impact on the entrepreneurial drive and represent major employment opportunities. Above
entrepreneurs may have expert knowledge of specific demands or specific sources of supply relating to
all, family businesses represent ‘life projects’, vigorous centres that combine entrepreneurial skills and
foreign products, as in the case of foodstuffs. By introducing new products and new ways of marketing,
activities with typical traits of the family as a community of values and strong relationships.
even ethnic entrepreneurs at the bottom end of a market can be innovators. Ethnic entrepreneurs may

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The natural and innate idea of family businesses to persist beyond the founders, in a continuity of This lesson will require you to engage your critical thinking and problem-solving skills to identify and
values and intergenerational wealth, is based on a concept of ‘sustainable family’. The search for new analyse successful entrepreneurs locally, the region and internationally. To assist you with this probe a
market models emphasizes approaches based on cooperation and enhances emotional investments, series of activities will initiate your research. We will begin with a recap of the features of successful
the sense of belonging, and the social and economic continuity over time. entrepreneurs.

Family business sustainability is the ability to ensure the persistence of the family over time, combining Lesson 5 - Myths of Entrepreneurship
the continuity of the family myth with social responsibility and creating a community of values and
intentions. The theme of longevity or persistence of the family is one of the main topics on which to We often hear of factors of what makes a entrepreneurship business a success. However, are all these
focus the theoretical and empirical contributions to the family business. factors true and what impact they have in determining a successful business venture. In this lesson, we
will examine some these myths of entrepreneurship and discuss their relevance and relation of our
Religion and Entrepreneurship business venture. Entrepreneurs work hard and are driven by an intense commitment and determined
perseverance; they see the cup half full, rather than half empty; they strive for integrity; they burn with
Religious economy refers to religious
Course Code: Gen Ed 110 persons and organizations interacting within a market framework the competitive desire to excel and win; they are dissatisfied with the status quo and seek opportunities
of competing groups and ideologies.
Descriptive AnEntrepreneurial
Title: economy makes it possible
Mind for religious suppliers to meet the
Instructor: Esperanza to
G.improve
Pusayen almost any situation they encounter; they use failure as a tool for learning and eschew
demands of different religious consumers. By offering an array of religions and religious products, a perfection in favour of effectiveness; and they believe they can personally make an enormous difference
competitive religious economy stimulates such activity in a market-type setting. The idea of religious in the outcome of their ventures and their lives.
economy frames religion as a product and as those who practice or identify with any particular religion
as a consumer. However, when the idea of belief is brought into the equation, this definition expands, 10 Myths of Entrepreneurship
and ideology affects the "product" and who "consumes" it. When examining depictions of religious
identity in a global world, it is easy to see how ideology affects the religious economy. The myths, however, are many. The following five entrepreneurship myths are among the most
prevalent:
Religion impacts many different areas of a person’s life, such as the family; politics, and gender roles.
Though a few strong perspectives have emerged in the area of work and religion, this relationship has 1.Entrepreneurs are born, not made: The most prevalent myth about entrepreneurs is that they are born
been marginalized by sociologists. Work is something that plays a central role in the everyday lives of with the skills that will make them successful and that anyone who’s not born with those skills will not
people. Entrepreneurial behaviour as a particular kind of work has increased and can be seen as the succeed. In reality, Entrepreneurism is a skill that, like any other skill, can be learned.
driving force behind the capitalist system. Entrepreneurs, articulate a relationship in which their faith
2. Entrepreneurs make more money: Surprisingly, the typical entrepreneur earns less money than if he
frames their entrepreneurial activity. The entrepreneurs described a tension that existed between their
or she were working as an employee. Only the top 10 percent of entrepreneurs earn more than
previous jobs and their faith due to conflicting values. In setting up their own businesses, they strove to
employees.
create a work environment which focused on reflecting and incorporating these values. The
entrepreneurial activity is shaped by the need for these entrepreneurs to reinterpret their work in 3. Being original is essential: Another entrepreneurial myth is that entrepreneurs who get to the market
religious terms, ending the tension between them between faith and work. first gain the most.
Lesson 4 - Regional Entrepreneurs 4. It takes a lot of money to start a business: Research by Scott Shane of Case Western Reserve
In this lesson, we will research and view series resources that highlight successful regional University has shown that the average new business needs only $25,000 in financing and that most
entrepreneurs. Listen to their stories and evaluate how their success may impact your business venture.

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of that money can be raised through debt. Scott Shane, “Top Ten Myths of
Entrepreneurship,” How to Change the World (blog)

5. Entrepreneurs must be risk takers: According to this myth, entrepreneurs are good
at starting businesses, but can’t manage them once they grow.
ASSESSMENT

1. What type of business would you like to own?

2. Discuss the advantages and disadvantages of this type of ownership of your chosen business.

3. Explain the importance of youths

5. Identify three successful local, regional and international Entrepreneurs. Describe how at least four
Entrepreneurs became successful

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