ENT202

COURSETI
TLE:BASI
CPRI
NCI
PLESOFENTREPRENEURSHI
P

LECTURE:DEFI
NITI
ONOFENTREPRENEURSHIPANDTURNINGKNOWLEDGE
INTOPROFIT(ENTERPRI
SE,
ENTREPRENEUR,I
NTRAPRENEUR,
ENTREPRENEURSHIPTHEORY&PRACTICE)

OUTLINE
Def
ini
tionofabusi
ness
Ent
erprise
Ent
repreneur
I
ntr
epreneur
Ent
repreneur
shi
p
Ent
repreneur
shi
ptheor
yandpr
act
ice

Theai
m oft
hisl
essonnot
eonei
stoexpl
aint
heabov
eout
li
ne.
Obj
ect
ives
Ont hecompl eti
onoft hi
sthi
slessonnot eone,st
udentswi l
lunderst
andthediff
erence
among t he f ol
lowi
ng; ent
erpr
ise, ent
repr
eneur
,i nt
rapreneur
, entr
epr
eneur
ship and
ent
repreneur
shiptheor
yandpract
ice.Thi
swill
helpt
hestudentsinthef
oll
owi
ngway s:
 Tounder
standwhatconst
it
utebusi
nessact
ivi
ty
 Tobef
ami
l
iarwi
tht
heconceptofent
repr
eneur
shi
p
 Tounder
standent
repr
eneur
shi
pasamul
ti
facet
eddi
sci
pli
ne.
 To examinethei
nter
li
nkagesoper
ati
ngamongt
hedi
sci
pli
nesandt
hei
r v
ari
ous
contr
ibut
ions
 To identi
fyv ari
ous discipli
nes that has contr
ibut
ed to the dev
elopment of
ent
repreneur
ship.
 Toprovideentr
epreneur
ialservi
ces,e.
g.adoctort
reatsapati
ent
 Toenhancehumanl i
feorl
iving,e.
g.asurvey
orhelpstoplanaci
ty

1
Whati
sabusiness?
Abusinessisanyacti
vit
yt hatisi
nvolvedindevel
opi
ng,pr
oducinganddistr
ibut
ingof
goodsandser vi
ceinreturnf oraprofit
.Abusinesscanalsober efer
redtoast he
act
ivi
tyofmaking,buy
ing,sell
ingorsupplyi
nggoodsandser
vicesformoney.

Reasonsforbusiness
1.Profi
tmaking
2.Wealthcreat
ion
3.Provi
sionofser v
ices
4.Employmentgener at
ion

Whatisanent erprise?
Enter
prisecanbedef i
nedasi ni
tiat
ive,orpur
posef
ulbroadplansrequiri
ngmanycoordi
nat
es;
orinbusinessorf i
nancialappli
cati
onsast heover
alloper
ati
ngent i
ty.
Anent erpri
seisanact i
vit
yorapr ojectt
hatproducesservicesorpr oduct
s.Ther
ear e
essenti
all
ytwoty pesofent erpr
ise:

 Busi
nessent
erpr
ises,
whi
char
erunt
omakeapr
ofi
tforapr
ivat
eindi
vi
dual
orgr
oupof
i
ndi
vi
dual
s.Thi
sincl
udessmal
lbusi
ness.
 Soci
alent
erpr
ises,whi
chf
unct
iont
opr
ovi
deser
vicest
oindi
vi
dual
sandgr
oupsi
nthe
communi
ty.

Busi
nessent
erpr
ises

Thisi stypeofent er
priseestabli
shedbyi ndi
vidual,corporat
eorgov ernmenti nor dert o
provi
de essent ialser vi
ce(s)whi l
e maki ng profi
torr etur
n.Ther e arel ot
s ofdi f
ferent
enterpri
sesar ound; manyar esmallbusinesses.Somet i
mesoneper sonownsandr unst hem;
somet i
mest hey'
r eaf amilybusi
ness;otherbusi nessesareownedandr unbypar t
nerswho
aren'
tfami l
yr el
ations.
Toear nani ncomef rom asmal lbusi
ness,theent erpri
sehast orunatapr ofi
t;thatis,some
moneyshoul dbel eftoverforthebusinessowneronceal lthecostsofmaki ngt heproductor
deli
veringaser vicehav ebeenmet .Entrepreneursusuallydecidetosetupsmal lbusinesst o
earnani ncomef rom pr oduci
ngandsel li
ngpr oductsordel i
veri
ngserv i
cest oindivi
dual sor
otherbusinesses.

Commonsmal
lbusi
nesses

Somesmallbusi
nessesar
eeasytor
ecognisebecauset
heyhavealocat
ionorshop-
frontor
asit
ewhereyoucanseethem i
noperat
ion,maki
ngorfixi
ngthi
ngsandservi
ngcustomers.
Forexampl
e:

 Fur nitureshop
 Smal lfarm set
tl
ement
 rest aurants/canteen
 breadmaki ng/confect
ionar
y
 print i
ngwor ks
 hairdr essi
ngsalons
 Hot els
2
  Cosmet
icsandbeadmaki
ng
 Soapmakinget
c

Socialenter
prise
Socialenter
prisefuncti
onsasawayofpr ovi
dingser
vicestoindivi
dualsandgroupsint he
communi ty.A socialenter
prise i
s basical
lyan organizat
ion orenterpr
ise t
hatappl i
es
businesstechniquestomaximizeimprovementsinhumanandenv i
ronmentalwel
l-
beingwith
theintent
ionofmaxi mizi
ngprofi
tsforexter
nalshar
eholdersandprovidi
ngessenti
alser
vices
tothehostcommuni t
y.

Whyistheneedf orSocialEnter
pri
se?Soci alenter
pri
sesrei
nvestthemoneytheymakeback
i
ntothei
rbusi
nessort helocalcommuni ty.
1. Thisal
lowsthem t otackl
esocialproblems,
2. Improv
epeopl e'
slifechances,
3. Supportcommuni ti
esandhel ptheenv ir
onment.
So,whenasocialenterpr
isemakespr ofi
ts,ithasaposit
ivemulti
pli
eref
fectonthesoci
ety
.

Rol
esandobj
ect
ivesofanent
erpr
ise

Anenter
prisethatischaracteri
zedwit
hcommer
cial
,fi
nanci
al,orbusi
nessel
ement
sor
pur
posesfori
nstance,
arecreatedto;

1.Pr
ovi
dei
ncomef
ort
heowner
,

2.Cr
eat
ejobsaswel
las

3.Dev
elopt
heeconomy
,et
c

Whoi sanEntr
epr
eneur?
Entrepreneuri
srefer
st oasaper sonwhounder takesandoperatesanew ventur
e,and
assumessomeaccount abil
i
tyf
ort hei
nherentrisks.Entr
epr
eneurcanal sobeseenasa
personwhomakesmoneybyst art
ingorrunningabusi nessandident
if
iesavacuum i
nthe
mar ketdemandandcreatesapr
oducttosat
isfytheneed.
Theconceptof“ent
repr
eneur
”isaFr enchwordcall
ed“entr
epr
endr
e”meani ngt
oundert
ake.
Thi
sconceptwasusedt orefertoabusinessorgani
zati
oninthe18th cent
urywhodeal
sor
buysandsel
lsgoodsatuncer
tainpr
ices.
Def
ini
ti
onofEnt
repr
eneurf
rom v
ari
ouswr
it
ers
I
sar
iskt
aker
Anor
gani
zer
Ent
repr
eneuri
s Asani
nnov
ator
Asal
eader

RichardCant
il
lon(
1755)def
inesentrepr
eneurast
heagentwhobuy
smeansofpr
oduct
ionat
certai
npri
cesinor
dertocombinethem int
oanewproduct
.
Say
,J.
B(1821)def
inesent
repr
eneurasonewhobr
ingsot
herpeopl
etoget
heri
nor
dert
o

3
bui
l
dasi
ngl
epr
oduct
iveor
gani
sm.
Schumpeter(1934)defi
nest
heentrepr
eneurasaper
sonwhoi
swi
l
li
ngandabl
etoconv
erta
newideaorinventi
onint
oasuccessfuli
nnovat
ion
Ogundele( 2000)def ines ent
r epreneurs as the i
nnovating indiv
idual,who i
nit
iat
es and
nurt
urestogr owt hanewandanongoi ngbusinessorganizat
ion, wherenoneexi
stedbefore.
Heist heindi
vidualwhosuccessf ull
ythinksorconceivesanewbusi nessconcer
n, or
ganizes
orinit
iat
esact ionstost ar
tit
,andmanagesi tthroughitsini
tialproblemsandstrugglesfor
survi
val.Het akesallmeasur est hatleadtheor gani
zati
ont oast ateofstabi
l
ityandsel f
-
sustai
ninggrowt h.
Drucker(1985)def
inestheentr
epreneurasthei
nnov
ati
veindi
vi
dualwhopercei
vesbusi
ness
opportuni
ti
esandor gani
zestherequir
edresour
cest
oini
ti
ateasuccessf
ulbusi
nessacti
vi
ty
forprofi
t.
Kur
atkoandHodgetts(
2001)def
ineentr
epr
eneurasi
ndi
vi
dualwhor
ecogni
zesoppor
tuni
ti
es
wher
eothersseechaosandconf
usion.
Theconceptofent
repr
eneurcoul
dbehi
stor
ical
l
ysummar
izedasshownbel
ow.
Per
iod Par
ti
cul
ari
zat
ions

Ear
lyt
ime St
emsf
rom Fr
ench:
means:
bet
ween,
taker
,gobet
ween.

Mi
ddl
eAge Act
orandper
sonsi
nchar
geofl
arge-
scal
epr
oduct
ionpr
oject
s

17thcent
ury Per
sonbear
ingr
iskofpr
ofi
t(l
oss)i
naf
ixedpr
icecont
ractwi
th
gov
ernment

1755 Ri
char
dCant
il
lon–per
sonbear
ingr
isk

1821 Jean Bapt

istsay– separ
ated pr
ofi
ts ofent
repr
eneurf
rom
prof
it
sofcapit
ali
nter
est
.

1904 Max Weber – Protest

ant et
hics and spi
ri
tof capi
tal
i
sm
behav
iour
alout
look

1934 JosephSchumpet
er– ent
repr
eneurasi
nnov
ator
sdev
elopi
ng
untr
iedt
echnol
ogy

1961 Davi
dMcCl el
l
and–achi
evementor
ient
ed,ener
get
ic,moder
ate
ri
sktaker

1964 Pet
erDr
ucker–ent
repr
eneurmaxi
miz
esoppor
tuni
ti
es

1975 E.
O.Aker edolu-
Aleentr
epr
eneurseenf
rom soci
ocul
tur
aland
pol
it
ical
per spect
ives

1975 Al
bertShapero– t
akesini
tat
ive,accept
sri
sksoffai
l
ure,and
or
ganizessomesoci
alandeconomicmechani
sms.

1980 Kar
lVester– entrepr
eneurseen dif
ferentl
ybyeconomi
sts,
psy
chol
ogist
s,busi
nesspersonsandpoli
ti
cians

1985 Robert Hist

ri
ch – ent repreneur – assuming financial
,
psychol
ogi
calandsoci alri
sks,increat
ingsomet
hingdif
ferent
i
nv alueandreceivi
ngt heresult
ingrewardsofmonetar
yand
per
sonalsati
sfact
ion.
4
1995 A.U.Inegbenebor– dy
nami
cst
ruct
urebui
l
der
sforef
fect
ive
perf
ormance.

2000 O.
J.KOgundel
e–empi
rebui
l
derexpl
oit
ingoppor
tuni
ti
es

Source:Adapt edfr
om Histri
ch,R.D.andPeters,M.
P.(2002)Entr
epreneur
shi
p,New York:
McGr awHillhi
ghereducat
ion,andOgundele,O.J.K(
2007)Int
roduct
iontoEntr
epreneur
ship
Development,Corporate Governance & SmallBusi
ness Management .Lagos:Mol of
in
Nomi nees.
Itcoul
dbeseenfr
om thetabl
eabovethatt
heconceptofent
repr
eneurhasv
ary
ingor
igi
ns
andusagesi
ndi
ff
erentt
imesandregi
ons.
Char
act
eri
sti
csofanent
repr
eneur
Hor
naday(1982)producedali
stoff
ort
ytwo(
42)char
act
eri
sti
cswhi
chwer
eof
tenat
tri
but
ed
t
oentr
epreneur
s;theyarest
atedbel
ow.
1. Conf
idence 22. Responsi
bil
i
ty

2. Per
sev
erance 23. For
esi
ght

3. Ener
gy,
dil
i
gence 24. Accur
acy
,thor
oughl
y

4. Resour
cef
ulness 25. Cooper
ati
veness

5. Abi
l
ityt
otakecal
cul
atedr
isk 26. Pr
ofi
tor
ient
ati
on

6. Dy
nami
sm,
leader
shi
p 27. Abil
i
t y t o l
ear
n f
rom
mistakes

7. Needt
oachi
eve 28. Senseofpower

8. Opt
imi
sm 29. Pl
easantper
sonal
i
ty

9. Ver
sat
il
it
y,knowl edge ofpr
oductmar
ket
, 30 Egot
ism
machi
nery,
technology

10. Cr
eat
ivi
ty 31 Cour
age

11. Abi
l
ityt
oinf
luenceot
her
s 32 I
magi
nat
ion

12. Abi
l
ityt
ogetal
ongwel
lwi
thpeopl
e 33. Per
cept
iveness

13. I
nit
iat
ive 34 Tol
erancef
orambi
gui
ty

14. Fl
exi
bil
i
ty 35. Aggr
essi
veness

15. I
ntel
l
igence 36. Capaci
tyf
orenj
oyment

16. Or
ient
ati
ont
ocl
eargoal 37. Ef
fi
cacy
-ef
fect
iveness

17. Posi
ti
ver
esponset
ochal
l
enge 38. Abi
l
ityt
otr
ustwor
ker
s

18. I
ndependence 39 Sensi
ti
vi
tyt
oot
her
s

19. Responsiv
eness t
o suggest
ions and 40 Honest
y,i
ntegr
it
y
cr
iti
cism

5
20. Ti
mecompet
ence,
eff
ici
ency 41 Commi
tment

21 Abi
l
ityt
omakedeci
sionsqui
ckl
y 42 Mat
uri
ty,
bal
ance

Sour
ce:Adapt
edf
rom Kur
atkoD.
FandHodget
sR.
M.(
2001)
.
Thet
opt
enChar
act
eri
sti
csoft
odayEnt
repr
eneur
s
1. Creati
veandi nnovate
2. Vi
sionaryandi nspi
red
3. Perseverance
4. Optimisti
c
5. Gap-fi
ll
ers
6. Coordinatorandorganizer
FUNCTI
ONSOFENTREPRENEURS
Ogundel
e,(2004)hascl
assi
fi
edt
hef
unct
ionsofent
repr
eneurasf
oll
ows
Soci
alFunct
ionsofEnt
repr
eneur
1. Tr
ansf
ormi
ngt
radi
ti
onal
indi
genousi
ndust
ryi
ntoamoder
nent
erpr
ise.
2. Sti
mulati
ngi ndi
genousent
repr
eneur
shi
p,t
heent
repr
eneurhasi
nhi
sempl
oyment
potent
ial
riv
als.
3. Jobsorempl
oymentcr
eat
ioni
nthecommuni
ty
4. Pr
ovi
sionofsoci
alwel
far
eser
viceofr
edi
str
ibut
ingweal
thandi
ncome
5. Pr
ovi
dingl
eader
shi
pfort
hewor
kgr
oup
6. Pr
ovi
dingf
orandr
esponsi
blef
ort
hemot
ivat
ional
syst
em wi
thi
nthef
ir
m
Economi
cFunct
ionsofEnt
repr
eneur
1. Mar
shal
l
ingt
hef
inanci
alr
esour
cesnecessar
yfort
heent
erpr
iseormobi
l
izi
ngsav
ing
2. Bear
ingt
heul
ti
mat
eri
skofuncer
tai
nty
.
3. Pr
ovi
dingav
enuef
ort
hedi
sper
sal
anddi
ver
sif
icat
ionofeconomi
cact
ivi
ti
es.
4. Ut
il
izat
ionofl
ocal
rawmat
eri
alandhumanr
esour
ces

Whocanbecomeanent
repr
eneur
?
Anyonecanbecomeanent r
epreneuri
nasmuchastheper
soni
sreadyt
oexperi
encedeep,
darkanddepthofuncer
tai
ntyandambigui
tyandr
eadyt
oworkt
hrought
hebreat
hofisl
and
ofsuccess.
AnEntrepreneuri
sacatalystf
oreconomi cchange,whichusespurposefulsear
ching,car
eful
pl
anning,and sound j
udgmentwhen car r
ying outtheent r
epreneur
ialprocess.Uniquely
opti
misti
candcommi t
ted,theent
repreneurworkscr eat
ivel
ytoestabli
shnew r esour
cesor
endowoldoneswi thanewcapacity,
allfort
hepur poseofcreat
ingwealth.

TECHNOPRENEUR
Atechnopreneurisanindi
vi
dualwhosebusi nessi
si ntherealm ofhightechnol
ogy,whoat
t
hesamet i
mehast hespi
ri
tofanentrepreneur.Thet echnopreneurrepr
esentsnewbr eed
t
hatisbot hinnovati
veandequall
yenterpri
sing. Thi
sconcepti sderi
vedfrom combining
t
ogether
,technologyandentr
epr
eneur
.
6
Ov i
a( 2007)notes,a t echnopreneuris an ent r
epreneurwhose busi ness i
nvol
v es hi
gh
technologyortoputmor eclearlyatechnologyinnovatorandabusinessmanal lcombinedin
onei ndivi
dual
.Thet echnopreneur,theref
ore,combi nesbothtechnologicalknow-how and
businessexperti
se.Thet echnopreneursthuscombi netheatt
ri
butesoft hescienti
standan
enterpri
sepersoninonei ndi
vidual
.
Char
act
eri
sti
cofaTechnopr
eneur
- Theyar
enat
ural
l
ygi
ft
ed
- Theyar
esmar
t
- Theyar
ehi
ghl
ycr
eat
ive
Technopreneur
showev er,possessallthecharacter
isti
cslinkedtoanentr
epreneur. The
reasonforthedi
ff
erencebetweentechnopreneurandent r
epreneuri
stoi
dent
if
yani ndi
vi
dual
withsci
encebasedinnovate-
nessandbusinessbasedi nnovate-
ness.
I
ntr
apr
eneur
shi
p
Int
rapreneur
shipr eferstoempl oyeeini
ti
ativesi norganizati
onstounder takesomet hi
ngnew,
withoutpayingf ort her i
skinvolvedintheexer ci
se."Hence,theintrapr eneurfocuseson
i
nnov ati
onandcr eativi
ty,andtransf
ormsani deai nt
oapr of
it
ablevent ure,whil
eoper at
ing
withinthe organizationalenv i
ronment.Int r
apr eneur
shipi sthe actofbehav i
ng like an
entrepr
eneur,exceptwi thinalar
gerorganizationorwi thoutnecessar
il
yt akingadirectri
sk.

Whati sEnt r
epreneur ship?
Entrepreneurshipisseenasactofr ecogni
zingoppor tunit
iesi ntheenvir
onment ,mobili
zing
resources tot ake adv antage ofsuch oppor tuni
ti
es,ensur ing t
he provision ofnew or
i
mpr ov edgoodsandser v
icest ot heconsumer sandobt ainingprofiti
nr eturnf ort
her i
sk
taki
ng.Ent repreneurshipisthepr ocessorawayoft hinking, r
easoning(aboutr i
skandr eturn)
andact i
ngtogai natt helong-run,( t
hatis)
,try
ingtomakeuseoft heoppor tunit
ywi t
hint he
environmentand t akes r esponsibili
ti
es formobi l
izing t he requir
ed resources tot ake
advant ageandmakepr ofi
tinreturn.

Ri
char
ddef
inesent
repr
eneur
shi
pint
ermsofuncer
tai
ntybear
ing
Say def
ines entrepreneur
shi
p i
n t
erms of coor
dinat
ion of
pr
oduct
ionofEnt
repr
eneur
shi
p resources
Schumpet
erdef
inesent
repr
eneur
shi
pint
ermsofi
ntr
oduct
ion of
i
nnov
ati
on
Rei
chdef
inesent
repr
eneur
shi
pint
ermsofl
eader
shi
pat
tri
but
e

Adv
ant
agesofent
repr
eneur
shi
p
1.Enor
mousper
sonal
financi
algai
n
2.Sel
f-empl
oyment
3.Cr
eat
eempl
oymentf
orot
her
s
4.I
ncomegener
ati
onandi
ncr
easedeconomi
cgr
owt
h
5.Dev
elopmentofnewmar
ket
6.I
tpr
omot
esexpor
tat
ionofgoodsandser
vices
7.Mor
egoodsandser
vicesar
eav
ail
abl
e

7
 Di
sadv
ant
agesofent
repr
eneur
shi
p
1.Hi
ghl
evel
ofr
isksar
einv
olv
ed
2.Lackoff
und
3.Lackofgov
ernmentsuppor
tforr
esear
chanddev
elopment
4.Lackofi
nfr
ast
ruct
ural
suppor
t
5.I
nsecur
it
y
6.Unst
abl
eeconomi
cpol
i
cies
Cont
ri
but
ionsofent
repr
eneur
shi
p
1.Dev
elopmentofanewmar
ket
2.Di
scov
ernewsour
ceofmat
eri
als
3.Mobi
l
izecapi
tal
resour
ce
4.I
ntr
oduct
ionofnewt
echnol
ogy
5.Cr
eat
eempl
oyment
6.Cr
eat
ionofweal
th
7.Economi
cgr
owt
h

ENTREPRENEURI
ALTHEORI
ES
Writ
ershav ecomeupwi thseveralt
heoret
icalfr
amewor ksonent r
epreneur shipdev el
opment.
Thesetheoriesincludebutnotlimit
edt othefoll
owing,economic,socio-cultural,
manager i
al,
educat
ional, dev elopment
al, experi
enti
al,innovati
on, network, st r
uct ural and mul ti
-
di
mensi onaltheories.Eachofthesetheorieshadbeenusedi nthestudyoft hepr ocessesof
entr
epreneurship.Letusnowf ocusonsummar yofexisti
ngentr
epreneur shipt heory.

1.
1 Ent
repr
eneur
ialTheor
ies
EconomicTheor y:Wr i
ter
sl i
keSchumpet er
, (
1934)andDr ucker,(1985),
seeentrepreneuras
themanwhoper cei
vesbusi nessoppor t
uniti
esandt akesadv antageofscarer esourcesto
usethem.Rel evant,therefore,arethestructureofeconomi cincenti
vesthatareav ai
labl
ein
themarket.Thepat ternsofeconomi cincentiv
eshaveact edasst imulif
ortheemer genceof
entr
epreneurs.Theyhav ealsoi nfl
uencedt heposit
iveresponsesi ntermsofbehav i
ourand
thei
rperfor
mance( Kilby,1965; andSingh,1985).
Poli
ti
calTheory: Thei nfluenceoft hepol i
ticalf actoront heemer gence,behav i
ourand
perf
ormanceofent repreneur shadbeenr eportedbysev eralwr i
ters.Schat z(1962and1964)
di
scussed two formsofassi st
ancet hatwer epr ovided f ori ndigenousent repreneurby
governmentinNigeria.Thesewer e(1)t hef i
nanci alsuppor tthrought hef eder
alloansboar d
and(2)theestabli
shmentoft heYabaI ndustrialEst at
ef orusebyi ndigenousent repreneurs.
Ogundele(2000)discussedt heprovisionoft rainingandf inancialassi st
ancebygov ernment
to indi
genous ent repreneur s t hr
ough Nat ional Di rectorate of Empl oyment ( NDE).
Governmentbywayofl egislat
ionsand pr ovisi
on ofi nfrastructures and othersuppor t
syst
emshav eaidedt heent repreneuri
al processes.
Ecol
ogicalTheor
y:Thisappr
oachi
sconcernedwit
htheinfl
uenceoft heenv
ironmenton
busi
ness star
tup,wit
houthavi
ng t
o obt
aininf
ormat
ion aboutthe char
acteri
sti
cs and
8
mot
ivat
ionoft
heor
gani
zat
ionf
ounder
s(Lef
t,1979;
Mar
ret1980,
andPenni
ng,
1982)
.
Hist
oricalTheory: Thisapproachconsi der
edpasthi st
oricalantecedentsasi ndependent
vari
ableont heemergence,behav i
ourandper for
manceofent reperneeurs.Tothewr it
ersin
thi
sgroupbel ong(
Col e,
1959;Akeredolu-
Ale,1975;andRostow, 1982).Akeredol
uAl e(1975)
specif
ical
ly emphasized the pre-
empt i
ng ofpostwaroppor tuni
ti
es in explai
ning the
underdevel
opmentofi ndi
genousent r
epreneurshi
pinNiger
ia.
Manager i
alTheory :Thisper spect
ivefocusesont heper cept
ionofmar ketoppor tuniti
es.I t
i
naddi tionemphasi zestheoper at
ionalskil
lsrequiredtor unasuccessf ulenterprise( Ki
lby ,
1971;Mer edi
th,Nel sonandNeck,1991,andOsuagwu,2001) .Ki l
by( 1971)listedt hirt
een
manager i
alfuncti
ons,whi cht heent r
epreneursmi ghthav etoper for
mf orthesuccessf ul
operation oft hei
rent erpr
ises. Car l
and,HoyBoul ton and Carland (1984)r egar ded t he
employ mentofst rategicmanagementpr acti
cesast hef uncti
onofent repreneurs.Ther efore
manager i
alskill
swi l
lhavedi r
ectpositiveeffecton t heent repreneurship processesof
emer gence,behav iourandper f
ormance.Theenv ironmentt hatprovidesoppor tuni t
iesf or
rel
evantski l
lsacquisiti
onwilltendtopromot eentrepreneurshi
p.
Educat ionalTheor y
:I tisconcer nedwi t
hgener allev elofeducat ioni nt hesociety .I t
s
proponent scont endedt hateducat iont endt obr oadenpeopl es’out l
ook.I tequipspeopl e
withneededski ll
st ol ookatt hewor l
dar oundt hem i namor eorgani zedandcoor dinated
fashi on.Thi swi l
lmaket hem toper form bet t
eri nent repreneur ialrole(Aluko,1983;Br owen
andHi sri
ch,1986andSi ngh,1986) .Aker edolu-Ale( 1975)f oundt hatmor eent r
epr eneurs
hadl owerl evelsoff ormaleducat i
ont hant heci vilser vants. Hecoul dnotest ablishany
directassoci ati
onbet weent helev eloff ormaleducat ionofent r
epreneur sandt hedegr eeof
successachi eved. BowenandHi strich( 1986)r epor tedt hatt hegener alconclusiont he
ent r
epr eneursar elesswel leducat edt hant hegener alpopul ationwasnotsuppor tedbyt heir
study . Al so Singh ( 1986)f ound t hatear li
ernot ion t hatt hose l acking educat ional
qualif i
cationwer eusual lytheoneswhowenti nforbusi nesswasnotbor neoutonhi sst udy.
Ear l
ieronAl uko( 1983)r epor t
edt hatnew br eedsofhi ghlyeducat edent repr
eneurswer e
emer gingi nNigeria.Ogundel e( 2000)f oundt hatt heper for
manceofsomeent r
epreneuri n
hisst udiedgroupswasai dedbybet tereducat ionwhi chmanyoft hem had.Thebr oaden
out l
ookt hrought heeducat ionalpr ocesscoul dai di naccur at eper ceptionofoppor t
uni ti
es,
andt hereforeaffectent repreneurial emer gence, behav i
ourandper formance.
InnovationTheor y:Ent r
epr eneursar eher econsider
edasi nnov ator swhoset askiscr eati
ve
destruction.Thi sresultsfrom br ingingaboutnov elcombi nationofpr oductsandi deas, t
hus
renderingobsol etepr eviousl yexi stingpr oductsori deas. Consequent ly,thepr ocessof
endowi ngr esourcewi thnewweal thpr oducingcapacityiscent raltoanyconcept uali
zationof
entrepreneurship( Schumpet er,1934,TushmanandNel son,1990,Ami tGlostenandMul l
er,
(1993).Ki by(1971)consi deredadapt at
ionasi nnovativef uncti
onofent repreneurshipina
developing economy . Ami t
,Gl ost en and Mul l
er( 1993)and Hobdat( 1995)consi dered
i
nnov ationasadi stinguishingf eatur eofent repr
eneurship.I tis,t heynoted,t heprocessof
extracti
ngpr of
itfrom new,uni queandv ari
ablecombi nationofr esourcesi nuncer t
ainand
ambi guous env i
ronmentby expl oiti
ng oppor t
uniti
es. I nnov ation,therefore,is about
exploit
ingoppor tuniti
es.
Network Theor y: Thi st heoryf ocuses on t he socialli
nks whi ch pr omot e orhinder
entr
epreneur ship.Thi sisbecause,i tconsidersent r
epreneur
shipasbei ngi nvol
vedandas
i
nteracti
nginnet workofcont inui
ngsoci alrel
ati
onst hatopenuporbl ockent repr
eneurs’l
ink
wit
hexi sti
ngr esour cesandoppor tuni
ties. Itisconcer nedwi t
ht hei ntri
catenatureof
i
nterpersonalrelationshi
p(Al dri
chRosenandWoodwar d,1987,DubiniandAl dri
ch,1991and
Cardor,Zietsma,Sapar i
to,Mat hemeandDav is,2005). Asar esultr el
at i
onshipinsoci al
set
tingscanpr ovideopportuniti
esforent r
epreneurship.
St
ruct
uralTheor
y:Thi
sappr
oachex
ami
nest
heef
fectofi
nter
nalpat
ter
nsofr
elat
ionshi
p
9
amongv ari
ouspar tsandcomponent sofanor ganizationonent repreneur ship.I thadbeen
noted t hat t he quality of or gani zationalr esour ces and t he ef fi
ciency wi th whi ch
entrepreneur scarryoutor gani zationalf unct
ionsaf fectedt heirperformance.Thest r
ucture
ofent repreneuri
alor ganizationwasf oundt ohav eenabl edt hem tor eactf asttochangi ng
environmentandadapt i
ngt onew demands.I naddi ti
oni nternalstructuralar rangementt o
contextwasf oundasasi gnificantbasi sforachievingef fecti
veper formance( Aker edoluAl e,
1975; andI negbenebor ,1995) .Aker edol u-Al
e( 1975)not edt hattheent repr eneurs’ quali
tyof
organizationalr esources and consequent lyt he ef fi
ciency wi th whi ch t hey car ry out
organizationalf uncti
ons af fect ed t heirper formance. I negbenebor( 1995)ar gued that
i
nternalst ructur
alarrangementt ot hecont exthasasi gnifi
cantbasi sf orachi evingef fecti
ve
performance. Emphasi s was pl aced on t he dy nami cf l
exibil
it
y of ent repreneurial
organizations. Thust hest ruct uralar rangement sinent repreneur i
alorganizat i
onmaket hem
tobev eryadapt ivetoexpl oitingoppor tuniti
es.
TechnologicalTheor y:Thi st heoryi
sconcer nedwi t
hmachi nes,equipment,andt oolsused
i
npr oducinggoodsandr ender i
ngser v
ices.( Woodward,1965;Ki by,1965;andEkpoUf ot
,
1990). Woodwar d( 1965)f ound thattechnologi
calcompl exityconsiderablyinfluenced
administr
ativestructure,t husemphasi zi
ngt heinfl
uenceoft echnologyonper f
ormance.
Kil
by( 1965)notedt hatsmal lindi
genousent r
epreneuri
alorganizati
onexhibitedaf eatureof
permissivetechnologyl eadingt ofastadaptation.Entrepr
eneur i
altechnol
ogi cali
nnov at
ion
canber egardedasdi rectresponsest oopport
uniti
esintherelevantenvir
onment .
Mul ti
-FactorAppr oach: Ogundel eand Opei fa( 2003)not et hatt heexi st
ing t heor etical
framewor krevealsthatsev eralfactorsi ncombi nati
onaf f
ectt heent repreneurialpr ocesses.
Itispr oposedt hereforethatsev eralrathert hanasi nglef actorwi llaf f
ectent repreneur ship.
InOgundel e(2000) ,
thespeci fi
csetoff actorsusedasexpl anat oryvar i
ableswer e:( 1)soci al
relati
ons( involvi
ngel ementsofsoci o-cult
ur alandnet wor kt heories),(2)pol i
ticalf actor ,(3)
economi cenv i
ronment ,(
4)technol ogy,(5)traininganddev elopment( 6)formal educat i
on, (7)
previouswor kexper i
ences,(8)innov ationand( 9)st ructuralel ement soft heent repr eneur ’s
organization.Thi sisamul ti
dimensi onalfact orsandi nterdiscipli
naryappr oacht ot hest udy
ofent repreneurship.I ti
stobenot edt hatthisappr oachi sal sobasedont heoppor tuniti
es
thatexi statt heappr opri
atel evelofanal y sis.Thest udypr edictedt hatt hedet er mi nant s
l
istedabov ecouldposi ti
vel
yandnegat ivel
yaf fectent repreneur ialemer gence, behav iourand
per f
ormancei nNigeria.
Each ofthe var
ious lev
els oftheoret
icalf
ormulati
on present
ed aboveislinked wi
th
opport
uni
tyofonet ypeort heother. Ther ecurr
entemphasesbyv ari
ouswr i
ter
son
opport
uni
ti
esinrelati
ont oentr
epreneur
shiphaveprovidedtheimpetusforpr
oposingthe
boundedoppor
tunit
yapproachtoentrepr
eneur
ial
study.
Researchershaveal so shownt hatpercept i
onofoppor t
uniti
esand t heempl oy mentof
str
ategicmanagementpr acticesarethefunct i
onsofentr
epreneurs(Kil
by1971, Car landHoy
,
BoultonandCar land1984andAmi t
,Gl ostenandMul ler
,1993) . Stev enson( 1998)and
Timmons( 1999)emphasi zedt hedynamicnat ureoftheopportunit
yint heenv i
ronmentand
thereacti
onsoftheentrepreneurorentrepreneuri
alt
eam incashingont heoppor tuniti
es.

Ent
repr
eneurpr
act
ice

Aneducatedper
sonneednotsuf
ferf
rom unempl
oymentbutcanputhi
sorherknowl
edge
i
ntouseforsomeprof
it
.

Ent
repreneur
sgetengagedinbusinessact
ivi
ti
esandconver
tCAPITALtoPROFI
T.
CAPITALassetsincl
ude:knowledge,ti
me,goodhealth,money
,equipment
,raw mat
eri
als,
10
andot
hermateri
als,bui
l
dingspace,
transpor
tat
ion,
communi
cat
ionser
vices,
etc.Knowl
edge
i
sthestar
ti
ngpoint.

ThenetPROFITist hemoneywehaveaft
erpayingof
fthecost
sofr
unni
ngt
hebusi
ness,
taxes,
andal
lexpensesi
ncur
redbyt
hebusi
ness.

I
nt hecour
seofcarryi
ngoutbusi nessacti
vit
ies,Ent
repr
eneur
sseekf
orOPPORTUNI TI
ESto
bet ur
nedint
oprofi
t,Ent
repreneursdiscov
erMARKETSt hatcanbei
nit
iat
ed,Ent
repr
eneur
s
recogni
zeandut
il
izeposi
tiveMARKETFORCES.

Whenyouobser
veapr
obl
em andy
ouexami
newhati
srequi
redt
osol
vet
hepr
obl
em,t
hisi
s
cal
l
edaNEEDASSESSMENT.

Peopl
ewhomakeal
otofmoneyi
ncl
udepeopl
ewho:

 Discoveraneedt hatmanypeopl egener allyhav e,ther

efore,ther
eisapot entialhuge
mar keti
nthatneed
 Recognizewhatwoul dbeusef ulforapar ti
cularpopul ati
on,groupofper sons,or
professi
ontheref
ore,ther
eisapot ent
ialpr otectedmar ketinthatneed
 Hav eknowledgeofhow t oconv ertar aw mat erialtoaf ini
shedproduct,therefore,
thereisapotenti
alindi
spensablemarketi nt hatneed
 Discoverhow tomakeapr ocessorpr oducteasi erorbet t
er,ther
efore,thereisa
potenti
alconveni
encemar ketinthatneed
 Knowwhatmanypeopl ewouldenjoy,t
her efore,thereiscertai
nmar ketinthatneed

ANEEDSASSESSMENTisi
mpor
tantBEFOREy
oubegi
naBUSI
NESSi
nor
dert
oensur
eyou
gener
ateaNETPROFI
T.

 Youneedt oassessify ourtargetmar keti

sbi
genough,i
sst
abl
e,orpr
otect
ed,or
conv
enient
,ori
ndispensableorcertai
n,etc.
 Youneedtoexaminey ourcapi
talassets
 Youneedtopredi
ctyourprofit

I
NTERACTI
VEDI
SCUSSI
ON

Forf
if
teenmi
nut
es,
thi
nkabouthowy
oucanut
il
izeknowl
edgef
rom y
ourf
iel
d:

 Toprovi
defiv
ediff
erentser
vices
 Tomakef i
vedif
fer
entproducts
 Toenhancehumanl i
feingeneral

Forf
if
teenmi
nut
es,
consi
deri
ntur
n:y
ournei
ghbor
hood,
yourci
ty,
yourv
il
lage,
yourcount
ry.

 Foreachoft hese,thinkaboutwhatyoul i
keaboutt heseplaces.Thi
nkaboutthe
knowledgeofthosepersonsthatmadethosethi
ngsy
oul ikepossibl
e.
 Thenthinkaboutwhaty oudonotli
keabouteachoft
hesepl aces.Consi
derwhatki
nd
ofknowledgeisnecessaryt
omaket omakeachangef orthebetter.

HOMEWORKQUESTI
ON1

11
I
fy ouhaveenoughfinanci
alcapi
talandti
me,howwouldyouinvestyourmoneyt
omakea
di
ffer
enceinimprovi
ngacer t
ainaspectofli
fei
nyournei
ghborhoodandmakesomeprof
it
fr
om doingso?(Wri
tehalfapageonly)
.
Wecomet ot heuniversi
tyt
ogai nknowledge.Wewi
l
lal
sospendtherestofourl
i
vesl
earni
ng
i
ndiff
erentway s.Thisknowledgegainedcanbeusedindi
ff
erentwaysthatwecanrecei
ve
moneyfor.Forexampl eknowledgecanbeused:

12