Definition of key terms

Entrepreneur: It is a person who creates initially small business and strives to maximize
potential of their venture while simultaneously minimizing risk.

Entrepreneurship: This is a process of designing, launching and running a new business

which often initially a small business along with its financial risks.

Self-employment: This is where an individual is in control of his/her own business, makes

decisions affecting and enjoys all the profits of that business and incurring all the losses.

Business environment: Are those factors that affect the operations of a business. They may
be internal or external environment.
 Small scale enterprises: It is a type of an enterprise marked by a limited number of
employees and limited flow of materials and finances.

Content/Procedures/Methods/Illustrations
Distinguish between entrepreneurs and business Persons

Table 7. Distinction between Entrepreneurs and Business person

Entrepreneur Business person

An entrepreneur is an investor and the first A business person can make a business out
creator of a product. He invests time, of an unoriginal business or product idea.
energy and money on his own idea. He He enters into existing business, such as
doesn’t start business from an unoriginal franchising and retailing. He chooses a hot
idea. and profitable business idea regardless of

whether it is original or a borrowed idea.

Entrepreneurs are more concerned on Most business persons are doing business

changing the world. They want to pursue for profit, livelihood, for reaching their
their passion and achieve an ultimate goal. own boss.

Entrepreneurs takes crazy risks, and don’t Businesspersons take calculated and
care of losing time and money just to managed risks. They cannot afford to lose
pursue their passion. money or suffer from bankruptcy.

An entrepreneur is a friend and a leader. He A businessman is an employer and a

finds peers and people whom he will never manager. He hires to help his business

treat as machines. grow.

An entrepreneur sees customers as his Businessperson sees customers as his

source of duty and fulfillment. source of sales and revenues.
Entrepreneurs try hard to beat his worst A businessperson tries harder to beat his
competition. competitors and win the competition

Entrepreneur sees the world as duty rather Businessmen sees the world as an
than an opportunity. opportunity.

Works as an artist his product is a Businessmen doesn’t waste any time

 masterpiece.

Types of entrepreneurs
Innovator: They come up with completely new ideas and turn them into viable business
ideas.

Imitators: They are the types who copy certain business ideas and improve upon them.

Small scale entrepreneur: It is a type of entrepreneur that involves small business ventures.
They lack the scale to attract venture capital but are funded by family and friends. Examples
are; groceries, Consultants, carpenters and hairdressers.
 Scalable start-up entrepreneur: Entrepreneurs start their company believing that their
vision can change the world. Their funding comes from venture capital and they hire the best
employees. Finding a scalable and repeatable business is the ultimate goal of the business.
Examples are; Facebook, online shops, Instagram etc.

Large company entrepreneurship: through sustaining innovation, offering new products in

order to meet with changing customers’ needs and advanced technology. Often companies
do this by partnering with or buying innovative companies. Examples are; Microsoft,
Samsung, Google, etc.

Social entrepreneur: It is where an entrepreneur creates product and services to solve social
need and problems. This can be non- profit, profit or hybrid. E.g. safe point trust by Marc
koska which works to redesign medical tools and introduce inexpensive non-reusable
syringes for underfunded clinics the world.

Importance’s of entrepreneurship
Create jobs: As much as entrepreneurs create job themselves. They also create a number of
jobs opportunities with their business venture and as their businesses grow so the
opportunities available increases.

Creates change: When entrepreneurs make a product or explores ideas, it brings in change
and improvement in the world.

Entrepreneur give to the society: The more the money they make the more in taxes they pay
which in turn funds public services. E.g. Bill Gates the founder of Microsoft is the biggest
donor in charities and non-profit organization.

Entrepreneurship have independence: They are their own boss this enables to work to their
capacity and towards achieving the specific goal.

Freedom of ideas: They are free to implement and make any change in the operation of the
business.

Disadvantages of entrepreneurship
Risk of business failure - There is no certainty of success.
Long working hours especially in early stages of implementation.
Income is varied and uncertain - It is difficult to estimate the income that you will be able to
get in particular day or month.

Identify ways of becoming an entrepreneur

 Be a risk taker: Humans are generally risk averse, but part of being an entrepreneur is
recognizing the risk that you should take. Successful entrepreneurs know which risk to take
and which they shouldn’t.

Exercise: That is put the idea into action

Learning: Getting new ideas from established entrepreneurs.
Networking: Analyzing gaps in the market where you can invest in and working together
with entrepreneurs of your area of specialization.

Trust yourself: Being determined to achieve your goals.

Challenge yourself: Compare yourself with the already established entrepreneurs.
Visualize goals: Determine the needs and requirements of your goals.

Characteristics of entrepreneurs are identified as per the principles of

Entrepreneurship.

Characteristics of Entrepreneurs
Self-motivated: when you want to succeed you need to be able to push yourself.
You aren’t answerable to anyone else as an entrepreneur and that means that it’s
hard to get moving without anyone to make you.

Risk taker: successful entrepreneurs know that sometimes it’s important to take
risks. Playing it safe sometimes never lead to success as a business owner.

Flexible: Have the ability to be able to change as needed. Staying on top of your
industry and be ready to adopt changes in the process and product as they are
needed.

Passion: Successful entrepreneurs are passionate. They feel deeply about their
product or service or mission.

Basic money management skills and knowledge: Understand how money works
so that you know where you stand and so that you run your business on sound
principles.

Network: Being able to connect with others and recognize partnership opportunities
can take you a long way as a business owner.