TEACHER’S GUIDE
Subject: Entrepreneurship Education
Unit: 1
Class: S.1
Topic: The entrepreneur
Time Required: Minimum: 560 min (14
lessons), Maximum: 640 min (16 lessons).
Introduction
Entrepreneurship
Education is a study that is
concerned with providing students with the knowledge and skills of creating and
operating their own businesses successfully, using the available resources to
develop themselves and the country in general. The Kauffman
Foundation (www.kauffman.org) defines it as “the process of providing individuals with the concepts and
skills to recognize opportunities that others have overlooked and to have the
insight, self-esteem and knowledge to act where others have hesitated. It
includes instruction in opportunity recognition, marshaling resources in the
face of risk, and initiating a business venture. It also includes instruction
in business management processes such as business planning, capital
development, marketing, and cash flow analysis.”
In this topic, we shall discuss the meaning
of entrepreneurship, an entrepreneur, the functions of an entrepreneur, how to
become a successful entrepreneur, the qualities of a successful entrepreneur
and the benefits as well as the challenges of being an entrepreneur.
Main Content and Concepts to Emphasize
· Meaning of
entrepreneurship
· Meaning of an
entrepreneur
· Functions of an
entrepreneur
· How to become a
successful entrepreneur
· Qualities of a
successful entrepreneur
· Benefits and
challenges of an entrepreneur
By the end of this topic, students should be able to:
(a)
Define entrepreneurship
(b)
Define an entrepreneur
(c)
Discuss the functions of an
entrepreneur
(d)
Describe how to become a
successful entrepreneur
(e)
Outline the
qualities/characteristics of an entrepreneur
(f)
Discuss the benefits and
challenges of being an entrepreneur
Teaching/Learning
Materials, Activities and Guidance
- Markers
- Flip charts
1.1 Meaning of
entrepreneurship
Entrepreneurship is the quality and skill required to become an entrepreneur. It
refers to the capacity required for identifying and generating innovative
business ideas, mobilizing resources, organizing production, marketing the
products, managing the risks and constantly working for growth and excellence
of the business.
The word ‘entrepreneurship’ comes from a French word entreprerudes which refers to a person
who undertakes risks of a new business. The attributes underlying
entrepreneurship include:
- Self-direction
- Self-nurturing
- Action-oriented
- High energy level
- Tolerant of uncertainty
Several factors
affect entrepreneurship in an area. Some of these are financial capital, human
capital, infrastructure, local economy size, and natural amenities.
Student Activity 1
1)
Ask students what they think
entrepreneurship is.
2)
Ask students to list the
attributes of an entrepreneur.
3)
Divide the students into groups
of three or four and give them markers and paper.
4)
Ask them to discuss some of the pros and cons
for each factor affecting entrepreneurship (i.e. financial capital, human
capital, infrastructure, local economy size, and natural amenities).
1.2 Meaning of an
entrepreneur
The term entrepreneur has
had varied meanings. The term entrepreneur is a French word which literally
means ‘between’ or ‘go-between’. A female entrepreneur is sometimes known as an
entrepreneuse. An entrepreneur is a
person who operates a new enterprise or venture and assumes some accountability
for the inherent risks.
An entrepreneur is simply an individual who has the ability to see
and evaluate business opportunities, gather the necessary resources, start a
business and once started to take appropriate actions to ensure its success.
Entrepreneurs are people who have a high drive and creativity. They constantly
strive to achieve success using their own efforts and they take credit of
whatever outcome. Likewise, they take responsibility for any failure that may
befall their businesses. In other words, an entrepreneur is a person who:
- Perceives his/her needs, analyses him/herself in relation to what he/she would like to be in future
- Scans the environment and identifies business opportunities that he/she could possibly do in order to achieve his/her goals in life
- Conducts a market survey to assess the feasibility and viability of the identified business opportunities to select the most suitable one
- Calculates the risks involved in doing the selected business opportunities so as to find out if he/she can reduce them to manageable levels, and if not, leave and choose another alternative
- Mobilizes the necessary resources to start the selected business
- Sets an organization or arrangement through which the planned business will be operated
- Regularly monitors business performance against set or planned targets
- Takes corrective actions to achieve his/her targets.
Student Activity 2
1. Ask students what they think an entrepreneur is.
2. Ask them to identify any entrepreneurs they know or any famous
entrepreneurs in their local communities.
3. Ask students if any one of them consider themselves to be
entrepreneurs.
1.3 Functions of an entrepreneur
Entrepreneurs perform a number of functions from the stage of
starting a business to its level of success. These functions include:
1. Planning
This is the first step in setting up an enterprise. The planning
process involves:
·
Scanning for the best suitable
idea
·
Selection of the product line
·
Determining the type of
business organization (individual or partnership or corporate)
·
Estimation of capital resources
·
Selection of location/site
·
Studying the government
policies and regulations
·
Studying the availability of
labour force
·
Studying of the market and
marketing strategy to be adopted
2. Organization
An entrepreneur co-ordinates, assembles and supervises other factors
of production - land, labour and capital during the promotion and performance
stage for optimum utilization of resources.
3. Decision-making
As a decision maker, an entrepreneur takes various decisions
regarding the following matters:
·
Determining the objectives of
the business enterprise
·
Procurement of machinery,
material, men, etc
·
Acquisition of efficient
technology and new equipment
·
Development of a market for the
product
4. Management
This involves the operations of the venture and managing of
day-to-day activities. It involves direction of men, machine, material and
other resources.
5. Innovation
This may involve:
- Launching of a new product on the market
- Introduction of new technology in production
- Creation of new markets
- Discovery of new and better sources of raw materials
6. Risk bearing
An entrepreneur undertakes the responsibility for loss that may
arise due to un foreseen circumstances in the future.
7. Uncertainty bearing
There are some risks which cannot be insured against and
incalculable, for example uncertain trends in the market.
Student Activity 3
1. Outline the functions of an entrepreneur.
1.4
Characteristics/qualities of a successful entrepreneur
Qualities or Personal Entrepreneurial Characteristics (PEC) of successful
entrepreneurs refer to the desired traits, which enable an entrepreneur to do
what is expected of him/her and succeed in business. It is the combination of
these characteristics that is required to enable any one to perform effectively
as an entrepreneur. It is possible for people to develop these characteristics
and succeed in their careers as entrepreneurs. Successful entrepreneurs have
common characteristics, which are divided into three clusters namely
achievement, planning and power.
1. Achievement Cluster
- Opportunity seeking
This refers to the
quality that enables the entrepreneur to see and act upon new business
opportunities even in situations where other people see nothing but
problems/hopelessness only. It also encourages him/her to seize unusual
opportunities for obtaining the necessary resources such as financing,
equipment, land, workspace, technical assistance, etc, which will enable
him/her to implement his/her business ideas.
- Commitment to the work contract
This is the ability to
accept final responsibility for completing a job for the customers. Customers
expect entrepreneurs to perform and honour their commitments. It follows
therefore that the entrepreneur should do everything possible to ensure that
he/she fulfils the commitment with his/her customers. It means joining the
workers to work with them to ensure that contractual commitments are fulfilled,
the entrepreneur will do it.
- Persistence
This is the quality,
which enables the entrepreneurs to develop determination to have a thorough job
done at any cost in terms of personal sacrifice. By doing this, the
entrepreneur remains working towards the achievement of his/her set goals.
- Risk taking
Entrepreneurs are
people who prefer taking moderate risks. Before they commit themselves and
their resources, they assess the risks that are associated with a business
opportunity that they have selected, and their ability to manage them, the
benefits that they will realise and the challenges that they will face from the
venture to be undertaken.
Entrepreneurs can earn
profits as a result of taking risks and the higher the risks, the higher the
profits. However, entrepreneurs will always prefer to take on those risks that
they can manage.
- Demand for efficiency and quality
This is the quality
that enables an entrepreneur to do things that meet or surpass existing
standards of excellence or improve on performance by striving to do things
faster, better and cheaply. By doing this, the entrepreneur remains ahead of
others, makes more profits and retains a growing market share.
2. Planning Cluster
The planning cluster is made up of the following characteristics:
- Goal setting
This refers to the ability of an entrepreneur to set
clear and specific goals and objectives. These goals and objectives are
normally high and challenging but at the same time, realistic and can be
attained, given the resources that one has got at his/her disposal.
- Information seeking
This is having the urge to look for the required
information in order to make an informed decision, for example, selecting,
starting and successfully managing the desired business. This calls for the
concerned person to personally seek and obtain information regarding customers,
suppliers, competitors as well as any other relevant information that is
required to enable the entrepreneur make decisions and improve knowledge on
his/her business.
- Systematic planning and monitoring
This is the ability to develop plans that will be used
in monitoring and evaluating the progress of the business. This helps the
entrepreneur to carefully monitor his/her business’ actual performance against
desired performance and turn to other alternatives whenever the need arises; so
as to achieve his/her set goals.
3. Power Cluster
Student Activity 4
1. Ask students to name the various characteristics of an
entrepreneur and list these characteristics on a board or flip chart.
2. Divide the students into groups of three or four and give them
markers and paper.
3. Ask them to draw a picture showing an entrepreneur.
4. Tell them the picture can be of anything (a person, a tree,
etc.), but it should show as many characteristics of an entrepreneur as
possible.
5. Have each group present their completed picture explaining the
characteristics they interpreted.
6. Ask students to think about how they might have demonstrated some
of the entrepreneurial characteristics in through their school work,
extra-curricular activities, or part-time job.
7. Ask students to record their personal entrepreneurial
characteristics in their exercise books.
Reflection
Ask students questions to help them discover that they have many of
the characteristics of the entrepreneur they have shown in their pictures.
Guidance to Teachers
- Be enthusiastic about all the pictures.
- Give each student in every group the chance to talk.
- Focus on how basic, important, useful and attainable entrepreneurial characteristics are.
- Encourage students to talk more than you do by asking them open-ended questions such as ‘When being an entrepreneur, is curiosity an important characteristic?’
Checklist: Characteristics
of an entrepreneur
Self-confident
Able to make decisions
Determined
Independent
Energetic
Able to lead
Resourceful
Versatile
Achievement-oriented
Able to take calculated risks
Responsive to criticism
Profit-oriented
Initiative-taker
Perceptive
Flexible
Responsive to change
Eager to learn
Responsible
Competitive
Optimistic
Impatient
Goal-oriented
Efficient
1.5 How to become a
successful entrepreneur
Like in many other professions, careers and occupations, some who
try to become entrepreneurs succeed while others fail. Today the question that
one may ask is; what makes one to succeed as an entrepreneur while others fail?
Can we pinpoint the key traits of successful entrepreneurs? If we could, we may
then predict what kinds of men and women are most likely to be overachievers.
Such people burn with the desire to excel and they are found to have the six
traits to enable them do well. These key traits are discussed below:
1. The need to win
A successful business is about winning, we all love to win and hate
to lose. Entrepreneurs want to succeed; they feel they should be the best.
2. Innovation
This is generally the most distinctive entrepreneurial trait, which
enables an entrepreneur to tackle the unknown, to do things in new and
different ways, to weave old ideas into new patterns; to offer more solutions
than excuses and to always be a market leader, ahead of others.
3. The need for
achievement
Related to the need to win is the strong desire to achieve.
Entrepreneurs are people who want to set high goals and go for them.
4. Risk taking
Any new business poses risks for entrepreneurs. They may succeed or
fail, in their new business ventures. As a precaution, entrepreneurs are likely
to shun ventures in which the odds against them are high and they are not
manageable. At the same time, most entrepreneurs also shun a sure thing because
the satisfaction from getting along with the routine would be too small to
justify the effort. Entrepreneurs are not likely to be found performing routine
chores or doing businesses which everyone else is doing in the same way.
Even though entrepreneurs generally choose ventures that fall
between these two extremes, they tend to go in the direction of risk. They are
likely to prefer ventures in which the risk of failure is high but not too high
to be managed. This is because, they recognise that they are more likely to
gain both satisfaction and success from tasks that offer opportunity but also
fit their skills. Entrepreneurs take reasonable risks, by choosing the risks
for which their skills are suited.
5. Self-confidence
Entrepreneurs believe in themselves. They have confidence that they
can outdo anyone else in their field. They tend not to accept the status quo,
believing instead that they can change the facts. Often, they insist the odds
are better than the facts would justify.
6. Hard work
Few people in our society work harder than entrepreneurs. Many big
business executives put in even longer hours, driven by their strong desire to
excel. One measure of just how hard entrepreneurs work is normally looked at by
the number of hours that they spend doing their work and the commitment with
which they do their work. At least in the first year of their ventures, most
entrepreneurs tend to work much more than 50 hours a week.
7. Goal setting
Many people often express happiness after setting meaningful goals, not
necessarily after achieving those goals. This cannot be said of entrepreneurs.
To entrepreneurs, merely choosing a new meaningful goal is self-renewing.
Planning and carrying out the steps needed to reach the goal is stimulating.
And the result often opens a door that leads to still another goal.
Entrepreneurs are compulsive achievers. Once they have met a goal, they loose
interest in further effort in that area because it gives them little sense of
achievement. They work hard only if they feel challenged.
8. Accountability
Entrepreneurs generally want full credit for their success- or will
assume full blame for their failure. To measure their performance,
entrepreneurs may use an
of the several yardsticks, among them return on investment and the rate
of profit growth. These yardsticks measure profitability. Profits tell
entrepreneurs how well they are doing in the market place.
9. They love independence
Entrepreneurs love independence; they do not want to be controlled.
They want to do what they feel like doing and normally do not want restrictions
on the way they do things and are usually impatient with bureaucratic
procedures.
10. Creativity
Creativity is the generation of new ideas. Entrepreneurs are usually
creative people who come up with different ideas. Creative people love change,
cause change and love ambiguous situations. Creative people want to be
challenged and love complex problems from which they can think up systematic
ideas.
Student Activity 5
1. Ask students to identify examples of successful entrepreneurs in
their communities.
2. Ask students to collect information from one successful
entrepreneur on:
(a) How they became entrepreneurs
(b) What makes them succeed as entrepreneurs
(c) What advice they give for one to become a successful
entrepreneur.
1.6 Benefits and
challenges of an entrepreneur
Entrepreneurs enjoy a range of benefits for being in business. At
the same time, they are confronted by a range of challenges in the course of
doing their work as entrepreneurs. Table 1.1 shows the benefits entrepreneurs
enjoy and the challenges they face.
Table 1.1 Benefits and
challenges of being an entrepreneur
|
Benefits
|
Challenges
|
|
1. Social recognition
|
1. Long and irregular hours of work
|
|
2. Increased income
|
2. Low level and insecurity of income
|
|
3. Improved standard of living
|
3. Low life style due to hard and demanding work
|
|
4. Flexibility in decision-making
|
4. Potential loss of resources invested in business
|
|
5. Developing self-confidence
|
|
|
6. Self-employment
|
|
Challenges refer to
the major
activities undertaken in a business, whereas tasks are specific pieces
of work that can be done to meet the challenges. Examples of challenges and
tasks are given in Table 1.2 below.
Table 1.2 Tasks and
challenges in business
|
Challenges
|
Tasks undertaken to meet
challenges
|
|
Raising capital
|
|
|
Marketing goods/services
|
|
|
Managing funds
|
|
|
Maximizing profits
|
|
|
Acquiring stock
|
|
At times, many tasks can be undertaken in meeting a challenge. Table
1.2 above shows some of the challenges and the related tasks in business.
Student Activity 6
1. Ask students to interview a local entrepreneur on:
(a) The benefits they enjoy as entrepreneurs.
(b) The challenges they face as entrepreneurs.
(c) The mechanisms they use to
overcome the challenges.
References:
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