This document provides an overview of entrepreneurship and the entrepreneurial profile. It describes entrepreneurs as individuals who create new businesses while facing risk and uncertainty in order to achieve profit and growth. Entrepreneurs are change agents in society who create new ideas and businesses that make existing ones obsolete. The document also outlines some benefits of entrepreneurship, such as the opportunity to create one's own destiny and contribute to society, as well as some drawbacks, like uncertainty of income and risk of losing one's entire investment. It examines theories from economists like Cantillon, Schumpeter, Weber, and Pinchot regarding the definition and role of entrepreneurs.

1. The Foundations of
Entrepreneurship
Lecture 1

2. Learning outcomes
On completion of this chapter, you will be able to:
1. Describe the entrepreneurial profile.
2. Describe the benefits and drawbacks of entrepreneurship.

3. Role of the entrepreneur in business
• One important indicator of the popularity of entrepreneurship is the
keen interest expressed by young people in creating their own
businesses.
• Globally, the highest rates of entrepreneurial activity are among
people between the ages of 25 and 34, but entrepreneurship is the
desired career path for many people who are still in college.
• According to a recent study of global entrepreneurship, 65 percent of
college students around the world aspire to be entrepreneurs, 27
percent of them immediately after graduation and 38 percent after
gaining experience working for someone else. What about you?
(

4. Describe the entrepreneurial profile. Who is
entrepreneur?
Adapted from the French verb
entreprendre, which means “to
undertake” or “to attempt,” the
word “entrepreneur” was
introduced in 1755 in economist
Richard Cantillon’s book Essay on
the Nature of Trade in General.

5. An entrepreneur is one who creates a new
business in the face of risk and uncertainty for
the purpose of achieving profit and growth by
identifying significant opportunities and
assembling the necessary resources to
capitalize on them.

6. Position
among the first
economists to discuss
entrepreneurship and
notions of utility
described
entrepreneurs as
helpful in meeting
“human wants.”

7. Describe the entrepreneurial profile. Who is
entrepreneur?
In his 1911 book The Theory of
Economic Development, economist
Joseph Schumpeter said that
entrepreneurs are more than just
business creators; they are change
agents in society.
The process of creative destruction,
in which entrepreneurs create
• new ideas and,
• new businesses that make existing
ones obsolete

8. Other approaches and concepts
• Max Weber
• Gifford Pinchot
• Israel Kirzner
• Mark Casson

9. DNA of the entrepreneur

10. Why people start businesses
• Autonomy;
• Power and influence (managing people);
• Financial gain;
• Intellectual challenge (variety);
• Altruism

11. Some statistics

12. The Benefits of Entrepreneurship
Benefits of Entrepreneurship
• Opportunity to Create Your Own
Destiny
• Opportunity to Make a Difference
• Opportunity to Reach Your Full
Potential
• Opportunity to Reap Impressive
Profits
• Opportunity to Contribute to Society
and Be Recognized for Your Efforts
• Opportunity to Do What You Enjoy
and Have Fun
Drawbacks of Entrepreneurship
• Uncertainty of Income
• Risk of Losing Your Entire
Investment
• Long Hours and Hard Work
• Lower Quality of Life Until the
Business Gets Established
• High Levels of Stress
• Complete Responsibility
• Discouragement
(Cornwall, n.d.)

13. Practice class 1
• Business economics: a contemporary approach. Chapter 3
• Essential of entrepreneurship and SBM. Chapter 1