A country with many successful entrepreneurs is considered as most successful country in terms of economy. Because the entrepreneurs play a vital role in the economic development of a country such as generate employment, increase production, increase innovation, and so on. But do we understand the meaning of entrepreneurship. In this session we will learn about the theory and concepts of entrepreneurship

1. Session 1
Learning Outcome:
At the end of this session, you should be able to explain the theories and concepts of entrepreneurship and discuss their
importance.
CONCEPTS OF
ENTREPRENEURSHIP_______________________________________________________________________________
_________
Photo by Sabriirmak – Creative Commons Attribution License - www.flickr.com/photos/sabriirmak/2195784591

3. Learning objectives
Participants will be able to do the following:
Explain different theories and concepts of
entrepreneurship and discuss their importance
Differentiate different types of entrepreneurships
Identify major characteristics of successful
entrepreneur

4. Introduction
A country with many successful entrepreneurs is
considered as most successful country in terms
of economy.
Because the entrepreneurs play a vital role in the
economic development of a country such as
generate employment, increase production,
increase innovation, and so on.
But do we understand the meaning of
entrepreneurship. In this session we will learn
about the theory and concepts of
entrepreneurship

5. What is entrepreneurship?
• The capacity and willingness to develop, organize
and manage a business venture along with any of
its risks in order to make a profit.
• The most obvious example of entrepreneurship is
the starting of new businesses.
Source:
http://www.businessdictionary.com/definition/entrepreneurship.html#ixzz36
CA8th6z

6. ?
Who is an entrepreneur?
• An Entrepreneur is a person who is willing
to take risks which is normally financial in
the pursuit of business or social works.
• This term refers to anyone who is
developing or organizing a new project or
opportunity, usually in the business or even
social works. They are always innovative,
independent, optimistic, creative, risk
taking and hard-working.

7. • In short an entrepreneur is a person who sees
opportunity, makes plan, starts the business or
social works, manages the business, assuming the
risk for the sake of profit.
Please refer to the following website to find out
more details.
Read More : http://www.jetangels.co.za/resources/all-about- entrepreneurs/

8. The entrepreneurial process
Discovery of Opportunity
Decision to Exploit
Resource Acquisition
Critical Strategy
Organising Processes
Performance
Existence of Opportunity
Shane, 2003

9. http://www.soi.wide.ad.jp/class/20090054/slides/03/18.html

10. Economic theories of entrepreneurship
• This concept describes the relationship
between entrepreneurship and economic
theory with regard to
• “The problem of explaining why some succeed
while others fail is crucial to the study of
economic development, the growth of the
firm and the distribution of income( Casson,
1982 in EAS, 2012).”

11. • Joseph Schumpeter the main scholar in this field
introduced the concept of creative destruction
which refers to
• “The entrepreneur reforms or revolutionizes the
pattern of production by exploiting an invention
or an untried technology for producing a new
commodity or producing an old one in a new way,
by opening up a new source of supply of
materials, or a new outlet for products, or by
reorganizing an industry” (Schumpeter, 1934)

12. Entrepreneurial self-efficacy
• The degree of self belief of the entrepreneur
whether he/she could handle the project or
otherwise is an important success factor.