Title: DEFINITIONS AND CONCEPTS IN ENTREPRENEURSHIP
Course: INTRODUCTION TO ENTREPRENEURSHIP > Section: LESSON 1: DEFINITIONS AND CONCEPTS IN ENTREPRENEURSHIP

In this first lesson, we lay the foundation for the entire course by defining the concept entrepreneurship and other related terms. Throughout our teaching experiences, we have found that an understanding of the basic principles behind the subject and their applications increases the students’ motivation for the subject. We therefore introduce you to the theories upon which entrepreneurship study is based and encourage you to engage in in-depth discussions of these concepts and theories. Since the term entrepreneurship is closely associated with small businesses, we introduce the concept of small business too. The purpose of this lesson is to enable you understand fundamental concepts and theories of entrepreneurship.

1.1 Introduction

In this first lesson, we lay the foundation for the entire course by defining the concept entrepreneurship and other related terms. Throughout our teaching experiences, we have found that an understanding of the basic principles behind the subject and their applications increases the students’ motivation for the subject. We therefore introduce you to the theories upon which entrepreneurship study is based and encourage you to engage in in-depth discussions of these concepts and theories. Since the term entrepreneurship is closely associated with small businesses, we introduce the concept of small business too. The purpose of this lesson is to enable you understand fundamental concepts and theories of entrepreneurship.

1.2 Lesson Learning Outcomes

By the end of this lesson, you will be able to:

1.2.1        Explain the concept of entrepreneurship.

1.2.2        Distinguish between small businesses and entrepreneurial ventures.

1.2.3         Explain the theories of entrepreneurship

1.2.1 The concept of entrepreneurship

Entrepreneurship is a multidisciplinary concept, its meaning and use varies. It has been variously defined as the process of starting a new business venture through identifying opportunities and acting on them. It can also be defined as the process of taking risks by pursuing a business venture with the aim of making profits. Others think entrepreneurship is the creation of new enterprises. Another stream of thought defines entrepreneurship as the process of creating new and unique combinations of factors of production to produce economic growth. As you can see, the term seems to have some definitional problems but there are also some commonalities that underlie these definitions.

There are generally four factors that define entrepreneurship. These are;

               ·            Development of new ideas

               ·            Allocation of resources such as  time, effort, and capital

               ·            Acceptance and assuming of the risks involved

               ·            Reward in the end in terms of personal satisfaction, profits, and independence among others.

It worth noting that there are different types of entrepreneurship besides the one we have defined above. There is corporate entrepreneurship also called intrapreneurship. This one occurs in a large business context or in a corporation; it occurs when employees take up the roles of entrepreneurs and, creatively and innovatively develop and introduce new products/services into the market. Another type of entrepreneurship is social entrepreneurship. Social entrepreneurship the systematic use of innovative ideas and practical models to achieve social change and major societal impact. It involves the building of organizations that address social problems such as poverty, depletion of natural resources, discrimination and marginalization of women and children.  Social entrepreneurs are individuals who tackle social problems and meet social needs in an innovative manner.

E-tivity 1.2.1 - Concept of Entrepreneurship

Numbering, pacing and sequencing | 1.2.1
Title | Definitions and concepts in Entrepreneurship
Purpose | The purpose of this e-tivity is to enable you to explain the fundamental concepts of entrepreneurship.
Brief summary of overall task
Watch videos on these links

1. https://www.youtube.com/watch?v=Oqgzjt-0qZY by Alexei Marcoux
2. https://www.youtube.com/watch?v=-JATp1Eys8Y

 by Centre for  Entrepreneurship University of Michigan and define the concept of entrepreneurship
Spark |
Individual task | (a) Using bullet points, outline the key themes in the   definitions of entrepreneurship in E-tivity 1.2.1 Forum. (b) In a sentence, develop your own definition of entrepreneurship and save it in a portfolio that can be accessed by your facilitator if required.
Interaction begins | a)      Post two themes that are common in the definition of  entrepreneurship b)      Provide positive and constructive feedback on the team learners ‘views and ideas. Do this on the discussion forum 1.2.1
E-moderator interventions
1            Ensure that learners are focused on the contents and context of discussion.

2            Stimulate further learning and generation of new ideas.

3            Provide feedback on the learning progress.

4            Round-up the e-tivity
Schedule and time | This task should take two  hours
Next | Distinguishing small businesses and entrepreneurial ventures

1.2.2 Small businesses and entrepreneurial ventures.

Very often the term entrepreneurship is used interchangeably with starting and managing small businesses. This then begs the question of what is a small business. Does it differ from an entrepreneurial business? The two terms are related, but not all small businesses are entrepreneurial and not all entrepreneurial businesses are small. Smallness is a dimension of entrepreneurship in that all entrepreneurial ventures start small and outgrow the designation of smallness. The two exhibit differences in several ways- small businesses are personally-led, they experience low growth and, and are inclined to imitative patterns.  Entrepreneurial ventures, on the other side are highly innovative, they take calculate risks and are often professionally managed.

E-tivity -1.2.2 Small businesses and entrepreneurial ventures.

Numbering, pacing and sequencing | 1.2.2
Title | Small businesses and entrepreneurial ventures.
Purpose | The purpose of this e-tivity is to enable you to distinguish between small businesses and entrepreneurial ventures
Brief summary of overall task | Read the materials  on these links a)    https://oer.avu.org/handle/123456789/488 pages 28-29, OER 4 Open Schools chapter 3 and Summarize the characteristics of small and entrepreneurial businesses
Spark |
Individual task | a)      In a paragraph, explain the differences between corporate and social entrepreneurship in discussion forum 1.2.2 b)      Using a table with two columns, distinguish between small businesses and entrepreneurial businesses. Save this work in your portfolio.
Interaction begins
1. Post two themes that are common in the definition of  entrepreneurship
2. Provide positive and constructive feedback on the team learners ‘views and ideas. Do this on the discussion forum 1.2.2
E-moderator interventions
1. Ensure that learners are focused on the contents and context of discussion.
2. Stimulate further learning and generation of new ideas.
3. Provide feedback on the learning progress.
4. Round-up the e-tivity
Schedule and time | This task should take two hours
Next | Theories of Entrepreneurship

1.2.3 Theories of Entrepreneurship

We noted at the beginning of this lesson that entrepreneurship is multi-disciplinary in nature. This means that the discipline can be approached from different theoretical foundations. Some of the theories that govern the study of entrepreneurship are the social-cultural, economic, innovation theories, finance theories, networking theories, behavioral/personality theories.

E-tivity 1.2.3 _ Theories of Entrepreneurship

Numbering, pacing and sequencing | 1.2.3
Title | Theories of Entrepreneurship
Purpose | The purpose of this e-tivity is to enable you to understand entrepreneurship from a theoretical perspective
Brief summary of overall task | Watch video and read the materials  on these links https://www.youtube.com/watch?v=d305Vf-xlkA https://www.ijbcnet.com/1-11/IJBC-12-11106.pdf
Spark |
Individual task | In a paragraph of 300 words, analyze the roles of the theories of entrepreneurship in discussion forum 1.2.3
Interaction begins | a)    Post your analysis here in discussion forum 1.2.3 b)   Provide positive and constructive feedback on the team learners ‘views and ideas. Do this on the discussion forum 1.2.3
E-moderator interventions
1. Ensure that learners are focused on the contents and context of discussion.
2. Stimulate further learning and generation of new ideas.
3. Provide feedback on the learning progress.
4. Round-up the e-tivity
Schedule and time | This task should take two  hours
Next | Motivation towards entrepreneurship

Cluster

This is where you are supposed to answer all questions relating to this lesson before moving on to the next lesson

Question 1

Who defined entrepreneurship as the process of ’ creative destruction’ ?

- Frank knight
- Joseph Schumpeter
- Peter Drucker
- Krizner Israel

Question 2

Entrepreneurship is the process of starting a new business by devoting which of the following

- Time
- Money
- Effort
- All of the Above

Question 3

Which of the following is not a role of an entrepreneurship theory?

- Theorize about facts of entrepreneurship
- Explain a phenomena
- Predict entrepreneurial tendencies
- Provide normative guidance

Question 4

Which of the following is not a contribution of Entrepreneurship

- Employment creation
- Risk taking
- Innovation
- Economic growth

End of cluster

End of the quIz

1.4 References

1        CE&GS, N. (2018, October 05). Concept and Theories of Entrepreneurship. Retrieved from https://www.youtube.com/watch?v=d305Vf-xlkA

2        Channel, C. V. (2012, August 30). Dr. Alexei Marcoux on Defining Entrepreneurship. Retrieved from https://www.youtube.com/watch?v=Oqgzjt-0qZY

3        Entrepreneurship, C. F. (2015, April 17). Defining Entrepreneurship. Retrieved from https://www.youtube.com/watch?v=-JATp1Eys8Y

4        Evolution and Theories of Entrepreneurship: A Critical ... (n.d.). Retrieved from https://ijbcnet.com/1-11/IJBC-12-11106.pdf

5        H. (2018, January 18). Entrepreneurship. Retrieved from https://oer.avu.org/handle/123456789/488

Event: DEFINITIONS AND CONCEPTS IN ENTREPRENEURSHIP (Lesson opens)