The Evolution Of Entrepreneurship (Specific objective: 2)

In this section of the syllabus, you are required to “explain the nature and growth of entrepreneurship” (Specific Objective: 2). That includes: (a) Elements of Entrepreneurship and (b) Drivers or trends in entrepreneurship and emerging areas for enterprise development.

(a)   What are the “Elements of Entrepreneurship”?

Elements of entrepreneurship is basically an introduction to Entrep. So the three key terms that you need to understand from the get go are: Entrepreneur, Intrapreneur and Entrepreneurship.

Who is an Entrepreneur?

Firstly, take note that an entrepreneur is a person. Entrepreneurs are innovative, driven individuals who identify opportunities, develop new products or services, that fill gaps in markets. They take calculated risks and come from various backgrounds and industries

Who is an Intrapreneur?

An intrapreneur is also a person.  An intrapreneur is an employee within a company who is given the freedom to create (like an entrepreneur). Intrapreneurs are characterised by their willingness to think creatively, and drive change or new projects forward within the confines of their organisation. Unlike entrepreneurs, who start their own businesses, intrapreneurs operate within an existing organisational structure and therefore, do not take on as much risk. They are valuable assets to companies seeking to foster innovation and stay competitive in their industries.

What is Entrepreneurship?

Finally, we’ve reached the “what”. Entrepreneurship is the process of identifying, creating, and pursuing opportunities to innovatively and creatively develop new products and services to fill gaps in a market. Entrepreneurs often exhibit traits such as the ability to take calculated risks, resilience, and determination as they navigate the challenges of starting and running ventures.

(b)   What are “Drivers in Entrepreneurship”?

Drivers refer to aspects that encourage entrepreneurship. These are: Information and Communication Technology (ICT), Globalisation, Changing demand (has to do with the market), Unemployment, Changing demographics, Institutional support and Ease of entry in the informal sector.

How do the “drivers” encourage entrepreneurship?

• Information and Communication Technology (ICT) - ICT facilitates communication, market research, and access to information, lowering barriers to entry for entrepreneurs and enables the creation of innovative products and services, often at lower costs, fostering entrepreneurship in tech-driven sectors.

• Globalisation - Globalisation opens up markets worldwide, providing entrepreneurs with access to larger customer bases and allows for the sourcing of materials, talent, and ideas from diverse locations, enabling businesses to operate more efficiently and competitively.

• Changing demand (Market Dynamics) -  Shifting consumer preferences and needs create opportunities for entrepreneurs to innovate and fulfil emerging demands. Entrepreneurs can identify niches within evolving markets and tailor their products or services accordingly, gaining a competitive edge.

• Unemployment - High unemployment rates may incentivize individuals to start their own businesses as an alternative to traditional employment. Entrepreneurship can be a means of creating job opportunities for oneself and others, addressing unemployment challenges within communities.

• Changing demographics - Demographic shifts, such as an aging population or changing lifestyles, create new market segments and demand for specialised products or services. Entrepreneurs can capitalise on these demographic changes by offering solutions that cater to specific age groups, cultural backgrounds, or lifestyle preferences.

• Institutional support - Supportive policies, regulations, and institutions provide a conducive environment for entrepreneurship to thrive. Initiatives such as grants, tax incentives, access to funding, and business development programs encourage individuals to start and grow their ventures. (basically financial help from institutions such as the government or renowned universities.)

• Ease of entry in the informal sector - Lower barriers to entry in the informal sector allow aspiring entrepreneurs to start businesses with minimal bureaucracy and formalities (red tape). This flexibility encourages experimentation and innovation, particularly in economies where formal employment opportunities may be limited.