1. FOUNDATIONS of ENTREPRENEURSHIP
CLASS TWO: INTRODUCTION TO ENTREPRENEURSHIP
Elikem Nutifafa Kuenyehia

2. Class Outline Hand in class questionnaire Recap of class 1
Recap of real life case study
Introduction to entrepreneurship
Definitions

3. Recap of Class One
What did you learn about entrepreneurship from Class One?
What did you learn about opportunities and challenges of entrepreneurship in Ghana?
What did you learn from the Guest Speaker Kwaku Ofosu-Bediako

4. Class Questionnaire
Hand in to Malik now please

5. Case Study Write Up

6. Introduction to Entrepreneurship
History and Development of Entrepreneurship
- Entrepreneurship evolved from French word “entreprendre” meaning “to undertake”
- Other referrals include middleman, director of resources, tax contractor
- Richard Cantillon maintains entrepreneurs as middlemen in his postulation of agents of economy (landowners, entrepreneurs, hirelings
- In mid 20th century definition of entrepreneurship were based on economic situations

7. Some Definitions
An entrepreneur is ‘a necessary destabilising force bringing economic growth through the disequilibrium of constant change and innovation’.
-Joseph Schumpeter
‘Individual who undertook formation of an organisation for commercial purposes’.
- Adam Smith
‘It is possessing the know-how to find, marshal and control resources (often owned by others)
- Timmons

8. My Definition
‘Is the process of risking resources based on an idea (or series of ideas) to develop the idea or ideas into goods and/or services that people perceive as valuable and are willing to pay for, in such a way as to maximise profit for the enterprise risking the resources’

9. Entrepreneurship as a process
Entrepreneurial process begins with an idea which develops into an opportunity or vice-versa eg. Elizabeth Villars – Camelot idea in 1974
Idea and opportunity are intertwined by size of willing patronisers
Idea must remove an existing pain
Key resources risked include time, human and capital resources
One Cycle Entrepreneurship vs Repeated Cycle

10. Entrepreneurship as a state of mind or series of attributes
Entrepreneurship as a characterisation of attributes that enable people to exploit opportunities for financial reward
- Motivation factor is the individual’s state of mind
Entrepreneurship as a pattern of behaviour
Ability to build a vision from nothing-Timmons
Complementing one’s skills by building a venture team

11. Forms of entrepreneurship
Social Entrepreneurship
Creating social change through an enterprise
Enterprises include non-profit organizations and businesses set up with a social purpose
Examples – Grameen Bank, Sinapi Aba Trust, Teachers Fund Financial Services
Intrapreneurship
Formation of new idea within an existing organisation
Entrepreneurial concept belongs to the organisation and not the intrapreneur.
Financial rewards also go to the company (Intrapreneur’s reward is limited)
Examples – Google (3M), MET Insurance (MET2U)

12. Forms of entrepreneurship cont’d
Extrapreneurship
Break off from existing company
New company may carry similar idea from parent company
May have financial and social support from parent company
New enterprise may be in the same business line as the existing company or a supplier to it

13. Incubation
Involves “nurturing” start-up business with an enabling environment, material and intangible resources
Set up by universities or high tech parks
Examples - Busy Internets Incubation Program, Meltwater Foundation to establish a Non-Profit Incubator In Ghana?

14. Opportunity entrepreneurship vs. Necessity entrepreneurship
Opportunity entrepreneur develops an idea to exploit an existing opportunity
Necessity entrepreneurs result from lack of alternatives
Entrepreneur vs. Businessman
All entrepreneurs are businessmen but not all businessmen are entrepreneurs
A Businessman establishes a business for personal goals while an entrepreneur establishes an enterprise for profit and growth –Beaver and Jenkins

15. Evolution of entrepreneurship in Ghana
Entrepreneurship began before the arrival of the Europeans
Europeans were also entrepreneurs as they risked resources to identify trading opportunities in Ghana
Post independence witnessed the introduction of a mixed economy in Ghana
Nkrumah’s Government encouraged private enterprise
The NLC government also supported local entrepreneurs when it published in 1968, ‘The Promotion of Ghanaian Business Enterprise’
Busia’s government was the first to extensively draw up policies and establish bodies to aid entrepreneurs

16. Evolution of entrepreneurship in Ghana cont’d
Rawlings Government introduced ERP and SAP
Kufour’s government is dedicated to making the private sector the engine of growth in the economy. Policies aimed at encouraging entrepreneurship can be found in ‘KOE’
Mills Government ‘better Ghana agenda’ aim to provide various incentive schemes to ease credit delivery to entrepreneurs, to establish export trade houses, and develop an incubation policy

17. Role of entrepreneurship in a country’s economy development
Creates jobs
Drives economic growth
Frees up states resources
Fosters competition
Fosters innovation
Increases productivity
Provides a tax base for government

18. Challenges facing Ghanaian Entrepreneurs
Access to finance
Low incomes and corresponding low savings culture
Little initiative by banks to be creative
Human Capital
Unfriendly government machinery
Political and economic instability
Access to information

19. Factors favouring entrepreneurship
Political stability
Macro-economic stability
Secure property rights
Ease of starting a business
Free flow of information
The rule of law and mechanism for contract enforcement
Availability of human capital
Access to finance
Size of the market in terms of numbers and income levels
Regulation of businesses
Culture

20. Institutions that help entrepreneurship to thrive
An independent central bank
An independent judiciary
An independent media and easy access to credible information
Neutral and professional army or security forces

21. Why become an entrepreneur?
Most graduate students take regular executive or civil service career paths while
Some, after a few years of experience quit to start their own enterprise or buy one.
Appeal for joining ‘Corporate Ghana’ or civil service:
More security
Certainty of income
Greater training opportunities
Lower levels of stress
Smaller personal risk
Responsibility
Autonomy & desire to control one’s own destiny
....etc

22. Why become an entrepreneur?
Others still prefer entrepreneurship because;
Autonomy & Desire to control own destiny
Flexibility
Opportunity to reap unlimited profits
Unemployment & Underemployment
Family