Entrepreneurship – the economic activity of a
person who starts, manages, and assumes risks of a business enterprise.
The entrepreneur’s tasks:
Provide:
1.
Products
/services for consumers and producers
2.
Employment
3.
Taxes
4.
Demand for
supplier’s products and services
5.
Training
facilities for future entrepreneurs
In the
attempt to make profits, the entrepreneur performs the following functions:
1.
to supply
the capital of the firm
2.
to organize
production by buying and combining inputs
3.
to decide on
the rate of output, in the light of his expectation and demand
4.
to bear the risk
involved in these activities
Entrepreneurship and Innovation
Innovation – is the introduction of a new
method, custom, device, etc. It includes the departure from the previous
procedures… to eliminate unnecessary work and avoid duplication.
Innovation
may be viewed as the last stage in the
important process which includes the following:
a.
Invention –
the discovery or devising of new products and processes
b.
Developments
–the process by which the ideas and principles generated from the stage of
invention are embodied in concrete products and techniques.
c.
Innovation –
the actual introduction of a new product or process.
New Ventures and Long-Term
Enterprises
A new
venture cannot remain forever. The entrepreneur must develop it into a small
business and make it grow into a mature and bigger company if he is to recover
the cost of opening the new venture and take advantage of the opportunities
presented by the mature business.
Four Stages
New Ventures Must Pass Before Maturing into Successful Long-Term Enterprises:
1.
the
pre-start up
2.
the start-up
3.
the early
growth
4.
the late
growth
The start-up
stage is where the following are undertaken:
1.
forming the
business
2.
generating
necessary capital
3.
purchasing
facilities and equipment
4.
building
prototype products
5.
testing the
market
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