Unit 5: Entrepreneurship fundamentals
Intellectual Property Right and EDP notes · PTU syllabus (BSTD 602-20)
On this page
Unit summary
Entrepreneurs create enterprises and jobs, and EDPs build their skills. This unit covers the concept and definitions of entrepreneurship, its role in economic development, types of entrepreneurs, entrepreneurial competencies, and entrepreneurship development programmes.
After this unit you can
- Define entrepreneurship and its role in development
- Classify entrepreneurs
- Identify entrepreneurial competencies
- Explain the objectives and phases of EDPs
PTU syllabus topics
- Concept and definitions of entrepreneurship
- entrepreneurship and economic development
- classification and types of entrepreneurs
- entrepreneurial competencies
- EDP programmes and training
Initiative
Acts before being asked
Opportunity seeking
Persistence
Risk-taking
Calculated
Planning
Systematic goals
Persuasion and networking
Topic 1
Concept and definitions of entrepreneurship
Entrepreneurship is the process of creating something new with value by devoting time and effort, assuming financial, psychological and social risks, and receiving monetary rewards and personal satisfaction (Hisrich).
Innovation theory
Joseph Schumpeter
Entrepreneurs innovate: new products, methods, markets, sources, organisation
Need for achievement
David McClelland
A high need for achievement drives entrepreneurship
Risk-bearing theory
Richard Cantillon, Frank Knight
Entrepreneurs bear uncertainty and earn profit for it
Sociological theory
Max Weber and others
Values, religion and social structure shape entrepreneurship
Topic 2
Entrepreneurship and economic development
Role in economic development: employment, capital formation, balanced regional development, innovation, exports and improved standard of living. Barriers: lack of finance, lack of skills and information, fear of failure, social and cultural attitudes, regulatory hurdles and poor infrastructure.
- 1. Stimulation: Awareness and motivation
- 2. Support: Training, finance, infrastructure
- 3. Sustaining: Mentoring, market linkages
- 4. Growth and new ventures:
Topic 3
Types of entrepreneurs and entrepreneurial competencies
Traits: need for achievement, risk-taking, innovativeness, self-confidence, persistence, leadership, vision and decision-making. Motivation: independence, wealth, recognition, achievement, family tradition, and sometimes necessity (unemployment).
Innovative
Introduce new ideas
Imitative
Copy and adapt successful ideas
Fabian
Cautious, change only when forced
Drone
Resist change
Others
Social, women, rural, technopreneur, intrapreneur
- Initiative
- Acts before being asked
- Opportunity seeking
- Spots and seizes chances
- Persistence
- Keeps going despite obstacles
- Information seeking
- Researches customers and markets
- Quality and efficiency concern
- High standards
- Commitment
- Keeps promises
- Systematic planning
- Logical steps
- Problem solving
- Finds new solutions
- Self-confidence and assertiveness
- Believes in own ability
- Persuasion and networking
- Influences and builds contacts
Topic 4
Entrepreneurship development programmes (EDPs)
An EDP is a programme designed to help people strengthen their entrepreneurial motivation and acquire skills to run a business.
- 1Pre-training
Identify and select trainees, assess needs
- 2Training
Motivation, business opportunity, management skills, project preparation
- 3Post-training (follow-up)
Help with finance, registration, setting up and running the unit
Key terms
- Entrepreneur
- Person who starts and runs a venture bearing risk
- Entrepreneurship
- Process of creating new ventures
- Competency
- Underlying characteristic leading to effective performance
- EDP
- Programme developing entrepreneurial skills
- Intrapreneur
- Entrepreneurial employee within an organisation
Quick revision
- Definitions and theories.
- Role in employment, income, balanced regional development.
- Types of entrepreneurs; McClelland's competencies.
- EDP objectives, phases and institutions.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.Define entrepreneurship.
- Q2.State two roles of entrepreneurs in development.
- Q3.Name two types of entrepreneurs.
- Q4.List three entrepreneurial competencies.
- Q5.What is an EDP?
- Q6.Name an institution that conducts EDPs.
Long-answer questions
- Q1.Explain the concept of entrepreneurship and its role in economic development.
- Q2.Explain types of entrepreneurs and entrepreneurial competencies.
- Q3.Explain entrepreneurship development programmes.
Stuck on this unit?
Message SBS on WhatsApp for help with Intellectual Property Right and EDP, or to ask about studying B.Sc Textile at Synetic.