1. DEMONSTRATE UNDERSTANDING OF WHO AN ENTREPRENEUR IS

1.1. Distinguish entrepreneurs and business persons as per principals of entrepreneurship

1.1. 1.1 Distinguish between entrepreneurs and business Persons

. Distinction between Entrepreneurs and Business person

Entrepreneur

Business person

An entrepreneur is an investor and the first creator of a product. He invests time, energy and money on his own idea. He doesn’t start business from an unoriginal idea.

A business person can make a business out of an unoriginal business or product idea. He enters into existing business, such as franchising and retailing. He chooses a hot and profitable business idea regardless of

whether it is original or a borrowed idea.

Entrepreneurs are more concerned on

changing the world. They want to pursue their passion and achieve an ultimate goal.

Most business persons are doing business

for profit, livelihood, for reaching their own boss.

Entrepreneurs takes crazy risks, and don’t care of losing time and money just to pursue their passion.

Businesspersons take calculated and managed risks. They cannot afford to lose money or suffer from bankruptcy.

An entrepreneur is a friend and a leader. He finds peers and people whom he will never

treat as machines.

A businessman is an employer and a manager. He hires to help his business

grow.

An entrepreneur sees customers as his

source of duty and fulfillment.

Businessperson sees customers as his

source of sales and revenues.

Entrepreneurs try hard to beat his worst

competition.

A businessperson tries harder to beat his

competitors and win the competition

Entrepreneur sees the world as duty rather than an opportunity.

Works as an artist his product is a

masterpiece.

Businessmen sees the world as an opportunity.

Businessmen doesn’t waste any time

1.2. 1.2. Identify types of entrepreneurs as per the principles of entrepreneurship

1.1 Types of entrepreneurs

a) Innovator: They come up with completely new ideas and turn them into viable business ideas.

b) Imitators: They are the types who copy certain business ideas and improve upon them.

c) Small scale entrepreneur: It is a type of entrepreneur that involves small business ventures. They lack the scale to attract venture capital but are funded by family and friends. Examples are; groceries, Consultants, carpenters and hairdressers.

d) Scalable start-up entrepreneur: Entrepreneurs start their company believing that their vision can change the world. Their funding comes from venture capital and they hire the best employees. Finding a scalable and repeatable business is the ultimate goal of the business. Examples are; Facebook, online shops, Instagram etc.

e) Large company entrepreneurship: through sustaining innovation, offering new products in order to meet with changing customers’ needs and advanced technology. Often companies do this by partnering with or buying innovative companies. Examples are; Microsoft, Samsung, Google, etc.

f) Social entrepreneur: It is where an entrepreneur creates product and services to solve social need and problems. This can be non- profit, profit or hybrid. E.g. safe point trust by Marc koska which works to redesign medical tools and introduce inexpensive non-reusable syringes for underfunded clinics the world.

1.3. 1.3. Identify ways of becoming an entrepreneur as per the principles of entrepreneurship

1.1 Identify ways of becoming an entrepreneur

· Be a risk taker: Humans are generally risk averse, but part of being an entrepreneur is recognizing the risk that you should take. Successful entrepreneurs know which risk to take and which they shouldn’t.

· Exercise: That is put the idea into action

· Learning: Getting new ideas from established entrepreneurs.

· Networking: Analyzing gaps in the market where you can invest in and working together with entrepreneurs of your area of specialization.

· Trust yourself: Being determined to achieve your goals.

· Challenge yourself: Compare yourself with the already established entrepreneurs.

Visualize goals: Determine the needs and requirements of your goals

1.4. 1.5 Factors affecting entrepreneurship development are explored as per principles of Entrepreneurship

Entrepreneurship is influenced by various factors:

· Economic development.

· Culture.

· Technological development.

·

These conditions may have both positive and negative influences on the emergence of entrepreneurship.

a) Economic factors: Economic environment exercise the most direct and immediate influence on entrepreneurship. These factors include:

· Capital.

· Labor.

· Raw materials.

· Market.

· Infrastructure.

b) Social factors: These can go a long way in encouraging entrepreneurship. In fact it was the highly helpful society that made the industrial revolution a glorious success in Europe. Main components of social environment include:

· Caste factor.

· Family background.

· Attitude of the society.

· Education.

· Cultural values.

c) Technological factors: Technology has influenced entrepreneurship development through innovations and use of internet to gather new and existing information.

d) Education: Many entrepreneurial theorists have propounded theories of entrepreneurship that concentrate especially upon psychological factors. They may include:

· Need achievement.

· Withdrawal of status respect.

· Motives.

e) Political and government changes in government policy can have a very huge effect on the business in question. Example the tobacco industries have been on forced to put warning labels on their product and lost the right to advertise on the television.

Conclusion This learning outcome covered on the distinction between entrepreneurs and businesspersons, identify types of entrepreneurs, identify ways of becoming an entrepreneur, identify characteristics of entrepreneurs and explore factors affecting entrepreneurship development as per the principles of entrepreneurship.

1.5. 1.4 Characteristics of entrepreneurs are identified as per the principles of Entrepreneurship.

Characteristics of Entrepreneurs

· Self-motivated: when you want to succeed you need to be able to push yourself. You aren’t answerable to anyone else as an entrepreneur and that means that it’s hard to get moving without anyone to make you.

· Risk taker: successful entrepreneurs know that sometimes it’s important to take risks. Playing it safe sometimes never lead to success as a business owner.

· Flexible: Have the ability to be able to change as needed. Staying on top of your industry and be ready to adopt changes in the process and product as they are needed.

· Passion: Successful entrepreneurs are passionate. They feel deeply about their product or service or mission.

· Basic money management skills and knowledge: Understand how money works so that you know where you stand and so that you run your business on sound principles.

· Network: Being able to connect with others and recognize partnership opportunities can take you a long way as a business owner.

1.6. 1.5 Factors affecting entrepreneurship development are explored as per principles of Entrepreneurship

1.1 Factors affecting entrepreneurship development are explored as per principles of Entrepreneurship