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Meaning And scope of enterprise And Entrepreneurship

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The meaning And Scope of Enterprise And Entrepreneurship

Introduction

The peace, progress and prosperity of a nation depend lergerly on the quality and quantity of it’s entrepreneurs. If the entrepreneurs are enterprising, ambitious and courageous enough to bear the risk, the community/society will develop quickly. Such entrepreneurs and their character reflect the spirit of entrepreneurship. Entrepreneurship is no monopoly of any religion or community. Entrepreneurial potential can be found and developed anywhere irrespective of age, qualification, experience or social-economic background, only effort are required in the right direction. However, activities are carried out by individual entrepreneur in an organized form of a business house having different pattern of ownership and management,

A single individual may own the business enterprise or a number of individuals may come together to own the business jointly. Therefore, based on ownership, we have discussed among other topic, different form of business enterprise like a proprietary concern, a partnership firm or a company.

Business Enterprise, Entrepreneurship And Entrepreneur

The three concept of business enterprise, entrepreneur and entrepreneurship have been explored as follow

Business Enterprise

The term “business” refer to human activities which involve the production or exchange of goods and services regularly with the objective of earning reasonable profits (fela, 2006).

A business enterprise is considered to be any entity engaged in an economic activity, irrespective of its legal form. This include, in particular, self-employed person and family business, and partnerships or associations regularly engaged in an economic activity.

Thus, one must have heard about Dangote Group of Companies. They manufacture so many things from salt to cement and sell these to consumers. In the process, the company earn a profit. Look at a shopkeeper nearby. What does he do? He buys products in bulk and sells in small quantities. He also earns some profits in the process. Similarly, the cable TV like Star Time, DSTV etc.

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operators provide a connection at a price so that subscribers watch various channels on their television set. In this process the cable TV operator earn a profit. All of them are said to be engaged in business and are called businessmen or entrepreneurs. They all perform their activity regularly to earn profit.

We find entrepreneurs like mill owners, transporters, bankers, traders, tailors, taxi operator etc. doing business. All of them are engaged in an activity of manufacturing or trading (buying and selling) or providing some services. They have invested their money, bear the risks involved and work for earning some profits. Nevertheless, the main characteristics of business as argued in Collins (2007) are:

it is an occupation where an entrepreneur is engaged in manufacturing or buying and selling of goods and services. The goods may be consumer goods or capital goods. Similarly the services may be in the form of transportation, banking, insurance etc.

The activities must be carried on regularly. A single transaction is usually not treated as a business. For example, if a person sells his old car at a profit, it is not treated as a business activity. However, if he is engaged in the activity of buying old cars and selling them on a regular basis, he shall be treated as engaged in business activity.

The sole objective of business is to earn profit. It is essential for the survival of business. Of course, it is through provision of some goods or some services.

Every business requires some investment in cash or kind or both. It is usually provided by the entrepreneur or is borrowed by him at his own risk.

The earnings are always uncertain, because the future is unpredictable and the entrepreneur has no control over certain factors that affect his earnings. Thus every business involves an element of risk and the same is borne by the businessman, the entrepreneur

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Entrepreneurship

It is mostly discoussed as the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychological and social risk, and receiving the resulting rewards of monetary and personal satisfaction and independence (William & Andrew, 2015).

Entrepreneurship, in Sherry (2016) is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities. It also can be understood simply as the process of creating new venture and new organization “coming up from the ground with an idea to taking action and turning it into a real business (Alexandros, Evangelos & Alina, 2014). However, measuring Entrepreneurship is not a straightforward exercise. Researchers (Haruna 2015,Sarah, 2014 among others) use various proxies for entrepreneurial activity such as the number of a small retail enterprises or firms or patents.

Nevertheless, Entrepreneurship is the main mechanism that create wealth ;explanation of economic growth and development often ignore the entrepreneurial forces of change and adaptation that underline economic performance.

Entrepreneurship is pertinent to the analysis of how new ideas or ‘recipes’ for reconfiguring objects in the material and social world can be harnessed to enhance a nation’s wealth (Okezie, Alex & Asoluka, 2013). In the longer term, a country’s economic progress depends on its ability to increase the value of what it produces with its resources base (people, land and capital).

Some author (Baker, Gedajlovic & Lubatkin, 2005) attempt to mutually combine the aforementioned definitional aspects and define the substance of individual Entrepreneurship using the following formula:

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E=f(M, F, K, A)

Where E- Entrepreneurship, f=Function, M- Motivation, F- Features of personality that are conductive to entrepreneurship, K- Interdisciplinary knowledge, and A- Action. If Entrepreneurship is understood as a feature, then the enterprising individual is characterized by:

Need of success

Inner controllabilty,

High intellectual capabilities.

Moreover, an enterprise individual is immune to the influence of others but very creative and have the ability for fast learning that enable him to cope with difficult situations. The aforementioned attributes of entrepreneurship manifest themselves in the professional and nonprofessional activity of an enterprising individual and together they are the core of the enterprising attitude. Drucker (2006) attempted to characterize an enterprising individual by attributing the following features to him/her:

Need for achievement,

Readiness for taking over initiative,

Ability to to tolerate uncertainty in making decisions and the tendency to take a risk,

Ability to conduct a reliable market analysis and forecast,

Spreading enthusiasm and commitment among others,

perception and use of opportunities,

Dynamism, activeness and innovative approach.

The foregoing aspects of enterprising features of individual entrepreneur are very interesting from the point of view of the Entrepreneurship theory. In the theory of economics, Entrepreneurship is thus defined as a special form of labour or a fourth (together with labour, land and capital) production factor.

Entrepreneurship, understood as a form of labour (labour has an enterprising character), assume achieving material goals (such as money, profit and prosperity as well as non-material goals (the need for power, success and independence

BY EED LECTURERS, Department of Business Administration and management, FEDERAL POLYTECHNIC BIDA, NIGER STATE, NIGERIA

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