Understanding the Relevance of Entrepreneurship to Economic Development

[Music] yeah good morning students I want to welcome you to the to

new uh to new class that's 211 theories Ral and relevance of Entrepreneurship and I want you to know

that this course is a very important course because uh irrespective of the course you are doing you have to do it

because it enable you to familiar yourself with different type of businesses that you can engage yourself

with why looking for white color job and which you can even be the master of yourself and not to waste most of your

time my name is professor and this the second lecture on entrepreneurship and communication and

the topic as I said the of Entrepreneurship in entrepreneurship and

before explaining to our what entrepreneurship is all about we should be able to tell oursel what entrepreneur

means entrepreneur is a person who take risk who involve in in

thinking in developing ideas are making sure that those idea are putting in place and having done that we quickly

look at what entrepreneurship is talking about entrepreneurship how to group with the

activities of setting up business keep different partical in

mind and it also involve creation of economic vales in various ways and when you say creation of econ follows imp

ways what do we say because when you when you think about an idea and you put that idea into into being then before

you can have before can be useful that mean you added economic to it and I want to tell you that entrepreneurship

involves taking a certain amount of RIS because why do we say that you involve your money you've already put in some

money into the business and because you putting the money into you don't know whether it's going to be successful or

not that is the aspect of risk to to tell you and also

involve the process of including the economy strategies because you have to put some strategies in place because you

are not the only one in that business and because not the only one that you to rain that or for you to gain access to

that market you have to you have to improve or you have to familiar yourself with some economy

strategies that be able to use toell and Ur fure of is often led by Innovation and as I said that entrepreneur as to

innovators because why do we say innovator they are the one that creat ideas and that is why say Innovation and

creativities is of of entrepreneur and I want to tell you that entrepreneur also include the Readiness

to develop organize and run a business along with certain degre of that's not certain in this world when you are

eating that you are eating you are putting food in your mouth does not ne mean that the food you put in your M

will enter your stomach so it's see a risk so that is to say that the entrepreneurship per say it is uh it is

risk so and uh

sorry and I said that you you able to see also that the soall uh the soal

entrepreneurship the rationale now of Entrepreneurship under the rale we see that entrepreneurship importance

actually lies in the following that this drive economic uh growth and create new job

and what what do you mean by that because for now what is economic growth you must be able to know what economic

growth is all about economic grow has do with increase qu of good and servic produc in the country in the given

period of time us year and by then when you involve in entrepreneurship activities then the rate at which

people create Goods increases both goods and services increases and by way of do by way of creating new job when new job

are created the money will be in stion and by so do those that got that money can now do can can also buy use it to

buy something else and that money will continue to circulate in the will continue to be in the circulation I want

be able to see also that the entrepreneurship also encourages Innovation by bringing new ideas

products products and services to the market which already explained the other time because there no way for you to be

a good enterpreneur you must be able to think able to think of new ideas you must be able to think to do today what

others are contributing or doing tomorrow and also contribute to social change by devel products or services

that bu people dependence on outdated technology you see when you think very look at for during our own time when we

are University us use big all the big exercise book if you have 10 coures you have to go to school with 10 group but

this time around it have been located you now have 10 in one so just only one group every other are already included

just only one all the coures you are doing is already included in it by so that is what we are talking

about having done that we quickly look at the importance of what the importance of Entrepreneurship and talking about

the importance of Entrepreneurship one creation of employment creation of employment and by then people to see

that entrepreneurship actually generate employment by way of providing entry level

jobs required for gaining experiences and training for unskilled workers and I said that we also have a Innovation and

for that Innovation it is the up of it is the up of innovation that other provide new product vure Market of

technology and what we call the quality of goods because the quality of good have a long way to because when you are

producing and the goods that you produces is not of good quality people will not buy it and because you not the

only one you not the only one producing that there are so many thousand millions of people producing what you are

producing and by so do if your good fail to meet up with the expectation what happen they drop it and by so doing your

sh your sh in the market reduces and also uh impact on social and um impact on society and committing development

and to see that a society become greater if the employment base is large and diversified diversification has a long

way to go as far as the entrepreneurship is all concern and it also lead to what we call communting development and apart

from that increases the standard of living and to see that entrepreneurship actually help to improve the standard of

living of a person by by wi of increasing income because when you I said it earlier but the time you

seriously on this activity your level of income incre will increase and when level income increases what happen now

that mean your your standard of living improve I also have support resarch and development and new product and services

actually need to be uh reached and tested before launching on the market because when you produce new meal

product you have to do you have to find a way of testing it uh before you s to the general before you send it to the

general public and having done that we quickly look at characteristics of Entrepreneurship and other way we talk

about one ability to take risk as entrepreneur you must be able to take what you must be able to take a risk

because the higher the the the higher the risk you take the the the the more successful you are likely to be and also

Innovation Innovation is that it should be highly Innovative that is as an entrepreneur you must be Innovative and

you also have missionary and Leadership quality and under this we able to see that to to be successful the

entrepreneur should have a clear vision of the new venure you must have fion what you want to achieve you must have

if you don't know what you want to achieve there's no way there no point for you to plan and you see when I say

when you don't have fion there's no point for you to plan because if you have fion and you are planning then you

can be successful but if you have fish and you do not plan well you likely to but even if you don't have fishion now

you cannot plan are you get are you getting the the analogy now so able to see that you be able to

have the fishion be there and under that fion there what we call a Visionary leader the Visionary

you you must have fish and that is what you want to what of the leadership the the leadership quality that the quality

of the leadership must also be high in order for you to be to be good we also have open minded and in the business

every circumstances can be an opportunity and use for what and use for the benefit of company that is exactly

what we talking about because when you openmed then everything that come to your to your place you able to utilize

it without any problem and also flexible that we call it flexibility and end should be flexible you must not be rigid

because when you are and there circumstanc that warant you to change your mode of thinking and you did not

change it then you are going to fail and that is why we said one of the character of entur that you be

flexible rigidity should be out of your out of your way and also lastly there you have know your product to must know

the product that is a comping owner to know the product offering and also aware of the latest Trend in the market if you

don't know the latest TR in the market don't let me deive you your your your goods might be outdated so and you must

be able to know what is exactly going on and aside that we also look at what motivate an ENT now I want to tell you

without missing what that there are six basic things that's basic that motivate entrepreneur to do what to

establish their own businesses one we have a change and when you are talking about the change ENT enterpreneur

frequently want change not only change like that they also want to be bearer of change you you see it's like you are

working with someone and you are the one providing all the necessary idea and once you are producing keep on changing

and people are demanding for your good this and that youself you want to do you also want to go do your home because you

know that all what your boss is doing you are the one that selling the idea for him or her so change is one

of one of the factor that motivate entrepreneur true challenge we able to see that some people love challenges and

they opt for what for starting what a new business you see that challenge is a very good because I know somebody I know

someone see and and that became a accountant as a result of challenge what happened somebody somebody did I se

somebody did I sep and Fa and man why can't you have been doing this I for long you no look at your C can you pass

based on what you I'm going to do and that person register I not from beginning to the end so that's a

challenge and you can also have a challenge when you are when you are doing business so when

somebody challenge you you can go ahead and do what and do and try as much as possible to find

solution to the problem and that is why these people find a typical job in a big corporate as a boring you see and uh and

uh at times you do you are in place of work and you are doing work and it's not challenging when it's not challenging

it's a problem and apart from that you also have creativities and creativities has to do with running one's own

business is all about being what creative I told you that you must be what be creative creativeness must be

there and that's why Innovation and creativities is go high and you think about and for you to not put that into

reality is what we are talking about and you also have control some people tend to do tend to start a business because

they don't want to be pushed around I for a produ some people don't like people to

control them so they want to be on their we also have porosity successful entrepreneur are always

anxious and ask what if we do this what of if we do this what going to be the

implication they want to have more of one option to do a particular work or choose the best option because when you

are talking about option you can only take option when you have many alternative is only when you have many

alternative that you analyze those alternative one after the others and after the analysis you canot choose one

and after you one not doing implementation that ises incision strategy strategy or sages in decision

decision making we also have cash uh that's another one yes we able to see money say money says it all when there's

no money no matter you are you still be working under someone and that's why we said many non entrepreneur have the

misconception that cash comes first for entrepreneur but I want to tell you this never really true because you might have

idea and you call somebody that have M that you come together and do what and do the business or you call that person

and ask for for that person to finance out we after the successfulness of that business you give a certain percentage

to to it and um having done that we Now quickly move on to theories of Entrepreneurship uh uh the theories of

Entrepreneurship there are many let there are many and it depends it depends on perspective to which we look

at it and I will tell you that each story offer different insight and strategies that's associated with anos

and this happen by apply what this this by applying this different FS you know I told you you feel in different ways and

you canot you canot view it differently and one can develop a more detailed understanding of entrepreneurial process

based on what based on different different different perspective to

which that avable at that moment and said why for saying that this a supportive environment that ensure that

Innovation and economic groups are actually taking place for the benefit of this uh class I'm going to quickly

discuss 15 but not in detail I'm going to quickly discuss 15 theories of Entrepreneurship one we have economic

entrepreneurship Theory and the economic economic um uh entrepreneurship theories actually focus on the economy Factor

which helps in shaping the entrepreneurial activities and I want to say that the classical economies

actually I like the importance of entrepreneur as what as as as a risk taker and organizer and I said it the is

what is a risk taker and I said that they to see also that the recent economy Theory actually emphasize on the element

of innovation and Entrepreneurship and entrepreneur ability ability that to destruct to

destruct Market when you say to destruct look at I'm not say destruction in business when you say

destruct it means different from the world soal destruction you talking about and that's uh that's that and able to

see that talking about creative destruction we are seeing that is shows how

entrepreneurial Innovation can lead to economic growth creative like talking about resour creation and

resource control because at times when you when you want to Resource creation andour destruction when you want to

create resources at time you destu another when you want to create resour you Dr another resour you want to

construct a ro and in the process of constructing that Ro there are some buildings there you you have to destruct

those building in order to what in order to to conol that Ro that mean you are destructing

the road I the buildings in order to in order to construct the the road so the second one there the second one there is

um the second one there is social sociological entrepreneurship Theory and this examine how social structures and

Community Network and cultures influence the ENT behaviors and with missing what here

to see that the the point of f actually suggest the entrepreneurship is not an individual Endeavor are you get I'm

saying but it actually shap it shap it and andad it shap the the entire behaviors

the activities of individual and all this are being influenced by what by the social the

social by the social environment and facts like family background social status economic

um economic Network cultural influence all these actually affect they have a serious

impact on what on the individual uh livelihood of becoming an entrepreneur and uh aside that we also

have entrepreneurship Innovation Theory and talking about Theory

this this theory is associated with Joseph Peter associated with some ft and he says that entrepreneurship is a

fundamentally based on Innovation and by so doing the ENT actually drive economy development by creating what by creating

by creating new product by creating new product and what and process by creating new product and proess and this also

include VAR business buers it includes different business models and when you

say different model you have you have different type of model and those models it has the ability to

destroy the existing Market the market is already when say existing Market what are been existent those goods and

service have been existent before another one another new that can come in and

wipe them away so that another one can come and that's why I went for by saying that the innovators combine resources in

various way to generate resources and the emphasis on the Innovation underscores the importance of ctivities

technological advancement and um and ability to to to uh foresee Market Trend in entrepreneurial sources you know all

this goes along the line we also have psychological theories and talking about the psychological theory it focuses

individual character and mental processes and uh see according to this according to this theor according to

this Theory these factors Drive entrepreneurial behaviors and these are certain key

traits that associated with successful entrepreneur so this includes High need of high need for achievement

internal uh uh locus of internal locus of control risk taking H risk taking propensity and

resilience so all these are what and all these are what psychological theories is telling us and it also went this this

psychological theory also went further to talk about to talk about the cognitive theories and that this ative

theories look at how entrepreneurship or entrepreneur receive an opportunity because there most the opportunity come

what is OPP to you is a threat to somebody else what you think is OPP to you oh a threat to someone else to your

competitors and it actually helps in decision making and problem solving and um having done that we quickly look at

the cultural Theory and under the cultural Theory we say that it other looks after

how cultural follows beliefs practices build and activities and by then different culture poer

theing levels of entrepreneu spirit and this is utterly based on attitude toward risk Innovation and individual for

instance cure that follow Independence and reward innovation more likely to do to produce successful entrepreneur than

the other one that does not it and the next one is resource based Theory and resource based Theory emphasize the

importance of importance of access to resources in in the sess of entrepreneu venture and this theory

suggest that entrepreneur with unique resources you unique unique resources mean something that's not common

something that uni to you something that unique to you may that you that moment maybe people have it or something that

you are the only one as operating and some other people not using and that way I said that's why I went further by

saying that this theory suggest that entrepreneurs with unique resources or capability such as Financial capitals

woman Talent uh uh Pro technology and all these have a

competitive advantage in the market place and when you say competitive Advantage competitive advantage that can

only occur when there are more when they are more when they are more more more when

Goods you are producing to the market are substitute when they close then if you decided not to buy yours they will

buy another one if there increase your own price then what happen they can shift to the other one because your own

product is not do years because it's not a monopoly Market is not a monopoly market so as a result of that

it's you have to find a way of doing something unique so that so that you able to do what so that be able to excel

in the in the market and the ability to acquire manage your Leverage these resources those are talking about

for you to leverage it effectively it is actually crucial it is actually what it is it is crucial and crucial in the

sense that it is crucial in the that it actually assist you in the process of

creating and sustaining a successful business and by so doing the based Theory highlight what it highlight the

the strateg rule of resources allocation because you can have resources if it's not properly

allocated then it's as good as not having anything and um you also have a evaluation Theory we also have what we

call evaluation Theory and this evaluation theory was actually uh developed by sarus and it speaks about

entrepreneur starting with available means and continuously adjusting their gos according to the margin opportunity

and constraint so don't some people believe they want to do business or they have millions of they cannot no look at

himself he said when it was to start his business that I forgotten the name said he gave

him 500,000 to start thats though that 500,000 at that time very big money but at he was able to utilize it judiciously

and see now the the richest person in the RO of Africa so and that's we are saying that you must be able to do you

must be able to start the business with a little resources you have and IDE that it also

stretch uh on the importance of adaptability H experimentation and using existing

resources to achieve entrepreneurial success and uh we able to see also that evaluation I light the dynamic and

iterative nature of entrepreneurial process because I told youer that as an entrepreneur you must not be

static you must not be rigid the dynamism should be your your your was word that can think because and the way

business goes that's where the L to you are you are shifting to and you also have next one which is social network

and looking at the social n social network Theory and The Social Network Theory uh discuss about it examin the

rules of it examine the rules of social relationship and network in entrepreneurial activities and um this

uh Network actually used for accessing the information uh resources

and support and aside that the strong social ties can also provide what we call a valuable

mentorship a valuable mentorship look at the I say strong social TI strong social TI look at what is going on can bring

about what what we call valuable mentorship funding opportunities and Business Partnership because when you

through the social network can see someone that even that even sponsor your your business and by so doing by so

doing both of you can now talk about how to do what how to to to talk about the the profit and I want you to note again

under this social social social network theory is that the weak you know we talking about TI that

is coming together with some people weak ties okay I I told you that the strong ties profile mentorship then what about

the weak ties see in the material I give to you I only talk about okay I did not talk about we ties okay okay both strong

ties and weak ties the strong ties give support but a weak TI offer New Perspective and Connection

to the Past Network and by so do it create a lot of uh uh problem so you must be able to find a way of making

sure that you have what we call a strong TI and having done that we Now quickly look at woman Capital Theory and the

human capital Theory focuses on what on importance of individual skill knowledge experience in

entrepreneurship and um in this case the entrepreneur with higher level of Education industry industry experience

industrial experience and specific competency are more likely to identify and exploit

business opportunity successively there no that when you educated that look at let's look at it from this for you are

you are doing a business and somebody you is not educated and you gradate the way you are going to package your own

Goods what you are selling will far far different from the way the other people will package their own their own better

than your own but because of the education efficacy you put there in term of packaging then they can say your own

is better than let me give you AAL example look at this this drink that they use um oh can

I recall this this soy beans drink and this um there another one yo Soo and some

everywhere you guys see it your your place but go to now you see the way they package it they now putting dat they put

this they put that and you thought it's even different from the one you are you are you are preparing your house or the

one you are buying your area no is the same thing but the packages they put in place make it to make it to be to look

more more decent and people of a s set of people continue to patronize that bus and Bing and Bing

that's it and also have institutional Theory and about the institutional Theory what that one supposed to to me

the it employ how former and informal institutions for informal institions such as what laws regulations Norms

followes influence and how all this influence the entrepreneurial activities and I want to

tell you that the the institutional environment can either facilitate or in

or or the entrepreneurship entrepreneurship activities and

um and apart from that under this uh institutional environment under this institutional environment we able to see

we're able to see that um we're able to see that support institution such as what such as

robust legal framework robust robust legal framework when when the legal framework is

reversed yeah what of property lies the property right and the access to finance creation of a conducive

environment entrepreneur pure all these are available all the activities will what will improve and but you know way

around when the Bucy Corruptions and Corruption see don't let us our look at briy and Corruption and

Corruption is a that have deep into nigeran economy every sector in the economy are been corrupt Even in our

different home corrupt father are been corrupt with the child with the children children are corrupt with with with with

the parent what they ask them not to bring the school be calling the parent oh they to bring this in school and the

parent will be running es C to do what to to make sure that they make provision for that and you know within yourself 10

so that's corruption everywhere so we are not saying that if there is a way that this corruption can be of low

low low can become very low then the activities in the country will definitely prove though you see in

advanc country take for in USA they make provision for bad de they make provision for bad they make provision for

corruption because they know whether they like it or not and Corruption must take place but in a in in a Meer way me

manner are you getting what I'm saying but here they make provision for that oh we are we are finished and

um uh the next one is human capital Theory and talking about human capital Theory we tell it actually focuses on

the individual skill uh uh knowledge experience in entrepreneurship and the the

entrepreneur entrepreneur with higher level education industry experience and all those things they are likely to do

they they are very very likely to exploit busy opportunity more successively than other set of people

and uh you also have I want to tell you that that particular theory that theory

that theory of uh woman Capital theory that woman Capital theory is

very important and when talking about when talking about Theory and we also have a

institutional Theory we also have a institutional Theory and this inal Theory as I said they influence um they

employ for for oh we sorry I've explained this before so we now have the next one is the next one is the the

knowledge split split split over Theory the knowledge SP over Theory and this actually

suggest uh this suggest uh uh that new new knowledge and Innovation almost split over from established resarch

institution and all other sources and thereby what thereby creating opportunity thereby creating opportunity

for what thatby creating opportunity for new Ventures and I want to tell you again that this the knowledge over

Theory focuses on importance of knowledge transfer collaboration when you collaborate you have idea we have

two three people join together a have this idea B have see and they combine those idea together then they are likely

tocel more than more than one person that's just thinking alone and I want to say the proximity to Innovation

or in driving is is also useful in driving what in driving the entrepreneur activities

and that we also have a profit Theory we also have profit Theory and when talking about profit Theory The Profit Theory uh

focuses on the rule it focuses on the role of profit as a driving force as a driving force of forces in in

entrepreneurship because why according to that this entur entrepreneurs are actually motivated by what by the

potential of what potential for profit because there are motive of certain to make profit

though we have about six or seven reasons why you can set up a business but for benefit for purpose of this

entrepreneurship theory is for profit you can set up profit for profit mation s maximization owner

economic welfare and so on and so forth even social responsibility and so you can set up so that you can give it to

people to to to to to be consuming so we are not there for it for that now but I want to tell you that the propit theory

of this uh uh ENT preneurship is a way by which a way by which the entrepreneur

focuses on and that why we able to see that the prophet maximization is seen as a primary goal is seen as what is seen

as a primary goal of entreprene and umide that we also have the the four piece we also have the four

piece of uh the four piece of creative uh the four piece of creative Theory the

four piece of creative Theory this four piece of creative theor what does he actually talking about the the four

piece of creative Theory actually developed by road and it provide a comprehensive framework understanding

creativities in entrepreneurship and I want to tell you that there are four basic dimension of

creativities this four dimension of creativity four piece this four piece I'm not referring to the the the

marketing M but we are saying four piece of creativities and we have person process press and product I'm talking

about talking about person that's individual charactertics and trait that poster the creativi and process that

that has to do with methodology or techniques or strategy that you want to use in the process of generating and in

the process of generating and implementing that idea that have been created I also press that environmental

factor that that influence creativities so that's organization culture and ex pressure and we also have product and

the product here we talk about what we talked about the tangible outcome of creative uh uh sources such as new

product service our business model and aside that we also have what we call the

opportunity we also have the opportunity Theory and the opportunity Theory it proceeds that entrepreneurship

arises from recognition and exploitation of opportunities are you listening to me now and

without missing what we to see that entur are L individual who can actually identify gaps in the market you when you

identify Gap people to know what you want to like like when you want to

write paper or you want to have rear work when you did not under div Gap that's not want to fap that you canot

think of what to do so and I said that you you able to say that the ability to perch act on OPP is a defining character

of successful entrepreneur and the last one there is the ownership Theory and under this

ownership Theory we good to see that the ownership Theory also known as property rights is

also known as a property Right theory and it examine the relationship between what between the hhip structure and

entrepreneurial outcome and I want to say that this Theory actually suggests that clear and secure uh uh

ownership ownership right are what are critical or are crucial for fostering the entrepreneur and when when when

entreprene when they have confidence in their property right when you you you know your the property right and you

know you have confidence in it then you are more likely to invest in that in the adventure you you likely toest there you

innovate and even you are likely to do what you are likely to take risk because you believe in yourself so

and before I put a hand to this ownership Theory I want to tell you that the ownership Theory emphasize what the

role of legal and institutional framework in protesting and protecting the property

rights and promoting the uh uh entrepreneural activities and we able to see that this

50 theories of Entrepreneurship areed but just because this just and because each of this advant

andant those are been critized but for your level now we are not going to that that only to explain little little for

you as far this of is concerned I want to thank you most sincerely for listening to this lecture

I want to believe that this lecture will be of will be of assistance to you both uh for the exam and after you might have

finished the the the the the course after you might have graduated this entrepreneurship that we that's

organized by the Nu will be of import and be able to be recalling how and Way by which you can be your own Master as

as a g serving people for throughout the day of your life I want to thank you again for listening

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