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Published bySabina West Modified over 9 years ago
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Mrs Sivil
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What is an entrepreneur? An ordinary individual who does extraordinary things which other ordinary individuals hesitate to do. The act of doing is a distinctive element of the entrepreneur.
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Example: Two individuals speculate about the possibility of introducing an electric car into a specific market. Individual A keeps on speculating while individual B does, in fact, introduce the electric car into the market. Individual B qualifies as an entrepreneur by introducing a product into the market for the first time. On the other hand, individual A failed to act and therefore failed to qualify as an entrepreneur.
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The word “entrepreneurship” is derived from “entreprendre” which means to ‘undertake, to pursue opportunities; to fulfil the needs and wants through innovation and starting businesses’. An entrepreneur is a person who initiates an enterprise, organizes it, and acquires capital to finance it, taking into consideration the risk and reward that accompanies it.
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The primary inputs of the entrepreneur into the enterprise are initiative, talent, ideas, knowledge and, often, equity. Entrepreneurs are, people who innovate, and innovation is the distinctive element of entrepreneurship. The entrepreneur redirects resources from areas of low productivity and low return to areas of higher productivity and return.
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Although risk is involved, the true entrepreneur should not exceed the boundaries of “calculated risk”.
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5 Tasks of Entrepreneurs: 1. Introduces a new product or service into the market, or implements a new approach to existing problems. 2. Develops or implements new technology which could curb costs and improve efficiency. 3. Exploits a new market by launching products, services or technologies which did not previously exist in the market.
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4. Discovers a new source of supply for a scarce resource or discovers methods to make the supply of existing resources more effective. 5. Reorganise an existing enterprise, whether private or public, by innovative management.
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The history of capitalism (or free enterprise system), can be attributed to the activities of entrepreneurs. Capitalism is thus the product of entrepreneurial action, & the entrepreneur is not the product of capitalism as is often claimed. It appears that the lesser the interference of the state in regulating the free enterprise system, the greater the possibility of achieving an entrepreneurial culture in a country.
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Roles of Government: Remove legal obstacles to starting and running enterprises. Implement support structures for potential entrepreneurs with regard to training, consultation and financing. Encourage entrepreneurial awareness through education and the media. Curb government expenditure. Introduce favourable tax incentives for small businesses.
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Considering the: level of unemployment, shortage of housing, uneven distribution of wealth & income, low level of education & high population growth rate in SA, it appears only a miracle can solve these formidable problems.
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Entrepreneurs: Identify need of unemployment & housing. Seek solutions to these problems. Realise that the solution of one problem (housing) can solve unemployment problem. To build a house: Need to combine land, labour & capital. Labour includes – skilled, semi-skilled & unskilled workers. Done economically efficient & profitable manner. Involves planning, organising, leading & controlling (POLC).
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