Table of Contents
Entrepreneurship is a vital element for economic progress as it manifests its fundamental importance in diverse ways:
- by identifying, assessing and exploiting business opportunities,
- by creating new firms and/or renewing existing ones by making them more dynamic, and
- by driving the economy forward –through innovation, competence, job creation- and by generally improving the wellbeing of society.
Nwafor (2007) sees entrepreneurship as the process of creating something different with value by devoting the necessary time and effort assuming the company financial, psychological and social risk and receiving the resulting reward of monetary and personal satisfaction.
Hence, Entrepreneurship cut across all organizations regardless of size, or age, whether they are considered a private or public body, and independently of their objectives. Its importance for the economy is reflected in its visible growth as a subject of interest for the economic press and in academic literature. For this reason, it is a matter of interest to academics, businessmen and governments the world over.
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Entrepreneurship according to Solomon (2007) is the willingness and ability of an individual to seek for investment opportunities, to establish and to run an enterprise successfully. To Omolayo and Baba, (2013) it is the act of starting a company, arranging business ideas and taking risks in order to make profit through the education skills acquired. The entrepreneurship spirit is a pre-requisite to an entrepreneurial society and culture. This drive is compulsory for the overall economic growth of any nation especially developing ones like Nigeria.
This is in line with the idea of Nwangu, (2006); and Ojeofo, (2013) who explained that entrepreneurship is the willingness and ability of an individual, a firm or an organization to identify an environmental change and exploit such an opportunity to produced goods and services for public consumption. Paul, (2005); and Ossai (2012) believed that entrepreneurship is about taking a risk; it is the process of creating new venture that did not previously exist; it is the practice of starting new organization, especially new business; it involves creation of new wealth through implementation of new concepts. Hence, it is a catalyst for economic, social and industrial development.
Concept of Entrepreneurial Learning
Education is an important essential factor to every nation, because it brings about national growth and economic development. It empowers and equips individuals in the society to participate in, and benefit from economic resources, facilitates economic development and provides the basis for transformation and innovation. Hence entrepreneurship education is an indispensable tool for sustainability. Quality education plays a vital role in the social, political and economic development of every nation.
A qualified graduate of entrepreneurship education would have acquired enough skills relevant to management of small business centre. Through entrepreneurship education, a pool of potential entrepreneurs are well equipped with skills and technical know, making them know how to manage small/medium scale industries, and thereby expand in the process. This will equally help in job creation. Through quality entrepreneurship education, Nations are able to provide a lot of entrepreneurs who can establish and manage business on their own, thereby reducing poverty in especially in Nigeria.
Entrepreneurship education is known to be a major factor in the influence of being an entrepreneur. Hence, entrepreneurship is referred to as a traditional and repetitive method. This implies that entrepreneurship learning has been existing and still in process, and hence proved to be useful and equipping. Some scholars believes that entrepreneurial learning occurs through experiencing different challenging events such as recognizing opportunities, coping with problems, and performing different roles of an entrepreneur (Minniti and Bygrave, 2001; Erikson, 2003; Politis, 2005; Cope, 2005; Pittaway and Cope, 2007).
In this sense, learning is an indispensible response to new venture dynamics of change and a control element of success or failure in start-up situation. (Fayolle and Gailly, 2008). Rae (2006) described learning as a vital part of entrepreneurial process in which human and social factors are as important as the economic factors. Rae defined entrepreneurial learning as a dynamic process awareness, reflection, association and application that involves transforming experience and knowledge into functional learning outcomes. The commonest feature of the definitions of entrepreneurial learning is experience.
This explains that practicality of entrepreneurship is from the bedrock of learning. The objective of any education and training is to change behaviour which is a function of values, attitudes, knowledge, and skills; within the education and training institutions one has to be cleared with what one intends to promote. Generally, there are three related objectives which every institution wishes to achieve; these are;
- To produce enterprising Graduates who are able to create and/or recognize opportunities, which have the will and initiative to seize these opportunities’ in any context
- To achieve the mainstream curricula goals more effectively and broadly to enable students become better learners of whatever they need to learn.
- To produce graduates who are motivated and prepared to start and develop successful businesses (Rasheed, 2000; UDSM, 2001 & Gibb, 2005).
Education about entrepreneurship and for entrepreneurship according to Friedrich and Visser (2005) explains that it will increase students’ interest in becoming entrepreneurs at some stage after graduation. Entrepreneurship education focuses on developing understanding and capacity for pursuit of entrepreneurial behaviors, skills and attributes in widely different contexts. These behaviors can be practiced, developed and learned. The current number of colleges and universities offering small business management and entrepreneurship development programme has grown from one university to another over decades Solomon and Fernald, (2002).
Concept OF Entrepreneurship Practice
Entrepreneurship practice is a set of attributes, behaviors and skills associated with innovation and value creation. Hence, its importance cut across all stages of business and societal life. Entrepreneurship Practice theory is gaining popularity and has become a valid means to understand how people do things on an individual level, a collective level and the actions that navigate the space in between these elements. To better understand the ‘how’ in human actions, practice theory breaks it down several elements in social activities. Rather than a trivial action, a ‘practice’ is a routinized type of human performance consisting of other elements connected to one another. These are forms of bodily activities, forms of mental activities, ‘tools’ and their use, background knowledge in the form of understanding and know-how, states of emotion and motivational knowledge.
In essence, the existence of a practice necessarily depends on the existence and specific inter connectedness of the elements which cannot be reduced to any one of these single elements. Likewise, a practice characterizes a pattern which can be filled out by a multitude of single and often unique actions (re)producing the practice. The single individual practitioner – as a bodily and mental agent – then acts as the ‘carrier’ of a practice – and, in fact of many different practices which need not be coordinated with one another.
In entrepreneurship practice, an entrepreneurship practitioner carries out patterns of bodily behaviour, but also of certain routinized ways of understanding, knowing how and desiring, for and about, entrepreneurship. These conventionalized ‘mental’ activities of understanding, knowing how and desiring are necessary elements and qualities of entrepreneurship practices in which the single entrepreneur participates, and not necessarily qualities of an entrepreneur. Moreover, the practice as a ‘nexus of doings and sayings’ (Schatzki, 2001) is not solemnly understandable to the agent or the agents who carry it out, it is likewise understandable to potential observers (at least within the same culture). Entrepreneurship practices are thus routinized ways in which entrepreneurship practitioners move bodies, handle objects, treat subjects, describe things and understand the world. Schatzki (2001) summarizes these elements within the umbrella term of ‘field of practices’, comprising of knowledge, meaning, human activity, science, power, language, social institutions, and historical transformation.
The Concept of Entrepreneur
Entrepreneur is a word with diverse background information and definitions, each definition encapsulates the traits, the meaning, the concepts, the patterns, and a combination of other elements that explains critically the meaning of entrepreneur, its functions and its relevance. This is so because what characterizes the concept of entrepreneur and distinguishes each definition from each other is due to a major reason that there are various range of entrepreneur, which includes venture creators, technopreneurs, intrapreneurs, extrapreneurs, social entrepreneurs, the self-employed and many others. Thereby bringing variation in the term “entrepreneur”. Given the many categories and types of entrepreneurs, it is sensible to wonder whether there is any possibly definition and elements that are common to them all. Hence its categorized into four major category by (Howorth et al., 2005),seeing entrepreneur in four distinct category;
- Functionalist: objective view of reality and a regulatory view of society
- Interpretativist: subjective view of reality and a regulatory view of society
- Radical structuralist: objective view of reality and focus on radical change
- Radical humanist: subjective view of reality and focus on radical change.
Hence others definitions are; Okpara (2000) argues that an entrepreneur is a human builder, who can convert a stumbling block into a stepping stone. To an entrepreneur, there is no mountain that is unmovable. He is a creative and aggressive innovator who promotes is the needed relationships required for the new business to come into existence. He is a risk bearer, he starts a business and brings about improvement on the methods of doing things and in that process generates employment opportunities for the teaming population.
Soyibo (2006) entrepreneurship is the process of identifying an opportunity related to needs, satisfaction and converting it to a thing (product or services) of value. It can also be conceptualize to mean the process and activities undertaking by entrepreneurs directed at capturing value associated with business opportunities. It is equally explained as a process driven by the desire to bring innovation into the production of new things (goods and services, processing or approaches) or improving an existing ones and profiting from it.
Stevenson (2007) the essence of entrepreneurial development is the ability to envisage and chart a course for a new business venture by combining information from the functional disciplines and from the external environment in the context of extraordinary uncertainty and indecision which faces a new business venture. It then manifests itself in creative strategies, innovative tactics, disturbing perception of trends and market mood changes and courageous leadership. According to Ogbor (2009), an entrepreneur is someone who identifies an opportunity in an economic system, assembles the resources necessary to successfully exploit the opportunity to create and delivers a value in an economic system. These resources include finance, human, technology and organization. According to Ogbor, the conditions for entrepreneurship include entrepreneurship development which has led to employment generation, growth of the economy and sustainable development.
Characteristics of an Entrepreneur
The core characteristics of an entrepreneur include:
- Creativity: This is defined as the spark that drives the expansion and innovation of new products or services or methods of doing business. It is the push for innovation and improvement. It is continuous learning, questioning and thinking outside of recommended formulas.
- Dedication: This is what motivates an entrepreneur to work hard, 24 hours a day or more, even seven days a week, especially in the beginning, to get the struggle off the ground. Planning and ideas must be in place, coupled with hard work to succeed. Dedication makes it possible.
- Determination: This is the exceptionally strong desire to achieve success. It includes diligence and the ability to bounce back after rough times. It influences the entrepreneur to put in extra effort, as money is not the main motivation of Success, though success is the motivator and money is the reward.
- Flexibility: Is the ability to move quickly in response to changing market needs. It is being true to a dream while also being mindful of market realities.
- Leadership: Is the ability to create rules and set goals. It is the capacity to follow through to see that rules are followed and goals are accomplished.
- Passion: Is what gets entrepreneurs started and keeps them there. It gives entrepreneurs the ability to assure others to believe in their vision. It can’t substitute for planning, but it will help them to stay focused and to get others to look at their plans.
- Self Confidence: This comes from thorough planning, which reduces uncertainty and the level of risk. It also comes from expertise. Self-confidence gives the entrepreneur the ability to listen without being easily swayed or unsettled.
- Smartness: Consists of some sense coupled with knowledge or experience in a related business or work. The former gives a person good instinct, the later; expertise. A person who successfully keeps a household on a budget has organizational and financial skills. Education and life experiences all contribute to smartness.
Empirical Frame Work
An empirical findings by Mudashir, Rozilah and David (2014) in their study, ‘Is the Impact of Entrepreneurship Education as remarkable as the Demand?’ revealed that Entrepreneurship Education Program (EEP) had a positive impact on the students‟ entrepreneurial intents, value creation and strong ambition to act in the future as entrepreneur. Despite this remarkable impact, the critical issue is the reliability of the impacted value on the students over a time after graduation. Notwithstanding, the strength of this study is that of the longitudinal quality as demonstrated in the sequence of measurement of the entrepreneurial development of students over a period of a full semester program. In the nutshell, this research focused on the academic effect while future research should establish the real-life effect. The principle is to separate the myths from the reality, purely, by ascertain the students actual transfer of educational value to the real behaviour. It is if and only when we establish the real-life result that we can vividly make a declaration on whether the impact of the EEP is remarkable as demand.
An empirical study carried out by Izedonmi and Chinonye (2010) in Nigeria set out to examine the effect of entrepreneurship education on the students’ entrepreneurial intentions. The study makes it clear that entrepreneurial characteristics are diverse and their exposure to entrepreneurship education for a period of four years is capable of provoking the intention of becoming entrepreneurs. This is also an indication that they have been equipped with the needed knowledge and skills required for a new venture start up. It is also deductive that entrepreneurship education is a useful program that will enable the respondents either to help their future employers or manage their own business successfully.
A research by Autio, et al. (1997) found that entrepreneurship education creates a positive image for the entrepreneurs and contributes to the choice of entrepreneurship as a professional alternative by graduates. Brenner et al., (1991) found in their study of 237 graduates in the U.S. that business graduates generally perceived business ownership in a positive light. However, the survey revealed an inconsistency between the graduates’ attitudes towards owning and operating their own business and their intentions toward pursuing such a career. When they were given complete freedom of choice, 55% preferred operating their own business. An interesting point was that when they were asked their most likely choice considering their actual situation and constraints upon their options, only 5% indicated that they would probably choose to operate their own business.
Similarly, Fleming, (1992) in a study of Irish graduates, who participated in entrepreneurship initiatives and programs while at college, found that a comparatively high proportion (45%) of the sample reported that the course taken had a positive effect on their subsequent career decision. The study also found that 5% of the respondents had initiated a start-up venture within five years of graduation. Nevertheless, a recent study carried out in Ghana involving graduates’ of tertiary institutions’ revealed respondents’ overwhelming (79.5%) positive attitude towards self-employment (Owusu-Ansah, 2004). However, many students and graduates perceive several obstacles that militate against business star ups, such as lack of experience, or lack of finance, which block the path toward their preferred choice. There are a number of factors that motivate an individual to set up his/her own business and the principal ones as reported in a study includes to obtain wealth and success, be your own boss, independence from employer and flexibility of the working hours offered. Others are ‘to contribute to job creation’, ‘desire to innovate technologically’ and ‘identification of a new business opportunity’ (Hannon, 2009).
In a study by Akpomi (2008) on entrepreneurship among graduates-to-be of business /management faculties and economic development in Nigeria for a sample of 500 final year students selected through random sample, revealed that only 12.4% of graduates-to-be aspire to own businesses upon graduation. Reasons given for this are that there are no take-off funds/sponsorship, inadequate preparation to face the demands of running businesses and the poor attitude of Nigerians towards purchasing made-in Nigeria goods.
In a longitudinal study that focused on the impact of entrepreneurial education and societal subjective norms on entrepreneurial attitudes and intentions to start a business of university students in Uganda by Byabashaija et al., (2010) using sample that composed of college students pursuing business oriented courses. The results show small but significant changes in attitudes and a significant mediating role of attitudes – perceived feasibility and perceived desirability but non- significant role of perceived feasibility on the relationship between societal subjective norms and entrepreneurial intentions. Contrary to expectation of the researchers the study did not find evidence to support a moderating influence of employment expectations on the relationship between the attitude variables and entrepreneurial intentions.
Theoretical Frame Work
One of the theories that provide foundation for entrepreneurship education is the risk-taking theory of Richard Cantillon and John Stuart Mill. The theory sees entrepreneurship as a mental education that stimulates individuals to take moderate or calculated risk for which they stand to enjoy stream of benefits, and also people taking big risk have to contend with a great responsibility (Alam&Hossan, 2003). The traits of creativity, risk loving, innovation, strategic thinking and constructive engagement against the government by discontented Nigerians could as well be directed to entrepreneurship development (Raimi, 2010).
The importance of this theory is that entrepreneurship education improves the ability, capability and potentials of the human capital of the nation to undertake risks for which all stand to benefit immensely. For instance, business startup success in the future might be better understood by recognizing the past history and principles of successful graduates business startup as entrepreneurs. Success might be explained by understanding entrepreneurs’ ways of managing people or knowing how they set out plans and management procedures. The level of analysis in psychological theories is the individual (Owusu-Ansah&Poku 2012).
These theories emphasize personal characteristics that define entrepreneurship. Personality traits need for achievement and locus of control are reviewed and empirical evidence presented for three other new characteristics that have been found to be associated with entrepreneurial inclination. These are risk taking, innovativeness, and tolerance for ambiguity. The opportunity-based theory is anchored by names such as Peter Drucker & Howard Stevenson.
Entrepreneurs do not cause change (as claimed by the Schumpeterian or Austrian School) but exploit the opportunities that change (in technology, consumer preferences etc.) creates. Drucker (1985). Reiterated that “this defines entrepreneur and entrepreneurship, the entrepreneur always searches for change, responds to it, and exploits it as an opportunity”. What is apparent in Drucker’s opportunity construct is that entrepreneurs have an eye more for possibilities created by change than the problems. Krishna (2013) extends Ducker’s opportunity based construct to include resourcefulness.
Psychological Entrepreneurship Theories
The level of analysis in psychological theories is based individual (Landstrom, 1998). These theories emphasize personal characteristics that define entrepreneurship. Personality traits need for achievement and locus of control are reviewed and empirical evidence presented for three other new characteristics that have been found to be associated with entrepreneurial inclination. These are risk taking, innovativeness, and tolerance for ambiguity.
Personality Traits theory
Coon (2004) defines personality traits as “stable qualities that a person shows in most situations”. To the trait theorists there are enduring innate qualities or capabilities of the individual that naturally make him an entrepreneur. The obvious or logical question on the mind may be “What are the exact traits/inborn qualities?” The answer is not a straight forward one since we cannot point at particular traits. However, this model gives some insight into these traits or inborn qualities by identifying the characteristics associated with the entrepreneur. The characteristics give us a clue or an understanding of these traits or inborn potentials. In fact, explaining personality traits means making inference from behavior.
Some of the characteristics or behaviors associated with entrepreneurs are that they tend to be more opportunity driven, demonstrate high level of creativity and innovation, and show high level of management skills and business know-how. They have also been found to be optimistic, (they see the cup as half full than as half empty), passionately spirited and have mental energy, they are hard workers, show intense commitment and perseverance, thrive on competitive desire to excel and win, tend to be dissatisfied with the status quo and desire improvement, entrepreneurs are also transformational in nature, who are lifelong learners and use failure as a tool and springboard. They also believe that they can personally make a difference, are individuals of integrity and above all visionary.
Opportunity–Based Entrepreneurship Theory
The opportunity-based theory is anchored by names such as Peter Drucker and Howard Stevenson. An opportunity- based approach provides a wide-ranging conceptual framework for entrepreneurship research (Fiet, 2002; Shane, 2000).Entrepreneurs do not cause change (as claimed by the Schumpeterian or Austrian school) but exploit the opportunities that change (in technology, consumer preferences etc.) creates (Drucker, 1985). He further says, “This defines entrepreneur and entrepreneurship, the entrepreneur always searches for change, responds to it, and exploits it as an opportunity”. What is apparent in Drucker’s opportunity construct is that entrepreneurs have an eye more for possibilities created by change than the problems. Stevenson (1990) extends Drucker’s opportunity-based construct to include resourcefulness.
