Module One

Chapter Two
Specific Objectives:
Students will be able to:
1. Discuss the types of entrepreneur
2. List the characteristics of entrepreneur
3. Define the terms entrepreneurship and intrapreneurship
4. Discuss the advantages and disadvantages of entrepreneurship and intrapreneurship
5. Differentiate between entrepreneurship and intrapreneurship
6. Discuss the types of entrepreneurship

Types of Entrepreneurs
Nascent Entrepreneurs
These are individuals who are in the process of starting a new business venture. The
nascent entrepreneurs have high expectations about starting this new business venture. This
venture usually starts as offering products that are substitutes for other products.
The nascent entrepreneurs are engaged in creating new ventures. Starting a business is
often viewed by nascent entrepreneurs as a positive way to balance family needs with the need to
produce an income. The nascent activities leading venture start-up include registering the
business entity, doing a business plan, and seeking funding, partners, and resource. Also having
the skills and knowledge of what to do, where to go and whom to approach at this stage is
paramount for successful venture birth.

Novice Entrepreneurs
A novice entrepreneur is someone who has just started to run his or her own business or
venture and is still learning new things to make it work successfully. This entrepreneur is
inexperience in terms of business ownership.

Habitual Entrepreneurs
Habitual entrepreneurs are individuals who gain tremendous entrepreneurial experience and
skills from acquiring major or minor equity stake in two or more businesses. This entrepreneur
is usually motivated by market opportunity, new concept discovery or recognizing niche.

Serial Entrepreneurs
These individuals invest in innovative ideas, build powerful corporations, and then sell
them for profit. The entrepreneur then moves to another new venture.
This entrepreneur is involved in conceptualizing and implementing business ideas. Also take on
high level of risks and acceptance of failure. However, these entrepreneurs usually stay in one
industry sector.

Portfolio Entrepreneurs

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 This is an entrepreneur who owns and operates several businesses at the same time. They
keep their original venture while creating or acquiring other businesses. The additional
businesses may be acquired by inheritance, development or buying.
These entrepreneurs are usually engaging in business across a range of various sectors

Social entrepreneur
An entrepreneur is motivated by a desire to impact or improve or change an environmental, a
socio-economic or educational situation. The motive of the social entrepreneur is social
responsibility rather than profit.

Lifestyle entrepreneur
This is based on the entrepreneur building a business to provide the freedom and independence
that is desired. It is more about being in control of personal time and income than about building
an empire. It is usually centred on an activity or product that is of personal interest to the
entrepreneur. Examples include tour guides and dance instructors.

Dynamic Growth
This is the type of entrepreneurship here the business is intended to generate significant sales and
rapid growth. The entrepreneur’s vision is to build a large business or even an empire. This
involves lots of planning and the development of detailed plan. It also demands high personal
involvement and strong leadership.

Speculative
This type of entrepreneur is based on the realization of quick profits. They involve aspects of
risk- taking, keen insight and unique timing.

There are two types of entrepreneurs that fall into what researchers describes as the:
Opportunity-based Entrepreneur – this is a person who spots and seizes an opportunity to
achieve profit. This person is able to seize opportunities because of his or her knowledge, skills
and abilities, experiences, hobbies, cultural and social environment.

Necessity-based Entrepreneur – this is an individual who is left with no viable option to

earn a living. There is no choice but to seek the entrepreneurial route. It is also referred to as the
self-employed entrepreneur.

Characteristics of an Entrepreneur
Every entrepreneur may not possess all these characteristics but some are immediately
recognized. They include, but not limited to the entrepreneur being:
1. Innovative – the entrepreneur is able to translate obscure opportunity into profitable
enterprise was notes as a key trait of the entrepreneur. Cantillon referred to the
entrepreneur engaging in arbitrage. This is the process of exploiting the differences in

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 prices (and knowledge) in different markets. It was Schumpeter who coined the phrase
‘creative destruction’ and referred to the creation of various ‘combinations.’ The ability
to do something different, to disrupt the status quo, marks the innovative nature of
entrepreneur.
2. Creative – this trait is similar but slightly different from innovation. Whereas innovation
is a response to opportunity or challenge, creativity is the ability to envision and make
something new. This draws on the dreamer within. It is the ability to come up with
original ideas.
3. Calculated risk takers – Entrepreneurs are no daredevils. Although they have a higher
tendency to take risks than others do, they are not reckless nor are they gamblers. They
simply choose to take those risks which they reasonably expect to overcome in earning
profit.
4. A systematic planner – Someone coined the adage ‘Plan the work and work the plan.’
Successful entrepreneurs recognize the importance of planning and they engage in
thoughtful analysis of the situation ahead of time.
5. Visionary – after they have come up with an idea or a solution for a problem,
entrepreneurs engage in what we might call ‘visioning.’ They have their minds set on the
future of their product or business. This ability is important in mitigating the risks that
might be faced, staying ahead of the competition and gaining the support of investors and
partners
6. Achievement oriented – entrepreneurs set goals for themselves that become their focus. It
is not usually about fame or status. Rather, it is an internal drive to reach their own
standards. Seeing the dream of a new product or business become a reality can be the
motivation that keeps them going.
7. Persistent – successful entrepreneurs recognize that success is not always immediate.
They often have already gone through failures but do not allow those failures to daunt
them
8. Dynamic –Entrepreneurs lead teams and organizations. As a person, the entrepreneur
must be able to transfer the vision and passion behind the work. This person must be able
to face the challenges and failures yet rise above them. Terms like ‘high -energy’ and
‘optimistic’ are often used to describe this trait.
9. Hard-working – being entrepreneurs is not an easy, glamorous thing. There is a lot of
work involved at every stage. People who prefer an easy route usually choose to stay in a
‘safe’ job. The entrepreneur assumes a lot of responsibility and faces a lot of physical,
mental and emotional demands.
10. Self – confident – Successful entrepreneurs believe in themselves and their ideas. They
know the importance of taking advice and working with others but they do not depend on
people’s acceptance of them or their ideas. They do not allow failure or people’s
opinions to sway them. Instead, they learn from mistakes and move on.
11. Emotional intelligence refers to the capability of a person to manage and control his or
her emotions and possess the ability to control the emotions of others as well. In other

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 words, they can influence the emotions of other people also. It is said to have five main
elements such as - self-awareness, self-regulation, motivation, empathy, and social skills.
(a) Self-awareness: If a person has a healthy sense of self-awareness, he understands
his own strengths and weaknesses, as well as how his actions affect others. A
person who is self-aware is usually better able to handle and learn from
constructive criticism than one who is not.
(b) Self-regulation: A person with a high EQ can maturely reveal her emotions and
exercise restraint when needed. Instead of squelching her feelings, she expresses
them with restraint and control.
(c) Motivation: Emotionally intelligent people are self-motivated. They're
not motivated simply by money or a title. They are usually resilient and optimistic
when they encounter disappointment and driven by an inner ambition.
(d) Empathy: A person who has empathy has compassion and an understanding of
human nature that allows him to connect with other people on an emotional level.
The ability to empathize allows a person to provide great service and respond
genuinely to others’ concerns.
(e) People skills: People who are emotionally intelligent are able to build rapport and
trust quickly with others on their teams. They avoid power struggles and
backstabbing. They usually enjoy other people and have the respect of others
around them.

12. Confident - It is a hallmark of the entrepreneur. Not all of us are born with confidence,
but that does not mean we are not capable of it. Many confident women and men gain
their sense of self-esteem and faith in their ability to greet challenges by acting – even
when they lack the confidence – and then gaining strength and belief in themselves by
seeing the results and gaining the praise and respect of others.

13. Feels a Sense of Ownership - taking responsibility for getting things done – and doing
them with care and attention – means to act like an owner. Rather than viewing a
problem as someone else’s, the entrepreneur sees it as his or her own and takes pride in
finding a solution, leaving things in a better shape than they were before encountering
them, and improving upon situations rather than leaving them unattended. While a sense
of ownership makes for a stellar employee, the controlling situations in an attempt to
possess them, the entrepreneur teaches other people how to take charge. In that way the
clever entrepreneur uses individual accountability in the ultimate pursuit of profitability,
teamwork, and overall success.

14. Able to Communicate - Entrepreneurs recognize that the most important part of any
business is the human element. Human resources – whether in the form of clients,
employees, or strategic partners – are what makes or breaks a business, and
communication is the key to successful relationships with people. The entrepreneur
works to improve communication skills, whether those are written, spoken, or non-verbal

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 messages conveyed through body language. And to support communication, he or she
will take advantage of all available tools and resources. Those might include foreign
language or public speaking classes, computer and telecom technology, search engine
optimization programming as it relates to sales and marketing, or specialized writing such
as that needed for grants, business proposals, mission statements, or policy manuals.
Above all, the entrepreneur develops a keen ability to listen and hear what others are
trying to say, because the best communicators got that way by first being the best
listeners.
15. Passionate about Learning - Entrepreneurs are often “autodidactic” learners, which
means that much of what they know they learned not in a formal classroom setting but
instead on their own by seeking out information, asking questions, and doing personal
reading and research. They also are quick to learn from their own mistakes, which means
they are less prone to keep repeating them due to arrogance, ego, or a blindness to one’s
own faults, shortcomings, or errors in judgement. To teach is to learn. And to lead, train,
and impart experience to others the entrepreneur is constantly striving to learn more and
get better educated. Because of the passion for education, true entrepreneurs surround
themselves with people who either know more than they do or know things that are
different from what they know. They entertain the views of others and perspectives that
may be unlike their own, for instance, in order to be better students of human nature. In
this way they continue to enrich themselves with knowledge while also making a
concerted effort to grow that knowledge by sharing it with others who are also front row
students of life’s valuable and unlimited lessons.
16. Team Player - Those who go into business for themselves but do not utilize teamwork
wind up without the team but still have all the work to get done. They shoulder the whole
burden for themselves, and wind up just trading their old job for a new and more
demanding one – in an attempt to be self-employed. But the new venture carries greater
personal and financial risks. On the other hand, team players know how to succeed by
employing the physics of interpersonal synergy and dynamic relationships. One twig can
be easily snapped, but a bundle of those small twigs becomes stronger than the sum of its
individual parts and can be impossible to bend, much less break. The same goes for
businesses, and successful entrepreneurs leverage teamwork to get the heavy lifting done
without breaking stride.

17. System-Oriented - Like mathematical formulas, good systems allow us to reproduce

great results every time – with less and less exertion of energy or resources.
Entrepreneurs rely upon systems before they rely upon people, and they look for system
based solutions before searching for human resource solutions. If the person gets the job
done but falls sick or leaves, the job is threatened. But if a system is created to get the job
done, anyone can step in and follow the blueprint to get the desired result. Similarly,
when troubleshooting and problem solving, the entrepreneur will first examine and study
the system – because a flaw in the system will produce a flawed outcome each and every

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 time. Designing, implementing, and perfecting systems is one of the most useful and
rewarding skills of an entrepreneur.

18. Dedicated - Entrepreneurs dedicate themselves to the fulfillment of their plans, visions,
and dreams, and that tenacity of purpose generates electricity throughout the whole
organization. One of the biggest reasons that companies fail is because they lose focus.
Target a goal, clarify the objective, refine the brand, and narrow the margin of error.
Regardless of what the effort might involve, an entrepreneur brings a single-minded
dedication to the task by being committed to a positive outcome and ready and willing to
do the needful. No matter what that might mean in terms of rising to meet a challenge or
acting above and beyond the call of duty, the entrepreneur shows steadfast dedication.

19. Grateful - Being grateful for what we have opens us up to receive more, and one reason
that is true is because those who are grateful appreciate what they are given. They respect
it and nurture it. They do their best to make it grow instead of allowing it to dwindle
away due to neglect. Entrepreneurs learn to take nothing for granted in this world. That
gives them the agility and flexibility to adapt to changes and demands, while it also
invests in them a thankfulness that reminds them that riches and wealth are not about
“stuff”, but are about fulfillment, satisfaction, and the pleasure that comes from one’s
accomplishments and contributions.

20. Optimistic - A positive outlook is essential for the entrepreneur, who learns to see
setbacks as bargain priced tuition for the valuable business lessons gained through
firsthand experience. Past shortcomings, failures, or disappointments are relegated to the
past so that they cannot continue to haunt the present or obstruct the future. And when
things go right and business prospers, this further fuels the optimism and positive mindset
of an entrepreneur, helping to give impetus and momentum for greater accomplishments
and increased hopefulness.

21. Gregarious/ Sociable - Because business is all about people, entrepreneurs tend to be
socially outgoing. They get excited about sharing ideas, products, and services, and that
excitement is contagious to their employees, clients, friends, and other contacts both
within and beyond the business sphere. But women and men who work hard as
entrepreneurs also relish the unique opportunity to have fun doing something that they
love as their primary vocation. Human resource experts, career counselors, and business
psychologists all agree that those who do jobs they enjoy and are good at have higher
rates of success and broader measures of satisfaction. Entrepreneurs know that firsthand,
from their own experience, and they tend to be a fun-loving group of people both on and
off the job.

22. A Leader by Example - Entrepreneurs not only lead themselves through self-motivation
as self-starters who jump into tasks with enthusiasm, but they are also skilled at leading

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 others. They know the importance of teamwork, and they understand the need to
appreciate others, support them, and reward them accordingly. True leaders do not
become indispensable, otherwise things fall apart in their absence and they can never rise
to the highest level of entrepreneurial freedom and prosperity. Neither do they squander
the potential of those working under their guidance.
As renowned business consultant and retired United States Air Force Major General
Perry M. Smith once wrote, “Leaders who share their power and their time can
accomplish extraordinary things. The best leaders understand that leadership is the
liberation of talent; hence they gain power not only by constantly giving it away,
but also by not grabbing it back.”
23. Not Afraid of Risk or Success - Many people could be successful if they only took
chances. And many people who do take chances and become somewhat successful find
the realization of their dreams an overwhelming possibility, so they sabotage their
continued success by retreating back into a comfort zone of smallness. As discussed
earlier, the employee mindset is preoccupied with a need for security. Those who cling to
what is familiar to them – even if it means the denial of their dreams – lack the
perseverance and ambition that the real entrepreneur exhibits. Entrepreneurs are not
immune to fear. But they prioritize their approach to life so that the fear of failure,
frustration, boredom, drudgery, and dissatisfaction far outweighs the lingering fear of
success.

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Coutler (2003), describes entrepreneurship is a process whereby an individual or group of
individuals use organized efforts to pursue opportunities to create value and grow by fulfilling
wants and needs through innovation and uniqueness, not matter what resources the entrepreneur
currently has.

Intrapreneurship is entrepreneurship within the confines of the organization. It is specifically

described as the practice of entrepreneurial activities within an organizational context or business
unit. Employees can become intrapreneurs within the firm. The firm creates the environment to
foster and encourage employee creativity and ideas development. The organization encourages
ideas creation, failure is acceptable within a defined scope, actions are encouraged and there is
top or senior management support for programmes.

Differences between Entrepreneurship and Intrapreneurship

Points of Intrapreneurship Entrepreneurship
difference

Definition Intrapreneurship is the Entrepreneurship is the dynamic

entrepreneurship within an existing process of creating incremental
organization. wealth.

Core objective To increase competitive strength and To innovate something new of

market sustainability of the socio-economic value.
organization.

Primary motives Enhance the rewarding capacity of the Innovation, financial gain tad
organization and autonomy. independence.

Activity Direct participation, which is more than Direct and total participation in the
a delegation of authority. process of innovation. _

Risk Hears moderate risk. Bears all types of risk.

Status Organizational employee expecting The free and sovereign person does
freedom in work. not bother with status.

Failure and Keep risky projects secret unless it is Recognizes mistake and failures so
mistakes prepared due to high concern for failure as to take new innovative efforts.
and mistakes.

Decisions Collaborative decisions to execute Independent decisions to execute

dreams. dreams.

Whom serves Organization and intrapreneur himself. Customers and entrepreneur himself.

Family heritage May not have or a little professional Professional or small business
post. family heritage.

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Relationship with Authority structure delineates the A basic relationship based on
others relation. interaction and negotiation.

Time orientation Self-imposed or organizationally There is no time bound.

stipulated time limits.

The focus of on Technology and market. Increasing sales and sustaining

attention competition.

Attitude towards Follows self-style beyond given Adaptive self-style considering

destiny structure. Structure as inhabitants.

Attitude towards Strong self-confidence and hope for Strong commitment to self-initiated
destiny achieving goals. efforts and goals.

Operation Operates from inside the organization. Operates from outside the
organization.

Advantages of Entrepreneurship
1. Financial rewards: One of the primary benefits of entrepreneurship is the potential for
financial success. Entrepreneurs have the ability to create their own income streams and
build a successful business that can generate significant profits.

2. Independence: Entrepreneurship offers the opportunity to be your own boss and work on
your own terms. This freedom and flexibility can be incredibly appealing to individuals
who are tired of the constraints of traditional employment.

3. Personal growth: Starting and running a business can be a significant personal growth
opportunity. Entrepreneurs must develop leadership skills, problem-solving abilities, and
the ability to adapt to changing circumstances.

4. Creativity: Entrepreneurs have the ability to pursue innovative ideas and create new
products or services that can make a significant impact in the marketplace.

5. Job satisfaction: One of the key benefits of becoming an entrepreneur is the fact that
you're the boss, and ultimately can decide exactly what you do, your working hours and
other factors. You may also feel a highest sense of purpose and fulfillment working on
your own business.

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Disadvantages of entrepreneurship
1. Risk: Starting a new business involves a significant amount of risk, in terms of both
personal and financial risk. There is no guarantee of success, and entrepreneurs may face
significant financial losses if their business venture fails. Entrepreneurs have to take risks,
and knowing which risks to take relies on the experience, skills and knowledge of the
entrepreneur.
2. Long hours: Entrepreneurs often work long hours and may have to sacrifice their
personal time in order to make their business venture successful, we refer to this as a poor
work-life balance.

3. Cash flow: Cash flow can be a significant challenge for entrepreneurs, especially in the
initial stages of starting a new business. It may take time for a business to generate
consistent revenue streams, and entrepreneurs may need to rely on personal savings or
loans to fund their business venture.

4. Adaptability: Entrepreneurship requires a good level of adaptability and proactiveness,

since the business owner will need to create a business idea, business model and growth
forecast. All of this then needs to be executed, despite the many challenges that will be
faced along the way. Usually someone with a business administration degree has an
advantage here, due to their skillset.

Advantages of Intrapreneurship

1. Innovation and Growth: Intrapreneurship drives innovation by encouraging the creation

of new products, services, and processes within the organization, leading to growth and

enhanced competitiveness.

2. Talent Attraction and Retention: It helps companies attract and retain talented

employees who are seeking challenging, innovative opportunities, increasing job

satisfaction and loyalty.

3. Resource Optimization: Intrapreneurs make efficient use of existing, often

underutilized, company resources to develop new initiatives, improving overall economic

performance.

4. Faster Development Cycles: By allowing individuals to bypass some traditional

bureaucratic procedures, intrapreneurship can accelerate the development and launch of

new projects.

5. Intellectual Capital Development: Intrapreneurship fosters the growth and protection of

a company's intellectual capital, providing a significant competitive advantage.

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Disadvantages of Intrapreneurship

1. Lack of Ownership: While employees are shielded from significant risks, they also don't

gain personal ownership of major successes, limiting direct profit from their innovations.

2. Internal Conflicts: The pursuit of new ideas and changes can sometimes lead to

conflicts with established procedures or existing departments, requiring careful

management to maintain positive outcomes.

3. Resource Investment: Successful intrapreneurship requires significant investment of the

company's resources, which could be better used elsewhere if the ventures prove

unsuccessful.

4. Risk of Failure: Despite the support of the existing organization, there is still a risk that

new ideas or ventures will fail, potentially leading to losses for the company.

5. Complexity of Management: Managing and channelling intrapreneurial activities can be

complex, requiring specific leadership skills to balance innovation with organizational

needs and foster cooperation.

TYPES OF ENTREPRENEURSHIPS
1. Lifestyle entrepreneurship
Lifestyle entrepreneurs are known for organizing their work and business activities around their
own lifestyle goals. These goals often including flexible hours, fulfilling work, spending time
with family and friends, hobbies, charity work, or creative pursuits.
A lifestyle entrepreneur places passion before profit when launching a business in order to
combine personal interest and talent with the ability to earn a living.
Many entrepreneurs maybe primarily motivated by the intention to make their business profitable
to sell to shareholders.
In contrast, a lifestyle entrepreneur intentionally chooses a business model intended to develop
and grow their business to make a long term, sustainable and viable living working in a field
where they have a particular interest, passion, talent, knowledge or high degree of expertise.

A lifestyle entrepreneur may decide to become self-employed in order to achieve greater

personal freedom, more family time and more time working on projects or business goals that
inspire them.
Lifestyle entrepreneurs are becoming increasing popular as technology provides small business
owners with the digital platform needed to reach a large global market. Younger lifestyle
entrepreneurs, typically those between 25 and 40 years old are sometimes referred to as treps.

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Characteristics of lifestyle entrepreneurship include:
- An entrepreneurial process motivated by quality of life rather than growth. The main
reason for existence is lifestyle with limited growth focus.
- The undertaking of a lifestyle entrepreneurship orientation may result in the
underutilization of resources.
- Management activities in lifestyle entrepreneurship may be characterized as irrational.
- There is a lack of focus on marketing and product development.
- There is a failure to capitalize on information and communication technology
opportunities in the market. The lifestyle entrepreneur may be unprepared for external
threats.
- According to Komppula (2004), lifestyle entrepreneurship is motivated by survival and
the need to maintain the way of life.
Examples of lifestyle entrepreneurship ventures include: ‘mom and pop stores’, gas stations,
small retail stores and mini marts.
- Social influceners
- Investment in fixed assets is modest.
- Owners tend to invest long hours of work in the venture.
Lifestyle ventures tend to have a high risk of failure and profits from reselling the business
tends to be low.

2. Survival Entrepreneurship
The process of starting businesses to supply or supplement income. The basic goal of this
venture activity is to survive and meet the venture’s financial obligations. Many startup ventures
engage in survival entrepreneurship where their long-term goal is to stay in business. Survival
entrepreneurship is characterized by:
- Cutting costs
- Laying off employees
- Employment freeze
- A mindset of preservation of the present state of affairs
- A fear of committing to future plans

3. Dynamic Growth
This type of entrepreneurship is characterized by a high initial investment. The entrepreneur
engages in reinvestment as growth is the objective. The aim is to increase the capital gain for
investors. The business intends to generate significant sales and rapid growth. Profits can be
achieved from the sale of goods and services or from the sale of the existing business.
The entrepreneur’s vision is to build a large business or even an empire. According to Penros,
successful firms want profits to create future profits. The growth orientation is characterized by:
(i) expanding operations
(ii) facilities such as a cash flow or credit line to finance growth prospects

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(iii) human resources that posses the skills, abilities and competences to perpetuate growth
culture.
Characteristics of Dynamic Growth Entrepreneurship:
 Goal is maximum profit and growth.
 Concentrated on pushing envelope and growing as large as possible.
 Focus on innovation

4. Speculative Model
Speculative Entrepreneurs –these are entrepreneurs those who seek to exploit fleeting market
opportunities. They push their chips towards big opportunities that they have little control over
but seem to be aligned with macro trends and cultural interest. They are inclined to follow and
exploit herd-like behaviour, promising new technologies, or up and coming fads.
Also they usually do not want to build a self-sustaining business; instead, they are seeking to
dive head first into an opportunity, reap the reward, and get out and onto the “next big thing”
quickly.
This type of entrepreneurship is where the venture’s time frame is shorter. The objective is to
show the potential of the business and then sell it. Research showed that speculative
entrepreneurship results in opportunities even when there is no new information.
Mises (1949) describes the entrepreneur as recognizing opportunities in the environment for
profit. The entrepreneur uses these opportunities to restore market equilibrium by ‘promoting
and speculating’.
As a general rule, the more speculative the venture, the greater the reward should be,
commensurate with the risk taken.

5. Necessity Entrepreneurship
Necessity-based entrepreneur- this is an individual who is left with no viable option to
earn a living. There is no choice but to seek the entrepreneurial route. It is also referred to
as the self-employed entrepreneur.
This type of entrepreneurship is a process whereby a venture is started out of a need when
other options are not available. This typically occurs when individuals are initially
unemployed.

6. Green Entrepreneurship
Green entrepreneurship describes the process of entrepreneurship that focuses on
‘creating and implementing solutions’ to environmental issues. According to Schaltegger
(2002) , green entrepreneurship is, ‘creating a value throughout ecological innovations
and products.’ Schuyler (1998) describes green entrepreneurship as, ‘actions of
entrepreneurs whose business efforts are not only driven by profit, but also by a concern
for the environment.’

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 7. Opportunity Entrepreneurship
This type of entrepreneurship relates to activities where individuals, ‘pursue promising
market opportunities.’ It is seen when an individual sees a market opportunity and
pursues it for example an opportunity to fill a gap.
Opportunity-based entrepreneur- this is a person who spots and seizes an opportunity
to achieve profit. This person is able to seize opportunities because of his or her
knowledge, skills and abilities, experiences, hobbies, cultural and social environment.

Student Activity

(1) Case: Profit Potential

James decided to put out a high initial investment in a computer parts and accessories store.
Within two years, he saw the potential for growth and expanded the business to include another
branch in the capital city. His business was quite profitable and he was able to use the profits to
buy more stock. He financed other aspects of his operation with a venture capital loan, which
was paid back in two years.
(a) Describe the type of entrepreneurship illustrated in the case above.

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