TASK
1. Discuss the following terms and give meaning with relevant examples
a. Entrepreneur, b. Entrepreneurship,c. Intrapreneurship, d. Entrepreneurship education and e.
Enterprise
2. Give reason why Bachelor of education students entrepreneurship education
3. What is the need for entrepreneurship in a developing country like Kenya? (Give at least 6
reasons)
Introduction
Entrepreneurship has emerged as a pivotal component in the socioeconomic landscape of modern
societies. For students, particularly those pursuing a Bachelor of Education, understanding
entrepreneurial concepts is critical. This knowledge not only equips them with the skills to foster
innovative thinking but also enables them to contribute effectively to economic growth. This
assignment will discuss the terms "entrepreneur," "entrepreneurship," "intrapreneurship,"
"entrepreneurship education," and "enterprise," providing definitions and relevant examples.
Additionally, the importance of entrepreneurship education for Bachelor of Education students
and the necessity of entrepreneurship in developing countries like Kenya will be highlighted.
Concept of Entrepreneur
The concept of an entrepreneur originates from the French word “entreprendre,” meaning “to
undertake,” referring to those who take on the risks of starting a new business. The term
“entrepreneur” was first introduced into the French language in the early 1500s by Richard
Cantillon, an Irishman residing in France.
Definitions of an Entrepreneur by Various Authors
Richard Cantillon: An entrepreneur is defined as a person who pays a certain price for a product
with the aim of reselling it at an uncertain price, thereby making decisions about acquiring and
using resources while also accepting the risk of the enterprise.
Example: A local vendor in Kenya purchases mangoes at a set price from farmers, knowing the
final selling price in the market is uncertain and may fluctuate based on demand or seasonality.
This exemplifies Cantillon’s idea of taking on risk for potential profit.
Adam Smith: Smith views an entrepreneur as an individual who forms an organization for
commercial purposes by recognizing the potential demand for goods and services, thus acting as
an economic agent who transforms demand into supply.
Example: A tech entrepreneur like the founders of Twiga Foods identified the demand for a
streamlined distribution of farm produce, creating an organization that connects farmers to
vendors, efficiently turning demand into supply for fresh produce in urban areas.
Joseph Schumpeter: Entrepreneurs, according to Schumpeter, are innovators who use the
entrepreneurial process to disrupt the status quo of existing products and services, introducing
new products and services.
Example: M-PESA, a mobile-based money transfer service in Kenya, broke the status quo of
traditional banking by enabling financial transactions without a bank account. This innovative
product transformed financial services in Kenya, embodying Schumpeter’s concept of
entrepreneurship as innovation.
Peter F. Drucker: Drucker describes an entrepreneur as someone who actively seeks change,
responds to it, and turns it into an opportunity. They aim to increase value and customer
satisfaction. A professional manager who mobilizes resources and allocates them to exploit a
commercial opportunity can also be considered an entrepreneur.
Example: The founder of Safaricom, Michael Joseph, saw an opportunity to meet Kenya’s
unbanked population’s needs by expanding mobile services. By offering services like M-PESA,
he increased customer value and satisfaction, demonstrating Drucker’s view of entrepreneurship
as a response to change.
Entrepreneurship
Entrepreneurship can be described as a process of systematic innovation involving a purposeful
and structured search for changes and an analysis of the opportunities these changes present.
This often leads to economic and social transformation. Entrepreneurship entails starting a
business or organization, in which the entrepreneur develops a business model, gathers
resources, and takes on the responsibility for its outcomes, whether successful or not.
Importantly, entrepreneurship functions within an "entrepreneurship ecosystem"—a network of
interconnected stakeholders and factors that support or influence the business environment.
Examples;
Starting a Business and Resource Acquisition: A tech entrepreneur launching a mobile app
business begins by identifying a market need, such as improved financial inclusion. The founder
then develops a business model, perhaps similar to M-PESA, acquires resources like developers
and marketing teams, and takes responsibility for scaling and adapting the service to meet
customer demands.
Entrepreneurship Ecosystem: In Nairobi, co-working spaces like Nairobi Garage or iHub serve
as part of the entrepreneurship ecosystem, providing startups with networking opportunities,
mentorship, and access to venture capitalists. These resources create a supportive environment
where entrepreneurs can share ideas, receive guidance, and connect with investors, essential for
navigating challenges and fostering growth.
Intrapreneurship
Intrapreneurship refers to employees within a company who act like entrepreneurs, developing
innovative products, services, or processes that can drive growth and improve the organization.
Intrapreneurs are employees who think and act like entrepreneurs while working for a company,
developing innovative ideas, products, or services that add value to the organization. Unlike
independent entrepreneurs, intrapreneurs have access to the resources, brand, and capabilities of
the company, which can help bring their ideas to life with reduced risk.
Examples of Intrapreneurship:
1. Gmail at Google: Google encourages intrapreneurship through its "20% time" policy, allowing
employees to spend a portion of their work hours on projects outside their main roles. This
policy led to the creation of Gmail, developed by engineer Paul Buchheit, who saw the need for
an email service with greater storage and search capabilities.
2. PlayStation at Sony: Sony engineer Ken Kutaragi worked on a project with Nintendo to create
a CD-ROM for gaming but envisioned a standalone console. Though initially met with
skepticism from Sony's management, Kutaragi's dedication to the project eventually led to the
launch of the PlayStation, revolutionizing the gaming industry.
3. Facebook’s "Like" Button: Facebook’s engineers, driven by user feedback, developed the
"Like" button as a quick way to interact with posts. The project, initially a side idea, became a
defining feature for social media, allowing users to engage easily and providing Facebook with
valuable engagement data.
4. Amazon Prime at Amazon: Amazon Prime began as an intrapreneurial project to create a
membership program for loyal customers. By offering free two-day shipping and other benefits,
the program increased customer loyalty and became a significant revenue driver, reshaping e-
commerce.
Intrapreneurship like this allows employees to bring fresh ideas and initiatives to large
organizations, resulting in new products and services that enhance competitiveness and drive
growth.
Entrepreneurship education
Entrepreneurship education is a form of learning designed to equip students with the knowledge,
skills, and motivation necessary for entrepreneurial success across various settings. It aims to
help students recognize and act upon business opportunities to create profit in for-profit
organizations, enhance services or reduce costs in non-profits, and improve responsiveness to
clients or citizens in government institutions.
Examples:
University Entrepreneurship Programs: Many universities offer programs or majors in
entrepreneurship, such as Stanford University’s Center for Entrepreneurial Studies. Through
courses, workshops, and mentorship, students gain practical skills in creating business models,
identifying market needs, and managing resources. This prepares them to launch their own
startups or contribute innovative ideas to existing companies.
Business Incubators and Accelerators: Initiatives like Y Combinator in the U.S. or Nailab in
Kenya provide entrepreneurship education through mentorship, funding, and support services for
startups. These programs focus on nurturing early-stage businesses, teaching founders to refine
their ideas, understand customer needs, and scale their enterprises.
Non-Profit Entrepreneurship Training: Programs like Junior Achievement teach high school
students fundamental entrepreneurial skills, such as budgeting, marketing, and teamwork. These
programs encourage students to start small businesses, helping them learn about profitability and
sustainable business practices even at a young age.
Government Initiatives for Entrepreneurship Education: Governments in various countries
provide entrepreneurship education to encourage economic development. For instance, the Small
Business Administration (SBA) in the United States offers workshops, online courses, and
resources through its Learning Center, which helps entrepreneurs develop skills in areas like
business planning, marketing, and funding.
Entrepreneurship in Technical and Vocational Education: Technical institutes often integrate
entrepreneurship education into their curricula. For instance, Kenya’s Technical University of
Kenya has courses on entrepreneurship for students in fields like engineering and hospitality,
helping them learn how to commercialize their technical skills by starting businesses or
consulting services.
These examples highlight how entrepreneurship education prepares individuals to identify
opportunities, improve organizational outcomes, and develop ventures that contribute to
economic growth and social progress.
Enterprise
An enterprise is the business organization that is formed and which provides goods and services,
creates jobs, contributes to national income, exports and contributes to the overall economic
development. An entrepreneur is a person who starts an enterprise. The process of creation is
called entrepreneurship. The entrepreneur is the actor and entrepreneurship is the act. The
outcome of the actor and the act, is called the enterprise.
Examples;
Toyota Motor Corporation
Industry: Automotive
Toyota is a Japanese multinational corporation that manufactures vehicles and automotive parts.
Known for its high-quality and fuel-efficient cars, Toyota contributes to global job creation,
economic growth, and technological advancements in the automotive industry.
Coca-Cola
Industry: Beverage
Coca-Cola is a global leader in the beverage industry, providing a wide range of soft drinks and
other beverages. As an enterprise, it creates jobs in manufacturing, distribution, and marketing,
and contributes significantly to local and international markets.
Alibaba Group
Industry: E-commerce and Technology
Alibaba is a Chinese multinational company specializing in e-commerce, retail, internet, and
technology. It supports millions of small businesses globally through its e-commerce platforms
and has a major impact on China’s economy as well as the global retail landscape.
Amazon
Industry: E-commerce and Technology
Amazon started as an online bookstore but has since diversified into e-commerce, cloud
computing (AWS), and streaming services. It’s one of the largest employers globally, impacting
the retail, technology, and entertainment industries.
Reason why Bachelor of education students study entrepreneurship education
1. Promoting Entrepreneurial Mindsets in Students
Entrepreneurship education helps future teachers encourage students to think critically,
creatively, and with resilience, preparing them for diverse career paths and a rapidly changing
job market.
2. Increasing Employability Skills
[Link] students gain valuable skills like leadership, project management, communication, and
financial literacy, which enhance their employability and versatility as educators.
3. Fostering Self-Employment Opportunities
Entrepreneurship education gives future teachers the tools and confidence to create their own
educational businesses, such as tutoring centers or online courses, offering financial
independence and job creation.
4. Enhancing Career Readiness in Students
Teachers equipped with entrepreneurship knowledge can better prepare students for the
workforce by integrating practical, career-oriented activities into their teaching.
5. Encouraging Educational Innovation
Entrepreneurship education prepares [Link] students to adopt and implement innovative teaching
methods and technologies, making learning more dynamic and effective.
6. Building Problem-Solving Skills
Entrepreneurship training helps teachers become more resourceful and adaptable, equipping
them to solve classroom challenges and design engaging lesson plans.
7. Improving Financial Literacy
Understanding business fundamentals like budgeting and financial planning helps [Link] students
manage resources effectively and teaches students essential life skills.
8. Promoting Community Engagement
Teachers trained in entrepreneurship can involve students in community projects, like social
enterprises or awareness campaigns, promoting civic responsibility and community impact.
9. Developing Leadership Abilities
Entrepreneurship education enhances leadership skills, enabling future teachers to take initiative
in school projects, collaborate effectively, and inspire students.
10. Creating Economic Awareness
Understanding entrepreneurship helps [Link] students explain economic concepts to students,
fostering a basic understanding of business, markets, and the economy.
11. Encouraging Lifelong Learning and Adaptability
Entrepreneurship education emphasizes the importance of continuous learning and adaptability,
traits that future teachers can model and instill in their students.
12. Preparing Teachers for Diverse Roles in Education
With entrepreneurship skills, [Link] graduates are prepared to take on roles beyond traditional
teaching, such as curriculum development, educational consulting, or administrative positions.
The Need for Entrepreneurship in Developing Countries like Kenya
1. Job Creation
In Kenya, where youth unemployment is a pressing issue, entrepreneurship is a major driver of
job creation. By establishing new businesses, entrepreneurs create diverse job opportunities for
both skilled and unskilled workers. For instance, small businesses in agriculture, technology, and
retail sectors employ thousands, reducing poverty levels and enhancing economic stability.
2. Economic Growth
Entrepreneurs stimulate economic activity, leading to an increase in GDP and overall national
revenue. By launching new enterprises and increasing production, they generate wealth, attract
investment, and boost demand in various sectors. This results in a positive cycle of growth, as
the income generated by these businesses is reinvested in the local economy, spurring further
development.
3. Innovation and Technological Advancement
Entrepreneurship encourages the development of innovative solutions that improve quality of
life. For example, Kenyan innovators developed M-PESA, which revolutionized access to
banking services and made Kenya a global leader in mobile money. Such advancements not only
benefit consumers but also set Kenya on a path of technological growth, attracting investment
and skilled talent from around the world.
4. Self-Reliance and Reduced Dependence on Aid
Entrepreneurship fosters self-sufficiency, reducing reliance on foreign aid and imports. By
supporting local businesses, Kenya can produce essential goods and services domestically. This
helps retain profits within the country and reduces the need for external financial assistance,
allowing Kenya to invest in other critical areas like infrastructure and education.
5. Wealth Distribution and Reduction of Income Inequality
Small and medium-sized enterprises (SMEs) promote wealth distribution by providing income
opportunities in both urban and rural areas. Entrepreneurs often establish businesses in
underserved regions, supporting low-income earners and fostering a more equitable economy.
This reduces income inequality and empowers communities to build economic resilience.
6. Increased Global Competitiveness
By promoting local production and services for export, entrepreneurship enhances Kenya’s
presence in global markets. For instance, Kenya's agricultural exports, such as tea, coffee, and
flowers, are largely driven by entrepreneurial farmers and cooperatives. This global
competitiveness strengthens the economy and opens doors for international partnerships,
increasing Kenya’s economic influence.
7. Enhanced Standard of Living
Entrepreneurs provide quality products and services at affordable prices, raising the standard of
living for Kenyan citizens. Whether it's food, healthcare, or technology, access to high-quality
and locally produced goods improves life quality and ensures that more people have access to
what they need to thrive.
8. Increased Profitability and Economic Sustainability
Entrepreneurs focus on maximizing profits, often by reducing operational costs and increasing
efficiency. This profitability contributes to economic sustainability, as thriving businesses
reinvest in expansion and
growth. For example, local agricultural enterprises that optimize their supply chains can lower
costs, increase output, and stabilize food supplies, benefiting both the business and the broader
economy.
9. Social Development and Community Impact
Entrepreneurship supports social well-being by addressing specific community needs. For
example, enterprises that provide clean energy or safe drinking water address social challenges,
improving health and quality of life. Social enterprises in Kenya, like those offering affordable
solar panels, also create jobs and encourage community development by providing essential
services.
10. Adaptability to Changing Environments
Entrepreneurs are skilled at navigating and adjusting to changing market conditions. They can
quickly adopt new technologies or pivot business strategies in response to economic or
environmental shifts. This adaptability is crucial in a developing economy like Kenya, where
challenges such as climate change, economic shifts, and technological advances require
businesses to be flexible and responsive.
11. Environmental Sustainability
Many entrepreneurs are adopting eco-friendly practices to address environmental concerns. For
instance, Kenyan companies like Sanergy are using waste recycling to create renewable
resources, promoting a cleaner environment. By investing in sustainable practices, entrepreneurs
help protect natural resources, which is essential for a country like Kenya, where agriculture and
tourism rely heavily on a healthy environment.
12. Strengthened National Identity and Pride
By creating local brands and products, entrepreneurs help build a sense of national identity and
pride. Businesses that celebrate and utilize local resources, like Kenya's coffee industry,
showcase Kenya's strengths on a global scale. This fosters national pride and encourages citizens
to support local products, which further strengthens the economy and cultural identity
Conclusion
Entrepreneurship is a crucial driver of economic transformation, especially for developing
countries like Kenya. Bachelor of Education students gain from entrepreneurship education by
acquiring skills that foster adaptability, innovation, and leadership. As Kenya continues to
address its developmental challenges, a focus on entrepreneurship will empower individuals to
create sustainable livelihoods and strengthen the economy.
References
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Kenya National Bureau of Statistics. (2020). Economic Survey 2020. Nairobi: Government of
Kenya.
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Palgrave Macmillan.
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