JOMO KENYATTA UNIVERSITY OF
AGRICULTURE AND TECHNOLOGY
COURSE GEOMATIC ENGINEERING AND
GEOSPATIAL INFORMATION SYSTEMS
UNIT ENTREPRENEURSHIP
UNIT CODE HRD 2401
TASK PRESENTATION
GROUP ONE:
JUDITH WANGUI MURAGE ENC221-0068/2018
VERONICA NJERI GITHIRI ENC221-0071/2018
NANCY KANANU GIKANDI ENC221-0072/2018
BRUCE CANTREL OTIENO ENC221-0365/2018
DERRICK KAMAU NJERI ENC221-0381/2018
EVOLUTION OF ENTREPRENEURSHIP
1. Ancient Era
Entrepreneurship began with barter trade systems before the invention of money. People
exchanged goods and services directly. For example, a farmer might trade some of his crop for a
tool made by a craftsperson. This enabled an early form of entrepreneurship.
Early entrepreneurs were traders, merchants, artisans, and craftspeople. They traveled to trade
artifacts, crops, livestock, etc.
Ancient civilizations like Mesopotamia, Egypt, Rome, Greece had early entrepreneurial
development. Trading routes by land and sea helped connect these civilizations.
Currency was invented during this time, replacing the barter system. Currencies were made of
precious metals, cowry shells etc. This facilitated greater ease and scale of business transactions.
Entrepreneurs evolved from traders to shopkeepers, guild workers, merchants, moneylenders and
bankers.
Earliest definition was by Marco polo, he attempted to establish trade routes to the Far East. As
ago- between, Marco polo would sign a contract with a money person to sell his goods. While the
capitalist was a passive risk bearer, the merchant adventurer took the active role in trading, bearing
all the physical and emotional risks. The profit would be divided between the two of them with the
capitalist taking 75% while the merchant – adventurer settled for the remaining 25%Middle Ages
As time went by the term entrepreneur changed to describe both an actor and a person who
managed large production projects. This individual did not take any risks but merely managed the
project using the resources provided, usually by the government of the country. A typical
entrepreneur in the Middle Ages was the person in charge of great architectural works.
2. 17th Century
In this period, the evolution of entrepreneurship can be related with the relationship between risk
and entrepreneurs. The person associated with this period is Richard Cantillion an economist. He
development the early theories of entrepreneurship and is regarded as the one who developed the
term risk taker.
European colonization and discovery of new world trade routes opened up many entrepreneurial
opportunities.
Entrepreneurs were involved in shipping, slavery, banking, textiles, mining, plantations and global
trade of goods like spices, silk, sugar, tobacco, tea, gold, silver etc.
Mercantilism and chartered companies became prominent business models aided by patronage
from nobility and early forms of capitalism.
3. Industrial Revolution (mid-18th century - mid 19th century)
This is the period in which an entrepreneur was distinguished from the capital provider. One reason
for this differentiation was the industrialization occurring throughout the world.
The shift from agriculture to manufacturing using factories and machines began the Industrial
Revolution.
Entrepreneurs focused on industrial mass production like textiles, iron products, steam power,
mechanical devices, factories, etc. This scaled up manufacturing significantly.
Advances in transportation (railroads, ships), communication (telegraph), and finance (banks,
stock markets) aided new business ventures during this time.
Mass production in factories using electrical power and assembly lines emerged. This
revolutionized manufacturing efficiency.
Important new industries like steel, oil, electricity, telephones, automobiles, chemicals, retailing
arose.
4. 20th Century
In this era entrepreneurs were viewed as managers and mainly from an economic perspective. An
entrepreneur was seen as one who organizes and operates an enterprise for personal gain. He
contributes his own initiative, skills, and ingenuity in planning, organizing and administering the
enterprise. He also assumes the chance of loss and gain consequent to unforeseen and
uncontrollable circumstances.
In the 20th century, the understanding of entrepreneurship owes much to the work of the economist
Joseph Schumpeter. Schumpeter defines an entrepreneur as a person who is willing and able to
convert a new idea or invention into a successful innovation. Entrepreneurship employs what
Schumpeter called "the gale of creative destruction" to replace in whole or in part inferior
innovations across markets and industries, simultaneously creating new products including new
business models.
Some of the major activities involved in this period were:
• Assembly line techniques allowed mass production of affordable consumer goods. Henry
Ford's Model T automobile was a pioneering example.
• Entrepreneurship expanded beyond just manufacturing into services, technology, retail,
communications and media industries.
• After WWII, entrepreneurship in boomed where franchising became popular. Venture
capital emerged in the 1970s to fund new technology and startup ventures.
• Entrepreneurship grew into real estate, tourism, entertainment, leisure, transportation etc.
• The digital revolution and internet spawned new tech and web-based entrepreneurial
ventures.
• Entrepreneurial ecosystems with incubators, accelerators, angel investors emerged. Startup
culture became popular.
• Entrepreneurs leveraged IT, computers, mobile connectivity for new digital products,
services, and online businesses.
5. Currently 21st Century and future of Entrepreneurship
In this Era, entrepreneurs are known as a hero for free enterprise market. Entrepreneurs of the
century create many products and services and they are willing to face a lot of risks in the business.
Entrepreneurship continues evolving with gig economy, sharing economy, e-commerce, social
media influencers, and more online businesses.
Focus on sustainability, social responsibility, and impact entrepreneurship grows through
Government incentives and support schemes for startups and small businesses.
Globalized access to resources, tools, and markets enables more diverse entrepreneurship.
COVID-19 pandemic triggered a spike in new entrepreneurs and startups in fields like e-
commerce, remote work, delivery, and health.
Increased use of new technologies like artificial intelligence, blockchain, augmented/virtual
reality, and advanced robotics. Entrepreneurs will leverage these technologies for innovative
products, services and business models.
Rise of eco-entrepreneurship and sustainable business practices due to climate change concerns
and environmental degradation. The focus will be on green tech, renewable energy, sustainability.
The future of entrepreneurship will be more online, digital, and platform-based businesses with
increased e-commerce, internet-based services, digital payments and transactions.
References
• Carlsson, B. (1992). The rise of small business: Causes and consequences. Sing, J. L. (Ed.)
The economics of small firms: An European challenge. Springer.
• Fairlie, R. W., Morelix, A., Reedy, E. J., & Russell, J. (2015). The Kauffman index of
startup activity: National trends. Ewing Marion Kauffman Foundation.
• Global Entrepreneurship Monitor: [Link]
• Gupta, B. (2014). The origin of entrepreneurship. IIMB Management Review, 26(4), 267-
277. [Link]
• Kriz, A., Kaufmann, P., & Fink, M. (2020). Entrepreneurs Before Entrepreneurship:
Medieval Muslim Merchants. Journal of Business Venturing Insights, 13.
[Link]
• Kuratko, D. F. (2009). Entrepreneurship: Theory, process, practice. Cengage Learning.
• Landes, D. S., Mokyr, J., & Baumol, W. J. (2012). The invention of enterprise:
Entrepreneurship from ancient Mesopotamia to modern times. Princeton University Press.
• OECD Entrepreneurship and Business Statistics:
[Link]
• Okafor, G. O. (2014). Pre-colonial Economic Entrepreneurship in Africa. International
Journal of Research in Management & Business Studies, 1(1), 1-6.
CHARACTERISTICS OF A GOOD BUSINESS OPPORTUNITY
1. Alignment with Passion and Skills: When a business aligns with the founder's passion
and skills, there's a higher likelihood of sustained motivation and commitment. This
alignment can also lead to a better understanding of the industry and customer needs.
2. Low Capital Requirement: Accessibility to capital is often a hurdle for entrepreneurs. A
business opportunity with low financial barriers facilitates entry into the market, reducing
the risk and financial strain on the founder.
3. Clear Market Demand: Understanding and addressing a clear market demand is
fundamental. A business should offer a product or service that meets the needs and wants
of the target market, ensuring a viable customer base.
4. Scalability: Scalability allows a business to grow efficiently. A scalable model ensures that
increasing the customer base doesn't exponentially increase costs, maintaining or even
improving profit margins as the business expands.
5. Profit Potential: The ultimate goal of any business is to be profitable. A good opportunity
should demonstrate a clear path to generating revenue that exceeds operational costs,
ensuring sustainability and growth.
6. Availability of Resources: Adequate resources, including financial, human, and
infrastructural, are crucial. A well-defined plan should be in place, outlining how these
resources will be utilized effectively and efficiently.
7. Competitive Advantage: A unique selling proposition or a competitive advantage sets a
business apart from its peers. This could be in the form of innovative products, superior
customer service, or any other factor that provides added value.
8. Manageable Risks: Every business venture comes with risks. However, these risks should
be identified, understood, and manageable. A realistic assessment of potential challenges
and a mitigation plan are crucial for long-term success.
9. Relevance and Clarity: A business opportunity must be relevant to the current market and
societal needs. Additionally, a clear and well-defined business idea is easier to
communicate to stakeholders, customers, and investors.
10. Feasibility: A feasible business opportunity is one that is realistic and achievable. It should
be capable of helping the business achieve its objectives while ensuring efficiency and
profitability.
11. Legality: Operating within the legal framework is essential for long-term sustainability.
Complying with laws and social norms ensures the business is accepted and respected in
the community.
12. Growth: A good business opportunity should not be stagnant. It should exhibit potential
for growth in various aspects such as customer base, operations, market share, and
profitability.
13. Protection Ability: Intellectual property protection is crucial in many industries. Being
able to safeguard unique ideas, products, or services can provide a competitive edge and
long-term sustainability.
14. Uniqueness: Standing out in a crowded market is vital. A unique value proposition makes
it easier for the business to attract attention and differentiate itself from competitors.
In conclusion, entrepreneurs should carefully evaluate potential business opportunities based on
these characteristics to enhance the likelihood of success and sustainability. These criteria provide
a comprehensive framework for assessing the viability and potential of a business idea.
REFERENCES
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