ENTREPRENEURSHIP Table of Contents INTRODUCTION ..................................................................................................................................... 2 DEFINITION OF ENTREPRENEURSHIP ........................................................................................... 2 CHARACTERISTICS AND TRAITS OF ENTREPRENEURS ........................................................... 2 Table 1. Characteristics and Traits of Entrepreneurs .................................................................................... 3 ENTREPRENEURS: BORN OR MADE? .............................................................................................. 3 Figure 1: Components that produce an Entrepreneur ................................................................................... 3 ENTREPRENEURIAL PHILOSOPHY .................................................................................................. 4 Table 2. Entrepreneur Life Factors Chart ............................................................................................................ 4 BEING ENTREPRENEURIAL IN YOUR FUTURE CAREER ............................................................ 5 Career Attitude ................................................................................................................................................ 5 Mental Attitudes .............................................................................................................................................. 6 Habits And Attitudes ...................................................................................................................................... 6 Importance Of Attitudes ............................................................................................................................... 6 ENTREPRENEURSHIP & INNOVATION IN THE CONSTRUCTION INDUSTRY ...................... 7 CONCLUSION ........................................................................................................................................... 7 References .......................................................................................................................................................... 8 Further Reading: .............................................................................................................................................. 8 INTRODUCTION The term Entrepreneur emerges from the French vocabulary literally meaning to take or go between. Over the years, the word has evolved to mean landowners who exploited the resources on the lands to inventors, creators and businessmen/women or undertakers usually associated with large government contractors. This is similar to the term projectors representing the English counterpart of the word (dated ‐ a person who devises or manages projects or a planner). Undertaker was used to describe primarily an arranger of funerals in the past but was eventually restructured by the capitalist to also mean entrepreneur. In all the above, the words Undertaker, Projector and Entrepreneur were used to describe individuals who risked their wealth in establishing a business concern. Despite the semantics used in describing an entrepreneur, the evolution of the concept has continued to embrace new realities of business formation and development. Awareness of the importance of Entrepreneurial Skills dates back beyond the beginning of written history. DEFINITION OF ENTREPRENEURSHIP Entrepreneurship can be defined as the (1) art or science of innovation and risk‐taking for profit in business or "one who undertakes innovations finance and business acumen in an effort to transform innovations into economic goods"; (2) act of being an entrepreneur. This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred to as Start up companies); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. Entrepreneurship can be radical or incremental and a function of innovation. CHARACTERISTICS AND TRAITS OF ENTREPRENEURS Entrepreneurs are people who have developed the ability to see and evaluate business opportunity; to gather the necessary resources; to take advantage of the resources gathered; and to initiate an appropriate action plan to ensure success. Entrepreneurial process is faced with diversity of approaches, which makes it difficult to appraise the concept and to identify who the entrepreneur is. Entrepreneur can be defined as follows: i. A person who sets up a business or businesses, taking on financial risk in the hope of profit (Concise Oxford Dictionary, 2008); ii. An individual who undertakes an enterprise or an employer of workmen (New American Dictionary, 2008); iii. An organizer of an economic venture, especially one who organizes, owns, manages and assumes the risk of a business (Third International Dictionary, 2009). From the above definitions, it is obvious that entrepreneurs are action – oriented, highly motivated individuals who take on risks to achieve the goals of business. The following list of characteristics and traits presented in Table 1, provide a working profile of entrepreneurs: 2 Table 1. Characteristics and Traits of Entrepreneurs CHARACTERISTICS TRAITS Self confidence Task – result oriented Confidence, individuality, optimism Need for achievement, profit–oriented, persistence, perseverance, determination, hard work, drive, energy, initiative Risk–taking ability, likes challenges Leadership behaviour, gets along with others, responsive to suggestions and criticisms Innovative, creative, flexible (openness of mind), resourceful, versatilale, knowledgeable Oversight, perceptive Risk – Taker Leadership Originality Future – Oriented Table 1 lists traits we all possess as individuals or have potential to develop if we so desire. We may not have all these traits; but the more we have, the greater the chance of our becoming an entrepreneur. It should be mentioned that many of these traits are highly inter‐related i.e. people who are self – confident will probably accept responsibility for their own decisions, be willing to take risks, and become leaders. These traits are enhanced and developed over a period of time leading to a mind set change/turn around. Not all entrepreneurs are alike, either in these 25 traits listed or in their personal qualities. Often, entrepreneurs differ distinctly from each other; some are aloof and arrogant; some are warm and friendly; some are withdrawn and shy. But when measured on various personal traits and skills it is clear that as a group, entrepreneurs differ substantially from non‐entrepreneurs. ENTREPRENEURS: BORN OR MADE? The question of whether entrepreneurs are born or are made is based on the age old question of nature versus nurture. Figure 1 shows the components that produce an entrepreneur adopted from Seelig (undated). Figure 1: Components that produce an Entrepreneur 3 According to Seelig (undated), knowledge is the toolbox for imagination. Imagination transforms knowledge into fresh ideas. This process is deeply influenced by resources, habitat and culture. While attitude which is shaped by an individual’s beliefs and factual knowledge, is the spark that sets the entire innovation engine into action. Can education only provide a person with the knowledge to recognize innovation and its potential business opportunity? Education is not enough. While a solid education can help an individual in their ability to recognize a business opportunity, the educational system is linear and one‐dimensional and is not flexible enough to encourage and allow for entrepreneurial spirit to be realized by all. The tacit knowledge that an entrepreneur has, has been instilled into his/her mental (make‐up) from a young age and it is deep rooted in solid education, upbringing, life experiences and exposure (resources, habitat an culture). This knowledge can help an individual in their ability to recognize a business opportunity, however, the individual must also be able to turn that opportunity into reality and this is where his attitude to and passion for the particular endeavour comes into play. An education/knowledge acquired can help a person foster these characteristics, but it is ultimately the person who must pursue their development or simply recognize their existence. ENTREPRENEURIAL PHILOSOPHY According to Omeife (2007), success as an entrepreneur depends on willingness to accept responsibility for own work; ability to learn a great deal about onesself if one intends to pursue goals, which are compatible with what is most desired in life. Most entrepreneurs have definite goals and expectations. The first column in Table 2 lists some life factors, a consideration of which will enable a better understanding of individual backgrounds and future direction. The next three columns will help determine desired goals for each factor; current situation regarding each goal; and plans for achieving each goal. The list of entrepreneurial life factors on the chart is not exhaustive, and other items can be added. Completing the chart, will enable an individual to have a better sense of self as a whole integrated humanbeing. The more an individual can integrate various life goals, the better entrepreneur the person will be. Table 2. Entrepreneur Life Factors Chart Factor Desired goal Current situation Plans for achieving goal Career advancements Business improvement Financial affairs Physical well‐being Education Family 4 Recreation Business associates Friendships Community service Self‐improvement Business opportunities Security Others: BEING ENTREPRENEURIAL IN YOUR FUTURE CAREER Being an entrepreneur is more than a job or a career: it is a life‐style, and certain principles may influence career strategies of a prospective entrepreneur. The following are fundamental factors that assist in shaping the thoughts of would be entrepreneurs: Career Attitude a. Select a career, which will allow you freedom to express yourself creatively as well as permit personal and professional growth. Don’t underestimate your abilities and talents. b. When setting out on your career, pattern your actions after successful people who are in the same kind of occupation. c. Know as much about your chosen career as possible. This knowledge will help you to become an expert in that particular type of work d. Always try to improve and be innovative e. Because everything is constantly changing, you must change also f. Be action‐oriented g. Have a good understanding of your personal strengths and weaknesses h. Follow a routine in your daily activities to allow yourself more time to be entrepreneurial i. When personally involved in a project, accept responsibility for seeing that the activity will be successful. 5 j. Be confident k. Your personal appearance will affect your self‐image l. Making decisions is an essential quality of successful entrepreneurs and top business executives m. Live in the present and waste no time reliving past failures. Career objectives should be stated in terms of priorities, and the intended outcomes should be related to measurable and meaningful goals. These objectives should be challenging, and should motivate you to learn and grow in your career. You learn best when doing things which interest you, and when you are committed to specific goals. You should look at your personal qualities in a realistic manner. Mental Attitudes a. Entrepreneurs are people who know how to find satisfaction in work and are proud of their accomplishments b. The mind is a powerful tool full of ideas c. Most people limit their thoughts to their day‐to‐day problems and activities and leave out the bigger picture d. Mentally, an entrepreneur is highly organized, with an ability to focus on a variety of problems. You should be able to move your attention from one problem area to another with a minimum of effort. Habits And Attitudes a. Good habits are difficult to master, but once acquired they become important assets. Many top executives have acquired the habit of starting work early in the morning. Getting up two or three hours earlier than usual might be one way of becoming more productive. This might require a great amount of effort, and be inconvenient. However, if the budding entrepreneur is able to follow this practice every day for a month, the activity will become a habit. b. planning the next day’s important activities before going to sleep each night. Importance Of Attitudes Entrepreneurs use their attitudes to control conditions. A positive mental attitude helps maintain a focus on desired activities and events and on the results hoped for. Even negative experiences will contain something positive. Entrepreneurs have a positive mental attitude towards all events and look for benefits from every experience. A positive mental attitude is developed over a long period of time and the following are factors useful in developing a positive mental attitude: a. Concentrate only on being involved in positive activities. b. Select positive objectives in your work. c. Associate with people who think and act in an entrepreneurial manner. d. Avoid negative thoughts and ideas. e. Recognize that you control your mind and use it productively. 6 f. Be constantly alert for opportunities to improve your situation, whether it be your personal life, or life in the community. g. Don’t be afraid to give up an idea if it is not producing the right results. h. The environment in which you live will affect your performance. i. Believe in yourself and your talents. Success comes to those who have faith in their own abilities and use their abilities to the fullest extent. j. Relieve mental stress by taking action. ENTREPRENEURSHIP & INNOVATION IN THE CONSTRUCTION INDUSTRY The construction industry plays an important role in the economy of any nation. The Industry is very vital because of its characteristics. Firstly its size, secondly because it provides predominantly investment goods, and thirdly, that government is the major client. In addition, the construction industry provides one of the three basic needs of mankind (Maslow’s Needs Theory) i.e. shelter. In the construction industry, it is evident from the number of small contractors that there are, that there is a belief that there is more return from being an entrepreneur/tenderpreneur. The opportunities opened to Construction Professionals as end users of building materials and components are enormous. The training of a construction professional, avails him the exposure necessary to go into any of the following areas of specialization in the construction industry: - Property Development - Contracting services - Building materials and components manufacturer - Specialized services e.g. Curtain walling/window and doors Suspended timber floors Scaffolding Builder’s Merchant Interior Decorator Specialist subcontractors - Consortium - Journalism and Publishing - Film making - Teaching and research The notable area in which a Construction Professional can utilise his entrepreneurial ability is in the area of contracting/tenderpreneur, employing the use of best practices, delivering high quality work, on time and within the agreed budget. It is in this area that the training of a construction professional can best be appreciated. CONCLUSION Though all the traits of entrepreneurs are innate, these traits are however concealed, to varying degrees, by an individual’s negative programming and influences. 1. An important feature of being entrepreneurial is that an enterpreneur provides something of value to others. The greater the need people have for an entrepreneur’s product or service, the greater his rewards will be. If you work to 7 help other people, to raise their standards of living and to improve their lives, you will be serving the needs of society. This is the meaning of being an entrepreneur. 2. Many people go through life wishing that they were someone else or that they were doing another type of work. Most people have a desire to change their life situation. But few people take any action to do so. 3 A small proportion of people are willing to take risks to change their lives for the better. These people are entrepreneurial because they take advantage of opportunities to improve their lives. The true entrepreneur is the person who is constantly changing and growing. 4 Having a positive attitude and a healthy self‐image is essential for all entrepreneurs. References Concise Oxford Dictionary (2008) 11th Ed., Oxford University Press Omeife, C. (2007) Developing Entrepreneurship Skills, In Proceedings of a 2‐Day Workshop on Regulating the Construction Practice, Windapo, A. O. Ed., 18‐19 July, 2007, University of Lagos, Akoka Seelig, T. (undated) The Innovation Engine, Stanford Executive Briefings. Further Reading: Banmol, W. (1968); Entrepreneurship in Economic Theory”. American Economic Review Drucker, P.F. (1974); Management, Tasks, Responsibilities Practices. New York, Harper and Row. Drucker, P.F. (1964); Managing for Results. New York, Harper and Row. Nwachukwu, C.C. (1990); The Practice of Entrepreneurship in Nigeria, Onitsha, Africana. Meredith G.G, Nelson R.E, Neck P.A (1982) The Practice of Entrepreneurship. Geneva International Labour Organization. Ventrella S.W. (2001); The Power of Positive thinking in Business. London, Pitman. 8