Importance of Entrepreneurship – JSS1 Business Studies Lesson Note (Second Term)

Entrepreneurship is important because it creates jobs, improves the standard of living in a locality and makes a wide variety of goods and services available to people. Entrepreneurs develop new products, techniques and markets. They also assemble and coordinate resources to form organisations that achieve set objectives.

Behavioural objectives

By the end of the lesson, students should be able to:

• state why entrepreneurship is important to a locality;
• list the advantages of entrepreneurship;
• describe how an entrepreneur solves a problem;
• state the contributions of entrepreneurs to national objectives;
• explain how entrepreneurship results in the creation of organisations.

Why is entrepreneurship important?

Entrepreneurship benefits the locality by creating jobs for people and leads to a better standard of living.

What are the advantages of entrepreneurship?

• Entrepreneurship helps in identifying and developing managerial capabilities.
• It helps in making a wide variety of goods and services available to people and so improves their standard of living.
• Entrepreneurs contribute significantly towards national objectives in income generation and distribution, regional development of the economy, and increasing the total output of goods and services.
• Entrepreneurs develop new products, new techniques, new assembly lines and new markets.
• Entrepreneurs who are self-dependent use locally available resources.

How does an entrepreneur solve problems?

An entrepreneur studies a problem, identifies its alternatives, compares the alternatives in terms of cost and benefit implications, and finally chooses the best alternative.

How does entrepreneurship create organisations?

Entrepreneurship results in the creation of organisations when entrepreneurs assemble and coordinate physical, human and financial resources. They then direct these resources toward the achievement of objectives through managerial skills.

Evaluation

1. State two ways in which entrepreneurship benefits a locality.
2. List four things that entrepreneurs develop.
3. Describe the steps an entrepreneur follows to choose the best alternative to a problem.
4. Name the three kinds of resources that entrepreneurs assemble and coordinate to create an organisation.

Assignment

Write a short note on how entrepreneurs contribute to national objectives. Mention the three areas given in your notes.