Entreprenuership Education – SS2 Book Keeping Lesson Note (Second Term)

Entrepreneurship is the capacity and willingness to develop, organise and manage a business venture, along with its risks, to make a profit.

Behavioural objectives

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

1. Define an entrepreneur, an enterprise, a business and entrepreneurship.
2. State the characteristics of an entrepreneur.
3. Distinguish between an enterprise and a business.
4. Explain the importance of entrepreneurship.
5. Describe the problems of entrepreneurship in Nigeria.

Who is an entrepreneur?

An entrepreneur is the individual or group of people who starts a business, bears its risks and is responsible for its success or failure.

• Owner: the entrepreneur is referred to as the owner of the business.
• Business model: the entrepreneur develops the business idea and acquires the human and other resources needed.
• Coordinator: the entrepreneur organises, controls and directs the process of production to make a profit.
• Factor of production: the entrepreneur is one of the four factors of production.

What are the four factors of production?

The four factors of production are land, labour, capital and entrepreneur.

What are the characteristics of an entrepreneur?

The characteristics of an entrepreneur are the roles and qualities that mark a person out as the owner and organiser of a business.

• Risk bearing: the entrepreneur bears the risk of the business, including any loss.
• Control: the entrepreneur controls the other factors of production.
• Decision making: the entrepreneur decides the course of production.
• Organisation: the entrepreneur brings land, labour and capital together.
• Creativity: the entrepreneur looks for new ideas, products and ways of working.
• Hard work: the entrepreneur is ready to work long hours to make the business succeed.
• Leadership: the entrepreneur guides and motivates the workers.

What is an enterprise?

An enterprise is a business set up by an individual, a group of individuals or a government to provide goods and services for a purpose.

There are three types of enterprise: private, public and voluntary agency enterprises.

• Private enterprise: owned by one person or a group of people to make profit, such as a provision store or a tailoring shop.
• Public enterprise: owned and run by the government to provide services to the public, such as a government-owned corporation.
• Voluntary agency enterprise: set up by people who join together to serve members or the community, such as a cooperative society or a charity group.

What is a business?

A business is an economic activity performed to produce goods or services that provide satisfaction for consumers.

• Goods: things you can touch, such as bread, shoes and books.
• Services: work done for others, such as haircutting, teaching and transport.

What is the difference between an enterprise and a business?

An enterprise is the organisation set up to provide goods and services, while a business is the economic activity carried out to supply them.

What is entrepreneurship?

Entrepreneurship is the capacity and willingness to develop, organise and manage a business venture, along with any of its risks, to make a profit.

• Process: it is the process of starting a business or other organisation.
• School subject: it is taught in schools because it helps to bring about the development needed to meet the needs of the country.

What is the importance of entrepreneurship?

Entrepreneurship is important because it creates work, income and goods and services for the people and the country.

• Work and national development: it gives people a way to work and contribute to the development of the country.
• Economic growth: it creates economic activities that produce goods and services and give people a source of income.
• Employment: it creates job opportunities for the entrepreneur and for the workers hired.
• National progress: it helps to raise the standard of living and develop the country.
• Creativity: it helps an individual to be creative.
• Variety of goods and services: entrepreneurs produce many goods and services alongside imported ones, so people have more choice.
• Livelihood: it serves as a means of earning a living.

What are the problems of entrepreneurship in Nigeria?

The problems of entrepreneurship in Nigeria are the difficulties that make it hard to start, run and grow a business.

• Corruption: entrepreneurs may be forced to pay illegal levies, and some officials demand bribes before approving factory plans or granting loans.
• Inconsistent government policies: political instability leads to unstable policies, and each change in government may bring new rules on registration and on financial help for entrepreneurs.
• Security problems: kidnapping, robbery, communal clashes and insurgency in some areas create fear and make business owners lose goods, money and customers.
• Difficulty in obtaining capital: the cost of starting a business is high because of corruption and poor infrastructure.
• Poor infrastructure: inadequate electricity, bad roads and weak water supply raise the cost of production.
• Lack of technical and managerial know-how: the entrepreneur needs basic technical knowledge of the enterprise and some knowledge of management, and without them the business suffers.

Evaluation

1. Who is an entrepreneur?
2. State three characteristics of an entrepreneur.
3. Define entrepreneurship.
4. State four reasons why entrepreneurship is important.
5. Explain two problems of entrepreneurship in Nigeria.

Assignment

Distinguish between an enterprise and a business, then explain how entrepreneurship creates employment opportunities and provides a variety of goods and services.