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. An entrepreneur is the owner who bears that risk and coordinates the other factors of production. This note covers the entrepreneur, the enterprise, the business, the importance of entrepreneurship and its problems in Nigeria.

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. Explain the importance of entrepreneurship.
4. Describe the problems of entrepreneurship in Nigeria.

Who is an entrepreneur?

The entrepreneur is the individual or group of people who develops a business model, acquires the human and other required resources, and is fully responsible for its success or failure. The entrepreneur is referred to as the owner of the business. The entrepreneur is the person who coordinates, controls and organises the process of production to make a profit. The entrepreneur is one of the factors of production.

What are the characteristics of an entrepreneur?

The following are attributes of an entrepreneur:

1. They bear the risk of the business.
2. They control other factors of production.
3. They decide the course of production.
4. They organise the other factors of production.

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. An enterprise can be a private, public or voluntary agency enterprise.

What is a business?

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

What is entrepreneurship?

Entrepreneurship can be defined as the capacity and willingness to develop, organise and manage a business venture along with any of its risks to make a profit. It is the process of starting a business or other organisation. Entrepreneurship is seen as an important course that needs to be taught in schools because it will bring about the development that is necessary to meet the needs of the country.

What is the importance of entrepreneurship?

1. It creates an avenue for people to work and contribute to the development of the country.
2. It brings about development in the economy, i.e. it creates various economic activities which lead to the production of goods and services and therefore provide a source of income for the people.
3. It creates employment opportunities.
4. It helps to uplift the country.
5. It helps an individual to be creative.
6. It makes room for a variety of goods and services. Entrepreneurs produce many goods and services alongside the imported ones, so people have more choice.
7. It serves as a means of livelihood.

What are the problems of entrepreneurship in Nigeria?

Some of the problems of entrepreneurship in Nigeria are as follows:

1. Corruption: In some situations, entrepreneurs are forced to pay illegal levies. Corrupt government officials demand bribes before approving factory plans and even before granting loans.
2. Inconsistent government: Political instability leads to unstable government policies, which affects the development of entrepreneurship in Nigeria. Each change in government brings new regulations on registration and on financial assistance to entrepreneurs in need.
3. Security problems: This is a very serious problem for entrepreneurship in Nigeria. There are Boko Haram and Fulani herdsmen in the north, Niger Delta militants in the south-south, kidnapping and robbery in the south-west, and rape cases everywhere, so there is fear everywhere.
4. The problem of obtaining capital to start a business: The cost of starting a business in Nigeria is high because of corruption and the poor and inadequate supply of infrastructural facilities.
5. Lack of technical and managerial know-how: The entrepreneur is expected to have basic technical knowledge of the enterprise and some knowledge about the management of his or her chosen business. Failure to have this will cause problems in the business.

Evaluation

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

Assignment

1. Distinguish between an enterprise and a business.
2. Explain how entrepreneurship creates employment opportunities and provides a variety of goods and services.