ENTREPRENEURSHIP IN HOSPITALITY & - Social entrepreneurship is aimed at

TOURISM transformational systems change that

tackles the root causes of poverty,
CHAPTER 1: INTRODUCTION TO environmental deterioration, marginalization
ENTREPRENEURSHIP and accompanying loss of human dignity.

ENTREPRENEURSHIP “SEARCH FOR APPROACHES TO MOVE POOR

PEOPLE OUT OF POVERTY BEYOND
“Entrepreneurship is the purposeful activity of WELFARE-BASED SAFETY NETS”
an individual or a group of associated
individuals, undertaken to initiate, maintain or
aggrandize profit by production or distribution of
economic goods and services”
- A.H. Cole

“Entrepreneurship is based on purposeful and

systematic innovation. It included not only the
independent businessman but also company
directors and managers who actually carry out
innovative functions”
- Joseph A. Schumpeter

“Entrepreneurship is the process by which

individuals pursue opportunities without regard
to resources they currently control”
- Stevenson & Jarillo

“Entrepreneurship is the art of turning an idea

into a business”
- Fred Wilson
THE TRIPLE BOTTOM LINE
ENTREPRENEURSHIP
- The activity of setting up a business or
businesses, taking on financial risks in the
hope of profit.
- Is the act of creating a new business or a
new business model based on an original
idea.

FORMS OF ENTREPRENEURSHIP
- SOCIAL ENTREPRENEURSHIP
- BUSINESS ENTREPRENEURSHIP
- TECHNO ENTREPRENEURSHIP ABILITY OF SOCIAL ENTREPRENEUR
- Adopt a mission to create and sustain social
SOCIAL ENTREPRENEURSHIP value; not just commercial value
- Innovation, market-orientation approaches - Recognize and persistently pursue new
strengthen by the passion for social equity opportunities to serve the mission
and environmental sustainability.
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 - Engage in a process of continuous The activity of entrepreneurship is
innovation, adaptation, and learning undertaken with sole objective of making the profit.
- Act boldly without being limited by
resources currently in hand It is also the reward of the efforts made and
- Exhibit a heightened sense of accountability risk taken by the entrepreneur.
to the constituencies served and for the
outcomes created Risk Bearing
Willingness to assume the risk is the
BUSINESS ENTREPRENEURSHIP essence of entrepreneurship without which
- Business for profit he/she cannot succeed.
- The study of systems, structure and
staffing to make a large corporation stay It occurs due to the creation and
competitive, innovative and profitable on a implementation of new ideas. Such ideas are
sustainable basis. often uncertain and so the result may or may not
be positive and instant.
TECHNO ENTREPRENEURSHIP
- The entrepreneurship in the technology ENTREPRENEURIAL PROCESS
area and the person who undertakes The Entrepreneurship Process can be
Techno-entrepreneurship is termed as expressed as a set of procedures and
Techno-entrepreneur methodologies that are followed by entrepreneurs
- Creating and capturing value for the firm for establishing a new business or venture.
through projects that combine
specialists and assets to produce and
adopt technology

CHARACTERISTICS OF ENTREPRENEURSHIP
1. Economic Activity
2. Creativity and innovation
3. Profit
4. Risk Bearing

Economic Activity
Entrepreneurship is an economic
activity, it involves designing, launching and Discovery
running a new business enterprises in order to earn - An entrepreneurial process begins with
the profit, by ensuring best possible use of the idea generation, wherein the
resources. entrepreneur identifies and evaluates the
business opportunities.
Creativity and innovation
It involves discovering new ideas and Developing a Business Plan
implementing it in business. - This step involves developing a successful
The entrepreneur continuously evaluates business plan to exploit the identified
current modes of running a business and opportunity.
identifies new methods and techniques for - Developing a business plan involves
operating the business more efficiently and setting goals, standards, methods, and
effectively. techniques of achieving those set goals
- A well-drafted business plan serves as a
Profit road map to the entrepreneur to guide and
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 monitor his/her activities towards the set CHAPTER 2: THE ENTREPRENEURS
goals ENTREPRENEUR
- Is someone who develops a business
Resourcing model, acquires the necessary physical and
- In this step, the entrepreneur identifies the human capital to start a new venture, and
sources from where the finance and the operationalizes it and is responsible for
human resource can be arranged. its success or failure.
- The entrepreneur also finds the investors
for its new venture and the personnel to Characteristics of Entrepreneur
carry out the business activities. ● Creativity
● Professionalism
Managing the company ● Risk-taking
- After resourcing the funds and employees, ● Passion
an entrepreneur must decide the ● Planning
management structure or the hierarchy that ● Knowledge
is required to solve the operational ● Social Skills
problems when they arise ● Open-mindedness toward learning, people
and even failure
Harvesting ● Empathy
- The final step in the entrepreneurial ● The customer is everything
process is harvesting wherein, an
entrepreneur decides on the future Creativity
prospects of the business - Entrepreneurs usually have the knack to pin
- The actual growth is compared against down a lot of ideas and act on them.
the planned growth and then the decision - Creativity helps in coming up with new
regarding the stability or the expansion of solutions for the problems at hand and
business operations is undertaken allows one to think of solutions that are out
accordingly, by an entrepreneur. of the box.
- It also gives an entrepreneur the ability to
Role of Entrepreneurship in Economic devise new products for similar markets to
Development (NOT PART OF QUIZ) the ones he’s currently playing in.

1. Promotes Capital Formation Professionalism

2. Creates Large-Scale Employment - An entrepreneurs mannerisms and behavior
Opportunities with their employees and clientele goes a
3. Promotes Balanced Regional Development long way in developing the culture of the
4. Reduces Concentration of Economic Power organization.
5. Wealth Creation and Distribution - Self-discipline enables an entrepreneur to
6. Increasing Gross National Product and Per achieve their targets, be organized and set
Capita Income an example for everyone.
7. Improvement in the Standard of Living - Reliability results in trust and for most
8. Promotes Country’s Export Trade ventures, trust in the entrepreneur is what
9. Induces Backward and Forward Linkages keeps the people in the organization
10. Facilitates Overall Development motivated and willing to put in their best.

Risk-taking
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 - Without the will to explore the unknown, - The better entrepreneur knows his
one cannot discover something unique, and playground, the easier he can play in it.
this uniqueness might make all the
difference. Social Skills
- Entrepreneurs have a differentiated - Social skills make up the qualities required
approach towards risks. for an entrepreneur to function.
- Evaluation of the risk to be undertaken is Social Skills involve the following;
also essential. Without knowing the ● Relationship Building
consequences, a good entrepreneur ● Hiring and Talent Sourcing
wouldn’t risk it all. ● Team Strategy Formulation

Passion Open-mindedness towards learning, people,

- Passion acts as a driving force, with which, and even failure
you are motivated to strive for better, enjoy - To recognize openings, an open-minded
what you’re doing and stay highly attitude is required
motivated. - An entrepreneur should be determined. He
- It also allows you the ability to put in should face his losses with a positive
those extra hours in the office which can attitude and he wins, humbly. A good
or may make a difference. businessman will know not to frown on a
- At the beginning of every entrepreneurial defeat.
venture or any venture, there are hurdles - Learning with an open mind lets you look at
but your passion ensures that you are able your faults humbly. Open-mindedness also
to overcome these roadblocks and forge enables you to know and learn from your
ahead towards your goal. competition.

Planning Empathy
- Without planning, everything would be a - Empathy is the understanding of what goes
loose string as they say, “If you fail to plan, on in someone’s mind. A good
you plan to fail”. entrepreneur should know the strengths
- Planning is strategizing the whole game and weaknesses of every employee who
ahead of time. It basically sums up all the works under him.
resources at hand and enables you to - Unhappy employee are not determined and
come up with a structure and a though as an entrepreneur, it is up to you to create
process for how to reach your goal. a working environment where people are
- Facing a situation or a crisis with a plan happy to come.
is always better. It provides guidelines with - Keeping a workplace light and happy is
minimum to no damage incurred to a essential. For without empathy, an
business. entrepreneur cannot reach the hearts of
employees nor the success he desires.
Knowledge
- An entrepreneur should possess complete Customer is everything
knowledge of his niche or industry. - A business is all about the customer.
- It enables him to keep track of the How can you grab a customer’s attention is
developments and the constantly the first step.
requirements of the market that he is in. - It is also important that you know the needs
- A good entrepreneur will always try to of your customers.
increase his knowledge, which is why he is
always a learner.
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 - The product or service which is being - Risk-taking is the most important function of
created by your organization needs to cater an entrepreneur. Modern production if very
to the needs of your consumers. risky as an entrepreneur is required to
- The ability to sell yourself in front of a produce goods or services in anticipation of
potential investment when it comes in the their future demand.
form of a customer is also required. Being
ready with the knowledge to please a Two Kinds of Risk
customer, is a way to have a successful ● Measurable and insurable risks
business. ● Uncertainty

Functions of Entrepreneur Innovation

1. Decision Making - Entrepreneur must make frequent
2. Management Control inventions.
3. Division of Income - Invention of new products, new techniques
4. Risk-Taking and Uncertainty and discovering new markets to improve
5. Innovation competition position and to increase
earnings.
Decision Making
- The primary task of an entrepreneur is to Types of Entrepreneur
decide the policy of production. ● According to the type of business
- An entrepreneur should answer the ● According to the use of technology
following questions: ● According to the motivation
1. What to produce? ● According to the growth
2. How much to produce? ● According to the area
3. How to produce? ● According to the gender and age
4. Where to produce? ● According to the sale of operation

Management Control According to the type of business

- Management and control of the business ● Business Entrepreneur
are conducted by an entrepreneur ● Trading Entrepreneur
himself. ● Industrial Entrepreneur
- Entrepreneur must possess a high degree ● Corporate Entrepreneur
of management ability to select the right ● Agricultural Entrepreneur
type of persons to work with him. ● Retail Entrepreneur
● Service Entrepreneur
Division of Income
- An entrepreneur makes a necessary According to the Use of Technology
arrangement for the division of total income ● Technical Entrepreneur
among different factors of production ● Non-Technical Entrepreneur
employed by him. ● Professional Entrepreneur
- Even if there is a loss in the business, he is
to pay rent, interest, wages and other According to the Motivation
contractual incomes out of the realized ● Pure Entrepreneur
sale proceeds. ● Induced Entrepreneur
● Motivated Entrepreneur
● Spontaneous Entrepreneur
Risk-Taking and Uncertainty-Bearing
According to the Area
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 ● Urban Entrepreneur
● Rural Entrepreneur How to avoid failure in a Entrepreneurial
Business
According to the gender and age 1. Know your business in depth
● Men Entrepreneur 2. Develop a good, effective and solid
● Women Entrepreneur Business Plan
3.
According to the sale of operation 4. Manage your financial resources effectively
● Small scale Entrepreneur 5. Have a thorough and complete financial
● Large scale Entrepreneur statement
6. Learn hire and manage people effectively
Classification of Entrepreneurs 7. Keep physically fit, consume healthy food,
● Innovating Entrepreneurs and avoid addictive consumption cigarettes
● Imitative Entrepreneurs and alcohol
● Fabian Entrepreneurs
● Drone Entrepreneur

Innovating Entrepreneurs
- Is one who introduces a new goods,
inaugurates new method of production,
discovers new market and reorganizes the
enterprise.

Imitative Entrepreneurs
- These are characterized by readiness to
adopt successful innovations inaugurated
by innovating entrepreneurs.

Fabian Entrepreneurs
- These are characterized by a great caution
and skepticism in experimenting any
changes in their entreprises.

Drone Entrepreneurs
- These are characterized by a refusal to
adopt opportunities to make changes in the
production formulae even at the cost of
severely reduced returns relative to the
other like producers.

Barriers to Entrepreneurs
1. Lack of viable concept
2. Lack of market knowledge
3. Lack of technical skills
4. Lack of capital
5. Lack of business know how
6. Time presences and distractions
7. Legal constraints and regulations
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