The Importance Of Developing Entrepreneurial Skills Commerce Essay

The Importance Of Developing Entrepreneurial Skills Commerce EssayThe importance of the development of entrepreneurial acquisitions by e truly graduate can non be over-emphasized because gone argon the days when employments were available ein truthwhere both in the private and public sector of the economy and employers go about manifestationing for potential employees to employ. so, in the past, it is the employers that go round universities in this country to hunt for potential employees. Then there were fewer universities and grim university enrolment. But today, things capture changed and actually drastic onlyy too such(prenominal) that many graduates argon now sellers of recharge cards and roughly shit as bus conductors. What an economical tragedy and waste The question of choice of subscriber line or employer is gradually being eroded each year. Many graduates are desperate to get any job to keep body and soul going. Indeed there is a paradigm shift in the labour mar ket now. Even the professional disciplines are now fast getting into that problem of unemployment.employ prospects for the youths are changing with a lot of change magnitude competition the openings are competently limited. Also, employment in the public sector is in like manner decreasing and job prospects are diminishing by the day. Added to this ugly situation are the increasing trend of job outsourcing, casualization of labour in the oil and gas industry and the increasing phenomenon of rightsizing of labour among big firms and corporations in the country. As a side effect, the figure of tertiary graduates who have not been able to secure the head start employment since outset for upward of five years is on the increase and even those with professional qualifications like MBA, ICAN, COREN, Medicine and Pharmacy are not spared from the ugly phenomenon. Others are paying(a) peanuts if they are lucky to secure paid job. Some now fall back on their lower qualifications like WA SC and OND to secure menial jobs.The recent economic meltdown as well as has do matters worse. Some companies are as a result operating below expected capacity. The current troubles in the financial sector, curiously the money and the capital markets and their subsequent effects on the economy, particularly on the real sector as well as the remedial efforts of the CBN are very visibly glaring, instructive and challenging.Nevertheless, entrepreneurship and indeed the need for developing the requisite entrepreneurial skills have been suggested to help redress the aforementioned problems by making people not only to be job creators simply wealth creators (Midea, 2004 Izedonmi, 2009). According to Small crease Service (2005), the possession of entrepreneurial skills to create raw knowledge found brotherly enterprises is vital to addressing mixer and environmental issues usefully. Our nation cannot afford to toy with it. Our tertiary institutions must respond fast and positive ly towards entrepreneurship education. However, world-wide line of credit skills and common knowledge are considered insufficient to turn graduates into entrepreneurs (Kisby, 2004). Hence, the need to develop specific entrepreneurship skills cannot be overemphasized .This is because entrepreneurship has been vital to creating employment and therefore a special form of employability (Moreland, 2004). two the government and the academia have been attracted to it. In particular, universities are re-designing their curricula and the ways they operate to create opportunities for the training of their students in practical entrepreneurial skills. Due to the way entrepreneurial programmes have assumed a global proliferation and dimension, it was suggested by Volkmann (2004) that it has become the major academic discipline for business education in the 21st century. I completely agree with him.Economic Growth And EntrepreneurshipRecent Survey Report in 2008 by the Kauffman Foundation i n connection with the relationship amid economic development and entrepreneurship found that all nations with laid-back level of employment activities had above average rate of economic offshoot. What this translates into is that entrepreneurial deficient economy will have low growth while entrepreneurially good economy tends to enjoy good growth. Hence, Government has come to recognize the importance of entrepreneurship in economic development that entrepreneurial acts have in-built capacity to promote employment and economic growth.Literature ReviewOne of the first courses specifically addressing entrepreneurship was established at the Harvard Business School in 1947.In the U.K, the first courses in entrepreneurship were put ined in the 1980s together with the UKs first initiative for enterprise in higher education (Elton, 1991, Kirby, 1989 2005, Volkmann, 2004). Along this line, Fry (1992) remarks that entrepreneurship has been one of the fastest evolution disciplines in t he U.S.A in the 1990s.By the turn of the 21st century, as many as 1600 universities in the North-America were offering courses in entrepreneurship compared to merely two dozens in the mid-seventies (Inegbenebor, 2005). The growth of entrepreneurship education and the subsequent inclusion into the curricula of universities in the United Kingdom has been attributed to the sheer need to serve the innovation need of businesses and to produce graduates with transferable skills for businesses.ENTREPRENEURSHIP IN NIGERIAAccording to Ekanem (2005), the history and development of entrepreneurship in Nigeria started in the 1960s as supported also by some of the earlier studies such as Schatz and Edokpayi (1962), Harris (1969), Olakanpo (1968) and Akeredolu-Ale (1972). thitherfore, the pattern of entrepreneurship development in Nigeria is not new. Since the 1970s, several government agencies and institutions in the country have been engaged in different aspects of fostering entrepreneurship in Nigeria, though with temporary and varied successes. For case, the Centre for Management Development (CMD), National Directorate of Employment (NDE), former Nigeria Industrial Development Bank (NIDB), Nigerian Bank for Commerce and attention (NBCI), Nigeria Youth Service Corps (NYSC), among others had programmes for entrepreneurship development in Nigeria. Other entrepreneurial development agencies agree on government sponsored Entrepreneurial Development Programme (EDP). NGOs, Nigerian Employers informative Association (NECA).The vigor with which it was pursued hence is a different issue for our assessment. If the proofs are available even the blind and deaf can feel it. only fools dont proof.What Does Entrepreneurship Really Entail?Basically, what entrepreneurship entails includesThe building of skills in negotiationBuilding leadership skillNew product developmentCreative and innovative thinking and scene to technological innovation, (Kuratko, 2003).It shows students an d graduates how to believe and behave entrepreneurially. It encourages them to get involved in net go bading, create and manage businesses of their own and facilitate progress and success in entrepreneurial career.Entrepreneurship could run into status and social needs and leads to self-satisfaction and actualization.It can also meet the financial needs for the entrepreneurs and their families. In fact, entrepreneurship is a satisfying answer even though it can be essayy and whitethorn even lead to loss of wealth at times (Fry, 1992). Society-wise, entrepreneurship has made substantial impacts throughout history because of legion(predicate) inventions, massive job creations made through small and medium scale enterprises (SMES) in both developed and developing countries.DEFINITIONS OF ENTREPRENEURSHIPVarious definitions have been given for entrepreneurship. For instance Inegbenebor and Igbinomwanhia (2008) say that Entrepreneurship is the process of performing the roles of an en trepreneur. It has been define as the process of planning, operating and assuming the risk of a business venture. It may also be defined as the process of creating a clique value of pulling together a unique package of resources to exploit an opportunity. Entrepreneurship encompasses unhomogeneous activities which are carried out to chink the survival and growth of the businessInegbenebor (2006) defines it as it is about bearing the skills undeniable to assume the risk of establishing a business. It is about developing the winning strategies and executing them with all vigour, persistence and passion needed to win any gameEkanem (2005) Entrepreneurship is the process of or capacity for organizing, operating and assuming risk for a business venture. It is impulsive risk-taking, creative and growth oriented behavior which involves the use of various resources to create wealthEkwe (1992) observes that, Entrepreneurship involves theability to perceive profitable business opportunit ies.2. willingness to act on what is comprehend and3. necessary organizing skills associated with a projectsFry (1992) says that Entrepreneurship involves action rather than static events. It involves taking action necessary to analyze opportunities to launch and/or grow business, to finance the venture and possibly even to invest the venture.Izedonmi (2009) placed entrepreneurship in a continuum form with economic entrepreneurship at the end of the continuum and social entrepreneurship at the other end. In between these you will find some varying componentistics of combinations. The process is also dynamic.In summary, the central issues in entrepreneurship involve uncertainty and risk-taking, innovation, perception and change. For instance, Drucker (1985) posits that innovation is the specification tool of entrepreneurship. He argued further that the entrepreneurs must always change to respond to it, and exploit it as an opportunity.CHARACTERISTICS OF A DWINDLING ECONOMYThe tem peramentistics include superior unemployment rateHigh inflation rate piteous average real incomeLow saving ratio or high consumption ratioLow levels of technologyLow levels of productivityLow per capita income and downward trend of livingHigh poverty rate of a swelled proportion of the populationLow economic growth ratePoorly developed financial and stock marketsHigh level corruption and instability and insecurity of lives and propertyAlthough the above factors and many others can be observed in a dwindling economy, they also provide good basis for entrepreneurial development. In fact, of these factors listed above, some can act as either pull or push entrepreneurial factors. Very often they provide good windows of opportunities for entrepreneurial-minded individuals.ROLES OF ENTRENEURSHIP IN REVIVING A DWINDLING SOCIETYSome of the roles includeGenerating employmentIncreases productivity through innovationFacilitates the transfer/ adoption of technologyEnsures increase resource ut ilizationStimulates growth in the supply marketRenovates large scale enterprises and public enterprisesEncourages and sustains economic dynamism that enables an economy to adjust successfully in a rapidly changing global economy.Linkage effects of various sections of the economy is facilitatedGenerate income and wealth occur fasterEncourages training and developmentEnsures rapid developmentDevelops indigenous entrepreneurshipProvides a training ground for indigenous managers and semi-skilled workersReduces rural-urban migrationConstitutes a vital engine for economic growth development of a nation- increase GDPSkyrocketing of the emergence of SMES andPromotion of self-reliance and economic sustainabilityELEMENTS OF ENTREPRENEURSHIPEntrepreneurship may involve the hobby elementsIDEA GENERATION AND SCREENINGThis is actually the starting point of many new entrepreneurial ventures. Sources of ideas are many and varied. The sources notwithstanding, the would-be entrepreneur must develop the habit of documenting those ideas. It should be packaged in form of feasibility report, no matter what.STARTING A BUSINESSThis could involvea. Buying an alive businessb. Starting from the scratch or start-up businessc. Through Franchised. By InheritanceCREATIVITY AND INNOVATIONInnovation is the development and introduction of a new product, a new process, or a new military service to a market. Creativity is the link between pure imagination and the introduction of an innovative product, process or service.Both are necessary ingredients for entrepreneurship. However, creativity is behind innovation. Creativity alone, does not define entrepreneurship. Creativity without innovation does not produce results. And innovation without effective management does not produce marketable products, processes or services. Although creativity and innovation are necessary ingredients, they are not sufficient of themselves to establish successful entrepreneurship (Fry, 1992, Izedonmi, 2009). Th ere must be effective and efficient administrative structure on the ground and a healthy dose of management as well.3. SEEKING financeFinancing could either be debt or equity pay, traditional or venture, internal or external capital. The would-be venture must consider financing the venture. Availability, cost and timeliness must be balanced. Starting small attracts small capital input. However, not all entrepreneurial ventures require start-up capital or equal amount eitherCreative financing is a basic tenet of entrepreneurship.A growth-oriented venture uses nine-fold sources of financing. You must be prepared to make your person-to-person sacrifice in this respect. Too often, the banks will request to see your personal inputs in terms of financial fealty.Finance institutions only lend to ventures that have proven records, and history, and those ventures that are also promising economically.4. ASSUMING RISKEvery entrepreneur must assume one risk or the other. However, entrepren eurship is not necessarily risk-taking but risk-assuming.Corporate management deals in risk minimization, entrepreneurship deals in risk management.Corporate management too often generally tends to be risk-averse. They want to reduce risk to a minimum during production so as to be profitable. Entrepreneurship manages risk since it cannot be reduced significantly in entrepreneurial situations whether new or existing ventures.However, entrepreneurs are calculated risk-takers.Risk management involves the acknowledgement that risk exists and the actions that are taken to shift as much risk as possible to others and then control the remainder.Some risk Management ventures includeRenting rather than owning equipment and facilitiesUsing multiple sources of financing.Building an entrepreneurial team with distinctive skills.Undertaking multiple ventures simultaneously with varied degrees of risk.Committing a portion of the total resources to any one project.Assigning a team member the respon sibility of monitoring short-term action with the anticipation of cutting losses of early performance indicates unfavorable results.THE PULL AND PUSH ENTREPRENEURSHIP FACTORSThere are various factors (negative or positive) which tend to provide the needed want in getting into entrepreneurship or becoming an entrepreneur. While the negative factors are called push factors the positive factors are pull factors. Both factors provide the radical attraction either by necessity or by desire and opportunity into the entrepreneurial world.The push factors areUnemployment / loss of job.Dissatisfaction with pay and job situation. discrepancy and victimization by boss in work place.Middle-age crises.Divorce / widowhood.Relocation.The positive pull factors areDesire for independence.Desire for increase in wealth.Increased social status and prestige.Spouse support and motivation.Provision of market opportunity.Franchise.Provision of licenses by parent company.Favorable government policies etc .THE ENTREPRENEURSHIP DECISIONThe entrepreneurial motivation to launch a venture has been grouped into three variables (Fry, 1992) asAntecedent variables.Triggering variables.Enabling variables.The antecedent factorsThey cause the individual to begin to consider the possibilities of entrepreneurship either consciously or unconsciously. This could take into consideration the variables listed belowCreativity.Background.Personality.Past experience.Education.Current job.Triggering factorsThese are the events or situations that specifically trigger the entrepreneurial act. They are salient life events may be quite personal , professional or for instance, financial changes in an entrepreneurs life that are perceived as very most-valuable to entrepreneurial decision may set off the alarm to take step .They involveLoss of JobInvention or IdeaOffer from partnerEntrepreneurial motivation or willingness to start a venture (M) = Antecedent Variables (A) X Triggering Variables (T).The enabling factorsThese factors make the actual launching of the venture possible. They include opportunity and resources which are very critical to the successful launch of the venture. The likelihood of a venture launch is made up of these three factors combined. Our youths look outside instead of looking inward. Those who look inward first tend to travel faster on the outside. Several entrepreneurial opportunities exist in the environment. They need to look well to discover some opportunities. Our youths must be ready to start small, learn the ropes and grow up. Hard work, patience and deep commitment are necessary.ENTREPRENEURSHIP OPPORTUNITIESEntrepreneurship tends to be opportunity-driven rather than resource-driven. This is because that once opportunities are identified and properly evaluated resources are deployed to capture them. Opportunity creates or generates its kind of resources.There are thousands of opportunities available to would-be entrepreneurs who present high potential fo r wealth, growth, self-employment, independence, social status, and prestige. The would-be entrepreneur must conduct a thorough scanning and survey of the environment strategically. But if you do not have any promptly available opportunity, you can creatively and innovatively come up with one. However, some of the sources of these opportunities could include1).Self-discovery2).Improvement in the quality of existing product/ service.3). Use of an existing product/service in an untapped market4). Invention5). Consultancy6). Trade magazines, Journal and Business Newspapers7). Societal needs8). Survey of natural resources9). Government Agencies10) Research Institutes, Universities, e.t.c11) Spin-off12) take on experience13) Hobby and VocationENTREPRENEURIAL SKILLS REQUIRED TO TRANSFORM CHALLENGES INTO OPPORTUNITIESGENERAL BUSINESS SKILLSEntrepreneurial skills of successful entrepreneurs includeSales and Marketing skillsFinancial Know-how skillsSelf-motivation skillTime management skil lAdministrative skillSales and marketing skillsTo get the right customers and subsequently make target revenues and profitsInclude parley skillsFinancial know-how skillsTo know how to handle money well. After all, not everybody can effectively manage money.Source and manage funds and cash flowsSelf-motivation skillsInternal venue of controlSelf-starter with a clear desired goal in mind government agency in yourself and in your ideasDiligent and hardworkingExtra drive and commitment to set goalsTime management skillsTime is moneyTime is lifeEntrepreneurship opportunity has time-limitTime management is very important for business successSelf-management is very critical for effective time managementTYPES OF BUSINESSES AND TIME MANAGEMENT TECHNIQUESHave a time table, schedule of activities to be doneEmploy delegation freely without fearDetermine priorities into urgent and important activities as-Urgent activities demand immediate attention-Urgent but not important activities Not urgen t but important activities Not urgent not importantGive priority to (i) and (iii) because by performing them, time is reduced for activities (ii) and (iii)Manage meetings and relationship with othersAdministrative skillsOrganizing, coordinating, directing, planning and general management, etc.B). TECHNICAL, ANALYTICAL AND HUMAN RELATION SKILLSEntrepreneurs are expected ordinarily to be sound by training normally technically skilled. They must also develop and possess conceptual, analytical and human relation skills to be successful.Others are business planning, idea creation, negotiation, risk analysis and management skills etc.C). ICT SKILLSThey must also have computer and information Technology (CIT) skills because of the era we are and the environment they will have to operate.ENTREPRENEURSHIP OPPORTUNITY AND SKILLSS/NENTREPRENEURSHIP OPPORTUNITYSKILLS AND ATTITUDES1.Business/consultancy in area of professional specialization or working as a contractorGeneral Business skills such as marketing, time management e.t.cConfidence enthusiasm, hardworking2.Sonet EntrepreneurshipIdea development, leadership, negotiation, planning, organizing, self belief, confidenceGeneral business skill3.IntrapreneurshipIdea development recognizing opportunities for improvementsAlliance building, confidence, leadership4.Non-traditional specialist businessGeneral BusinessIdea development, creativity, confidenceWillingness to work hard5.General Business VenturesIdeas development, creativity, confidence, willingness to work hardGeneral Business skillSource Andrea Developing Entrepreneurship skills in the linguistic context of higher education. DEVELOPMENT OF ENTREPRENEURIAL SKILLSThese could be throughAttending Entrepreneurial training classes, development programme, seminars, workshops, etc.UniversitiesJob rotationSpecial (intensive) training term ship or apprenticeshipOrganizational learningR D InstitutionConsultantsNational and international agencies and bodiesNGOsProfessional bo diesENTREPRENEURIAL SUCCESS FACTORSSuccessful entrepreneuring depends on four (4) major factors namelyKnowledgeHard workSkillsAttitude(character/ integrity)Lifematics Question Created by (Izedonmi, 2010)Now let us work out this lifematics question together. There are basically four (4) attributes or factors that can enhance our success in life viz Skills, Knowledge, Hard work and character (Attitude). They are all essential to ingredients of entrepreneurial success. How much does each contribute? Which of these is superior and why? For easy understanding, let us replace character with attitude.SolutionOur current roman alphabets are made up ofA B C D E F G H I J K L M1 2 3 4 5 6 7 8 9 10 11 12 13N O P Q R S T U V W X Y Z14 15 16 17 18 19 20 21 22 23 24 25 26The alphabets together with their numerical values are stated above.Let us take each attribute one after the other and link up the corresponding numerical value. Start with skill, then knowledge follow this with hard work and fi nally character but remember to substitute attitude for character.Let us replace numeric value to each alphabet and see their results as indicated below(i)S K I L L S19 + 11 + 9 + 12 + 12 + 19 = 82%(ii)K N O W L E D G E11 + 14 + 15 + 23 + 12 + 5 + 4 + 7 + 5 = 96 %(iii)H A R D W O R K8 + 1 + 18 + 4 + 23 + 15 + 18 + 11 = 98 %(iv)A T T I T U D E1 + 20 + 20 + 9 + 20 + 21 + 4 + 5 = 100 %SolutionSkills secure only 82 %, Knowledge 96 %, hard work 98 % and Attitude 100 % in that order. Only Attitude which I equate to character for this purpose secures 100 % success in the race of high profile entrepreneurship.ConclusionI must admit that professional certification is good but character is a lot better. Character is the true indirect security of our values, learning and entrepreneurial success. It keeps the society and system going. It prevents a nation from decaying and checkmates unnecessary crisis and even civil war. Therefore in all our entrepreneurial pursuit, character development shou ld be given a prominent place.When character breaks down everything breaks down. True certification in life is only evidenced by character and not papers called certificates or entrepreneurial success alone or quantity of wealth.