LIFE ORIENTATION

ENTREPRENEURSHIP BOOKLET
Entrepreneurship
What is an Entrepreneur?

Lets explore…and as you do:

Consider possible opportunities
in each type of entrepreneurship
venture that will be discussed!
 Different forms of Entrepreneurship

• E-commerce (e-Business)
• Small Business
• Innovative
entrepreneurship.
• Design entrepreneurship
• Social entrepreneurship
• Cultural entrepreneurship
• Tourism entrepreneurship
 E-business of E-commerce
Definitions How do e-businesses work?
E-business or Electronic Commerce (e-
commerce) means a trade activity of buying These business transactions can be done in
four ways:
and selling of goods, products, or services
• Business to Business (B2B),
over the internet.
• Business to Customer (B2C),
E-commerce is also known as electronic • Customer to Customer (C2C),
commerce or internet commerce, it is an • Customer to Business (C2B).
umbrella term that includes the act of
running business, i.e., buying/selling/ The standard definition of E-commerce is a
advertisement, online with an intention of commercial transaction which is happened over
broadening/sustaining the customer base the internet.
for profit. E-business is part of e-commerce
and it only deals with the processes involved Examples of e-businesses
in that transaction.
• Amazon,
These services provided online over the
• Flipkart,
internet network.
• Shopify,
Transaction of money, funds, and data are
• Myntra,
also considered as E-commerce.
• Ebay,
• Quikr,
• Olx
 ADVANTAGES AND DISADVANTAGES
Advantages of E-Commerce Disadvantages of E-Commerce
• E-commerce provides the sellers with a global
reach. They remove the barrier of place (geography • The start-up costs of the e-commerce portal are
). Now sellers and buyers can meet in the virtual very high. The setup of the hardware and the
world, without the hindrance of location.
software, the training cost of employees, the
• E-commerce will substantially lower the constant maintenance and upkeep are all quite
transaction cost. It eliminates many fixed costs of expensive.
maintaining brick and mortar shops. This allows the
• The e-commerce industry has a high risk of
companies to enjoy a much higher margin of profit.
failure. Many companies riding the dot-com
• It provides quick delivery of goods with very little
wave of the 2000s have failed miserably. At
effort on part of the customer. Customer
complaints are also addressed quickly. It also saves times, e-commerce can feel impersonal. So it
time, energy and effort for both the consumers and lacks the warmth of an interpersonal
the company. relationship which is important for many brands
and products.
• One other great advantage is the convenience it
offers. A customer can shop 24×7. The website is • Security is another area of concern. Credit card
functional at all times; it does not have working theft, identity theft etc. remain big concerns
hours like a shop. with the customers.
• E-commerce also allows the customer and the • Then there are also fulfilment problems. Even
business to be in touch directly, without any after the order is placed there can be problems
intermediaries. This allows for quick with shipping, delivery, mix-ups etc. This leaves
communication and transactions. It also gives a the customers unhappy and dissatisfied.
valuable personal touch.
 Small businesses
Definition Examples of small businesses
• Small businesses are corporations, • Handyman.
partnerships, or sole proprietorships • Woodworker
which have fewer employees and/or • Online Dating Consultant Sewing and
less annual revenue than a regular- Alteration Specialist. ...
sized business.
• Freelance Developer
• Thus it is a business that operates at a
• Personal Trainer
small scale with fewer employees,
capital, machines and has a limited • Freelance Graphic Designer
revenue base. • Life/ Career Coach
• Outside of government regulations, • Estate agent
any business with • Photographer
under 500 employees can be • Gardening services
considered a small business • Builders
• A business which functions on a small • Hairdressers
scale level and involves less capital
• Internet café
investment, less number of labour and
fewer machines to operate. • Small retailers
• Fruit and veg vendors
• House shop/corner cafe
• Etc.
 ADVANTAGES AND DISADVANTAGES
Advantages Disadvantages

• Independence -as a business owner, you're your • Possible income instability. ...
own boss. • Potential of financial risk - the
• Lifestyle - owning a small business gives you financial resources needed to start and
certain lifestyle advantages. grow a business can be extensive.
• Financial rewards as compared to working for • Finding Customers can be a
someone else challenge
• You stress less - nothing is more stressful than a • It’s difficult to hire talented people.
cash flow crunch. • Longer working hours.
• Learning opportunities as you progress with your • Ties to a physical location.
business • Limited expertise.
• Creative freedom and personal satisfaction • Access to fewer resources.
• Your finances are easier to forecast · • Possible lack of guidance
• It gives you a sense of control. • Stress - as a business owner, you are
• Set Your Own Schedule i.e. you decide how many the business
hours will work • Time commitment - often start
• Build Self-Confidence. businesses so that they'll have more
• You Can Take Time Off time to spend with their families. ...
• Feel Pride of what you started from scratch • Undesirable duties.
• You deliver better work • Reliance on individual relationships.
 Innovative entrepreneurship

Definition How does it operate

• Create solutions, products, or services
• Innovative entrepreneurship to help people change their lives.
is the practice of establishing • Can identify and seize opportunities and
creating new/unique business may turn it them into profitable
businesses.
ideas/ways of running a • It carries the zeal to find much-needed
business with an intention to solutions, which also means that it also
generate profit, assist their can take on risks.
community and accomplish The following are few examples of
success through innovation.
company goals. • Technology companies triggering a
• Innovative entrepreneurs paradigm shift by impacting industries
develop business to meet the • Apple – changed music and
consumer electronics
needs of an organization and • Uber – changing the taxi business
customers with an intention to • Airbnb – changing the
improve their competitiveness accommodation industry
in the market. • Amazon – changing retailing
 Innovative entrepreneurship

Technology companies creating new markets / The following brands have taken familiarity and made it relevant
industries with modern technology to create a winning product / service.

• Nintendo - Pokemon Go is a world-class example of how

• Google – with” Search, etc. ” for a Nintendo became relevant again by simply reinventing itself
much better online experience– changed through a modern game that activated gamers of all ages and
the Advertising world with AdWords– genders. Pokemon Go incorporates virtual reality elements,
impacting the mobile, car, utility, etc. gamification, and commerce at scale in a way that has never
industries been done with such precision.
• Snapchat - Snapchat brought photo sharing forward into the
• Facebook – established the ” social
modern age and brought back a real interest in photos and
network ” market communicating through photos. They were successful
• WhatsApp – established the personal because they incorporated the social element and added
communications market ways to edit the pictures and add things to them that made it
• even more fun for their audience. They also brought the
Steam – established the online market
photo-sharing concept into the digital online age and made it
for licensing games interactive.
• Companies making something old new • GoPro - GoPro effectively took an old product that everyone
again has, re-purposed it, and made a fortune. GoPro is nothing
but a good-quality camera. However, they managed to make
it attractive, target a large niche of passionate customers and
create a new category for themselves. The beauty behind this
brand is targeting a group of people who are tight-knit
and large enough to build a sizable business.
• Netflix - As one of the cornerstones of the home
entertainment industry, DVD rental stores seemed like they
were around forever. Then along came Netflix. Not only did
the brand reinvent the delivery of DVDs, they transformed
movie rental altogether with streaming service.
 ADVANTAGES AND DISADVANTAGES
Advantages Disadvantages

• Businesses can initially charge higher • Very costly and time consuming.
prices for new products before • Businesses can run out of money if
competitors’ products come on the
they invest too much and don't get
market.
products to market quickly enough.
• Being innovative good for a firm's
• End up wasting resources by
reputation.
developing something that doesn't
• If they have been first in the past -
sell.
people naturally interested in future
products. • Businesses not able to produce new
• Innovations in processes add value to
product on large scale at low enough
existing products / services. cost - no guaranteed return on
investment.
• Businesses with lots of innovative
products can take advantage of • Businesses risk ruining reputation if
economies of scope. new product is poor quality.
 Design entrepreneurship
How does it operate?
Definition:
• Designing/generating • Designers become proactive in identifying
needs/challenges people might have and
ideas that are humanly create/design solutions to such
desirable, technologically needs/challenges in the form of a business
venture.
feasible and financially
viable. Examples of businesses:
• Website designer,
• The process of deeply • video editing,
understanding customer • digital prints,
• graphic design,
needs and then • clothing designer,
creating/designing a • Envato market (A platform where designers,
developers, photographers, illustrators and
product or service that producers can sell their products – People
addresses their unmet with experience in these industries offer their
skills on “Envato” and interested clients pay,
needs. for them to take on their projects).
 ADVANTAGES AND DISADVANTAGES
Advantages: Disadvantages:

• Design entrepreneurship stimulates the • There are too many responsibilities to

development of new markets, this happens due contend/juggle with particularly at the budding
to the creation of new products and services stages of the business, you might not be able to
which lies solely within the hands of the execute all successfully and that might lead to
entrepreneur. failure.
• • You work from anywhere, at any time and you are
Design entrepreneurship reduces time and costs
always on call, doing something for the company
to the market for new products and services
and this is very taxing/exhausting.
• It reduces customer complaints as these can be
• It is very difficult create a balance between work
resolved and attended to immediately.
and life.
• It builds a strong and unique identity for your • Some areas of your life are bound to suffer due to
business. personal neglect.
• It boosts customer loyalty as goods and services • Personal income becomes irregular, particularly
sold are original. when the business is new and that might yield
• It leads to increased sales of goods and services. economic stress.
• It improves the position of the business in the
market.
• It improves environmental record and
compliance with regulations.
 Social entrepreneurship
Definition How does social entrepreneurship work?
• For the longest time, most entrepreneurs chose to accumulate wealth in
Social entrepreneurship has various meaning and each more private sectors. Building a company, hiring employees,
is driven by the main objectives of those involved in a manufacturing products and running a well-oiled machine was the best
business for a social course/change. Social approach to be a successful entrepreneur in days past. Today,
entrepreneurship could be defined as follows: entrepreneurs can work to improve social issues and challenge real
world problems through their businesses. A new business model has
emerged which meshes (interconnects) with government and social
• A social entrepreneur is a person who establishes
organizations. Non-profits and businesses have teamed up to form a
an enterprise with the aim of solving social problems
hybrid business model, led a by a new generation of social
or effecting social change (Online dictionary, 2022).
entrepreneurs.
• Social entrepreneurs are essentially a new breed
of business-minded people who have evolved with a
• These leaders can successfully tackle social issues while generating profit
universal goal of making the world a better place
while also running profitable companies that satisfy for shareholders at the same time. Widespread usage of ethical practices
consumers' demand (Schahegger & Wagner, 2003). such as impact investing, conscious consumerism and corporate social
responsibility programs facilitated the success of social entrepreneurs.
• Social entrepreneurship deals with running or
starting up a business/ company supplying
environmentally or socially beneficial products and • Some social entrepreneurs use their know-how and business savviness
services. to make the world a better place. They combined traditional business
• models with an important social mission in ways that can help to make
For example, running a community bakery could
significant changes in places around the world for decades.
have various social benefits: it could lead to
constant food supply to communities and it could
also employ people from the community, thus • Mainly, it involves running a business whose profit is used to address a
reducing unemployment (Schahegger & Wagner, social problem. It could also involve running a business in order to
2003). provide services needed by communities in which it finds itself.
• Social entrepreneurship is doing business for a
social cause or to address a social problem/ a • The main focus of social entrepreneurship is not only to make profit, but
prevalent problem engulfing society at a particular to use part of the profit to alleviate communities. In other words, the
point in time (Online dictionary, 2022). profit that could be generated is directed to endeavours dealing with
social change and self-maintenance.
Characteristics of social entrepreneurship Social entrepreneurship in action in South Africa
•SiyaBuddy: SiyaBuddy is a venture focused on
recycling and waste management. The company buys
• Practicality when solving social problems, waste from local collectors and sells it to recycling
• Philanthropic bent, companies. SiyaBuddy creates jobs for waste pickers
• Faith in team work, while helping to clean up the environment.
• •Ebonoko Foundation: Ebonoko was started in 2012
Money management,
as a way to empower the youth through education.
• Commitment to improve social welfare, The social venture empowers young people through
• Healthy impatience, mentorships, bursaries, donations, expos, and book
• donations.
The desire to change,
•Repurpose Schoolbags: Repurpose Schoolbags is a
• Innovation, for-profit enterprise in South Africa that addresses
• Risk taking. the problem of school children living in rural areas
• Social entrepreneurs are innovative, that don’t have access to proper school bags. The
company creates school bags from up-cycled plastic
resourceful, and results oriented.
bags to help school children while creating a positive
• They draw upon the best thinking in both environmental impact at the same time.
the business and non-profit worlds to •Maths Centre South Africa: An organisation that
develop strategies that maximize their aims to improve maths, science, and technology
social impact education in South Africa. The organisation provides
learning methods, programs, and resources to
improve the impact of South Africa’s education
system.
 ADVANTAGES AND DISADVANTAGES
Advantages Disadvantages

• On the positive side, many people are more • Getting carried away by focusing more on
willing to support social entrepreneurs thanks helping communities than generating
to the positive impact they make. income for the survival of the business.
• In a world that faces many environmental and • Investors may be hesitant to fund social
social problems, social entrepreneurship is
entrepreneurship, especially, if the idea
one of the best ways to make a difference.
does not lead to more profit.
South Africa is brimming with budding social
entrepreneurs. • Young people may be swallowed by the
• While there may be many challenges to notion of consumerisms that they may
getting this kind of venture off the ground, the view social entrepreneurship as a waste of
opportunities for using entrepreneurship to time.
drive social change are huge. • Difficulties accessing funding
• Social entrepreneurship shows us that it’s • Difficulties in creating a sustainable social
possible to create a successful business while entrepreneurship venture
still achieving more than just profits. This gives • Being able to turn a profit while still making
many entrepreneurs a whole new kind of
a positive social impact
inspiration to succeed.
• Competing with larger enterprises
Cultural Entrepreneurship

How does it operate?

Definition
• Starting a business that • Entrepreneurs may use creativity to design
cultural products in a way that can attract
specializes in selling potential customers.
• Entrepreneurs may also venture into offering
cultural products or services related to cultural activities, for example,
offering a service that is offering cultural tutorial lessons, running
workshops on how different cultures have used
unique to a specific culture for their livelihood, etc.

cultural group/which is a Examples of businesses

heritage of a specific • Cultural art gallery stalls
• Cultural clothing stores
community. • Theatre performance on cultural plays
• Cultural music productions
• Using culturally endowed • Cultural food restaurants
items/wares/folklore to • Paid trips/expeditions to cultural heritage sites
• Publishing and selling of cultural books/ e-books,
run a business. etc.
 ADVANTAGES AND DISADVANTAGES
Advantages Disadvantages

• Cultural entrepreneurship can help bring societal • It may run the risk of misrepresenting certain cultural
unity/togetherness as the business market gives customs/rituals/garments/attire etc. if not well researched.
customers exposure to different cultural heritage. • It may experience backlash from certain cultural groups
• It may create an easy platform for aspiring entrepreneurs who may claim sole custody of certain wares/oral
who may not have the financial means to start a business, history/knowledge systems.
thereby enabling them to use their cultural heritage to • Finding potential customers may be a challenge in the
generate an income. current modern society, which may lead to inconsistent
• It may be used as a means of reviving old cultures which income for the cultural entrepreneur.
may be at the risk of dying/being lost. • The cultural entrepreneur may have to put in a lot of effort
• It may give entrepreneurs an opportunity to be agents of and time to attract potential customers and to build a
social change in their communities while at the same reputation for his/her business to sustain the market.
time boosting their local economies. • Staying competitive may not be easy as the entrepreneur
may constantly need to enhance his/her creative skills to
overcome the competition.
• Cultural entrepreneurs may struggle to make a specific
cultural history meaningful to a wide range of people from
various other cultures, which may lead to them running a
risk of making profit/no return on investment in the
products.
 Tourism Entrepreneurship
Definition How does it operate

• This is about entrepreneurial opportunities in

• Creating and sustaining the tourism sector.
businesses in the tourism • It could be any type of businesses offering a
sector by being innovative and variety of tourists products and services.
• It entails development of tourism business
thinking beyond what exists activities and opportunities in avenues such
currently to increase. as: Accommodation, transport, shops
entertainment etc.
• Johannesson & Huijbens, 2010
describe Tourism
Entrepreneurship as a strategy
for economic development in
underdeveloped countries.
Walking tours Fashion Mini-bar
• Exploring a tourist destination on foot like walking in the city. • Available for tourists to access clothes, accessories and
This gives you the opportunity to explore and experience some other essentials especially when they have forgotten to
hidden gems and other pieces of history that you might miss out
pack some for their tour.
if you’re using a mobile kind of transport.
• Options to buy or rent are also offered.
Airbnb Rentals • Specifications such as size, colour etc. could be
• A market place where you can rent a room, apartment or a
outsourced for the guests on request
house at a cheaper price.
• Entrepreneurs can register their apartments/houses to rent out Translators
to tourists • Those who are eloquent in multiple languages are
relevant to this regard hence this could be a business idea
• Help foreign tourists with translation
Local Cuisine Cooking Classes
• This is about teaching tourists how to prepare interesting and
Cultural /Heritage Tours
unique local meals/dishes for them to experience different
flavours as well as history behind the different types of food. • This is about travelling to experience places, artefacts and
activities that represent stories and people of the past
Souvenir Shops and the present including cultural historic and natural
• These shops offer locally inspired gifts that are unique to a particular resources.
tourist destination’
• Three types of heritage tourism are natural, cultural and
• Tourists can buy to take back home as, remembrance e.g key holders,
branded caps, beads etc. those built for the purpose, see examples below:
• Visiting museums, historic buildings and town sites, eating
Airbnb Management Company local food, participate in local festivals and events, works
• This kind of company comes in handy for helping those entrepreneurs of monumental sculpture or paintings etc.
who listed multiple rentals with daily logistics. E.g
• It is a tourism business which assist with the day to day renting of
spaces on the Airbnb.
• Takeaway Hotel Rooms
• Instead of locating a hotel nearby, this service allows
tourists to choose the exact location of their hotel rooms.
 ADVANTAGES AND DISADVANTAGES
Advantages/benefits of Tourism Entrepreneurship Disadvantages/downside of Tourism
Entrepreneurship
• Creating employment opportunities/job creation
• Generate & increase income for economic • Unpredictable market
growth of the country • Technological advancement
• Creation of new sustainable businesses • Ineffective and inefficient management
• Develop rural economy • Lack of entrepreneurial capacity/expertise
• Develop infrastructure
• Attract foreign investors
• Encourage women entrepreneurship
• Promote cultural exchange vs. foreigners and
local people
• Conservation of the natural environment,
cultural assets and traditions
• Alleviation of poverty and inequalities