SHMD 129 SPORT MANAGEMENT

1. SHMD 129SPORT MANAGEMENT Mrs Sivil

2. WEEK 25: 10OCTOBEREntrepreneurship

3. Entrepreneurship defined • What is an entrepreneur? An ordinary individual who does extraordinary things which other ordinary individuals hesitate to do. • The act of doing is a distinctive element of the entrepreneur.

4. Entrepreneurship defined • Example: Two individuals speculate about the possibility of introducing an electric car into a specific market. • Individual A keeps on speculating while individual B does, in fact, introduce the electric car into the market. • Individual B qualifies as an entrepreneur by introducing a product into the market for the first time. • On the other hand, individual A failed to act and therefore failed to qualify as an entrepreneur.

5. Entrepreneurship defined • The word “entrepreneurship” is derived from “entreprendre” which means to ‘undertake, to pursue opportunities; to fulfil the needs and wants through innovation and starting businesses’. • An entrepreneur is a person who initiates an enterprise, organizes it, and acquires capital to finance it, taking into consideration the risk and reward that accompanies it.

6. Entrepreneurship defined • The primary inputs of the entrepreneur into the enterprise are initiative, talent, ideas, knowledge and, often, equity. • Entrepreneurs are, people who innovate, and innovation is the distinctive element of entrepreneurship. • The entrepreneur redirects resources from areas of low productivity and low return to areas of higher productivity and return.

7. Entrepreneurship defined • Although risk is involved, the true entrepreneur should not exceed the boundaries of “calculated risk”.

8. Entrepreneurship defined • 5 Tasks of Entrepreneurs: • Introduces a new product or service into the market, or implements a new approach to existing problems. • Develops or implements new technology which could curb costs and improve efficiency. • Exploits a new market by launching products, services or technologies which did not previously exist in the market.

9. Entrepreneurship defined • Discovers a new source of supply for a scarce resource or discovers methods to make the supply of existing resources more effective. • Reorganisean existing enterprise, whether private or public, by innovative management.

10. Free enterprise & entrepreneurship • The history of capitalism (or free enterprise system), can be attributed to the activities of entrepreneurs. Capitalism is thus the product of entrepreneurial action, &the entrepreneur is not the product of capitalism as is often claimed. • It appears that the lesser the interference of the state in regulating the free enterprise system, the greater the possibility of achieving an entrepreneurial culture in a country.

11. Free enterprise & entrepreneurship • Roles of Government: • Remove legal obstacles to starting and running enterprises. • Implement support structures for potential entrepreneurs with regard to training, consultation and financing. • Encourage entrepreneurial awareness through education and the media. • Curb government expenditure. • Introduce favourable tax incentives for small businesses.

12. Entrepreneurship in a future south africa • Considering the: • level of unemployment, • shortage of housing, • uneven distribution of wealth & income, • low level of education & • high population growth rate in SA, • it appears only a miracle can solve these formidable problems.

13. Entrepreneurship in a future south africa • Entrepreneurs: • Identify need of unemployment & housing. • Seek solutions to these problems. • Realise that the solution of one problem (housing) can solve unemployment problem. • To build a house: • Need to combine land, labour & capital. • Labour includes – skilled, semi-skilled & unskilled workers. • Done economically efficient & profitable manner. • Involves planning, organising, leading & controlling (POLC).