NATIONAL INSTITUTE OF TRANSPORT

COMPUTING AND COMMUNICATION TECHNOLOGY DEPARTMENT

STREAM A

PROGRAMME NAME : BIT

MODULE NAME : ENTREPRENUERSHIP
MODULE CODE : GSU 08101C
SEMESTER : 1
TASK : INDIVIDUAL ASSIGNMENT 1
LECTURER’S NAME : FAUSTINE MASUNGA
STUDENT’S NAME : MWANGOME, SELEMAN H.
REGISTRATION NO. : NIT/BIT/2016/261
SUBMISSION DATE : 10th DECEMBER 2018

Question
Explore the major schools of thoughts and explain the approaches to study of
entrepreneurship in relation to ICT environment.
Introduction
Most people recognize the term entrepreneur, as meaning someone who organizes and assumes
the risk of a business in return for the profit. The theories on the phenomenon ‘entrepreneurship’
had been a matter for controversy among theoreticians and academicians ever since the term was
introduced by Richard Cantillon in 1755. After its initial appearance in economics, it disappeared
for a long time from the attention of economists since the neo-classical economics supported the
concept of perfect competition and perfect information, where the concept of the (risk taking and
innovative) entrepreneurship did not have a role. Even so the concept of entrepreneurship was
never fully out of the main stage. Although different economists have emphasized different facets
of entrepreneurship, all economists who have written about it agree that, at its core,
entrepreneurship involves judgment. But if people have perfect information, there is no need for
judgment. Fortunately, economists have increasingly dropped the assumption of perfect
information in recent years. As this trend prevails, economists have to allow the role of the
innovative entrepreneur in their models.
Where the economists were in philosophical confusion, the concept entrepreneurship, was taken
up by sociologists and psychologists. The progress of sociologists and psychologists in the
theorization of entrepreneurship has not been as organized as economists due to the differences in
the methodology chosen in different sciences as well as the different aspects of the same subject
viewed by different scientists. Behavioral and social aspects are alien to economists, and that is
where the psychologists and sociologists could make their contributions. In fact the study of
entrepreneurship will be incomplete without the contributions of economists, sociologists,
psychologists and other social scientists. In the given context an effort is made to view the
evolution of various theories on the ‘controversial’ topic “entrepreneurship” from the differing
points of views of different generations and schools of social scientists thus resulting to different
school of thought regarding the term entrepreneurship. Major school of thoughts of
entrepreneurship falls under two categories which are macro view of entrepreneurship and micro
view of entrepreneurship.

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Macro view of entrepreneurship school of thought
In this view it present a wide range of selective factors that relate to the success or failure of the
existing entrepreneurial venture, and includes all external processes that cannot be controlled by
the entrepreneur. Macro view of entrepreneurship can be sub categorized into
The Environmental School of Thought
The environmental school of thought deals with external factors that affect the potential
entrepreneur lifestyle. These can either be positive or negative forces in the detail of
entrepreneurial need. The focus is on the institution, values and principles that when grouped
together form a sociopolitical environmental structure that strongly influences the development of
the entrepreneur. For example if the middle manager experiences the freedom and support to
develop ideas, initiate contracts or create and institute new methods, the work environment will
serve to promote that person’s desire to pursue an entrepreneurial career. Another environmental;
factor that often affects the potential development of the entrepreneurs is their social group. The
atmosphere of friends and relatives can influence the desire to become an entrepreneur.
The Financial/Capital School of Thought
The foundations of this school are based on the capital-seeking process. That is the search for seed
and growth capital is the entire focus of this school of thought. Certain literature is devoted
specifically for this process, whereas other sources tend to treat it as but one segment
entrepreneurial venture.
Securing the entrepreneurial venture capital is important to an entrepreneur’s development. The
success or failure the entrepreneurial venture under this perspective depend on how best the
entrepreneur can make timely decision at each stage that is right financial consideration and
decisions. Thus decision involving finances occur at every major point in the venture process.

The Displacement School of Thought

The displacement school of thought focuses on the negative side of group phenomena, in which
someone feels out of place— or is literally displaced — frorn the group. It holds that the group
hinders a person from advancing or eliminates certain critical factors needed for that person to
advance. As a result, the frustrated individual will be pro1ectcd into an entrepreneurial pursuit out
of his or her own motivations to succeed. As researchers have noted, individuals fight adversity

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and tend w pursue a venture when they are prevented or displaced from doing other activities.
Three major types of displacement illustrate this school of thought
Political displacement.
Caused by factors ranging from an entire political regime that rejects free enterprise (international
environment) to governmental regulations and policies that limit or redirect certain industries.

Cultural displacement.
Deals with social groups precluded from professional fields. Ethnic background, religion, race,
and sex are examples of factors that figure in the minority experience. Increasingly his experience
turns various individuals away from standard business professions and toward entrepreneurial
ventures.
Economic displacement. Concerned with the economic variations of recession and depression.
Job loss, capital shrinkage, or simply “bad times can create the foundation for entrepreneurial
pursuits, just as it can affect venture development and reduction. These examples of displacement
illustrate the external forces that can influence the development of entrepreneurship. Cultural
awareness, knowledge of political and public policy, and economic indoctrination will aid and
improve entrepreneurial understanding tinder the displacement school of thought. The broader the
educational base in economics and political science, the stronger the entrepreneurial
understanding.

Micro view of entrepreneurship school of thought

The micro view of entrepreneurship examines the factors that are specific to entrepreneurship and
are part of the internal locus of control. The potential entrepreneur has the ability, or control, to
direct or adjust the outcome of each major influence in this view. As part of this approach we
present entrepreneurial trait theory (sometimes referred to as the ‘people school of thought’),
venture opportunity theory and strategic planning theory. Unlike the macro approach, which
focuses on events from the outside looking in, the micro approach concentrates on specifics from
the inside looking out.

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The entrepreneurial trait school of thought
This approach is grounded in the study of successful people who tend to exhibit similar
characteristics that, if copied, would increase success opportunities for the emulators. It focuses
on identifying traits common to successful entrepreneurs. Here it shows that successful people
who tend to exhibits similar characteristics that would increase successful opportunities.
Successfully entrepreneur are found to have common four traits such as achievement, creativity,
determination and technical knowledge.
Family development and educational incubation are also examined. Is education important? Some
argue that education and success as an entrepreneur are highly correlated, while others believe it
inhibits the creative and challenging nature of entrepreneurship that the best entrepreneurs actually
drop out of school. Other argue, however, contend that new programs and educational
developments are on the increase because they have been found to aid in entrepreneurial
development. The family development idea focuses on the development and support that exist
within the home atmosphere of an entrepreneurial family. This reasoning promotes the belief that
certain traits established and supported early in life will lead eventually to entrepreneurial success.

The venture opportunity school of thought:

This school of thought focuses on the opportunity aspect of venture development. The search for
idea sources, the development of concepts and the implementation of venture opportunities are the
important interest areas for this school. Creativity and market awareness are viewed as essential.
Additionally, according to this school of thought, developing the right idea at the right time for the
right market niche is the key to entrepreneurial success.
Another development from this school of thought is that New pathways or opportunities will arise
that lead entrepreneurs in different directions. The ability to recognize these opportunities when
they arise and to implement the necessary steps for action is a key factor. Roman philosopher
Seneca’s maxim that ‘Luck is what happens when preparation meets opportunity’ underlies this
pathways principle. Proponents of this school of thought believe that proper preparation in the
interdisciplinary business segments will enhance the ability to recognize venture opportunities.
You will see that this book presents various pathways toward becoming an entrepreneur.

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The strategic formulation school of thought:
Strategic planning is inextricably interwoven into the entire fabric of management; it is not
something separate and distinct from the process of management. The strategic formulation
approach to entrepreneurial theory emphasizes the planning process in successful venture
development. The effective venture formations are created by unique people, unique product or
unique resource. Each of these unique aspects has its own strategy like to attract the customers to
your venture and process of retaining the existing customers to your ventures services.

Approaches to study entrepreneur in relation to ICT environment

The relationship between ICT entrepreneurship and small business innovation has accelerated
research concern in entrepreneurship development, and in particular, the concept ICT
entrepreneurship has attracted a huge research interest over a decade. Some argue that the
possibility that entrepreneurship development contributes to small business innovation through the
competencies it helps to develop in the organization.
In fact, ensuring organizations’ success can be considered the ultimate goal of small business
innovation efforts in entrepreneurial firms. Much work on the relationship between ICT
entrepreneurship development and small business innovation are far from being fully explained.
Some argue that the internet will fundamentally change the way people discover and access
opportunities. ICT entrepreneurs are almost taking over from the traditional entrepreneurs, the
evidence of ICT entrepreneurship development can be seen from the successful entrepreneurs at
Western countries like United States. The successful ICT entrepreneurs in the United States can
be traceable to Google.com, Yahoo.com, Amazon.com and eBay.com.
The areas of ICT entrepreneurship development are: The business centers, Graphics Centers,
Music Studios, the Internet Centers, Computer Training Centers, Computer Technicians, Web
design and hosting, Internet employment agency services, Internet advertisements, Internet tourist
and travelling agencies. The business centers provides services for communication of information
to customers.

These centers employ between two or three people, the services provided by the business centers
changes to include more interesting services which are required by the service unit. The graphics
centers are also another area where entrepreneurs using ICT tools like computers, scanners and
other accessories to design graphics. The graphics centers evolves from the traditional business

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centers and combine the services of the center. The internet centers is another way ICT tools can
be utilized, these centers provide internet services for people with a minimal cost. The services
provided improve the people standard of living and also employ hundreds of individuals directly
or indirectly by the entrepreneurs.

Computer training centers play a pivotal role in creating jobs and educating the knowledge-based
users. The investors in computer training centers are entrepreneurs who also employed many
people, this development in the knowledge-based users or service unit are important they are the
best trainers. Web design and web hosting are another area of ICT entrepreneurship development,
this form of ICT entrepreneurship include web advertisement and other related web-issues thereby
developing the knowledge-based service centers. We can also host other websites through one own
domain name.

This is developing faster in e-marketing where one can act as agents for other companies outside
of your country. One do not need to go to the offices, you can just work at home and your cheese
will be deposited accordingly. Internet employment agency services is another form of ICT
entrepreneurship, with increased number of website designers, different innovative ideas are been
put in place through the websites. The websites provide job search engines within them. Agencies
can be organized through the websites, in fact the entrepreneur need not have his own personal
website, and he could subscribe for space in other websites, acting as agent for the bureaus and
organization that have a need. He could provide and connect business to customer as well.

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 REFERENCES
Carton R. B., Hofer C. W., Meeks M. D., The Entrepreneur and Entrepreneurship: Operational
Definitions of Their Role In Society, http://www.sbaer.uca.edu/research/icsb/1998/32.pdf
Fredrick H, O’Connor A, Kuratko D.F, Entrepreneurship: Theory/Process/Practice 4th Ed (2016)