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GSE 202: INTRODUCTION TO ENTREPRENEURSHIP SKILL

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CHAPTER 1: NATURE, PURPOSE AND SCOPE OF BUSINESS

What do you understand by Business

Business is an organized and systematic activity for earning profit. It has become an integral part of
a modern society that without it, the society cannot exist. It's simply an occupation

Business can also be defined as an activity, which involves identifying and satisfying individual
needs and wants for the purpose of earning an income, in the form of profit making. It involves
transaction . It's distribution of goods and services for the purpose of acquiring standard of living
or making profit.

Business organization is an entity which provides the necessary structures to achieve the central
objective of trades in good and service. While, Business enterprises is an organization or institution
who primary objective is profit making.

Forms of Business organization

1. Sole proprietorship
2. Partnership
3. Limited Liability company

Sole Proprietorship : is the simplest and most common form of business under which an
individual can operate a business. It's a situation where by one person own a business and is
personally responsible for its debt. One who owns an unincorporated business by him/herself is a
sole proprietor. It's a business type where one man sows, reaps, and harvest the output of his effort.

Features of sole proprietorship

 Structure is fairly simplistic in nature
 Simplest and easy to form
 Doesn't require legal recognition and attendance formalities
 There is no distinction between the business and the owner.
 Management rest with the proprietor him/herself.

Advantages/Benefits of Sole Proprietorship

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 It is easy to form because no formal registration is needed.

 There is independence and freedom in decision making.
 There is high secrecy in the sole proprietorship business.
 It has tax advantage.
 Dissolution of business is very easy.

Disadvantages/limitation of Sole Proprietorship

 A sole proprietor has unlimited resource at his/her disposal.
 There is constraint in the ability of the proprietor
 He enjoys unlimited liability
 Life span of the business is usually limited.

Partnership: is an arrangement where parties, known as partners, agree to cooperate to advance

their mutual interests. It is a legal relationship between two or more persons where each persons
invests his/her money in order to carry on a lawful business with the view of earning profit. A
partnership agreement may be either written or unwritten form.

Features of partnership
 Profits of the business are share according to partners’ contribution to the business.
 Partnership is not separated from the partners.
 It is easy to form because initial starting cost is low.
 Death of a partner can negatively lead to the dissolution of the partnership.
 Partners risk all their personal assets.

Benefits/Advantages of Partnership.
 It is easy to form.
 Shared financial commitment.
 Complementary skills

Disadvantage/limitations of Partnership
 Joint and individual liability.
 Possibility of disagreement among the partners.
 Discord among partners on shared profit.

Limited Liability Company: is an artificial creature, invisible, intangible, and existing in only one
contemplation of law. It is separate from owners. A company is legally formed by meeting the
condition stipulated in the Companies and Allied Matter Act (Decree), 1990. The promoters must
apply for registration at the Corporate Affairs Commission together with both a Memorandum and
Articles of Association.

Objectives of business
 Profit objective
 Growth objective
 Market Share objective
 Survival
 Employee Satisfaction
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 Image and Reputation

 Social Objectives
 National Objectives
 Shareholder Satisfaction

Purpose of business
To identify and satisfy the needs and wants of the people with the overall aim of earning profit. The
5 Ws (why, when, who, what and where) are used in considering the purpose of a business.

Functions of business
 Production Function: This is concerned with the transformation of inputs into specified
outputs as demanded by the market and society.
 Marketing Function: This focused on the distribution of goods and services produced by the
business’ production department.
 Finance Function: This is the arrangement of sufficient capital for the smooth running of the
business. It also assists in the proper utilization of resources.
 Personnel Function: This is concerned with finding suitable employees, giving them training
and also motivating them.

Theories on the Purpose of Business Organisation

 Shareholder Theory encompasses the idea that the main purpose of business lies in
generating profits and increasing shareholder wealth.
 Stakeholder Theory states that firms can best generate competitive advantage and wealth by
taking more than just their shareholders into account.

Characteristics/Features of Business Exchange of goods and services.

 Profit is the primary objective of business.
 Involvement in numerous transactions.
 Marketing and distribution of goods.
 Business risk taking and Uncertainties.
 Availability of buyer and seller.
 Production of goods and services.
 Development of skills for economics.
 Social Obligations.
 Meeting human needs and wants

Scope of business
The scope of business may be looked into from two perspectives; Industry and Commerce

Industry: This activity of extraction, production, conversion, processing or fabrication of products.

The products of an industry may be any of these categories;
 Consumers goods: goods used by final consumers.
 Capital goods: goods used in the production of other goods.
 Intermediate goods: these are certain materials which are the finished products of one industry
and became intermediate products of other industries.

The types of industry are classified into; Primary Industries: which are;
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 Extractive industries: draws it products from natural sources.

 Genetic Industries: engage in breeding plants and animals for their use in further reproduction.

Secondary Industries: which are;

 Manufacturing Industries: engaged in producing goods through the creation of “form utility”.
The products of extractive industry eventually become the raw-materials of manufacturing
industry. Manufacturing industries may take the form of Analytical, Synthetic, Processing and
Assembly line. Construction industries: focused on the making of constructing of buildings,
bridges, roads etc.

Commerce: is an interchange of goods or commodities, especially on a large scale between

different different countries or within the different parts of the country. It simply means the
process of buying and selling. The main function of commerce is to remove the hindrance of
persons through trade, place through transportation, insurance and packaging, time through
warehousing and storage, and knowledge through salesmanship, advertising etc. Commerce covers
two important areas; Trades and Service business or Aids to trade.
 Trade is the acts or process of buying, selling or exchanging commodities either as wholesale
or retail. It can be classified into
 Domestic Trade: this is known as an internal trade. It is trade within the country. This type also
divided into wholesale trade and retail trade.
 Foreign Trade: this is known as an international trade. It is trade between two or more
countries. It involves the use of foreign currency.
 Service Business: There are referred to as Aids to Trade and they include; Banking
Transportation Warehousing Insurance Advertising Communication.
 Other / principal scope of business Demand Analysis and Forecasting Cost and Production
Analysis. Price Decisions, Policies and Practices. Profit Maximization. Capital Management. E-
commerce (Electronic Commerce).

The stakeholders of business are persons or group of persons who have committed something in
the business enterprise and have expectation from it. They include Communities, Competitors,
Customers and consumers, employees and agents, families, government, Media and advocacy
groups, Owners/shareholders, Society, Suppliers.

CHAPTER 2 : CONCEPT OF ENTREPENEURSHIP AND CHARACTERISTICS OF ENTERPRENUERS

Entrepreneurship can be defined as a dynamic process of vision, change and creation' - Kuratko
and Hodgetts (2004). According to shane & Venkatwraman (2000), it is the discovery, creation and
exploitation of opportunities to bring into existence future goods and services. It's creation of new
enterprises. It has two main aspect according to Kizner (1973). They are;
i. Alertness and
ii. Seizing an opportunity by taking further innovative actions.

Entrepreneurs are individuals who posses the foresight, believe and boldness to build something
new. An entrepreneur is a businessperson who not only conceives and organizes venture but also
frequently takes risks in doing so. Schumpeter classified the entrepreneur as a sociologically
distinct individual, who sees am opportunity, seizes it and creates a new marketable process.
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Essential characteristics of an entrepreneur

 Confidence: the hallmark of an individual
 Possession of sense of ownership: to act like owner, entrepreneur takes responsibility for
getting things done and doing them with care and attention
 Ability to communicate: entrepreneur works to own communication skills.
 Passionate about learning: entrepreneurs seek out information on their own, ask questions
and do personal reading and research, learn from their own mistakes.
 Team Player: entrepreneur can work as team players so as to know how to succeed.
 System Oriented: entrepreneur get system based solution before looking for human resources
solution because human can sick or leave work, but anyone can operate system.
 Grateful: entrepreneurs learn to take nothing for granted.
 Optimistic: entrepreneurs have positive midst, give impetus and momentum for greater
accomplishments and increase hopefulness.
 Gregarious: entrepreneurs tend to be socially outgoing, tend to be fun loving group of people
both on and off job.
 Leader by example: entrepreneurs lead not only themselves, but with skill.
 Not afraid of risk or success: entrepreneurs prioritize their approach to life so that the fear of
failure, frustration boredom, drugery and dissatisfaction far outweighs the lingering fear of
success.

CHAPTER 3 : SMALL BUSINESS MANAGEMENT

Business can be regarded as cautious effort aimed at producing goods and services to the
satisfaction of living and non living things. It's always created to make profit. Meanwhile, any
organization that's not for profit making is charity organization.

Small and medium scale enterprises are very important in any economy that truly want to develop.

Characteristics of Small Business in Nigeria

 Labour intensive purposely to generate employment
 Capital formation to speed up national development
 Affordability by most people
 Open opportunities for greater participation by many people (free entry into the market)
 There is free exit from the market.
 Effective use of local resources
 Foreign exchange savings through import substitution
 Owner plan, organize, co-ordinate and control all the human and material resources to meet
the business objective
 Small business can be found in limited area
 It can only serve a small part of the market

The Process of Establishing Organization in Nigeria

 Identification of the need of consumers
 Acquisition of productive resources
 Registration with appropriate authorities
 Installation of plant and machineries for the production of goods and services
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 Pricing, promotion, advertisement and distribution of goods and services to intending

consumer.

Classification of Business Organizations in Nigeria

 Micro/cottage industry total cost, excluding cost of land will be #1.5milliom employing
between 1-10 employees
 Small Scale Industry total cost will be between #1.5 to #50 million and employing between 11-
100 employees
 Medium Scale Industry total cost will be over #50 million but less than #200 million and
employing 101-300 employees.
 Large Scale Industry total cost excluding cost of land will be over #200 million and over 300
workforces.

Contribution of SMEs to Economic Development to the Country

 Provision of employment
 Reduction in poverty
 Income generation to individual/govt.
 Utilization of the abundant raw materials
 Provision of foreign exchange
 Availability of various kinds of goods
 Stimulation of indigenous entrepreneurship
 Transformation of traditional/local industry
 Linking up the various sectors and sub-sectors of the economy
 Greater innovation and creativity
 Mobilizing savings and investments
 Dispersal of business enterprise
 Competing globally with similar enterprises across the globe

Problems facing SMEs in Nigeria

 Finance: financial institutions are often not ready to finance SME project
 Infrastructural facilities: almost all public Infrastructural facilities are performing below
expectations.
 Corruption
 Conducive business environment: atmosphere where the entrepreneur is not appreciated
and supported will lead to a high level of business risk.
 Dumping of foreign goods : the unguided and unrestricted importation of foreign goods into
the country is a major challenge facing the SMEs
 Inefficient administrative skills/management : lack of efficient administrative
skills/management capabilities.

CHAPTER 4: NIGERIAN BUSINESS ENVRONMENT

Business environment is dynamic. It's broadly categorized into two, which are ;
1. Internal Environment
2. External Environment

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The internal environment is made up of factors that a firm can alter so as to improve the
performance of the firm. It includes; mission and objectives of the firms, value system, quality and
quantity among others.

External environment consist of those factors that affect the performance of a business from the
outside. It is generally classified into two, which are;
1) Micro Environment are all the agents whose decision and activities have direct bearing on the
production and sale of business enterprise. They include; suppliers of inputs, the buyers and
users of firm's products, competing firms, and marketing intermediary.

2) Macro environment consists of aggregate variables/factors which do not only affect the
functioning of the business enterprises but affect the entire economy. Macro environment can
further be classified into;
 Economic environment
 Political and legal environment,
 Social-cultural environment
 Technological environment
 International environment
 Natural environment

The external environment is measured majorly by two indicators; Exchange rate and trade
openness. The demand of capacity of an economy can be measured by GDP per capitals

Features of Nigeria Business Environment

 Infrastructural Inadequacy
 Insecurity
 Frequent changes in Government Policies
 Difficulties of accessing funds
 Lack of government Support

Juxtaposing Nigeria Business Environment

 Nigeria occupies third position among the five countries (Egypt, Ghana, Kenya, South Africa
and Nigeria) in terms of demand capacity, inflation and interest rates, fourth position in terms
of market capitalization, cost of starting business and days required to register property, while
the country has the lowest credit to the private sector and the second lowest tax rate.
 The highest of amount of local currency exchange to 1US Dollar is higher in Nigeria, followed
by Kenya. Ghana has the lowest exchange rate among the five countries, followed by Egypt,
while South Africa occupies the third position.
 Regulatory quality is a measure of the ability of the government of a country to formulate and
implement sound policies and regulations that permit and promote private sector development.
Rule of law captures the extent to which agents have confidence in and abide by the rules of the
society.

CHAPTER 5 : ENTREPRENEURSHIP OPPORTUNITIES IN NIGERIA THROUGH SMEs.

SMEs employ 22.0 percent of adult population in developing countries.

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The term Entrepreneur is a French word. It was first used in the early 18th century by an Irish man
named Cantillon. The earliest beginning of Entrepreneurial theory date back to the writing of
Richard Cantilon.

Characteristics and Role Expectation of an Entrepreneur

School of Entrepreneurial thought divided entrepreneurship into specific activities namely: Macro
views and Micro views

a) Macro views are the external processes beyond the control of the individual entrepreneur.
b) Micro views are factors specific to entrepreneurship and part of internal locus of control.

The Characteristics are;

Psychological Characteristics
1. They have high need for achievement and success
2. They process strong desire for responsibility and independence
3. They have high degree of self-confidence
4. They do not like routine work, they like to experiment.

Sociological Characteristics
1. Entrepreneurs are goal- oriented
2. They have capacity to adapt to changing conditions
3. They have ability to organize men, materials, money and machines to achieve goals.

Economic Characteristics
1. Profit-Oriented
2. Risk taking ability
3. Ability to innovate and speculate

Role of an Entrepreneur
1. He identifies business opportunities, mobilizes and organizes the resources to tap the
opportunities.
2. He carefully implements his business plans to ensure achievement of his goals
3. He markets his products, services and ideas
4. Effective performance of the finance and production
5. Innovation through improvement of methods of production or technology
6. Monitors and responds to the environment by keeping abreast of what is happening in his
environment.

Attributes of the Entrepreneurially inclinationed

Means: this is the capital or access to resource. It generally takes something to make something else.
Ability: refers to available resources in novel.
Desire:

Risk of Entrepreneurship in SMEs

 Financial risk
 Career risk
 Personal risk
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Rewards of Entrepreneurship in SMEs

1. The chance of accumulating a lot of wealth, fame, social distinction and recognition.
2. Possibility of receiving a disproportionately high return or investments of energy, time and
worry

The theories of entrepreneurship education

1) Management Theory and
2) Entrepreneurship Theory.

We have what we call SW-OT structure. SW is internal analysis and OT is external analysis.

Small Business
Small Scale Enterprises is enterprises employing between 1-35 people. We can also say it’s those
employing less than 100 people in a business. SMEs is the backbone of successful economics like
USA where over 23 million small business employ more than 50% of the private workforce and
generate more than half of the nation’s GDP.

Small scale businesses include firewood supply, packing of food items , restaurant, rabbit raising,
home laundry service, writing of books for publications, operating a nursery for children, taxi
driving, making broom, arranging drinks for party etc.

CHAPTER 6: CREATIVITY AND INNOVATION IN ENTREPRENEURSHIP

Creativity is the the ability to develop new ideas, ability to make or otherwise bring into existence
something new; be it new solution to a problem, new method or device. There are two important
aspect of creativity exist; process and people.
The process is designed to proffer a solution to a problem, while the people are the resources that
determine the solution. Every individual’s level of creativity is a function of 3 components
 Expertise: is everything a person knows and can do in the broad domain of his/her work-
knowledge and technical ability.
 Creative Thinking: refers to how an individual approach problems and solutions.
 Motivation: the drive and desire to do something, an inner passion and interest.

Expertise and creative thinking are the entrepreneur’s raw materials or natural resources.

The Creative Brain

The creative process involves 7 stages – preparation, investigation, transformation, incubation,
illumination, verification and implementation.According to Buzan the human brain develops
asymmetrically, and each hemisphere tends to specialize in certain functions. The left-brain is
guided by linear, vertical thinking (from one logical conclusion to the next). The right-brain relies
on kaleidoscopic, lateral thinking (considering a problem from all sides and jumping into it at
different points).

Creative thinking is the act of generating solution to problems by the force of imagination and
reasoning. Every idea is a product of thinking and every product is the manifestation of idea naked

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in a thinker`s mind. Creative thinking must lead to articulation of a strategy. A strategy is a way of
organizing available resources to achieve results.

Areas of Human creativity in an organization

 Idea creativity
 Material creativity
 Organization creativity
 Relationship creativity
 Event creativity
 Inner creativity
 Spontaneous creativity
Aspects of creativity
 Process is the particular goal(s) intended to be achieved
 People are the resources that are used to achieve the goals.

Steps in thinking process in creativity

 Background/accumulation of knowledge
 Incubation process; occurs when individual engaged in activities different from the subject or
problem.
 Idea
 Evaluation and implementation

The blocks and barrier to creative thinking

They refers to as activities that hinder an entrepreneur to learn and tap their innate creativity. The
categories of blocks are
 Personal blocks,
 Problem Solving blocks, and
 Environmental blocks

Creativity Tools for overcoming Barriers

 Paradigm Preserving: is where neither new elements nor relationship between the elements of
the problems are introduced.
 Paradigm Stretching: is where either new elements are introduced or relationships between
the elements of the problem are conceived.
 Paradigm breaking: is where both new elements and new relationships between the elements
are introduced.

Creative Approaches to Problem Solving

Problem is a condition that is not acceptable. It refers to any discrepancy between the current
situation and a desired future situation.
Common Types of Problem
It`s broken; an unsatisfactory change in the status quo
It`s boondoggled; an ability to achieve an expected behaviour.
It`s just messy; there is lack of clarity. Current understanding is insufficient.

Creative Problem Solving (CPS) technique

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 This is a technique to approach a problem or address challenge in an imaginative way. It helps

us flex our minds, find path-breaking ideas and take suitable actions therefore.
 Solution is a man-made resolution to a problem. There are 2 common types; Bad or Good
Creative. Solution has 2 types; Innovation and Invention
 Technique means the way you move toward, advance or come closer to something. It is a way
of making things happen.
 Creativity technique means you are attempting to advance toward an outcome approach that
is new.

Creativity and innovation techniques

CREATIVITY INNOVATION
 Imagination Implementation
 Process Product
 Generating Developing
 Novelty Usefulness
 Soft Hard

Techniques for Improving Creative Thinking Process

 Brainstorming
 Brain writing
 Mind mapping
 Multi-volting
 Theory of Inventive Problem solving (TRIZ) and
 Rapid prototyping; it has 3 principles, which are R`s: rough, rapid and right.

Techniques and tools for CPS

 Mental state shift
 Problem reframing
 Multiple idea facilitation
 Inducing change of perspective

Conceptual blocks to CPS

 Constancy
 Commitment
 Compression
 Complacency

Innovation is the introduction of something new or different. It is the implementation of creative

inspiration. The American National Innovation Initiative (NII) says innovation is `the inter-section
of invention and insight, leading to the creative of social and economic value`. It is from the Latin
word “Innovare” which means to make something new.

The Elements of Innovation

 Challenge
 Customer focus
 Creativity
 Communication
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 Collaboration
 Completion
 Contemplation
 Culture
 Context.

Forms of innovation
I. Innovation in process, changes and improvement to method.
II. Innovation in products or services
III. Innovation in management and work organization

Basic types of innovation

 Invention; is the creation of a new product, service or process.
 Extension; is the expansion of already existing product, service or process.
 Duplication; is the replication of an already existing product, service or process.
 Synthesis; is the combination of already existing concepts and factors into new formulation

The major innovation principles

 Action Oriented
 Make Product, process or services simple and understandable
 Start small
 Aim high
 Try/test/revise
 Learn from failure
 Follow a milestone schedule.

The sources of innovation

 Trends
 Unexpected Occurrence
 Incongruities
 Process needs
 Industry and market structure
 Demographic
 Changes in perception
 New knowledge

Theories of innovation
 The diffusion theory of innovation states that “once innovation occurs, it may be spread from
the innovator to the other individuals and groups.
 The disruptive innovation model
 Innovation management process

CHAPTER 7: FEASIBILITY STUDY AND REPORT WRITING

Feasibility analysis is the process of determining if a business idea is viable. It is an assessment of a

potential business rather than strictly a product or service idea.
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Feasibility study is primarily an investigative tool. It study answers to the question; should we
proceed with this business? It also serves as a filter screening out ideas that lack the potential for
building a successful plan.

A feasibility study shows an entrepreneur that the business idea is sound one but must be
recognized in a different fashion to be profitable. For an entrepreneur to conduct a reliable
feasibility study, he/she must possess the following skills
 Economic skill
 Market skill
 Technical skill
 Financial skill
 Managerial skill

Benefits of feasibility studies

1. It serves as an aid to business planning
2. It serves as an evaluation tool
3. It serves a decision tool
4. It helps to ascertain whether or not a proposed venture is worth undertaking
5. It serves as implementation guide to the venture it relates to
6. It guides operators on the project in allocation to resources.
7. It Is used for post-audit review at the end of the project
8. It is used to invite co-sponsors to participate in the project.

The conduct of feasibility analysis require both primary and secondary research. Primary research
is conducted by the person or persons completing the analysis. Secondary analysis include
industries studies, forecasts etc

Key Areas of Feasibility Analysis

 Business concept
 Industry/market feasibility
 Product/service feasibility
 Organizational feasibility
 Manufacturing or operations, and
 Financial feasibility

Business Concept allows a third party to understand what concept is being used proposed and
why it has true potentials in the marketplace. It also provides opportunity for the entrepreneur to
prove that he/she can articulate his/her concept in clear and comprehensive terms to people
outside the circle of friends and close associate.

Industry/Target Market Feasibility Analysis is an assessment of the overall appeal of the

industry and the target market for the product or service being proposed. An industry is a group of
firms producing similar products or service. Entrepreneur should always study their competitors
in the marketplace. It will provide opportunity to find real unique distinction in their own concept.
There are 2 components to industry/market feasibility

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1) Industry attractiveness; this has five forces to paint a picture of the industry broad strokes.
They are
 The rivalry among existing firms competing in the industry
 The bargaining power of suppliers to the industry
 The bargaining of power of buyers
 The threat of new entrants to the industry
 The threat is substitute products or services.
 Relative power of other stakeholders
2) Target market attractiveness: A target market is a specific group of customers within a larger
market segment that represents a narrower group of consumers with similar needs.

Products/Service Feasibility Analysis determines the degree to which a product or service idea
appeals to potential customers and identifies the resources necessary to produce the product or
provide the service. This addresses 2 things which are;

1. Products/Service Durability;
 Concept test involves showing a preliminary description of a product or service idea called a
concept statement to industry experts and prospective customers to solicit their feedback.
 Prototypes points out potential problems in a product’s design , giving inventors the
opportunity to fix them.
 In-Home trial involves Sending researchers into customer’s home to observe them as they use
the company’s product or service.
2. Products/Service Demand;
 Buying intention survey is an instrument that is used to gauge customer interest in a product
or service.
 Library, internet and gums shoe research: gumshoe is a detective or an investigative that
scrounge around for information or clue where ever they can be found.
 Focus group involves enlisting a small number of potential customers usually between 8-12 to
give feedback on a specific issues about a product or service.

Organisational Feasibility Analysis is use to determine whether a proposed documents has

sufficient management expertise, organizational competence and resources to successfully launch a
business. It has two primary issues:
1) Management Prowess: requires the individuals starting the firm to be honest and candid in
their self-assessments.
2) Resource Efficiency: is to determine whether or not the proposed venture has or is capable of
obtaining sufficient resources to move forward. The objective is to identify the most important
non-financial resources and access their availability.

Manufacturing or operations feasibility analysis:

 Facilities
 Inventory Management
 Human Resource Requirements
 Operational Rationale
 Legal and Insurance Issues

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Financial Feasibility Analysis: involves accessing the financial feasibility of a proposed business
venture. The major elements to be included in a financial feasibility analysis include:
 Capital requirements
 Estimated Earnings
 Return on investment
 Overall Financial Attractiveness of the proposed venture

Feasibility Analysis outline is developed by comparing different versions.

CHAPTER 8: VALIDATION OF PRODUCTS AND SERVICES

Idea validation is the process of testing and validating your idea prior to launching your business
name, tagline, product, service, or website. It is the process of achieving increased certainty that a
product idea will indeed be successfully adopted in market. We can think of the idea as a stepping
stone that leads to an opportunity. Opportunity recognition is a process.

Sources of Business Opportunities in Nigeria

1. Entrepreneur` social network
2. Prior experience
3. Existence of a similar business
4. Hobby/personal interest
5. Market research
6. Electronic and print media

Scanning Business Opportunities in Nigeria

 Scanning is close examination of the environment conditions and their impact upon business. It
is an attempt to look beyond the immediate opportunities to the emerging trends.
 Business opportunity scanning is the study and interpretation of the political, economic, social
and technological event and trends which influence a business, an industry or even the total
market.
 Scanning for business opportunities cover the following among others;
 Technology,
 Government regulation,
 Financial factors,
 Economic factors,
 Social and cultural factors,
 Political
 Climatic conditions.

Steps to Idea validation

 Brainstorm Internally
 Do not ask family and friends
 Choose your interviewees
 Conduct your informal interview
 Review and decide

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CHAPTER 9: BUSINESS PLANNING AND CONTROL

 Planning is the process of deciding what to do and how to do it. It can be regarded as the
establishment of objectives and the formulation, evaluation and selection of the policies,
stategies, tactics and actions required to achieve these objectives.
 Business planning is the establishment of the objectives and taking all those necessary steps to
achieve them.

Planning Principles
 It should be comprehensive
 It should be efficient
 The process should be inclusive
 It should be informative
 It should be integrated
 It should be logical
 It should be transparent.

Types of Planning
1) Strategic Planning / strategic framework: this helps organization to determine its priorities.
2) Business/action/operational planning: is a plan for implementation in order to achieve your
broader goals and objectives as set in the strategic plan.

Business Control
Control is the process of comparing actual results with planned or budgeted results and reporting
upon variations. It is concerned with the efficient use resources to achieve a previously determined
objectives contained within the plan. The purpose of control is to identify unfavourable business
performance so appropriate actions can be taken.

Activities involved in Business Control

 Establishing performance standards
 Reporting or monitoring performance
 Comparing performance against standards
 Identifying unsatisfactory performance and
 Pursuing appropriate actions to correct significant deviations in performance

Control of business activities can take place at 2 levels

1) Internal Control: is control from within the organization
2) External Control: is control outside the organization

Business Plan
This is a document that details the business objective(s) and means of achieving them. It covers
what you intend to do with your business and how it will be done. It may be externally or internally
focused.
 Externally focused is use to obtain funding that is essential for the development and growth of
the business. This plans target goals that are important to external stakeholders.

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 Internally focused is use to provide a plan for early strategic and corporate development. This
plans target immediate goals required to reach external goals.

The content and format of the business plan is determined by the goals and audience. To prepare a
business plan, the following check list will require:
 Background of the business
 Products/services
 Personnel for running the business
 Business market
 Financial consideration

CHAPTER 10: ENTREPRENEURSHIP APPROACH TO MARKETING OF PRODUCTS AND SERVICES

Marketing according to the American Marketing Association (2009) is defined as the activity, set of
institutions, and processes for creating, communicating, delivering and exchanging offerings that
have value for customers and society at large. The meaning has 4 important elements, which are;
i. Creating
ii. Communicating
iii. Delivering
iv. Exchanging

Core concepts of marketing

 Need are basic human requirements e.g. food, water, air, clothing and shelter. It becomes want
when it is directed to specific objects that might satisfy the need
 Demands are wants for specific products backed by an ability to pay.
 Marketing starts with the needs of the customers and ends with his satisfaction.
 Market is a physical place where buyers and sellers gather together to buy and sell goods.
Examples of market are:
 Need markets
 Product markets
 Demographic market
 Geographic market
 Voter market
 Labour markets
 Donor markets

There are 4 key customer markets, which are:

 Customer markets: are for mass consumer goods and services such as cosmetics, equipment
etc.
 Business Markets: are for well trained and professioner buyers who buy goods to make or
resell to others at a profit.
 Global Markets
 Non- Profit and Governmental Markets

Marketable Entities
 Goods
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 Services
 Events
 Experiences
 Persons
 Places
 Properties
 Organizations
 Information
 Ideas.

Marketing Functions
They are the activities involved in bringing the goods produced from the place of production to the
point of consumption. It is classified into 3 broad categories namely:
 Exchange Functions
 Physical functions
 Facilitating functions
 Products and Services

 A product is anything that can be offered to a market to satisfy need or want. Products are
classified on the basis of their characteristics, durability, tangibility and use.
 Durability and Tangibility: these are classified into; non-durable, durable and service.
 Non-durable goods are tangible goods consumed quickly and frequently purchased e.g beer,
soap, tooth paste etc.
 Durable goods are tangible goods that normally survive many uses e.g refrigerators, clothing
etc
 Services are intangible, inseparable, and perishable products.
 Consumer - good classification are 3, namely;
 Convenience good : are usually purchased frequently, immediately and no little effort by the
consumer. It is sub divided into;
 Staples are purchased regularly by consumers e.g biscult, maclean, coca cola etc
 Impulse goods are purchased without planning or search effort e.g newspaper, yoghurt etc
 Emergency goods are purchased when there is urgent need.
 Shopping goods are purchased and compared by consumers in term of suitability, quality,
price and style.
 Homogeneous shopping goods are similar In quality with differences in prices.
 Heterogeneous shopping are differences in product.
 Specialty goods: They are goods with unique characteristics for which buyers are willing to
make a special purchasing effort. Examples include cars, stereo, photographic equipment and
men’s suit.
 Unsought goods: these are those goods that the consumers do not know about or do not
normally think of buying. These include goods like life insurance, smoke detectors, cemetery
plots, gravestones, caskets and encyclopedias.
 Industrial-goods classification: These are three groups of individual goods namely: Materials
and parts, capital items, and supplies and business services.
 Material and parts are usually in form of raw materials and manufactured materials and parts.
Raw materials can be farm products like wheat, cotton, groundnut.

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 Raw materials can be farm products like cotton groundnuts, livestock, fruits and vegetable or
natural products such as fish, lumber crude petroleum, gold, copper, aluminum, clay and iron.
 Manufactured materials and parts are either component materials like iron, yarn, cement
and wires or component parts such as small motors, tires castings, etc.
 Capital items - They are long-lasting goods that facilitates the development of finished
products. This includes installations and equipments. Installations are major purchases usually
bought directly from the producer and it consists of building and heavy equipments.
Equipments are portable factory equipment and tools and office equipments.
 Supplies and business services – They are short-term goods and services that facilitate
developing or managing the finished goods. They are in form of maintenance and repair items
such as paints, nails, broom or operating supplies such as lubricants, coal, writing paper, pencil
etc
 Service is any act or performance that one party can offer to another that is essentially
intangible and do not result in ownership of anything (Kotler, et.al., 2006). There are four
distinctive characteristics of services namely:
 Intangibility: means Unlike physical products, services cannot be seen, tasted, felt, heard or
smelled before they are bought.
 Perishability: means services cannot be stored like physical products.
 Inseparability: means service are rapidly produced and consumed simultaneously.
 Variability: means services depend on who, when, where and how it is performed.

THE MARKETING MIX : This is defined as all set of marketing tools a firm use to achieve its
objectives. These marketing tools are classified into 4 broad groups which are called the 4Ps of
marketing namely; Product, Price, Place and Promotion .

Marketing mix is designed to meet customer’s needs and these need are grouped into 4 Cs namely:
Customer solution, Cost, Convenience, Communication. This popular view held that the function of
the four Ps is to match each of the Cs.
The Product serves as customer’s solution. The Price represents the cost of the product to
consumers. Promotion provides communication about the product to the consumers while Place
offers convenience or accessibility of the product to the consumers.
Modifications of the traditional 4P’s of marketing mix in the 1980s Judd(1987) proposed a filth P
while Booms and Bitners (1981) gave the 7Ps framework. Lovelock & Wirtz (2007) to the discourse
suggested 8Ps of marketing mix. There are scholars who have proposed different versions more
than these 8Ps, such as 15Ps.
1. Price
2. Place
3. Products
4. Promotion – includes promotional tools that are listed below:
i. Advertising
ii. Personal Selling
iii. Sales Promotion
iv. Publicity
v. Public Relations
5. People
6. Process
7. Physical evidence
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8. Productivity and Quality

BRANDING, TRADEMARK AND SEGMENTATION

The selection of groups of people or organizations which a company sells to everybody is known as
target marketing. The situation where the company sells it to everybody is known as Mass
Marketing or undifferentiated marketing.

Most companies according to Kotler and Keller (2006) are now turning to micro marketing because
mass marketing is dying. There are 4 levels of micro marketing namely: Segments, Niches, Local
areas, and Individuals.

SMALL AND MEDIUM SCALE ENTERPRISES (SME) MARKETING

Small business are called are called different names such as Small and Medium Enterprise (SMEs),
Small Scale Industries (SSI), Micro, Small and Medium Enterprise (MSMEs). The commonest feature
of SME is that they are either sole proprietorship or partnerships in nature.

Small and Medium Enterprises (SMEs) are entities with asset base of N5 million and not more than
N500 million (excluding land and buildings) with labour force (employees) of between 11 and 200.
In other words, SMEs are those businesses with capital of N5 million to N500 million, employing
between 11 and 200 staff.

IMPORTANCE OF MARKETING RESEARCH TO SMALL AND MEDIUM SCALE ENTERPRISES

Marketing research is used by both small and large scale businesses. It is the systematic design,
collection, analysis and reporting of data and findings relevant to a specific marketing situation
facing the company. There are 3 categories of marketing research firms which are:
 Syndicated Service Research firms
 Custom marketing research firms
 Specialty- line marketing Research firms

The following are contact methods used by marketing researchers;

i. Mail Questionnaire
ii. Telephone Interview
iii. Personal Interview
iv. Online interview

CHAPTER 11: HUMAN RESOURCES MANAGEMENT PRACTICES FOR ENTREPRENEURSHIP

The goal of human resource management (HRM) is to maximize employees’ contributions In order
to achieve optimal productivity and effectiveness, while simultaneously attaining individual
objectives. Some key issues in human resource management as threshold for the success of an
entrepreneur are as follow:
 Human Resource Planning: The basic goal of HRP is to predict the future and based on these
predictions, implement programmes to avoid anticipated problems. It assists organization on
future personnel need, part of strategic planning, creating highly talented personnel,
international strategies, and foundation for personnel functions.

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 Recruitment: makes it possible to acquire the number and types of people necessary to ensure
the continued operation of the organization. It forms a step in the process which continues
with the selection and ceases with the placement of the candidate.
 Selection: Human resource selection is tho process of choosing qualified individuals who are
available to fill position positions in an organization. Steps in selection process include:
 Application pool
 Preliminary screening and interview
 Application bank/form
 Selection test
 Interview
 Background investigation
 Physical examination
 Approval by appropriate authority
 Final employment decision
 Evaluation
 Placment and Orientation: is providing basic background information about the employer,
working conditions, company rules and practices and other necessary information to the
employee which the company recruited. The placement and orientation is for the employee to
be able to perform his/her job satisfactory.
 Employee Training refers to a planned effort by a company to facilitate employees’ learning of
job related competencies. It is a process of learning a sequence of programmed behavior. It
helps in bringing positive change in knowledge, skills and attitudes of employees.
The importance of training
 It improves morale of employees
 Less supervision; less wastage of time and efforts
 Fewer accidents
 Chances of Promotion
 It brings increased productivity
Types of employee training
 On-the-job training; takes place in a normal working situation
 Off-the-job training; takes place away from the normal working conditions
 Compensation is the gain that people get for working in an organization in exchange for their
time and contributions they have made to the organization. Ways of compensating include
salaries, wages, pension, overtime pay, health scheme,accommodation pay, wardrobe/dressing
allowances etc.
Factors affecting compensation
 Supply and demand of labour
 Ability to pay
 Management’s Philosophy
 Legislation
The modes of compensation
 Wages and salary ; wages is hourly rate of payment, salary is monthly rate of pay.
 Incentives; are addition to wages and salaries. They depend on productivity, sales, profit,
cost reduction effort.
 Fringe Benefit; benefits such as fund, medical care, uniform, health insurance, gratuity etc
 Non-monetary benefits; recognition of merit, comfortable working condition, job sharing,
 competent supervision etc.
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 Performance Appraisal is the systematic assessment of an individual with respect to his/her

performance on the job. It has two aspects; systematic and objective. It is a systematic and
objective way of evaluating the relative worth or ability of an employee in performing his job.
Method of Performance Appraisal
 Ranking method
 Paired comparison
 Grading comparison
 Check-list Method.
 Discipline is one good way of checking and control unethical behaviours among personnel in
organization. It is a means of correcting abnormal actions and behaviours that may come up
from time to time in the enterprises. It could be in form of ;
 Work without pay
 Suspension
 Transfer
 Payment of fine
 Loss of promotion
 Loss of opportunity
 Total dismissal/sack.
 Succession planning: is a deliberate and conscious act of placing a man or woman in a
position of authority to take over the affairs of another senior person. The successor may be
the entrepreneurs family member or a member of staff that is trusted and have the vision of
the entrepreneur. Succession planning include;
 Identify critical position
 Identify competencies Identify succession management strategies
 Document and implement succession plans
 Evaluate effectiveness

CHAPTER 12: SOURCES OF FINANCE

There are 2 major sources of finance which are; Internal and external sources of finance
Internal source of finance is a situation where funds are raised from within the organization.
Internal funds can be sourced from the following
 Owner’s investment: This is money which comes from the owner`s own saving. It is a long-term
source of finance
 Retained profit: This is undistributed profit arising from the organization’s activities.
 Provision for taxation: This is the law of the land that corporate entity should make provision
for taxes on the net profit of each period. This is not paid immediately until after a financial
year of that organization. Such provision (money) can be used if there is urgent need for that
organization/business.
 Debt collection: this is a short term internal sources of finance. A debtor is someone who owes
a business money. So, a business can raise fund by collecting money from their debtors.
 Sales of fixed asset: This is a medium term internal source of finance. This comes in from selling
off fixed assets that is no longer needed.
 Sale of stock: This money comes in through selling off unsold stock. This usually happens in
January sales. It is a short-term internal source of finance.

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External Sources of Finance are funds are generated from outside the organization and it will
directly or indirectly expose the organization to financial risk. It could be short, medium and long
term in nature.
 Short term refers to financial obligations that have a period of less than or equal to 1 year. All
forms of ST are used to finance account receivables and not current assets
 Medium term are financial obligation that have a period of beyond 1year to 7 years
 Long term are beyond 7 years to 30 years. All form of medium to long term are used to finance
fixed assets (e.g machinery and equipment, land, builing etc).

Short-term External Sources of Finance

 Borrowing from friends and relatives: This is unreliable and is risky for the provider of funds.
 Borrowing from cooperatives: This is restricted to only members of the cooperative.
 Trade credits: This is created when the firm purchasing raw material, supplies or goods for
resale on credit terms without signing any formal agreement for the liability.
 Bank borrowing: this takes two forms; bank overdraft and bank loans. Bank overdraft involves
bank allowing a firm to overdraw its account in excess of what it has as deposit in it current
account. It may be secured or unsecured. Bank loan is formal agreement between a bank and
the borrower that the bank will lend a specific amount of money for a specific amount of
money for a specific period.
 Factoring of debts: a factor is an agent that manages trade debts. Factoring involves turning
over the responsibility for collecting a firm debt to a specialist institution. A factor offers 3
main services;
i. Taking over the management of client`s sales ledger
ii. Insuring their client against the risk of bad debt.
iii. Providing finance by means of advances against the insecurity of the debtor.
 Accruals: These are amount owing on services rendered to the firm which payment has not
been made.
 Acceptance credits: This is a short-term external source of finance. Bill of exchange is used here;
it is a document drawn by the seller on the seller on the buyer requiring him to pay a certain
amount of money at some future date. The bill of exchange can take two forms; trade bill and
bank bills.

Medium-term External Sources of Finance

 Term loans: This is a negotiated loan between a bank and a company for period between 4-10
years or more.
 Hire purchase agreement: is a credit sale agreement by which the owner of the assets or
supplier grant the purchases the right to take possession of the asset but ownership will not be
posed until all hire purchase payment or installments have been made.
 Lease agreement:This is a contrast between owner of an asset(lessor) and the use of the
assets(lessor) granting the user or lessee the exclusive right to use the asset for an agreed
period in return for the rental payment. It has three types;
i. Finance lessee; is a medium-term lease agreement between the lessee and lessor.
ii. Operating lessee; is a short-term concealable lease between the lessor and the lessee.
iii. Sale and lease back; is whereby the company sells its asset to financial institution or a
leasing company for cash and the financial institution or the leasing company immediately
leases it back to the company.

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Long-term External Source of Finance

It is a financial obligation that have a maturity period of 10 years and could be extended to 30 years.
It is used in financing capital investment(fixed asset) and is generally divided into Bonds and
Shares
 BOND represent a long-term borrowing by corporation or government agencies. Bonds are
sold in multiple such as N1000. They are purchased by commercial banks, insurance
companies, pension funds and even individuals. The different classes of bonds are;
 Mortgage bond; are secured by specific assets of the corporation usually fixed assets.
 Debenture bond; applies to the unsecured bonds of corporation.
 Convertible bond; have special provision of being converted into common stocks(shares)
of the company at a specified price.
 Callable bond; are whereby issuing company may redeem/call back before their maturity
periods, premiums are paid by the issuing company to the holders of the bond should it be
recalled.
 Serial bond; are whereby certain propotion of the bond are retired at regular intervals.
 SHARE: also known as equity. Equity capital can be raised internally through retained earning
or externally by selling preferred or ordinary share/common share/stocks. It has 2 types,
which are;
 Ordinary share/common share/ stocks; this is attractive to investors who are looking for
more income than they could receive bonds.
 Preference/preferred stock; this gives its holder certain privilege that make them senior to
common stockholders. This stock enjoy a fixed claim on the company earning before
payment may be made on the common stock holders. Preference shares can be classified
into;
 Cumulative preferred share
 Participating preferred share
 Convertible preferred share

 Government Specialized Finance Programmes and Schemes in Nigeria

 Agricultural Credit Guarantee Scheme Fund (ACGSF); established by Decree 20 in 1977.
 Small and Medium Enterprise Equity Investment Scheme (SMEEIS); is an initiative of Nigeria
 Bankers` Committee in 2001.
 Rural finance institution- Building programme (RUFIN)

CHAPTER 13: BASIC ACCOUNTING RECORDS FOR ENTREPREURS

Basic accounting records for entrepreneurs are the necessary records that must be kept to ensure
that business assets are well managed and protected with a view to achieve business objectives.

Financial statements are the accounts prepared to render the stewardship responsibility of the
management to the owners or by the owners to himself. They are guided by laws/regulation which
include:
 Companies and Allied matters Act (CAMA, 1990)
 Generally Accepted Accounting principles ( GAAP)

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 International Financial Reporting Standards (IFRS): this is divided into two, which are;
accounting concept and accounting convention. Both are used in guiding book keeping and
accounting preparation.

Accounting concepts include:

 Cost concept: This holds that the basis of initial recognition of assets in the book in the book of
account is the cost of production.
 Accrual concept: This states that revenue and expenses are taken into account when they
occur and not when cash is received or paid out.
 Going Concern Concept: This assumes that business entity for which account are being
prepared is solvent and will continue to be in business for the foreseeable future.
 Prudence concept: This states that revenue or profit are included in the statement of financial
position (formally balance sheet) only when they are realized. This concept is also known as
realization concept.
 Entity Concept: holds that a business entity is considered a separate legal/economic entity
and as such states that accounting records should reflect the financial activities of a specific
business or organization and not those of its owners or employees
 Matching concept: holds that transaction affecting both revenue and expenses should be
recognized in the same accounting period with a view to determining the performance of that
period. Accounting conventions include:
 Conservation convention
 Consistency Convention
 Materiality convention

Preparation of Accounts
Account is a ledger record in the summarized form of all the transactions that have taken place
with the particular person or value specified. The most important types of account are: Statement
of profit or loss and other Comprehensive Income ( formally profit or loss account) and Statement
of Financial Position (Balance Sheet)

Accounting Equation: This explains that the assets of a business must be equal to the claims over
the assets as any point in time. Accounting equation is given as;
Assets = Capital (for a business that owes no liabilities)
Assets = Capital + Liabilities (for a business that owes liabilities).

Items in the statement of financial position

 Assets: they are resources owned and used by a business organization for the purpose of
generating income. They are classified into;
 Current assets; are asset with useful economic lifes that does not exceed one year. Examples
are inventory (stock), receivable (debtors), accruals, cash at hand, cash in bank etc.
 Non-current assets are assets with useful economic life that exceed one year e.g land and
building, fixtures and fittings, motorvehile, equipment etc.
 Liabilities: are amount owned by the business to outsiders. Examples are;
 Long-term liabilities are liabilities that fall due after more than one year e.g debentures
 Current liabilities are those who fall due within one year e.g payable creditors.

Item in Statement of profit or loss and other Comprehensive incomes

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 Revenue; is a measure of the inflow of economic benefits arising from the ordinary activities of
a business.
 Expenses represents the outflow of economic benefits arising from ordinary activities of a
business.
Recording Daily Transaction in Accounts
This can be achieved through the use of cash book. The overriding principle in book keeping and
account is called DOUBLE ENTRY PRINCIPLE, which means that for every debit entry, there is
corresponding credit entry, I.e each accounting transaction has 2 entries; the debit and the entry.
To debit an account means to enter the transaction figure on the left hand side (debit side) and to
credit an account means to enter the figures on the right hand side (credit side). The account that
receives value (monetary amount) is debited and the account that gives values (monetary amount)
is credited.

Prime Entry Books

These are books that are kept to relieve the ledger of unnecessary details. They include;
 Cash book: Used to record transactions that are conducted both in cash and through the issue
of cheque.
 Sales Day book and Purchase day book: records credit sales and credit purchases
respectively.
 Return Inward book: used to account for goods/inventories earlier sold but later returned
into the business due to defective items or if the goods do not meet specification.
 Return Outward book: This book records goods/inventories earlier purchased by the
business but later returned to the suppliers especially if defective items or if the goods do not
meet specification.
 Journal: this is a record into which all transactions are entered, classified into debits or credits
and then posted or entered in the ledger account. A Journal is used for the following
transaction
 Purchase and sales of assets on credit
 Opening and closing entries
 Correction of errors
 Transfer between accounts; and
 Any other items not entered in another book of original entry.

Cash Book
The cash book takes account of transaction conducted in cash and in cheques. It has the same
format as an account format. The types of cash book are;
 Two column cash book records transactions in cash without provision for discounts either on
sales or purchase.
 Three- column cash book has columns for discounts received and discount allowed in addition
to the content of two-column cash book.

Trial Balance: shows the arithmetical accuracy of the double entry principle as the debit and credit
balance totals in the trial balance must agree (the same)

Financial Statement Preparation.

The type of accounts/ financial statement one needs to prepare depends on the type of business
one is doing. They include:
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 Trading business and

 Manufacturing business.

CHAPTER 14: APPLICATION OF ENGINEERING INVENTION AND INNOVATION TO ENTREPRENEURSHIP

Invention is the new and obvious improvement to a process, object or project. An investor is the
person who synthesizes the problem statement and solutions into a novel solution that solves some
unique problem. Discovery is different from invention. Discovery is making something known for
the first time, while invention build on discovery.

Innovation is a new idea that is put into valuable or profitable action. An innovation is an ongoing
process of getting an invention to a point where it has an application value of some kind. It can be
new products and new service mode, new business models and new customer experiences.

Roles of science and technology in entrepreneurship development and growth of enterprises.

Engineering is derived from 2 Latin words `ingenium` which means `cleverness` and `Ingeniare`
which means `to devise/contrive`. It is the application of scientific, economical, social and practical
knowledge in order to invent, design, build, maintain, research and improve structures, machines,
device, systems, materials and processes.

Education is the driving force for entrepreneurship development. The entrepreneurship

development and growth of enterprises in Nigeria are classified as follow;
 Agriculture/agro-allied and crop/food processing activities.
 Solid material.
 Power and transport.
 Information and telecommunication business.
 Hospitality and tourism business.
 Oil and gas business
 Environmental and waste management business
 Financial and banking services
 Engineering and fabrication work
 Building and construction
 Health care provision and physical fitness services.

Issues Related to Talking an Invention to a product.

 Technology Development
 Securing Intelligent Property
 Financing
 Manufacturing Process Development
 Business Development

Applied or Commercial Research (Context-based research) or Basic Research (Context-free

research) may be used in taking invention to a product. An invention can either be a new
technology or new product.

Technology Readiness Levels (TRLs)

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TRLs are a systematic metric/measurement system that supports assessments of the maturity of a
particular technology and the consistent comparison of maturity between different types of
technology.

Stages of TRLs
 TRL1: Basic principles observed and reported
 TRL2: Technology concept and/or application formulated
 TRL3: Analytical and experimental critical function and/or characteristic proof-of concept
 TRL4: Component and/or breadboard validation in laboratory environment
 TRL5: Component and/or breadboard validation in relevant environment
 TRL6: System/subsystem model or prototype demonstration in a relevant environment
 TRL7: System prototype demonstration in a space environment
 TRL 8: Actual system completed and `flight qualified` through test and demonstration
 TRL9: Actual System `flight proven` through successful mission operations

Innovation speed up
Innovation can be speeded up by 2 district approaches, which are;
 Technology push
 Market pull

CHAPTER 15: ENTREPRENEURSHIP AND LAW

Regulatory agencies established by the govt. to facilitate the supervision of entrepreneurship in

Nigeria, they include:
 Standard Organization of Nigeria (SON)
 National Agency for Food and Drug Administration Control (NAFDAC)
 National Drug Law Enforcement Agency (NDLEA)
 Federal Environmental Protection Agency (FEPA)
 State Environmental Protection Agency (SEPA)

Corporate Affairs Commission (CAC)

 This is one of the major innovations of the companies and allied matters act (CAMA) in 1990 is
the establishment of CAC. The CAC has 15members appointed from various professions. To be
eligible for appointment as a Registrar General of CAC, an individual must have been qualified
to practice law in Nigeria for not less than 10 years, he must have had experience in the
company law practice or administration for not less than 8 years
 The Registrar General is the Chief Executive Officer (C.E.O) of the commission. He is also the
chief accounting officer of the body. The remaining 13 members were appointed by the minster
of Finance and Economic Development. A member is appointed for 5 years in first instance,
and eligible for another 5 years, except Registrar.

Step by step guide to registering business as Entrepreneur in Nigeria

 Choosing a business name
 Visit CAC
 Certificate of registration

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Standards Organization of Nigeria (SON)

This was established by an Act of the National which vested it with ensuring power of;
Standards elaboration and analysis of product
 Specification of product
 Quality assurance system of commodities
 Standardization of manufactured industrial and imported products and services generally
including Metrology Services.

It was in 1984, the name Nigeria Standards Organization (NSO) was changed to SON.

National Agency for food and drug administration and control (NAFDAC).
This is an agency under the Federal Ministry of Health that. It was established to prevent
illicit dealing and counterfeit products in Nigeria. NAFDAC is responsible for regulating and
controlling the manufacture, importation, exportation, advertisement, distribution, sale and the use
of food, drugs, cosmetics, medical devices, chemical and package water. In 1989, over 150 children
died as a result of a result of paracetamol syrup containing diethylene glyco.

NAFDAC Degree which is now ACT was promulgated in January, 1993, but was officially
established in January 1, 1994. The agency was able to create 6 zonal and 36 state offices, enlighten
pure water producers, patent and proprietary medicine dealer association (PPMDA) and National
union of road transport workers (NURTW) and National association of road transport owners
(NARTO).

The Factories Act

 Registration of factories
 Welfare

Relevance of intellectual property law of an entrepreneur

The law of intellectual property is a body of rules specifically designed to protect intngible assets
attributable to a business by guaranteeing returns on investments in terms of skills, labour and
other expenses. It comprises of four main legal device, which are;
 Copyright
 Patents
 Design,
 Trademark

CHAPTER 16: WORKSHOP PRACTICE FOR ENTREPRENEURS

Measurement is the assignment of numbers to material things to represent the relations among
them with respect to particular properties. Metrology is the general term that defines the science of
measurement of dimension. “Metro” and “Logy” are Greek words meaning Measurement and
Science respectively.

Project is an integrated set of activities that uses resources to transform inputs into output. The
measurement process is the set of operations to determine the value of a quantity.

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Specialized Areas of Metrology

 Dimensional Metrology: deals with measurement of length and angle.
 Mass Metrology: deals with measurement of mass.
 Illumination Metrology: deals with measurement of light.
 Chemical Metrology: deals with all types of measurement in Chemistry.
 Legal Metrology: deals with mandatory measurement in a community to ensure that correct
quantities are given against their monetary values in everyday trade. They relate in particular
to volume,mass and length.

Metric system uses the meter and linear light units based on the meters as its standards of measure.
Characteristics of data reliability include
 Accuracy
 Precision
 Reproducibility.

 Health and safety regulations are inscribed in the factory acts which are based on the
recommendations of Trade unions, employees association, industries and ministry of health.
 FID (Factory of Inspectorate Department of Nigeria) is an organization that is responsible for
registration of new factory premises in the federation. It has the permission to ensure safety,
health and welfare of persons employed in factory and similar engineering establishment.
 Lubrication is the process of reducing friction between moving or sliding surfaces. It is a
substance applied between moving/sliding surfaces to reduce the friction between the surfaces.

Functions of lubricants
1. It reduces wear and tear of the surfaces.
2. It reduces expansion of metal.
3. It reduces power loss in internal combustion engines.
4. It acts as coolant of metal due to heat transfer media.
5. It avoids unsmooth relative motion.
6. It reduces maintenance cost

Types of lubricants
 Liquid lubricants e.g. Engine oil,
 Semi-Liquid lubricant e.g. Grease.
 Solid Lubricant e.g. Crank shaft journal bearing

Properties of lubricants include;

 Viscosity
 Flash and fire point
 Cloud point and pour point
 Aniline point
 Corrosion Stability.
Characteristics of lubricant.
It should have; high oiliness, low volatility, high viscosity index, higher aniline point, high
temperature of resistance.

Quality Assurance and Control

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Quality assurance are all the planned and systematic activities implemented within the quality
system that can be demonstrated to provide confidence that a product or service will fulfil
requirements for quality. It refers to the overall management system them which includes
organization, planning, data collection, quality control, documentation, evaluation and reporting
activities of a project.

Quality Control is the operational techniques and activities used to fulfil requirements of quality. It
refers to the routine technical activities whose purpose is , essentially error control. It includes
internal and external measure.

Workshop equipment
Equipment is any set of physical items that can be used to achieve a goal.

Classification of Equipment
 Cutting equipment; knife, scythe and sickle.
 Moving equipment; hammer, mallet, screw driver, trucks, anvil, wrench etc
 Chemical equipment; lighter, blowtorch.
 Measuring and perception equipment; ruler, glass jar, sensor, clock, printer,phone, etc
 Shaping equipment; mould, jig, and towel
 Fastening equipment; welder, rivet, nail guns and glue gun.
 Safety and protective equipment; glasses, nose, mask,ear muffs, and gloves. They can be
classified into house equipment and utilities equipment.

THE END !!!

REFERENCE: Contemporary Entrepreneurship Development.

DON’T USE THIS STUDY MATERIAL AS A REPLACEMENT TO THE TEXTBOOK. THANKS.

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