Module Title:

ENTREPRENEURIAL DEVELOPMENT IN EDUCATION

INSTITUTIONS

Module Code:
EMT06203

Tutor:
Madam Ester Jonas
Mobile: 0756- 760265
 Suggested Ground Rules
• Effective time management
• Don’t interrupt
• Switch off or mute your cell phones!
• Keep the action notes sheet in sight
at all times
• Brainstorm and disagree openly!
• Contribute
 Objectives of the Course

At the end of this course you will be

able to;
Define the concept of entrepreneur
and entrepreneurship
Identify qualities/ features of
entrepreneur
 Objectives…

• Identify types of entrepreneurs

• Learn entrepreneurship skills

required to run a school successfully

• Identify the challenges / barriers

that impede entrepreneurship
 Objectives of the Course

• Become more enterprising in

executing your roles
• Learn ways of developing
enterprising tendencies
 Objectives of the Course
• Market your school/business and
increase the level of customer servic
• Mobilize resources for the expansion
of your school/ business
• Develop a Business Plan to implemen
the skills acquired
 Methodology
• Highly participatory/learning
together
• Brief presentations by
facilitators
• Group discussions and sharing
• Case studies
 Methodology

• Picture
• Individual assessment
• Short stories etc.
• Developing Business plans
 Why Entrepreneurial Management in Schools?

• The demands made on educational

institutions are becoming more
numerous and complex
• Parents and pupils/students are
increasingly demanding quality
education
 Why Entrepreneurial Management in Schools?

• The labour market is demanding more

competent graduates
• Competition for higher learning
institutions is increasing
• Entrepreneurial management has to
play a key role in meeting unlimited
demands on institutions
Why Entrepreneurial Management in Schools?

• Due to increased competition

among schools, management
should adopt business orientation
in running their institutions
• Schools must be run in an
entrepreneurial way
Why Entrepreneurial Management in Schools?

• Private schools must generate

profits/value to their
proprietors/stakeholders.
• Public schools are increasingly being
required to operate effectively within
budget dictated by the government,
and mobilize additional resources
Why Entrepreneurial Management in Schools?

• Increasing competition of good

teachers among different
schools
• Schools must create an
environment that will reduce
turnover of good teachers
Why Entrepreneurial Management in Schools?

• They must produce quality graduates

who can compete in the labour
market and for the higher learning
opportunities
• School managers, leaders and
teachers must therefore be exposed
to entrepreneurial management skills
 Group Discussion
Identify challenges facing schools in
Tanzania today and how
entrepreneurship will reduce them
(examples from your school will add
value)
 Challenges Facing Schools?
Why challenges to schools;
• School demands?
• Teacher demands?
• Student demands?
• Parent demands?
 Challenges Facing Schools?
• Government?
• Society at large?
• Future employers?
• Sponsors?
• Other players in the
industry?
How can we move?

18
 How can we untie?

Most entrepreneurs are struggling with

the same challenges you are facing
today.
But, We Can!!!
Session 1
An Entrepreneur
 THE MEANING OF ENTREPRENEUR

Etymologically the word 'Entrepreneur'

has been derived from a French word
'Entreprendre' which means to
undertake certain activities. In a
business context, it means to start a
business.
Many scholars has been defined the term
entrepreneur as follows:
 The concept…
 In (1775), R. Cantillon defined
entrepreneur as an agent who
purchases the means of
production. (i.e. land, labor,
and capital)to combine into
marketable products.
 The concept…
Say, J.B (1800) defined
entrepreneur as a person who
shifts economic resources out
of an area of lower and into an
area of higher yield or
productivity.
 The concept…
• Schumpeter, J (1934) define an entrepreneur as
an innovator, who develops new technology.

• Mc Clelland. D (1961), an entrepreneur is an

energetic, moderate risk-taker,

• Drucker, P, (1970) an entrepreneur maximizes

opportunities.
 The concept….
• Bedi, K (2009) define entrepreneur as a person
who innovates, organizes, operates, and
assumes the risk for a new business venture. A
venture is a business enterprise involving risk in
expectation of gain.
• Innovates – this means he/she comes up with a
new concept, product or service.
• Organizes a new business venture – Means
initiates or starts a new business
 The concept….

• Operates – Means run a business

venture and strive hard to
sustain /keep up and grow it.
• Assumes the risk - means takes the
responsibility of the ( positive or
negative) outcomes of a business
 The concept of entre….

• Entrepreneur is a person who

organizes and manages any
enterprise, especially a business,
usually with considerable initiative
and risk.
 The concept of Entr..

• An entrepreneur is one who

undertakes the enterprise acting as an
intermediary between capital and
labour. He/she is a person who takes
initiative to bring new ideas,
innovation, starts a new venture and
act as catalytic agent for a new project.
 The concept of Entr…

• An entrepreneur can also defined as

a person with vision, original idea,
decision making and daring to try.
One who acts as a leader and boss of
the show, who decides how business
has to be done who coordinates and
arranges all the factors of production.
 The concept…

• As a concept, it is simply defined as a

person’s ability to see an opportunity
where necessary capital, labor &
other inputs can operate together
successfully along with know-how
skills and have willingness to take the
personal risk of success or failure.
 Entrepreneur…

• An entrepreneur is someone who

organizes, manages, and assumes the
risks of business or enterprise. An
entrepreneur is an agent of change.
• An entrepreneur is a person who has
the initiative skills and motivation to
set up a business or an enterprise of
his own and who always looks for high
 The concept…

• An individual who has an

innate/inborn drive of
enterprising for building up
capital through risk ventures.
 Entrepreneur…
• A person of very high aptitude who
pioneers change
• People/Dreamer who put new ideas
into action
• A person who organizes, operates,
and assumes the risk for a business
venture.
 Entrepreneur…
• He/she is the catalyst for social
change and works for the
common good. They look for
opportunities, identify them and
grasp them mainly for economic
gains.
 Entrepre…..

• Generally, Entrepreneur is a
person who innovates,
organizes, operates, and
assumes the risk for a new
business venture.
 ENTREPRENEURSHIP SKILLS

Class discussion.
Identify features and Qualities
of effective Entrepreneur
 ENTREPRENEURSHIP SKILLS
Successful entrepreneurs no matter what
their motivations, have certain things in
common.
1. Risk taker- a successful entrepreneur should
be in position to bear risks. This is because
stating a business and keeping it going is likely
to pose a number of risks. Therefore, he/she
should try to prepare for the unexpected.
3. Innovative and creative – He/she should
develop real ideas for products or services or
think of new ways of satisfying customers
needs.
4. Communication skills – This is because
entrepreneurs everyday talk to customers,
employees and many others people, he/she
should be able to persuade, make deals and
solve problems.
 Features and Qualities …
5. Self confidence and stamina – He/she should
believe in his/her ability to accomplish goals
(self confidence) and should have the
willingness and physical ability to work hard
(stamina).
6. Accountability – He/ she should be able to
measure the performance of his/her business,
keep records of his/her possession (assets) and
business transactions.
 Features and Qualities…
7. be persistent/stable / constant – He/ she
should continue to operate even in the times of
failure and through a lot of difficulty.
8. Seek information - ( information is power) he/
she should constantly keep in touch with the
changing trends in the business environment
through reading newspapers, business journals,
attending business seminars and workshops,
computer literacy eg. enternate, email
communication. This will update him/her on
the latest business news and opportunities
 Features and Qualities of Entrepreneur(s)

The major entrepreneurial characteristics/

Qualities are:
• Initiative/planner /pro-active
• Flexible
• Visionary /prophet/ forecaster
• Opportunistic
 Features and Qualities…
• Independent
• Aggressive
• Opportunistic
• Networking
• reasonable, calculated
• Growth-seeking
• Strategic
• Achievement- oriented/ambitious
 Features and qualities …

• power of creativity
• work tirelessly
• creative thinking -To find new ways to solve problems
• planning and research - know how and where to find
information and how to use it.)
• decision making -study their option, then decide
• (writing) - ( produce accurate, clear, error-free
writing)
• Learning eg. New technology, techniques,
methodologies, styles etc.
 Features and qualities…

• Organization - ( set priorities

and organize to achieve them
• Future-oriented/long-term
orientation
 Features and qualities ….

• team building - know how to

assemble, motivate, and empower an
effective team)
• marketing (selling) - know how to sell
and can describe what selling involves
• financial management - know how to
manage cash flow and how to read a
bottom line)
 Features and qualities ….

• record keeping - can identify and use

business forms; file and record
financial transactions
• business management - can manage
people effectively, delegate
responsibility, and answer for the
bottom line
The concept of Entrepreneurship

• The concept of entrepreneurship has a

wide range of meanings. As such, it is
very complex to come up with a
common and universal theory that
provides a direct definition of the term
entrepreneurship. This is because;
different authors tend to define it in
different perspectives.
 The concept…
• Schumpeter (1934) saw
entrepreneurship as an innovative
process of change whereby new
products, or new combinations or
procedures are created through
creative destruction
 The concept…
• It can also be defined as the process of
discovering new ways of combining resources.

• According to the 2008 European Commission

Report, the term Entrepreneurship refers to
an individual’s ability to turn ideas into action
which includes creativity, innovation and risk
taking, as well as the ability to plan and
manage projects in order to achieve
objectives.
 The concept…

• Is the process of creating something

different with value by devoting the
necessary time and effort; assuming the
accompanying financial, psychological,
and social risks; and receiving the
resulting rewards of monetary and
personal satisfaction.
 The concept…

• is a process of identifying and

starting a business venture,
sourcing and organizing the
required resources and taking
both the risks and rewards
associated with the venture.
 The concept…

• is the act of being an entrepreneur

or "one who undertakes innovations,
finance and business acumen in an
effort to transform innovations into
economic goods".
 The concept…

• A way of thinking, reasoning,

and acting that results in the
creation, enhancement,
realisation, and renewal of
value for an individual, group,
organisation, society, etc
 The concept…

• Entrepreneurship therefore, is
defined as the act of mobilizing
or employing and organizing the
other factors of production while
assuming the calculated risks of
failure and rewards of success.
Key Concepts of the definition of
entrepreneurship
• Identifying an opportunities
• Getting resources
• Innovations and Creativity
• Growing
Key Concepts of the definition

• Taking risks (calculated

risks)
• Being rewarded
 Forms of Entrepreneurship

Entrepreneurship can be;

i. Business entrepreneurship (Business
entrepreneurs)
ii. Corporate Entrepreneurship
(Entrepreneurship within established
organization)
iii. Social entrepreneurship - changing the
performance capacity of society
Where do we belong?, Why?
 General Enterprising Tendencies (GETs)

Enterprising individuals share

the following general
tendencies (GETs)
i. Strong need for
achievement
ii. Independence/autonomy
General Enterprising Tendencies

iii. Innovation/creativity
iv. Calculated risk-taking
v. Drive and
determination
 Why Become an Entrepreneur?
Many people become entrepreneurs and start
their own schools/business due to the
following reasons:
Desire to be their own boss(es)
Desire to pursue their own ideas
Financial rewards
Why Become an Entrepreneur…

• Family member who was successful in

business
• Some seek wealth
• To help other people to overcome
poverty or injustice to provide a service
for the elderly or handicapped or to try
to preserve the environment.
 Discussion

Are entrepreneurial
qualities in-born or
learnt?
 Common Myths About Entrepreneurs

Myth 1: Entrepreneurs Are Born

Not Made
This myth is based on the
mistaken belief that some people
are genetically predisposed to be
entrepreneurs.
 Cont…
The consensus of many studies is that
no one is “born” to be an entrepreneur;
everyone has the potential to become
one.
Whether someone does or doesn’t
become an entrepreneur, is a function of
the environment, life experiences, and
personal choices.
 Common Myths About Entrepreneurs

• Myth 2: Entrepreneurs Are

Gamblers
–Most entrepreneurs are moderate
risk takers.
–The idea that entrepreneurs are
gamblers originates from two
sources:
 Cont…

• Entrepreneurs typically have jobs that

are less structured, and so they face a
more uncertain set of possibilities than
people in traditional jobs.
• Many entrepreneurs have a strong need
to achieve and set challenging goals, a
behavior that is often equated with risk
taking.
 Common Myths About Entrepreneurs

• Myth 3: Entrepreneurs Are Motivated

Primarily by Money.
– While it is naïve to think that
entrepreneurs don’t seek financial
rewards, money is rarely the reason
entrepreneurs start new firms.
– In fact, some entrepreneurs warn that the
pursuit of money can be distracting.
 Common Myths About Entrepreneurs

• Myth 4: Entrepreneurs Should Be Young

and Energetic.
– The most active age for business ownership
is 35 to 45 years old.
– While it is important to be energetic,
investors often cite the strength of the
entrepreneur as their most important criteria
in making investment decisions.
 Cont…

• What makes an entrepreneur

“strong” in the eyes of an
investor is experience, maturity,
a solid reputation, and a track
record of success.
• These criteria favor older rather
than younger entrepreneurs.
 Cont….
• Conclusion, Everyone is an
entrepreneur, but it depends on
someone ambitions and
environment. ie. Combination of
both genetic and environment
factors made somebody to become
entrepreneur.
Deferent Between Entrepreneurs and Other Forms
of Businesses

• Often the words “entrepreneur” and

“businessman” are used
interchangeably. But the fact is that the
meaning they signify is as different from
each other as it can possibly be. In
course of ignorance, many businessmen
label themselves as entrepreneurs. Eg.
vegitable, cake sellers etc.
 Differences…

Many people use the terms

"entrepreneurship" and "small/other
business ownership" synonymously.
While they may have much in common,
there are significant differences between
the entrepreneurial venture and the
small business. Entrepreneurial ventures
differ from small businesses in the
following ways:
 Differences……

• A businessman is any person that

engages in a series of economic activities
to earn a profit. An entrepreneur, on the
other hand, is someone who conceives
an idea or a solution to a current
problem that the society is facing, finds
investors and sets up an enterprise to
offer his expertise to the general public.
There are many differences in the way both think, operate, and do business.

1. Entrepreneurs love to innovate while

other form of business owners love to
stick to tested services and solutions.
2. Entrepreneurs are on a look out to
create something new-a product,
solution, strategy, application, service or
even a whole new concept. Whereas,
other business stick to traditionally
popular products and services and try to
3. entrepreneur conceives a fresh
concept/idea/solution to start his enterprise.
whereas an A businessman starts his business
with an already existing and mostly a well-
exploited area
4. The entrepreneur has an object to provide a
never-tried-before  solution to an existing
problem instead of capitalizing on a tried-and-
tested idea.
 Cont…

5. An entrepreneur is almost habitual

of taking risks. Where as A
businessman is afraid to take risks.
 Differences…
6. Entrepreneurs tend to pick up niches that are
not over-crowded. In fact, they create new
niche and market segments. Traditional
businessmen, as the name suggest, like to stick
to crowded markets.
7. Entrepreneurs have to brace with initial
blockage in terms of finance, support and
resources. Traditional businessmen often enjoy
support because there is not much of
speculation over the feasibility of their venture.
8. an entrepreneur brings productivity in
his employees. whereas A businessman
is concerned with hiring people to
increase his business productivity
An entrepreneur hires people and
converts them into a pool of resource
which can be easily and effectively
tapped by the society.
 Differences……

9. A businessman shies away from changes,

and often finds him at the receiving end
of turbulent business environment
whereas an entrepreneur is always eager
to face challenging business conditions.
10. A businessman is apprehensive of
changes whereas an entrepreneur
embraces changes.
 Cont…
•  A businessman, more often than not, sticks
with his older products and is afraid to
innovate. An entrepreneur is renowned for his
knack of innovating and creating a better
product for the society.
 An entrepreneur thrives on his risk taking
capabilities and strives to outshine all his
previous products each time.
 Cont…

• A businessman stays with the more

traditional way of doing business whereas
an entrepreneur is obsessed with
unconventional way of doing things.
Beginning from the product idea and
going till after the product has been sold,
an entrepreneur makes an effort to be
boldly unconventionally different.
 Differences…
• Amount of wealth creation - rather than simply
generating an income stream that replaces
traditional employment, a successful
entrepreneurial venture creates substantial wealth.
• Speed of wealth creation - while a successful small
business can generate several million shillings of
profit over a lifetime, entrepreneurial wealth
creation often is rapid; for example, within 5 years.
 Differences…
• Risk - the risk of an entrepreneurial venture must be
high; otherwise, with the incentive of sure profits
many entrepreneurs would be pursuing the idea and
the opportunity would no longer exist.
• Innovation - entrepreneurship often involves
substantial innovation beyond what a small business
might exhibit. This innovation gives the venture the
competitive advantage that results in wealth creation.
The innovation may be in the product or service itself,
or in the business processes used to deliver it.
 Differences…
• A businessman is known for making revenue
whereas entrepreneurs are focused on
creating value.
 Adding value to the society is the reason
entrepreneurs exist. Entrepreneurs want to
bring in a revolutionary change in the way
society thinks and works.
 Generally

• A businessman adopts an idea, starts

a business and brings it to life
whereas an entrepreneur plants the
seed, nourishes it over years and
creates a value-generating asset for
the world, he brings life to his
business
 Role of Entrepreneurs in Social, Political and
Economic Development.

Class Discussion
What do you think are the role/
importance of entrepreneurs in social,
political and economic development in
developing countries like Tanzania?
 Importance of Entrepreneurship
Entrepreneurs play an importance role in social
and economic development as follows:
1. Create employment opportunities to huge
mass of people;
Most of entrepreneurs open new venture,
enterprises. This generate employment
opportunities for others. this makes it clear
that most of people are being absorbed in
these enterprises.
 Importance of Entrepreneurship
2. Develop new markets.
Entrepreneurs are resourceful and creative. They
can create customers or buyers which makes
entrepreneurs different from ordinary businessmen
to perform traditional functions of management
3. Speeds up the process of industrial use of factors
of production.
4. Leads to better social changes ie. Quality and
quantity
 Importance…
5. Discover new sources of materials.
Due to their innovative nature, Entrepreneurs persist on
discovering new sources of materials to improve their
enterprises and enjoy a comparative advantage in terms of
supply, cost and quality.
6. Improve culture of business and expand commercial activities
7. Development of backward and tribal areas

8. Taking to higher rate of economic growth by creation of

value.
 Importance…
9. Mobilize capital resources.
Entrepreneurs are the organizers and coordinators of the major
factors of production, such as land labor and capital. They
properly mix these factors of production to create goods and
service with initiative and self-confidence in accumulating and
mobilizing capital resources.

10. Entrepreneurship acts as a change agent to meet the

requirements of the changing markets and customer
preferences.
 Importance…
11. Introduce new technologies, new
industries and new products.
Entrepreneurs can introduce something new
or something different through
entrepreneurial spirit. Every year, there are
new technologies and new products. All of
these are intended to satisfy human needs in
more convenient and pleasant way.
 Importance …
12. Contributed towards research and
development system

13. Stimulating all economic activity.

The economic success of nations worldwide is the
result of encouraging and rewarding the
entrepreneurial instinct.
Dispersal of economic activities of different sectors of
economy and identifying new avenues of growth
 Importance…
14. Inspire /motivate/ encourage others towards
entrepreneurship
15. create knowledge spillovers
16. Augment , expand/ increase the number of enterprises,
thus increase competition
17. Provide diversity / variety/ mixture in firms
18. Bring social, political and economic change in the society.
ADD OTHERS

-
 Importance…

CONCLUSION
• Entrepreneurs are unique because
they're capable of bringing together
the money, raw materials,
manufacturing facilities, skilled labor
and land or buildings required to
produce a product or service.
 FUNCTIONS OF AN ENTREPRENEUR

The entrepreneur performs a number of

functions, the outstanding follows:-
(i) Risk measurement and risk-taking - risk taking
is assuming responsibly by an entrepreneur for
any changes, unforeseen contingencies and
losses that may occur in a planned enterprise.
In any business the higher the risks, the greater
the rewards. An entrepreneur takes calculated
amount of risk depending on his/her ability.
 Functions…
(ii) Innovative/ creative/ discover – are at the
heart of the functions of an entrepreneur
(iii) Analyse the opportunities – He/she have
the opportunity-seeking styles of
management that sparks innovation. The
environment determines opportunities from
time to time.
 Functions…
(iv) Strategize for the venture – He/she should perform
long-term planning for the venture to be started. Thus,
entrepreneur should have the capability and skills to
formulate strategies for the new business venture.
(v) Develop a business plan – Is a written document
containing the details about every aspect of the proposed
business venture. It saves two purposes; to provide a road
map for the people internal to the organization i.e. the
employees, stakeholders, etc. and to convince the
potential investors and financial institutions about the
viability of the ventures that they may agree to invest in it.
 Functions…
(vi) Acquire the resources - he/she has to acquire
various type of resources like capital, manpower,
machinery/ equipment, land, buildings etc. to start
a venture.
(vii) Organize and start the venture – He/she should
be a good organizer i.e. he should deploy suitable
resources in the right activities at the right time in
order to avoid wastage and to optimally utilize the
resources in starting –up the new venture.
 Functions…
(viii) Develop and grow the venture – many of the start-
up ventures are not able to survive for long. Thus,
active involvement of the entrepreneur during the
development and growth stage is important
(ix) Delegate, direct and lead the firm – he/she should
delegates the routine matters to other colleagues in
the organization, while providing strategic direction to
the firm as a leader. This function demands leadership
skills on part of the entrepreneur.
 Functions…
(x) Supervise and control – It is suitable to
control mechanisms in place so that the
entrepreneur may track the overall health of
the enterprise.
Challenges Facing Tanzanian Entrepreneurs

Class Discussion
Identify Various challenges facing
entrepreneurs in Tanzania and
developing countries in general.
 Challenges facing Tanzanian Entrepreneurs

(i) Lack of capital

Many Tanzanian find it difficulty to
initialize business due to lack of initial
capital, capacity limit of banks to offer
loans, long loan procedures to access
loans from banks and lack of collaterals
required to validate ones ability to apply
for loans.
 Challenges…

(ii) Lack of entrepreneurship training

Most of the experts in Tanzanian
have spirits and skills in
entrepreneurship but due to high
costs of training materials, funds for
accommodation and traveling leads
inadequate training.
 Challenges
(iii) Lack of entrepreneurship skills
Most of Tanzanian are uneducated and they
lack skills on matters relating to
entrepreneurship. Their involvement in
entrepreneurship may lead to a lot of risks so
they opt not be involved.
(iv) Poor government policy, regulations and laws
Tanzanian government does not have clear policy on
supporting entrepreneurs and helping them to build
their potentials.
 Challenges…
(v) Culture and beliefs
In Tanzania we have a mixture of several religions each
with its beliefs for example if an entrepreneur decides to
invest in keeping pigs it is acceptable to Muslims. These
always result into a narrowed market to some business
opportunities.
Poor Transportation
Corruption
Add Others
 
 ASSINGMENT

Explain challenges of entrepreneurship

in education organizations
ENTREPRENEURSHIP EDUCATION
• What is it?
• What are the importance of studying
Entrepreneurship Education?
ENTREPRENEURSHIP EDUCATION

Meaning.
• It is a study that is concerned with providing
learners/students with basic knowledge and
skills of creating and operating their own
business or enterprises successfully using the
available resources to develop themselves,
society and the country at large.
 THE IMPORTANCES OF STUDYING
ENTREPRENEURESHIP EDUCATION

The following are the reasons outstanding why we

study Entrepreneurship in education:
1. To get the required/ necessary knowledge and
skills to initiate, operate and maintain/sustain a
business.
2. To be able to identify the opportunities for
promoting domestic private investments for
economic development
3. To work towards job creation and reduction of
white color mentality and promoting self
employment
 Importance…
4. To be able to use the available resources in the
country, e.g.. Human resource(labour), natural
resources e.g. forests, lakes, land and others
effectively and efficiently.
5. To encourage creativity and self –sustenance
into students and other stakeholders to be able
to undertake moderate risks
6. To enable the youth develop positive attitudes
and culture towards work, business, self-
employment and other careers in business
 Importance…
7. To support modernization of agriculture and food
production in the country
8. To eradicate poverty in the country through,
innovation, production and provision of services
9. To instill into students/ learners self confidence and
self awareness that is to enable the learners perceive
his/her needs and analyse him/her in relation to what
he/she likes to be in future
10. To improve entrepreneurial skills of the existing small
scale industries.
ENTREPRENEURIAL PROCESS

SESSION 3

 ENTREPRENEURIAL PROCESS
 HINTS
• Define the concept of entrepreneurial process
• Identify entrepreneurial process/ procedures
• Discuss entrepreneurial process/ procedures
 Entrepreneurial Process…

Class discussion,

 What are entrepreneurial process to be

followed before starting business?
ENTREPRENEURIAL PROCESS
The process of starting a business requires
adequate preparations. Most business fail
because the entrepreneur do not make
necessary preparations for the businesses
they are starting. Different types of
business have different requirements. This
means that each types of business requires
different preparations. The following are
steps should be followed when starting a
business.
 Entrepreneurial Process…
1. Identification and evaluation of the
opportunity
 Starting a business begins with an
entrepreneur selecting a business opportunity
from the may business ideas generated from
the environment using his creativity and
innovation
 What is An Opportunity?

An opportunity is a favorable
Opportunity Defined set of circumstances that
creates a need for a new
product, service or business.
Three Ways to Identify an Opportunity

2-119
 Entrepreneurial Process…
2. Conduct market survey
 Market survey involves checking whether the
entrepreneurs preferred business ideas can be
developed into a profitable business and
whether there is need for the product or
service and whether the business will have a
competitive advantage over its competitors.
 Entrepreneurial Process…
3. Prepare a business plan.
 Define a business plan
 Analyse the purpose of preparing a business
plan
 Discuss the main elements of a business plan
 Apply different formats of a business plan.
 Definition of Business Plan
 A business plan is a written document containing
the details about every aspect of the proposed
business venture. It serves two purposes:
(i) “A road map "for the people internal
organization, ie. The employees, stakeholders, etc.
(ii) To convince the potential investors and financial
institutions about the viability of the venture so
that they may agree to invest in it.
 Entrepreneurial Process…
 This is an essential document in starting any
business. It is a written guideline of the
proposed business venture showing the
operations of the business and its financial
projections. A business plan usually show the
following:
(i) General description of the business
(ii) Statement of the mission, goals and objectives
 Entrepreneurial Process…
(iii) Marketing plan
(iv) Production plan
(v) Organization plan
(vi) Financial plan
(vii) Action plan
INDIVIDUAL ASSIGNMENT ASSIGNMENT

Prepare a business plan which include all

elements.
 Entrepreneurial Process…

4. Assessing the technology and machinery

required by the business.
 This involves crosschecking the production
systems that will be used by the business to
produce the desired products and also to
check on the machinery that is necessary to
carry out the production system.
 Entrepreneurial Process…
5. Selecting the legal form of business
ownership.
 There are several forms of business ownership
from which an entrepreneur can choose. Each
legal form of business ownership has its
advantages and disadvantages. The
entrepreneur should be able to choose the
most appropriate form of business. He/she can
choose from any of the following:
 Entrepreneurial Process…
(i) Sole proprietor – is a business organization
setup, owned and operated by one person.
He/she contributes all the required capital
and enjoys all the profits alone.
(ii) Partnership – Is an association of persons
caring on business with a view of making
profits. In case of ordinary business between
two up to twenty persons can form a
partnership
(i) Joint stock company - is an organization
which has legal existence of its own. It is a
separate entity. In the court of law it can sue
or be sued because it is recognized as a
person. Each of the persons who contribute
capital is known as share holder.
(ii) Cooperative -
• Discuss the advantages and disadvantages of
each legal form of business ownership.
(i) Sole proprietor
(i) Partnership
(ii) Joint stock company
(iii) Cooperative
 Entrepreneurial Process…
6. Identify sources of business funds.
The entrepreneur can now go a head to find the
various sources from where he/she can get
the funds to start the proposed business. The
source of funds may include; own sources,
loran from bank, friends and associations,
supplier credit, donations, etc.
 Entrepreneurial Process…
7. Identify business location/site.
 Selecting a suitable location is essential for any
business. Many factors are considered when deciding
on where to locate the business. These include.
(i) Availability of market
(ii) Availability of labour
(iii) Government policy (law and regulations)
(iv) Transport network
(v) Space for expansion
 Entrepreneurial Process…
8. Registering and licensing a business.
 After identifying business funds as well as
identifying the location, the entrepreneur can
go ahead to register his business and obtain a
valid trading license. It requires an
entrepreneurs to prepare the required
documents and go through set of registration
procedures as according the chosen legal form
of business.
 Entrepreneurial Process…
9. Mobilizing the necessary resources.
 After successfully registration the business and
obtaining the required documents, the
entrepreneurs next step is lacquering the
necessary resources to be used to start
business. Example of necessary resource are
land, labour, funds, raw materials etc.
 Entrepreneurial Process…
10. Starting business operations and
management of the resulting enterprise
 Once the entrepreneur has completed all the
above business start up process, he/she is
now ready to start business operations and
manage the business
 Summary of Entrepreneurial Process

Entrepreneurial process can be grouped

into four processes as follows:
(i) Identification and evaluation of the
opportunity,
(ii) Development of the business plan,
(iii) Determination of the required
resources,
(iv) Management of the resulting enterprise
 SOURCES OF CAPITAL FOR A BUSINESS
 Money to start a business can be obtained from
any of the following sources
1. personal sources – this may be from the person’s
own savings or sale his/her personal property.
This is more applicable to businesses like sole
proprietorship and partnership
2. Borrowing – This involve borrowing from friends,
relatives, financial institutions like banks usually
the money borrowed is paid with interest.
 Sources of Capital…
3. Family contribution – The person's family can
contribute towards the capital of the business from
of hard cash, fixed assets like buildings, furniture,
etc. or rending free services to the business.
4. Trade credit – This is where the supplier offer
goods to the business on credit and payment is
made at a later date usually usually after selling
goods. It gives an entrepreneur chance to make
profit on sale.
 Sources of Capital…
5. Sale of share – Business especially limited companies sell
shares to selected individuals (private limited company)
or to the general public (public limited company) to get
finance for starting and expanding the business.
6. Donation and grants – A person may get capital from
donations, grants, etc, charitable organizations like
Uganda women’s efforts to save children (UWESO) give
support to individuals or groups of people and the money
so received can be used to start or expand the business.
 Sources of Capital…
7. Leasing items- An entrepreneur can use
another person's item especially a fixed asset
for the agreed period of time for a pay the
leased item can be used as source of capital to
generate income for the business.
8. Retained profit – Money realized as profit can
be put back in business for the development
and expansion of the business.
 Sources of Capital…
9. Installment purchase – Under installment a
buyer is allows to posses a good after paying
the installment and pay the rest of the money
in agreed installments until he/she completes
the whole amount. He/she can sell the item
and gets the profit, which is used, as source of
capital.
MARKETING