Form 1 Business Notes : Entrepreneurship

CHAPTER FIVE  

ENTREPRENEURSHIP

The process of identifying a business opportunity and getting necessary resources to start and run a business.

ENTREPRENEUR- A person involved in entrepreneurship

Importance to the economy 

1. creation of employment 
2. formation of capital
3. reducing rural urban migration
4. raising standards of living
5. saving import
6. improving infrastructures
7. reducing foreign dominance
8. making use of local resources
9. promotion of technology 
10. promotion of entrepreneurial culture

Characteristics of an entrepreneur

1. Desire to archive 

      2. Ability to solve problems

      3. Readiness to take risk

      4. Initiative

      5. Time consciousness

      6. Creativity and innovation

      7. Independence 

      8. Self confidence

      9. Persistence and patience        

10. Seek information 

11. Concept before high quality products

      12. Commitment to work

      13. Desire for feedback

 Business Idea

Is what is cooking in the mind of an entrepreneur concreting on prospective business concept; 

1. Product

               2. Market

              3. Location

              4. Management 

              5. Objectives

       Sources of ideas 

1. news papers 
2. shows and exhibitions
3. magazines altitude
4. hobbies
5. vocational training\ experience
6. surveys
7. waste products 
8. listening to what people buy
9. sporting a market gap

Business opportunity

A favorable chance that entrepreneur concepts for investments. Exist were there is a gap.

1. In availability of products 
2. Quality product 
3. Insufficient quantities 
4. un affordable prices 
5. poor services 

   Personal Considerations 

1. Objectives 
2. Skills 
3. Commitment 
4. Interests

Business Considerations

1. Availability of market 
2. Technology –appropriation 

                          --Cost  

                           - Suffering in case of out dated  

        C. Raw materials –quality and quantity prices 

        D. Government policy –requirement before starting the business 

        E. Others –amount of capital 

                         - Level of competition

                         - Difficulties in marketing 

                          - Expansion possibilities

                          - Security 

                           - Level of development   

 Business Plan 

A document that highlights the objectives of the business and steps to be followed in order to archive the objectives  

1. Name of business 
2. product to be sold 
3. personal to manage
4. capital needed 
5. market to be served 
6. type of employees 
7. projection 
8. summary of plan 

Need for a business plan 

1. Avoid mistakes 
2. identifying strength and weakness
3. requirement by financials 
4. determination of amount of finance9 
5. Allocation of resources 
6. motivating factors 
7. adoptability 

Tools For Control 

Factors influencing entrepreneur practices 

1. Government policies 
2. infrastructure
3. levels of education and skills
4. availability of market 
5. availability of resources 
6. culture 
7. competition
8. political stability
9. natural factors 

Causes of Business Success

1. Ability to manage people
2. Hiring – Process of acquiring new employees to take up new positions or to be replaced employees who left the business 
3. Assigning duties – allocating employees duties accordingly 
4. Proper location – availability of customers 
5. Availability of raw materials.
6. Adequate finance
7. lack of competition 
8. commitment of the business
9. proper management of resources / finances 
10. proper debt management 

Ethical Issues in Business 

Ethics – set of values and principles which influence how individual groups of people and society behave 

Business Ethics – deals with how such values affect business operation 

Why should we have business ethics? 

1. Create fairness in competition 
2. ensure fair play 
3. ensures no discrimination in business
4. ensures protection of the environment 
5. ensures employees rights are upheld
6.  avoid pollution 
7. avoid consume exploitation