entrepreneurship notes module 1


E.g. Characteristics of a good business opportunity. customer with the hope that this value will exceed the cost of the input factors. The use of technology is important because it increases labour productivity and this in turn increases local competitiveness for both consumer and producer. It is through marketing that a business creates awareness about its products. Each has an independent way of thinking and a unique approach to decision making and handling situations in the business. Successful entrepreneurs are persistent and hardworking. The first stage of any small business is obvious establishment. Small enterprises create many jobs, provide a variety of goods and services, contribute a lot of revenue and promote the use of locally available resources. dba module economics directions answer 10)Technical Knowledge: Technical knowledge, as to the improvements and developments in the field of production and distribution of goods and services, should be possessed by an entrepreneur. They like her because of her quality products and her honesty. If the business relies heavily on one partner and the partner leaves or dies, the firm can easily collapse. Job security is not guaranteed and personal satisfaction and motivation is not wholly experienced. Intelligence to enable him understand difficult ideas and deal with varied issues. Investment in inventory is heavy, to ensure product availability to gain significant market, * Maturity Growth has leveled off. Have you set up a system for monitoring your companys inventory? Do you know why your customers will want to buy your companys product or service? For example it is unethical to give or receive a bribe in order to win a business contract. The business venture also has the responsibility to embark on certain projects within and outside its environment as part of its social responsibility. iv) Leads to diversification of products and services, v) Introduces a variety of goods and services. Introduce staff incentives that encourage sales. A manager must delegate tasks to others since he cannot do everything. robberies which sometimes may even be in collision with employees. Figure out what changes can be made to improve products. She was also nearer to her prospective customers as well as her existing customers. Good examples of such assets are old equipment, motor vehicles and other chattels. Recap:Economic Activity, Innovative Activity, Creative and Purposeful activity, Organising activity, Risk bearing activity. This enhances growth of the enterprise. Consider offering discounts for cash sales or early payments of credit purchases. The following are some of the myths associated with entrepreneurship: These refer to the various approaches, which have been advanced to give an explanation as to why entrepreneurs behave the way they do. Emerging issues and trends in entrepreneurship. Everybody should therefore be equal opportunity or equal chance regardless of set of ethnicity. This may be accomplished rearranging its management plan, getting rid of one product to replace another or adding an additional product to an already existing product line. ), Ways of reducing noise can be devised e.g. Enables small businesses to embrace appropriate and affordable technologies e.g. An entrepreneur continually takes moderate or calculated risks. In evaluating your internal external control dimensions, an entrepreneur depicts a sense of control over his/her life. Various scholars have defined the term entrepreneur in different ways but all place emphasis on the entrepreneur; An entrepreneur is someone who detects a previously untapped opportunity to make some profits (either lowering the costs of producing the existing goods /services or creating new ways for people to satisfy their needs or wants through new products). Characteristics of appropriate technologies: Simple: It must be simple to operate, with minimal adjustment problems.. It enhances the development of actual understanding among all organizational members. Dont over-borrow. Topic 5: Entrepreneurial culture Their education or training background is focused on the current business activity. GROUP B: 1. These records identify the products/materials, thequantities and the value (cost) of these products/materials. Defined working hours, guaranteed income, delegation of duties and specialisation are some of the main advantages of being in salaried employment. Some partners may work harder than others, yet the profits are shared. To achieve this, entrepreneurs must have patience, ability to convince others and a strong conviction that their job is going to be successful. She rented a bigger room in a popular place in town. The entrepreneur should be aware of such crime possibilities and make adequate provision for tackling them as they may lead to bankruptcy. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); Your email address will not be published. Ethics also deals with moral ability and obligations. The merits and demerits of salaried employment are varied and largely depend on a persons qualification, experience and specialisation area. Businesses require information on new products, technological changes and competitors to be able to cope. 2)Risk Bearing:Entrepreneurs should be more bold enough to assume risks. Have you developed a plan for collecting your accounts receivable promptly? the polythene bags used for carrying goods from the supermarkets or the shops do not decompose. Energy and enthusiasm to set high standards of effort and involvement to encourage others to follow his example. She currently lives in Thika. The bible, in the old testament, raises the idea of stewardship with regard to utility resources of the earth. the amount of money that customers have to pay to obtain the product. VAT, income TAX, PAYE, Trade license e.g. Check through a personal visit or a phone call directly to the applicants immediate former supervisor, if possible. The second stage of small business in the small business life cycle is the growth period. Howhas she contributed of entrepreneurial spirit and culture? These actions may be due to the anticipation of future needs of a society which the business tries to satisfy. To effectively manage the enterprise, he requires the knowledge and skills from diverse persons. For some, this is the only stage that a small business may see, as it is far one of the most difficult to survive. e)Non-availability of skilled labour: Less developed nations are labour rich nations due to growing population,but economic and emotional factors hinder labour mobility,which is a commmon problem for entrepreneurs in the form of non availability of skilled labour.

The employees and the customers have nicknamed her fashion. Producing quality and safe products i.e. Dont over-commit your personal expenses. Creditors ratio = creditors___ X 365 = ________________ days. introduction of entrepreneurship education at all levels of education to inculcate the entrepreneurial cultlure. The entrepreneur needs to establish a firm cheque cashing policy and procedure. Damping of waste materials on the land surface causing solid waste pollution. Have you developed a human resources plan for your business? When customers make a purchase, or any kind of inquiry, you can find out where they heard about your business. ->Entrepreneurship is an effective remedy for unemployment as well as underemployment. Trade creditors these provide a business with goods on credit terms such as 90 days before repayment can be made. realizing that every situation is an opportunity to learn, developing the ability to listen to and learn from others. . Have you identified family members and friends who might be willing to finance your business? However, they are proven stages or small business that are an important part of running a small business, whether from home or from a formal office. The entrepreneur requires effective communication skills for the following reasons: The human resources are the most difficult to obtain, the most expensive to maintain and the hardest to maintain in a business enterprise. This social responsibility can be carried out in various ways such as, Supporting and contributing towards environmental conservation programmes, Ensuring that the goods and services produced and sold to the people are safe for human consumption, Ensuring that workplace is safe and secure for workers. For example, Harveys discovery of the circulation of blood. Each culture has different methods called sanctions of enforcing norms. Marketing refers to the performance of business activities that direct the flow of goods and services from the seller to the consumer. It provides a list of goods returned inwards to the business the customers. It is classified into three major heads; i)Economic factors ii)Non-economic factors & iii)Government factors. This sub-module unit introduces the concept of entrepreneurship and its importance in the promotion of the national development of a country and the differences between self and salaried employment. This stage also entails producing more products if necessary. Have you worked in a business like the one you want to start? Topic 4: Creativity and innovation INFORMATION COMMUNICATIONTECHNOLOGY (ICT) IN A BUSINESS. the local dailies(The Nation) which the business enterprise can use to ; Advertising Magazines/Papers/Journals/Business directories, These are useful tools for advertising products/services/ location of the business enterprise. Once you have answered all the questions, give yourself 3 points for every Yes answer, 2 for every Maybe and 1 for every No. According too this theory, beliefs and societal aspects such as social status and recognition influence entrepreneurial behaviour. Her father worked as a cook in a restaurant. Investigate the advantages of changing the order or sequence of events, or see if things can work the opposite way. Need to challenge custom, routine and traditions of the organization. upgrades. It is the response of a person (s) or organisation to solving an identified problem or to meeting perceived needs in the environment (markets, community), You need a great idea to start a new business. In human psychology it is realised when a person feels strongly that he is lacking something. E.g mechanics who have worked in motor factories, leave to start their own simple garages. An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company. The establishment of every business venture is backed up the profit motive which leads to the production of goods and services. Have you created job descriptions and job specifications for each job in your company? Topic 9: Starting a small business Remember: Check the employees performance after he or she has been at work for a time. Functions of an entrepreneur are mainly classified into three: ->Invention also means the process of finding new things. 2)Skill: The ability to practice the knowledge. In the small business life cycle not every business will go through every stage, and not all small businesses will succeed as a result of these stages. In this manner you can better plan, and track, your marketing efforts. To access these notes click on the topic title The organizational structure is important for effective control and monitoring operation in the firm and facilitates communication with workers. Although it is possible to establish a valid partnership without a formal agreement, it is advisable to sign an agreement first. By carrying out a market survey on the location where you need to establish your business and talking to the potential customer may reveal gaps in that market. A business should be socially responsible, A business should show social responsibility by. You possess the attributes of the entrepreneur. They have limited cultural background and social induction with entrepreneurship. An entrepreneur his/her own nature likes to be his own boss and does not want to follow the instruction of another person without thinking further. HISTORY OF ENTREPRENEURSHIP GLOBALLY AND IN KENYA, Entrepreneurship has been part of human history since records began. Challenge is to be different or better than others. Innovation transforms creative ideas into useful application. Study notes, Revision materials and Past papers for courses examined by KNEC. Unfortunately, for many people, the work needed to turn a creative impulse into a product is less rewarding. Business ideas help entrepreneurs stay ahead of competition. Ethics ensures that consumers are not exploited the business through: Ethics ensures that businesses do not engage in unfair practices while competing with others. Keep a detailed list of amounts that you owe. Sale and lease back A business can opt to sell its assets and then lease the same from the new owner. Be aware of occupational health and safety (OH&S) issues and have risk management policies and processes in place. Starting a business is hard work. 7)Mental Ability: An entrepreneur should possess intelligence and analytical mind to evaluate the business situations for making innovations. This theory was developed Maslow in 1954. use of jua kali technology. At first she made dresses, trousers and shirts. David McClelland defines an entrepreneur as a person with a high need for achievement, someone who has control over the means of production and produces more than they can consume in order to sell (or exchange) it for income. It is also important to know the size of the market. The theory holds that entrepreneurs possess unique needs, values and attributes, which drive them into entrepreneurial behaviour. They are key to the success of a business particularly when strategizing during strategic planning, and when designing new products and services. This can be accomplished through agood inventory record keeping system. It is also an intentional change to add value. Information and Communication Technology is an umbrella term that includes any communication device or application. It is an effective tool for staff participation in decision-making and entrepreneurial effectiveness. The entrepreneur needs to learn how to manage their time effectively carrying out activities such as; quick decision making habits, keeping diaries, delegating duties, avoiding unnecessary interruptions, properly conducted meetings, avoiding queues, selecting and following priorities among others. It is a behaviour demanded a group or groups of people who have a direct interest in the organisations actions. a doctor is expected to treat and not kill, Ensuring that professionals relate professionally to their clients e.g. Course Hero member to access this document, Evaluating financial statements and using financial analysis methods is a critical part of the decis, AMA Computer University - Quezon City SHS 111, AMA Computer University - Quezon City COMPUTER 111, AMA University Online Education AMA UNIVER 101,238, AMA Computer University ENTREPRENU ENTR-122-L, BL-MGTA-6336-LEC-1923T ENTREPRENEURSHI.pdf, AMA Computer University - Quezon City BSBA 311, AMA Computer University - Quezon City ENTR 101, Copyright 2022. The process works particularly well in creating new products and services that will add additional value to customers. References are a must, and should be checked before making a final decision. They have little interest in routine activities, which are not challenging. -Large number of incentives,concessions,grants and other benefits are offered to both small scale and large scale entrepreneurs to promote entrepreneurial growth and thus improve economic growth. Could electronic transfer replace the mail or a phone call replace a fax message? Identify long term supply sources/ reliable source. These are: Getting the mind ready for creative thinking using, Studying the problem and understanding its components. It is therefore important for entrepreneurs to develop viable business ideas identifying community needs for products and services. Fear of failure. For example, the tape recorder, walkman, and CD player are all innovations on the phonograph or landline telephone to cell (mobile) phone. Do you project a professional image to your clients and customers? Are there ways of bringing things together that could result in one unique item? For an entrepreneur failure is not a discouraging factor but is a necessary condition and a stepping stone to success. It is the process of doing things in a new way for value addition. Use the information in your accounting system to draw up a budget and cash flow forecast. A good business idea is essential for successful business venture both when starting a business and to stay competitive afterwards. Safeguarding their health and safety providing safe working environment such as offering safety gear e.g. satisfaction especially with those students who have been attached and apprenticed at their organisations. 3)Organising and Managing the enterprise: ->Organising means bringing together various factors of production. Inventory record keeping establishes and maintains information oncurrent inventory, the additions and withdrawals to inventory andinventory balances at the end of specified periods (week, month. Are you willing to admit it when youre wrong? Procedure for starting a Small enterprise. Entrepreneurs analyze the results and try to learn from them. Perseverance-related blocks include: Other ways of managing barriers to creativity would include:

If you have chosen to form an LLC, have you filed both the articles of organization and the operating agreement with the proper state? The entrepreneur incorporates shareholders incase; The entrepreneur as the person in charge of coming up with the organizational structure. f) Lengthy and cumbersome procedure to start a business. Business ethics ensures that there is fair play as business firms compete with each other. Then she decided to start her own business. Partners are likely to disagree on various matters affecting the business. Entrepreneurial ventures differ from small businesses in these ways: Amount of wealth creation - rather than simply generating an, income stream that replaces traditional employment, a successful, entrepreneurial venture creates substantial wealth, typically in. Post-it Notes have done an exceptional job of taking the basic technology of a multiple-stick product and producing different sizes, colours, shapes, and uses. The essence of financial management knowledge is therefore to ensure that there is adequate cash on hand to meet the necessary current and capital expenditures as well as to assist in maximizing growth and profits. Are you willing to seek outside help? Have you developed a procedure for documenting employees performances in case you must fire them? Motivation can be viewed better looking at factors which help sustain the quality or intensity of the manifested behaviour. As a team leader the manager must motivate his staff and take care of them. Communication is the transfer of ideas from the sender to the receiver. Good supervision will reduce the cost of operating your business cutting down on the number of employee errors. The result is a value proposition to the target market. In order for the entrepreneur to be an effective manager he needs to develop tools that aid in decision making. The use of time is influenced the following factors: Rules for managing time effectively include the following: Prepare to-do lists to ensure that you do the following; A written time plan will enable you to prepare accurate to-do lists. Acknowledge staff performance and encourage good working morale. These include: i)Identifying a need in the community: people usually have many unsatisfied needs. Estimating start up capital and operating expenses, Meeting collateral requirement obtaining money to adequately fund the start up, Financial institutions are redundant to lend to start ups, Lack of entrepreneurial skills, business management skills and technical, Deciding on the type of business ownership, Legal registration e.g. This theory revolves around an entrepreneur being an innovator, combining the various resources/ factors of production to create new products/wealth. Providing employees welfare through provision of recreational facilities, housing, transport and credit facilities, Offering equal opportunities in matters pertaining to promotions and training, Offering training and educational opportunities equally to employees, Paying fair and reasonable interest rates to creditors, Paying interest and principle amount in time to creditors, By supporting or providing welfare programmes for the aged, handicapped and the under nourished in the community, Making information concerning the business operations public, Ensuring that business activities of the business do not have harmful effects to the community, Providing educational recreational and healthy facilities, Offering employment opportunities to disadvantaged in the society and even handicapped members too. For effective utilization of resources, the entrepreneur has to build a suitable organization structure and with it, appropriate manpower. Support your answer with examples. Business ideas need to respond to changing consumer wants and needs. She bought cloth and then employed 4 skilled tailors to do the cutting and sewing of the clothes. SWOT analysis strengths, weaknesses, opportunities, and threats for the internal and external situation. 1) Hard Work: An entrepreneurs tireless ,tedious and laborious work will enable him to lead his business to success. Reducing all types of pollution(noise, water, air etc.

Later Mary visited several shops in the city square that sell uniforms in quantities. It is also unethical to hold goods awaiting for their prices to go up. Companies can promote integrity establishing the moral standards expected of its employees and implementing systems to reinforce these standards. Do you know what your product or service will cost you? Business ideas can also be generated through developing personal hobbies and discussions with friends. Howhas Mary utilised the local resources and how. Example: Some inventions that affected western culture in the 20th century were the birth control pill, television. Scrutinise Signatures compare signature on sales ship to that on the card. (LogOut/

Have you identified your companys target market? If you have chosen to form a partnership, have you determined how you will settle disputes? It will be paying rent for use of the assets. The effective management of human resources determines the success or failure of the organization because all other resources depend on the human element. They believe that those holding the lower posts in an organization should handle operations. Management functions involve planning, organising, coordinating, controlling and directing a business. Products have a finite life, they become obsolete or outdated. She like the name and has accepted it. This is short of facsimile machine. They insist that for things to be done right, they must be done themselves. Importance of Enterprise Social Responsibility, ETHICAL BEHAVIOUR IN A BUSINESS ENTERPRISE. The television brought similar visual programmes into many homes but influences how and when family members interact with each other. Privacy It should carry out its activities and make profit `within the limits of the law. ICT describes a range of technologies for gathering, storing, retrieving, processing, analysing and transmitting information.