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
- creation of employment
- formation of capital
- reducing rural urban migration
- raising standards of living
- saving import
- improving infrastructures
- reducing foreign dominance
- making use of local resources
- promotion of technology
- promotion of entrepreneurial culture
Characteristics of an entrepreneur
- Desire to archive
- Ability to solve problems
- Readiness to take risk
- Initiative
- Time consciousness
- Creativity and innovation
- Independence
- Self confidence
- Persistence and patience
- Seek information
- Concept before high quality products
- Commitment to work
- Desire for feedback
Business Idea
Is what is cooking in the mind of an entrepreneur concreting on prospective business concept;
- Product
- Market
- Location
- Management
- Objectives
Sources of ideas
- news papers
- shows and exhibitions
- magazines altitude
- hobbies
- vocational training\ experience
- surveys
- waste products
- listening to what people buy
- sporting a market gap
Business opportunity
A favorable chance that entrepreneur concepts for investments. Exist were there is a gap.
- In availability of products
- Quality product
- Insufficient quantities
- un affordable prices
- poor services
Personal Considerations
- Objectives
- Skills
- Commitment
- Interests
Business Considerations
- Availability of market
- Technology –appropriation
–Cost
– Suffering in case of out dated
- Raw materials –quality and quantity prices
- Government policy –requirement before starting the business
- 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 achieve the objectives
- Name of business
- product to be sold
- personal to manage
- capital needed
- market to be served
- type of employees
- projection
- summary of plan
Need for a business plan
- Avoid mistakes
- identifying strength and weakness
- requirement by financials
- determination of amount of finance
- Allocation of resources
- motivating factors
- adoptability
Tools For Control
Factors influencing entrepreneur practices
- Government policies
- infrastructure
- levels of education and skills
- availability of market
- availability of resources
- culture
- competition
- political stability
- natural factors
Causes of Business Success
- Ability to manage people
- Hiring – Process of acquiring new employees to take up new positions or to be replaced employees who left the business
- Assigning duties – allocating employees duties accordingly
- Proper location – availability of customers
- Availability of raw materials.
- Adequate finance
- lack of competition
- commitment of the business
- proper management of resources / finances
- 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?
- Create fairness in competition
- ensure fair play
- ensures no discrimination in business
- ensures protection of the environment
- ensures employees rights are upheld
- avoid pollution
- avoid consume exploitation
