Entrepreneurship All Topics Intros

  

 http://www.elateafrica.org/elate/entrepreneur/entrepreneurindex.html

The Entrepreneur

Entrepreneurship Education is a study that is concerned with providing students with the knowledge and skills of creating and operating their own businesses successfully, using the available resources to develop themselves and the country in general.

The Kauffman Foundation (www.kauffman.org) defines it as “the process of providing individuals with the concepts and skills to recognize opportunities that others have overlooked and to have the insight, self-esteem and knowledge to act where others have hesitated. It includes instruction in opportunity recognition, marshaling resources in the face of risk, and initiating a business venture. It also includes instruction in business management processes such as business planning, capital development, marketing, and cash flow analysis.”

Main Content and Concepts to Emphasise

In this topic, we shall discuss (a) the meaning of entrepreneurship, (b) an entrepreneur, (c) the functions of an entrepreneur, (d) how to become a successful entrepreneur, (e) the qualities of a successful entrepreneur and (f) the benefits and challenges of being an entrepreneur.

By the end of this topic, students should be able to:

• Define entrepreneurship
  
  
• Define an entrepreneur
  
  
• Discuss the functions of an entrepreneur
  
  
• Describe how to become a successful entrepreneur
  
  
• Outline the qualities/characteristics of an entrepreneur
  
  
• Discuss the benefits and challenges of being an entrepreneur

Job related life skills
By the end of this topic, learners are expected to have acquired the following Job Mart related Skills:
Personal attributes – self confidence, time management, creativity/imaginative, recording skills, enthusiasm, imagination, leadership skills and self awareness.

Communication – observation & listening skills, recording, reading reporting in writing.

Team work – task oriented leadership skills,group work.

Problem solving - information seeking, Practical experiment, environmental protection & conservation, seeking for information (research),discussion making

Application of number - numeracy (as they compare crop yields in treated and untreated plots)

Businesses in Uganda

This unit focuses on businesses in Uganda. It discusses the meaning of business, the forms and types of business organizations, their sizes as well as the importance of businesses to their owners. The Unit concludes with an introduction to Business Associations in Uganda.  

Main Content and Concepts to Emphasize

• Meaning of business
• Types of businesses
• Forms of business organizations
• Size of businesses
• Importance of businesses
• Business Associations in Uganda

By the end of this topic, students should be able to:

• Define the term business
• Identify the types of businesses
• Identify the different forms of business organizations
• List the factors used to determine the size of businesses
• Discuss the importance of businesses
• Identify Business Associations in Uganda
  

  MARKETING IN SMALL BUSINESS ENTERPRISE

  Marketing in a small business enterprise is brought to the centre of the stage in its own right. This unit looks at marketing, the marketing mix, market research and channels of distribution. It also considers the methods of sales promotion and the factors determining business location.
  
  By the end of this topic, students should be able to:
• Define marketing
• Identify the elements of a marketing mix
• Conduct a school market research survey
• Describe the channels of distribution
• Identify the methods of sales promotion
• Discuss the factors affecting business location

1. Meaning of marketing

Marketing is the performance of activities that are necessary to get goods and services from the producer to the customer. It refers to a series of activities undertaken by an entrepreneur in order to find out who his/her customers are and their needs. Marketing is concerned with informing the customer that a good/service is on sale and persuading him/her to buy the good/service. The main objective of marketing is to ensure that customer’s needs and wants are satisfied while the entrepreneur also makes profits. [Marketing is the way of assembling information that one needs to reach a customer in order to make sales.]

Marketing is the entire process of planning, pricing, promoting and distributing goods and services to consumers. Marketing completes the function of production by transferring the goods from the place of production to the place of consumption. Some of the marketing activities undertaken include:

• Finding out what people or customers need or want
• Developing/providing goods and services that meet the identified needs or wants of customers
• Setting prices which the customers can afford and are willing to pay and will enable the entrepreneur to make profits
• Making products available at places where the customers can easily access them
• Promoting the products by informing and attracting customers to buy them and retain their interest in buying from the business

Four Ps – Product, Price, Promotion, and Place] however, marketing may also include two Cs – Customer (customer is king, customer is never wrong, customer is the end point in the entire production process, actually the customer is your business, without them you have no business at all, etc.,) Competition—for every product there could somebody out there capable of making a better product than you. And so this represents both a challenge and an opportunity. The opportunity is that competition helps you see and learn from others and improve, so that you can reach the market early/in time. Conversely, competition can easily wipe out your business, through introducing better methods of production, large financial outlays, advanced technology, marketing and sales systems.

A market for any business means all buyers (people, institutions, businesses, etc) within a specified geographical area, who need the business products and are willing and able to buy them. For example, a market for products of a trading business consists of people and institutions, which exhibit all the following three characteristics:

• Need or want the products being sold by the trading business
• Able to buy the products
• Willing to buy the products

SELLING

Selling is a two-way communication between the buyer and the seller. Selling is a process through which sellers get rid of their goods to consumers through the use of money. The means of exchange is money, which allows proper exchange of goods and services. In selling, there is usually a person to person dialogue between the buyer and the seller. The purpose of this personal contact is to enable the entrepreneur or his/her representative (sales person) to persuade the buyer to accept a product/service at the stated price. In selling, a prospective buyer may be told how the product/service will help meet his/her needs, its price, how to use it, and why it would be good to buy it, etc.

The creative selling process (salesmanship) includes the following steps:

(a) Prospecting

This means locating the customers. Prospects are people or firms that are likely to buy the products. In prospecting, an entrepreneur finds out where to go, who to see and what to do and say.

(b) Pre-approach

In this step, an entrepreneur gathers information about his/her own products and the products of his/her competitors and prospects, i.e., personal information about the age, preferences, interests, income, etc. of the customers, which helps the entrepreneur to sell products/services that meet his/her customer’s needs.

(c) Approach

This is the first face-to-face meeting with the customer. The approach should be well planned and managed so as to create a good impression and win the customers.

(d) Sales presentation

This is to attract and retain the buyer’s attention. The entrepreneur’s proposition should be to create interest in the customer’s mind. Creative selling can be achieved by:

• Making a strong point about a product right from the beginning of the presentation
• Mentioning more of the benefits of the product/service than of its features
• Giving the customer/buyer complete attention
• Involving the buyer in the discussion/conversation
• Listening to the customer to make him/her feel important and to understand his/her needs

(e) Handling objections

Objections arise when a buyer says ‘no’ to the price or design of the product. This is the beginning of selling and it means the buyer has interest in the product. The following methods may be used to handle objections:

• Listen to the buyer and do not interrupt
• Use a ‘yes but’ method. If the customer for instance says, ‘Your price is too high or higher than our competitors’, say ‘Yes, the initial costs are a bit high but you will save in the long run if you use our product because it is durable and more elegant’
• Ask the customer what he/she does not like about the product and give an alternative to meet his/her need
• Turn the buyer’s attention from objection to another benefit of more appeal

(f) Closing a sale

Finding a way of making a customer act or buy the product. An entrepreneur could ask questions like:

• Can I reserve one for you?
• What colour do you prefer?
• Would you like it delivered to you or will you collect it?

(g) Follow-up

This is the support an entrepreneur gives his/her customer after the sale or purchase of his/her goods/services. This generates repeated purchases. It can be done through a short letter or

COMPONENTS OF A BUSINESS PLAN
                                   
Introduction

In Unit 4, we looked at marketing in a small business enterprise. In this Unit, we shall consider a business plan. We shall discuss the meaning of a business plan, the components of a business plan and its uses to various stakeholders, the steps in preparing a business plan, action plan for implementing a business plan and its presentation to different people.

Main Content and Concepts to Emphasize

• Meaning of a business plan
• Components of a business plan
• Uses of a business plan to various stakeholders
• Steps in preparing a business plan
• Action plan for implementing the business plan
• Presentation of a business plan

By the end of this topic, students should be able to:

• Define a business plan.
• State the components of a business plan.
• Discuss the importance of a business plan.
• Identify the steps in preparing a business plan.
• Design an action plan for implementing a business plan.
• Outline the presentation of a business plan.

Meaning of a business plan

A business plan is a management tool, which focuses on the nature of the business in a logical and organised manner. It is a document which guides an entrepreneur on what, how and when to do or implement business objectives and goals. The business plan encompasses both a study of whether a business idea is both possible and feasible. It involves the availability of skills, technology, machinery, power, land, buildings and infrastructure like roads to set up a business, which can either be to manufacture a product or provide a service, as well as the realm of financing and profitability of a business idea.

Who should be involved in business planning?

A business plan stands a better chance of being implemented successfully if those who are charged with implementation are involved in the initial stages. An entrepreneur can also ask prospective buyers and customers for their ideas and reactions to the business plan. It is important that the business plan is communicated to all employees. Their roles and what is expected of them should be clearly spelt out.

Student Activity 1

1. In a brain storming session, ask students what they think a business plan is.

2. Ask them to identify the people or parties that would be interested in a business plan.

3. Ask them to identify the people who would be involved in business planning.

MANAGING A SMALL BUSINESS ENTERPRISE

This unit focuses on managing a small business enterprise. In order to understand how a small business enterprise can be managed effectively, we shall look at the meaning, role, importance, and the functions of management. The unit will conclude with a discussion of the tasks and responsibilities of management.

By the end of this topic, students should be able to:

• Define management.
• Explain the roles of an entrepreneur in the management of a small enterprise.
• Discuss the importance of management in a small business enterprise.
• Describe the functions of management in a small business enterprise.
• Examine the responsibilities of management in a small business enterprise.
• Outline the tasks of management in a small business enterprise.

Sub-topics: 

• Meaning of management
• The role of management
• Functions of management
• Importance of management
• Responsibilities of management.
• Tasks of management

Meaning of management

Management is the art of getting things done through people and the proper utilisation of resources like capital, raw materials and time, which enables the enterprise to achieve its goals and objectives. Management is a problem solving process of effectively achieving organizational objectives through the efficient use of scarce resources in a changing environment. In a small business enterprise, the entrepreneur acts as the top manager while the few employees and family members serve as lower managers.

Who are the managers?

A manager’s job is highly crucial to the success of any organization. The more complex the organisation is, the more crucial is the manager’s role. It is the manager’s job to achieve the organizational objectives through the proper utilization of its human and material resources. However, since the material resources of equipment, capital, facilities, information, etc., can only be used by humans, the human resources are the most valuable assets of any organization. Accordingly, a manager must be highly skilled in the art of optimally utilizing the human resources. Some of the essential skills are:

(1) Technical skills

These involve the knowledge, methods and techniques and the ability to use these techniques in performing a job effectively.

(2) Human skills

Human skill is the ability to work with other people amicably. It involves patience, trust and genuine involvement in interpersonal relationships.

(3) Analytical skills

Effective and right decision making is the most important function of management. A successful manager must possess the analytical skill, involving the ability to logically, objectively, and scientifically analyse the problems and opportunities and use scientific approaches to arrive at feasible and optimal solutions.
 
(4) Conceptual skills

The conceptual skill is the ability to view the organisation as a whole, and as a system comprised of various parts and sub-systems, integrated into a single unit.

Characteristics of a good manager

Not all managers are successful. Those managers who are successful have certain characteristics which create a climate for success for themselves and their subordinates. Some of the more important personality traits of a successful manager are:

(a) Knowledge

To have the knowledge about competitive markets, about technological advancements and about social changes is very important for taking action.

(b) Decisiveness

Decision making involves more than simply choosing the best alternative. A good manager should possess conceptual, logical ability, intuitive and courageous judgement and ability to analyse the problem by breaking it into parts and identifying the nature and effect of each part.

(c) Ability to handle conflict

A good manager is calm, able to listen, is positively responsive to criticism and is able to handle conflicts and differences in a constructive manner. In order to handle conflicts well, a manager must be confident, self-assertive, fair and dominant.

(d) Emotional stability

Emotional stability is the major ingredient for effective leadership and an effective manager is always an effective leader. Emotional instability often leads to wrong and impulsive decisions with some consequences.

Student Activity

1. Define management.

2. What are the various skills that an effective manager must possess? Are all these skills equally important?

3. Are the characteristics of a good manager in-born traits or can these be acquired by environmental influences?

SUCCESS IN BUSINESS

Introduction

People often start a business expecting it to be successful. There are many reasons for opening up a new business. Some people desire to earn income, while others seek to be self-employed. However, the performance of business varies from one business to another. While one business may be successful, another may be a poor performer or at worst a failure. The factors that affect the success or failure of a business are numerous. In this unit, we shall discuss the meaning of success in business, factors leading to success in business, benefits of a successful business to an entrepreneur and factors that lead to business failure. The unit will conclude with a discussion of the common management mistakes which cause business failure and indicators of a business that is not doing well.

Main Content and Concepts to Emphasise

• Meaning of success in business.
  
• Factors leading to success in business.
  
• Benefits of a successful business to an entrepreneur.
  
• Factors which lead to business failure.
  
• Common management mistakes that cause business failure.
  
• Indicators of a business that is not doing well.
  

By the end of this topic, students should be able to:

• Define the meaning of success in business.
  
• Discuss the factors leading to success in business.
  
• Outline the benefits of a successful business to an entrepreneur.
  
• Discuss the factors which lead to business failure.
  
• Outline the common management mistakes that cause business failure.
  
• Identify the indicators of a business that is not doing well.
  

Teaching/Learning Materials, Activities and Guidance

• Markers
  
• Flip charts
  

Job related life skills

In these activities, the students are expected to exhibit some of the following job related life skills:

• Personal attributes –Self confidence,Enthusiasm and imaginative.
  
• Communication – Communication
  
• Team working.
  
• Problem solving –Self awareness and Task oriented
  
• Information skills –Information (writing)
  

EXPLORING BUSINESS OPPORTUNITIES

Introduction

In another unit we discussed the meaning of success in business. We learnt what it takes for one to have a successful business. In this unit, we shall find out how an entrepreneur can select what business to do from the many possible alternatives. We shall particularly discuss the bases from which an entrepreneur can identify different business opportunities, the meaning of market, market potential, market assessment, the factors for assessing market potential and the process of conducting a market assessment.

Objectives

By the end of this unit, learners should be able to:

• Define a business opportunity.
  
• Discuss the meaning of a market.
  
• Identify the factors for assessing market potential of a business.
  
• Conduct a market assessment
  

Job related life skills

• Personal attributes – self confidence, time management, creativity/imaginative, recording skills, enthusiasm, imagination and self awareness.
  

• Communication – observation and listening skills, reporting in writing.
  

• Team work – task oriented leadership skills,group work.
  

• Problem solving - information seeking, environmental protection and conservation, seeking for information (research).
  
• Application of number - numeracy (as they compare crop yields in treated and untreated plots)
  

  INCOME AND ITS USES

  Brief Description of the Topic

  Entrepreneurs start a business with an aim of earning an income and acquiring wealth. However, as an intention to achieve that, entrepreneurs strive with all abilities to ensure that their businesses succeeds. When businesses succeed they provide income for all the people working in them and profits to reward the entrepreneur for the risks and investment made.
  
  General Objectives
  By the end of this Topic, learners should be able to describe the various types of incomes, the sources of income, the ways of using this income, the functions of consumption, the ways of increasing savings and investments, the importance of savings and investments.
  Job-Related life skills to be developed by a student are seen below:
  1.Commitment and sacrifice.
  2.Self awareness and self confidence.
  3.Decision making.
  4.Information seeking.
  5.Creative thinking and being visionary.
  BUSINESS CASE STUDIES AND ACTIVITIES
  ENTREPRENEURS IN UGANDA
  Introduction
  Why use case studies?
  A number of business case studies have been written by the ELATE team. They are designed to support the Entrepreneurship curriculum in Uganda and elsewhere by giving students a sense of what real businesses are like.
  They are designed to bring the study of Entrepreneurship to life. They show that, while there are some common principles, each business situation requires specific knowledge and skills. Also there is a place in business for many different types of people. In short, everyone can become an entrepreneur if they are motivated and willing to apply themselves to the task.
  
  Each case study tells the business story of a different person and is based upon one business. Certain details have been emphasised in order to bring out important business principles, but they are all firmly based upon reality.
  
  We believe that students will find it easier to relate to this personal approach. It harnesses the principle of learning through empathy - the idea of imagining what you would do if you were in someone else's shoes.
  
  To run a business successfully there are many things you need to know. Some require specific education and training. But others need only good "business sense". Some people seem to have this naturally, but, others develop it with experience. Working through case studies can help students to develop their business sense.
  The structure of each case study
  The case studies are generally in five parts:
  1. The business. A photograph and a general story of the business (or a similar business) from the viewpoint of the entrepreneur.
  2. The industry. Background information on the industry in which the business is located.
  
  3. Questions. The questions focus on the vocabulary of business and encourage students to think about how the business operates within its specific environment. They provide a focus for teachers to develop key business principles.
  
  4. Activities. One or two longer group or whole class activities. These involve such things as brainstorming, conducting market research and constructing business plans. They are designed to allow students to "learn by doing". They develop a range of practical skills including cooperating in a group, data collection and numeracy, and communicating ideas clearly both orally and in writing.
  
  5. Teacher's Guidance. This section gives suggestions on the sorts of answers that might be expected from the students, and specific advice on managing the activities with large classes.