In human psychology it is realised when a person feels strongly that he is lacking something. Mary came to Thika when she was young. (Max Weber, 1904). It is a behaviour demanded a group or groups of people who have a direct interest in the organisations actions.

Since 1995 students have been paying fees on their own without sponsorship. Sources are categorised as either internal or external. The need to develop a competitive edge providing something new that has little or no competition. Government of India is fully conscious of the significant role of entrepreneurship in economic development.

ii) packaging goods in environmentally friendly materials e.g. At times, entrepreneurs force themselves to choose work over fun, a boring job against a pleasant one, working on tax papers rather than reading a glamour magazine.

Have you identified potential angels who might be willing to finance your business? Technology has become the major competitive tool in todays markets as a result of which many people have to come up with new ideas. Thus offering equal employment opportunities for employment to both males and females, Avoiding pollution of environment through such things as noise , and waste products. Is your business a possible candidate for a simplified registration or exemption for a public offering? Gender equity more women entrepreneurs in self employment hence various financial and non-financial organisations to develop products targeting women. Have you developed a marketing strategy that will generate innovations in your product or service over time? Put the applicant at ease describing your business in general and the job in particular. Two major financial statements the entrepreneur requires for sound decisions are: The financial statement is prepared to determine whether a business is operating at a profit or a loss for a given period of time. It involves deciding in advance the actions to be taken, when and how. This is a fraudulent appropriation a person to whom it has been entrusted. Scrutinise Signatures compare signature on sales ship to that on the card.

They gain their customers through prior relations or personal contacts. Success comes very slowly for those. For example, one lab director eventually realized that his unwillingness to acknowledge other peoples contributions stemmed from his fear of seeming incompetent. Once an entrepreneur identifies a specific trend then all their imagination and creative ability can go into generating products and services to satisfy the demand that the trend creates. dust coats, factory boots etc. Do you know when youre in over your head and need outside help? Available resources and competencies be within the reach of the entrepreneur in terms of resource, competency, legal requirements etc. This requires obligation of businessmen to pursue those enterprise policies to make those decisions or to follow those lines of action which are desirable in terms of objectives and values to society. Positioning the product within the target market. Incubation can be enhanced by, This occurs when all the previous stages start getting. Creativity and innovation are key to generation of new ideas and methods of improving goods and services for customer satisfaction. The internal theft can be reduced reduction of theft opportunities i.e. This requires a self-control that many people simply fail to develop in them. The sociological theory maintains that environmental factors such as values and beliefs influence entrepreneurial behaviour. The following are elements of entrepreneurial culture: NB: It is through the interaction of founding values, theories and new venture that organisational culture begins to take shape and perpetuate itself. Be aware of occupational health and safety (OH&S) issues and have risk management policies and processes in place. Recap: Hard work, desire for high achievement, optimism, independence, foresight, innovative skill, mental ability, ability to guard business secrets, decision making, ability to maintain human relations. vi)Brainstorming- this involves sitting in a group and trying to think of as many possible businesses as possible using the freewheel policy . Ideas and opportunities need to be screened and assessed for viability once they have been identified or generated. To achieve this, entrepreneurs must have patience, ability to convince others and a strong conviction that their job is going to be successful. In society a trend describes a direction in the tastes and desires of the general population. Have you scored your plan on the Business Plan evaluation Scale? This sub-module unit looks at the procedure to be followed in starting a business, factors to be considered in starting a business including support services required and available for the entrepreneur. Identify training needs of staff and encourage ongoing learning. single business permit, Registration with relevant government department e.g. This theory revolves around an entrepreneur being an innovator, combining the various resources/ factors of production to create new products/wealth. Which innovation seems to hold the most promise for, Let us try to use appropriate language and manner in raising our contrary views about the issue on "Teenage Pregnancy." Increasing regional business activities through the export of manufactured goods. Have you evaluated key technological trends and how they will affect your business? Given that few environments are static, the results of the marketing effort should be monitored closely. Recording transactions in the ledger is made based on the concept of double entry which means that ever transaction must have at least two effects and should therefore be recorded twice.

Effectiveness is the ability to obtain the intended results, while efficiency is accomplishing the objectives utilising minimum resources. They are derived from the cultural values and norms. Support your answer with examples. In order to achieve this they must complete their activities within a given time. Topic 5: Entrepreneurial culture The gross profit is the difference between the net sales and the cost of sales, Less closing stock , Cost of sales , Gross profit c/d , NB:Gross profit is the difference between Net Sales and Cost of sales. v)Listening to complaints of customers so that you improve an existing business. Characteristics of a good business opportunity. Careful choice of personnel is essential. For example, Harveys discovery of the circulation of blood.

Human beings are seen to be driven three main factors: To achieve means success and therefore the underlying entrepreneur motivation. dealing fairly honestly and responsibly with his employees and other stakeholders. PEST analysis for macro-environmental political, economic, societal, and technological factors. All ethical problems have simple solutions i.e. It is the state of not having time to think creatively.

What was the process that allowed you to obtain an efficient service delivery? used plastic materials can be reprocessed into pellets which in turn can be used for furniture or trays therecreating a healthy environment. 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. The following are the three main types of entrepreneurs. 9)Effective Communication: An entrepreneur should be able to communicate his ideas,messages and information effectively.

They also innovate and bear risk. Howhas Mary contributed to price stability and. If one partner makes a mistake, all other partners suffer the consequences. All businesses, small or large need information. Consider the benefits that can be derived from less use. A research or business library can prove helpful for studying the manners in which other small businesses have approached their target audiences.

10)Ability to maintain human relations: An entrepreneur has to deal with a number of persons like customers, suppliers, govt employees, officials etc and he should be tactful in dealing with them. Entrepreneurship education was seen as an important element to develop entrepreneurial attitudes.

If you have chosen to form a corporation, have you filed the articles of partnership with the appropriate state? Each culture has different methods called sanctions of enforcing norms. i)Personal goals and competencies of an entrepreneur. The source of supply of goods/raw materials. Stage 4: Evaluation and the Internet. entrepreneur is a person who organises and operates a business concern for the purpose of making profit. Creativity and innovation are therefore key to generation of such new ideas and methods of improving goods and services to meet the customers needs. An intrapreneur is an employee who uses entrepreneurial skills to generate profits for the venture they works for. differences between the entrepreneurial venture and the small business. It is also known as the sales day book. Do you have business partners or advisors who can compensate for your weaknesses? The concept of continuous improvement says any process or product should be endlessly revised and improved. Proper time management ensures greater organization and therefore smoother operations. Benefits/Importance of ICT to a small business enterprise. SWOT analysis strengths, weaknesses, opportunities, and threats for the internal and external situation.

A competence is the ability, which an individual requires to do an assigned job. She continued supplying uniforms to two same companies and at the same time made clothes to sell to other customers. The entrepreneur and the director. Awareness of the competition and the state of new product, development is just as important as a finely honed record-keeping, system. Have you considered the Limited Liability Company (LLC) as a form of ownership? i.e. Small scale enterprises play a major role in the development of a countrys economy. Producing goods and services that are safe to use. Undertaking some of these responsibilities may endear the entrepreneur to his host community to enhance his/her image and social standing thus contributing significantly to his business success. Do the ads you are planning to run answer the customers question, Why should I consider buying this product or service?. If you have chosen to form a partnership, have you determined how a partner can leave the business? Return on investment provide durable, timely and acceptable returns or rewards for the risk and effort required. An over-stressed person finds it difficult to think objectively. The codes of conduct are normally written and distributed to everyone in the business to read and follow. An opportunity in the environment which, can be translated into a business activity. The class can then add their ideas after each report. The marketing strategy then involves: Detailed tactical decisions then are made for the controllable parameters of the marketing mix. Once established it has to comply with many regulations. Trends refer to long term movements in a certain direction. Similar products could be added together, for example, such as two blades joined to a twin razor. There is little concern about inventory, investment, other than to be sure products are available, * Growth The product has been demonstrated to have, significant market potential and the business strives to, gain a major market share. If you need to achieve you select goals which will accomplish the need. Mass media (newspapers, magazines, TV, internet). They attempt to modify the method of manufacture to accommodate technological developments, discover marketing opportunities, identify sources of supply and develop sound organizations to meet requirements of the environment. Have you evaluated key demographic and lifestyle trends and how they will affect your business? Have you developed a marketing strategy that is focused on providing customer convenience? Fear of humiliation. The interpretation can be in the form of ratios, or percentages showing different relationships. It facilitates long term planning within the business. Business ideas need to respond to market needs. For instance customers who visit the business more often arrange the merchandise or send sales people away, bears watching. Otherwise it was, and still is a popular course. Unwanted stress reduces the quality of all mental processes. Responsibilities Many responsibilities require proper time management to complete tasks.

Some rules are necessary, but others encourage mental laziness. If suppliers want to be paid early, ask about discounts for early payments. Business support services available for small businesses. It gauges the companys overall efficiency. A thorough analysis of the situation in which the firm finds itself serves as the basis for identifying opportunities to satisfy unfulfilled customer needs. The entrepreneur as a person who engages the participation of others. This makes it easier to maintain them and replace them wwhen necessary. Try to pay staff electronically or cheque avoid cash. Entrepreneurial SME(s) are the difficulty of the large organizations to grow and prosper in an increasingly competitive market place . It works best in a group situation. This information can be obtained formally using survey or focus groups, or informally direct contact with customers the entrepreneur or his/her sales forces. The company is not allowed to appeal to the public for extra capital, so it may find it difficult to raise money for expansion. A manager must delegate tasks to others since he cannot do everything. Their economic system is well developed enough to bear the costs of venturing into a business. Culture encompasses a wide variety of elements, such as values, norms and artefacts. It facilitates distribution of work to various categories of staff. 1. Public companies can easily expand due to large capital base. Want to read all 10 pages. If you have chosen to form a partnership, have you created a partnership agreement? They should have the knowledge and means to discover this type of crime effectively.

Buy competitors products and destroy them before they reach the market, Discredit competitors products with a view to reducing their sales, Damage the competitors promotional materials such as bill boards. After discussions, the instructor/trainer will have a person from each group give a report on their discussion. Have you determined the level of satisfaction your target customers have with existing products or services? While ethics refers to set values and principles which influence how individual groups of people and society in general behave. Are you willing to delegate authority and responsibility to others? This motivation behaviour is related to parental characteristics, family, culture, role models. Recycling products some of the materials that pollute the environment if thrown away carelessly can be taken back to the factory for recycling. A business opportunity is an attractive idea which provides the possibility of a return for the entrepreneur taking the risk. An entrepreneur needs to acquire knowledge on financial management issues like anticipation of financial needs for the enterprise, acquisition of funds and allocation of funds in order to yield optimum result. Every business enterprise requires capital with which to start its operation. Below are some of the factors to consider when starting a business: The following are the types of business organisations: i)Sole proprietorship This is a business owned one person.

This is disastrous to human health and animal. 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. It includes the activities that make the product available to target consumers. Managing barriers to creativity and innovation. Joseph Schumpeter defines an entrepreneur as a person who carries out new combinations of means of production within an organization, while distorting the routine of the existing products/services, to set up new products and services. The contributions are made through: Entrepreneurship was introduced the economists of the eighteen century, and it continued to attract the interest of economists in the nineteenth century. Enables small businesses to embrace appropriate and affordable technologies e.g. Introduction In a small business you will need flexible employees who can shift from task to task as required. 1)Knowledge: The collection and retention of information. Leadership is an important factor in determining the success or failure of a business enterprise. ->Two major problems faced by developing countries are UNEMPLOYMENT & UNDER EMPLOYMENT. Motivation refers to a drive that is sufficiently pressing to direct the person to seek satisfaction of the need while a need becomes a motive when it is aroused to a sufficient level of intensity. They can acquire material and financial resources to experiment upon new ideas. In evaluating your internal external control dimensions, an entrepreneur depicts a sense of control over his/her life. The situation analysis thus can be viewed in terms an analysis of the external environment and an internal analysis of the firm itself. Required fields are marked *. This can be accomplished through agood inventory record keeping system. The fourth stage of small or other business is about maturity. One example with a twist on this theme would be a car that goes in two directions, not only one. They believe that achievement of goals is dependent on their behavior or individual characteristics. Once you have done this, encourage the applicant to talk. This may be a physical location or any other medium such as electronic or print. The economic theory provides basic data in the economic environment activities for business start-ups. Each has an independent way of thinking and a unique approach to decision making and handling situations in the business. Firms that are able to satisfy these requirements are rewarded. The theories try to explain whether entrepreneurs are born or made. They have been in senior profile levels in employment. Importance of Enterprise Social Responsibility, ETHICAL BEHAVIOUR IN A BUSINESS ENTERPRISE. It is important to know your cash flow position. Are you willing to seek outside help? An existing business, even a mature one, can decline in profits, take heavy losses and eventually either fail or cease operations to avoid further losses. Trade creditors these provide a business with goods on credit terms such as 90 days before repayment can be made. Do you know what the key success factors are for your business? You can then take a similar approach, adding your own creativity and the particular benefits of your products or services. any business in which investment in inventories is significant. Market information can be gathered through: iii) Getting information from chamber of commerce, iii) The need for meeting quality standards (KEBS), TOPIC13 ENTERPRISE SOCIAL RESPONSIBILITIES. What if you carry your idea to completion and find its not as good as you thought (meaning youre incompetent)? The manager should make sound decisions for the smooth flow of the business. Thus creativity and innovation: iii) Motivates employees to become more creative. When starting a business the entrepreneur must comply with certain requirements and regulations. right or wrong. Market components are commonly referred to as marketing mix. product or service itself, or in the business processes used to deliver it. The two entrepreneurs who run the company have found a way to satisfy unmet consumer needs in a high-demand market, and as a result they are seeing, Use two corporate innovations one brought about through autonomous strategic behavior and one developed through induced strategic behavior. Ministry of Fishery, Livestock, Training. Norms that society enforces formally are called laws.

Destroying a competitors product or promotional tools such as billboards, Buying and destroying competitors products before they reach the market, Giving false information about a competitors product. iv) Leads to diversification of products and services, v) Introduces a variety of goods and services. Consequently, 8th need to decentralize despecialize and downsize the operations (Harrell 1992) In construst in the 1980s those high growth new ventures (SME(s)) known as gazelles represents only 5% of new business due, but were responsible for as much as 87% of all new jobs created (Zimmbrer&Scarbrough 1996) in the UK in the 1980s small businesses generated more than 805% OF UNP and more than 40% of employment , more than 80 Employment growth came from newly started companies (Burns and Dewhurst 1989) This development has accentuated during the 1990s and today entrepreneurs help in high on the political agenda world wide. To facilitate effective and affordable communication. Recap:Economic Activity, Innovative Activity, Creative and Purposeful activity, Organising activity, Risk bearing activity. In Kenya the concept of entrepreneurship was embraced at the end of the 1980s and early 1990. 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. Have you identified the unique selling position that you will build your advertising messages around? sem 5th cbcs vtu scheme communication engineering electronics notes Your email address will not be published. Due to the dynamic nature of the business environment, the user of this manual is advised to scan the environment for any emerging issues and trends in every sub-module unit and include it in the learning process. Have you developed a procedure for documenting employees performances in case you must fire them? To include people from outside the business world who reflect broader interests.

Have you located suppliers who will sell you what you need at a reasonable price? Recording business transactions in the books of accounts. Debtors ratio = __Debtors X 365 = ______________ days. 8)Effective Mobilization of resources: The success of an entrepreneur depends on his ability to mobilise the scarce resources,to utilise them effectively and efficiently and thereby reduce cost of production.

Death of a shareholder does not affect its operations. The establishment of every business venture is backed up the profit motive which leads to the production of goods and services. In most cases and embezzler is an employee of higher position of trust and confidence. Proper labelling, packaging and presentation of products in a manner that the quality and quantity hazards of use and limitations of use are clearly set. Show that the desire for entrepreneurship is innate as well as environmentally determined. From her savings, she contributed additional capital.

It is the practice of entrepreneurship employees within an organisation. Every business competes within an industry and each industry hasa life cycle. iii)Government Actions/Factors: Actions of the government can influence both economic and non economic factors of entrepreneurship development like formulating industrial policies, creating basic facilities,utilities and services, and also by proving encouraging incentives and concessions to entrepreneurs. 8)Ability to guard business secrets: Business secrecy is one of the fundamental aspects of a successful business and an entrepreneur should be able to guard and not disclose vital information relating to the business. Their education or training background is focused on the current business activity. satisfaction especially with those students who have been attached and apprenticed at their organisations. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); Your email address will not be published. Motives are the needs, drives and values that add energy to and direct ones abilities. 1) Hard Work: An entrepreneurs tireless ,tedious and laborious work will enable him to lead his business to success. Cost Effective: The cost of technology should be justified its overall benefits.

They are marginal people and were mostly associated with fellow workers. The term entrepreneur is coined from a French verb entreprendre which means to undertake. They must be innovative in their approach to carrying out business activities. They enable one to understand the need for entrepreneurship and why some people are more entrepreneurial than others. 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. The entrepreneur in this regard must make decisions in relation to: Promotion is the process of letting buyers know about a product, how it is made, its benefits, cost, and quality among others. Efficient: It should be efficient in utilization of resources.

Entrepreneurs should adhere to high ethical standards e.g. Five of her employees have worked in the business for over ten years. Do you understand the implications of both debt and equity capital to your business? If your business will be large enough to require outside help, an important responsibility will be the selection and training of one or more employees. Many people like the comfort and security they have in their jobs. -> According to Dalton Farland, Motivation refers to the way in which urges, drives, desires, strivings,aspirations or needs direct, control, or explain the behaviour of human beings, Motivating factors are classified into two, -Availability of labour and raw materials, -Encouragement from big business concerns, ROLE & IMPORTANCE OF ENTREPRENEUR IN ECONOMIC DEVELOPMENT(8), FACTORS AFFECTING GROWTH OF ENTREPRENEURSHIP. ncv