RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION 3.

Research- An entrepreneur is a practical dreamer and does

1. Development of Managerial Capabilities - An entrepreneur a lot of ground work before taking a leap in his/her ventures.
studies a problem, identifies its alternatives, compares the 4. Development of Management Skills -The work of an
alternatives in terms of cost and benefit implication, and entrepreneur involves the use of managerial skills which
finally chooses the best alternatives. he/she develops while planning, organizing, staffing,
2. Creation of Organization- Entrepreneurship results in the directing, controlling and coordinating the activities of
creation of organizations when entrepreneurs assemble and business.
coordinate physical, human and financial resources and direct 5. Overcoming resistance to change -An entrepreneur always
them towards achievements of objectives through managerial first tries new ideas at his/her level.
skills. 6. Catalyst of economic development -n entrepreneur plays
3. Improving standard of living- Entrepreneurship helps in an important role in accelerating the pace of economic
making a wide variety of goods and services available to the development of a country by discovering new uses of
society which results into higher standard of living for the available resources and maximizing their utilization.
people. TYPES OF ENTREPRENEURS
4. Means of economic development- Entrepreneurship 1. Innovative Entrepreneurs- These entrepreneurs have the
involves creation and use of innovative ideas, maximization of ability to think newer, better and more economical ideas of
output from given resources, and development of managerial business organization and management.
skills. 2. Imitating Entrepreneurs- These entrepreneurs are people
INTRAPRENEURSHIP- When entrepreneurship describes who follow the path shown by innovative entrepreneurs.
activities within a firm or large organization. 3. Fabian Entrepreneurs- These types of entrepreneurs are
Incremental innovations -are a number of small changes that skeptical about the changes to be made in the organization.
transform process flows. 4. Drone Entrepreneurs- Drone is “a person who lives on the
Disruptive innovations- are entirely new approaches. labor of others” . Drone entrepreneurs are those individuals
FACTORS AFFECTING ENTREPRENEURSHIP who are satisfied with the existing mode and speed of
1.Personality Factors business activity and show no inclination in gaining market
a. Initiative- does things before being asked leadership.
b. Proactive- identifies and utilizes opportunities 5. Social Entrepreneurs - Social entrepreneurs drive social
c. Perseverance- works against all odds to overcome innovation and transformation in various fields including
obstacles and is never complement with success. education, health, human rights, workers’, rights,
d. Problem- solver- develops and maintain relationship with environment and enterprise development.
customers and financers; conceives new ideas and introduces CAREER OPPORTUNITIES FOR ENTREPRENEURSHIP
innovative solutions GRADUATES
e. Persuasion- convinces customers and financiers to 1. Mid-level management- At big companies, the C-level folks
patronize his business. develop ideas, the ground force does the work, and mid-level
f. Self- confidence- makes decisions and sticks to his decisions management converts the idea into execution.
g. Self- critical- learns from his mistakes and from experiences 2. Business consultant- Businesses today need consultants
of others who can go to a client site, identify problems and fix them.
h. A Planner- collects information, prepares a plan, and 3. Sales - Entrepreneurship graduates can work in sales or run
monitors performance the department of any businesses.
i. Risk- taker- is willing to take calculated risks 4. Research and development- A good qualification to work in
2. Environmental factors - such as political climate, legal R&D is a training and education on understanding of business
system, economic and social conditions and market concepts, procedures, and practices and entrepreneurship.
situations, contribute significantly towards the growth of 5. Non- profit fundraiser- Being able to raise funds requires
entrepreneurship. understanding the importance of business and networking
CORE COMPETENCIES IN ENTREPRENEURSHIP relationships.
1. Economic and dynamic activity- it involves the creation and 6. Teacher- Those with entrepreneurship degree are qualified
operation of an enterprise with a view to creating value or to teach the core subjects in Senior High School and teach
wealth by ensuring optimum utilization of scarce resources. students the entrepreneurial skills.
2. Innovation- it compels an individual to continuously 7. Recruiter- College graduates who had courses that cover
evaluate the existing modes of business operations so that operations management, leadership and a variety of others,
more efficient and effective systems can be evolved and and those with entrepreneurship degree, most likely have a
adopted. keen sense of what type of person is needed to fill in a
3. Profit potential- is the level of return or compensation to position.
the entrepreneur for taking on the risk of developing an idea 8. Business reporter- Entrepreneurship graduates can write
into an actual business venture. articles, or pick up a quick class to learn how to write article.
4. Risk bearing- the essence of entrepreneurship is the Some Myths about Entrepreneurship
willingness to assume risk arising from the creation and 1. Entrepreneurs, like leaders, are born, not made.
implementation of new ideas 2. Entrepreneurs are academic and social misfits.
FUNCTIONS OF AN ENTREPRENEUR 3. To be an entrepreneur, one needs money only.
1. Innovation- An entrepreneur is basically an innovator who Finance is the life-blood of an enterprise to survive and grow.
tries to develop new technology, products and market. But for a good idea whose time has come, money is not a
2. Assumption of Risk- Is a risk taker and not a risk shirker. problem.
He/She is always prepared for assuming losses that may arise 4. To be an entrepreneur, a great idea is the only ingredient.
on account of new ideas and projects undertaken by him/her.
A good or great idea shall remain an idea unless there is -The findings can be set out in a clear and logical way, so
proper combination of all the resources including that potential lenders can understand the business and
management. its likely risks/advantages. The document helps the
5. One wants to be an entrepreneur as having no boss is great entrepreneur to clarify and focus his/her ideas.
fun. It is not only the boss who is demanding; even an
- It is a reference material that can be used to plan long
entrepreneur faces demanding vendors, investors, bankers
and above all customers.
term development of the business.
- The plan can be regularly consulted and updated as a
DEVELOPING A BUSINESS PLAN guide to the business development.
Lesson 1 Preparing a Business Plan - Mistakes can be made on paper rather than in the
A business plan is “a formal statement of a set of operation of the business.
business goals, the reasons why they are believed - When the plan shows that a successful business is
attainable, and the plan for reaching those goals. possible, it makes the entrepreneur feel more confident
Categories of a Business Plan to succeed.
1. Business Plan For Profit - It helps the entrepreneur to decide on how much
2. Marketing Plan money is needed and if properly prepared, it gives the
3. Project Plan loan agency confidence that their money will be repaid.
4. Business Plan for Non-profit and government agency Conducting a Feasibility Study
5. Operational Plans Questions that can be answered by a feasibility study
Contents of Business Plan are addressed:
1.Executive Summary - Is there a demand for the product?
It guides proponents or investors on the overall - Who else is producing similar products?
feasibility of the proposed project at a glance - What is needed to make the product?
2.Project Background and History - What is the cost of producing a product?
It narrates the project conceptualization, and details the - What is the likely profit?
events that led to the study.
3.Management and Personnel Feasibility 2.Comparison between a Feasibility Study and a
It pinpoints the project’s general to specific market Business Plan
feasibility topics. a. a feasibility study is conducted before a decision to
4.Production Feasibility proceed (go/no go).
This refers to the manufacturing aspects of the product. b. a business plan is prepared after a decision to
It includes the details of what the product is and how proceed (go/no go).
they will be produced/raised using proposed location, c. a feasibility study provides an investigate function.
production size (capacity) and layout. d. a business plan provides a planning function.
5.Financial Feasibility Market Survey
It enables the entrepreneur to know how much - the first thing to do to start up a business is to conduct
capitalization will be needed to finance the project and a market survey
who will be the project’s financiers. Sources of new products
6.Socio Economic Feasibility 1. Consumers
This is viewing the project’s feasibility only from the 2. Existing products and services
point of view or from the standpoint of the project’s 3. Distribution channel
proponents/investors. 4. Government
7.Project Implementation and Timetable 5. Research and Development
These include the details of all activities to be Methods in generating new products
considered during the project’s pre-investment and pre- 1. Focus Group
operating phase and also the timetable of each of these 2. Brainstorming
activities. 3. Problem Inventory analysis
- Who is the customer?
- What do they need? Conventional Business
- What’s in it for the customer? Innovative Business
- How does the company satisfy its stakeholders?
Competitors
Feasibility Study - competitors are very important to the success
The feasibility study is a major information source in or failure of a new business. The entrepreneur should
making a critical decision whether to go or not to go recognize that there are different types of competitors.
into the business.  General competitors
 Type competitors
The Advantages of writing down the results study are  Brand competitors
as follows:
New entrepreneurs must therefore assess each of these
factors using strengths, weakness, opportunities and
Threats (SWOT)