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ENTREPRENEURSHIP AND EMPLOYABILITY SKILLS

TTLM CODE: ENT EMP M1 TTLM 0821V1


Learning Outcomes of this unit are:
1. Understanding Entrepreneurship Skills
2. Business Ideas, opportunities and feasibility study
3. Starting an Enterprise
4. Employability skills

2. Understanding Entrepreneurship Skills


2.1 Basic concepts of:

1.1.1. Entrepreneurship
The word ―Entrepreneurship‖ is derived from the French verb entrepreneur which means ―to
undertake‖. The concept entrepreneurship refers ―The process of identifying opportunities in the market
place, arranging the resources required for pursuing these opportunities and investing the resources to
exploit the opportunities for long term gains. It involves creating wealth by bringing together resources in
new ways to start and operate an enterprise.

2.2 Elements (steps in the implementation) of Entrepreneurship


1. Observing the environment/identifying gaps,
2. Identifying opportunities,
3. Gathering the necessary resources
4. Implementing the activity and
5. Receiving rewards for engaging in the activity
Entrepreneurial Functions in Business
1. Identify gaps in the market and turn these gaps into business opportunities.
2. Finances and mobilizes resources for the business
3. Organize and manage the business.
4. Bear /tolerate/ the uncertainties and risks of the business.
5. Encourage competition
6. Self-employed and applying entrepreneurship

5. Rewards for Being an Entrepreneur


1. Self-actualization /personal fulfillment
2. Feeling of freedom and independence
3. Providing jobs and benefits to others such as investors, suppliers, bankers, subcontractors, work
force, and customers
4. Providing economic goods/product/service, incomes for workers and profits for
shareholders/partners
Importance of entrepreneurship
The followings are the major benefits of entrepreneurship
1. Employment creation
2. Local resource utilization
3. Decentralization and diversification of business
4. Promotion of technology
5. Capital formation
6. Promotion of an entrepreneurial culture

1.1.2 Entrepreneur and Intrapreneur


Meaning of Entrepreneur
Entrepreneurs are individuals who undertake an economic activity. On one extreme, an entrepreneur is a
person who brings change, possessing characteristics found in only a very small fraction of the
population. On the other extreme of definition, anyone who wants to work for him/her is considered to be
an entrepreneur.
Types of entrepreneurs
Generally, there are four types of entrepreneurs as indicated here under:
- Personal achiever, Super-salesperson, Real manager & Expert Idea Generator
Personal achiever
Personal achievers are the classic entrepreneurs. They are the types of people that we picture when the
term entrepreneur‖ is used. They are the only types who must become entrepreneurs to succeed in life. If
they are placed in a non-entrepreneurial environment, they stand a good chance of failure. They possess
seven characteristics that relate them to entrepreneurial success:
 Need for high achievement
 Need for performance feedback
 Desire to plan and set goals
 Strong individual initiative
 Strong personal commitment
 Internal focus of control
Super-salesperson
Generally, onlookers don‘t view super sales people as having the potential for entrepreneurial success.
Their entrepreneurial strength is their approach to selling. They truly cater to the needs of clients and
customers, thus placing a strong stress on service. Super sales people are interested in managing the
customer into a sale, not in applying pressure tactics. They possess five characteristics that relate them to
entrepreneurial success:
 Capacity to empathize
 Social interaction and relationships
 Need to have strong positive relationships with others
 Sales force is critical for them
 With less educational background but more experience
Real manager
Real managers exhibit some of the traits of established entrepreneurs and some of the abilities of
corporate managers. They possess the following traits or desires of being:
 A corporate leader
 Competent
 Decisive and powerful
 Standing out in a crowd
Expert Idea Generator
Expert idea generators are people who have ideas for a business that can provide a real competitive
advantage. They become tremendously enthused about their ideas and spend a great deal of time
implementing them. Unlike personal achievers, who spend energy on an overall venture, expert idea
generators tend to focus on the idea exclusively. Very often, they will try to persuade others to contribute
to implementation and, if unsuccessful, they will abandon the idea. They possess a majority of the
following five characteristics:
 Desire to innovate
 Love of ideas, curious
 Belief that new products are crucial
 Intelligence is the competitive advantage to them
 Desire to avoid taking risks
Personal efforts required from an Entrepreneur:
 Works for long hours
 Always concerned about the business
 Needs high energy
 Sacrifices other important aspects of life
 Limited social life
 Not much time with family and friends
 Financial investment
Relationship between Entrepreneur and Entrepreneurship
S. Entrepreneur Entrepreneurship
N
1 Person Process
2 Organizer Organization
3 Innovator Innovation
4 Risk - bearer Risk - bearing
5 Self-motivator Motivation
6 Creator Creation
7 Visionary Vision
8 Leader Leading
9 Imitator Imitation

1.1.3 Entrepreneur and manager


A manager is a person who plans, organizes, directs and controls the activities of an established business.
It is the manager who leads the business to its targets and who is responsible for the business's success or
failure. However, unlike the entrepreneur, a manager is not necessarily the owner or the founder of the
business.
Alternatively, the entrepreneur may or may not be the manager of the business. Even though it is true that
most entrepreneurs are the managers of their businesses, an entrepreneur may hire a manager to run
her/his business. Moreover, a manager may not have the qualities of an entrepreneur while the
entrepreneur may not have the skills to effectively manage an organization like a good manager does. In
fact, the problem many entrepreneurs face is leading their businesses to success in today's dynamic
environment.
The entrepreneur is the person who makes judgmental decisions under conditions of uncertainty and who
creatively turns the uncertainty into an advantage for the business she/he runs.
A manager is an employed person while an entrepreneur manages the enterprise for his/her personal gain.
The role of the entrepreneur and the manager may, however, overlap in many issues
Distinction areas Entrepreneur Manager
Goal Management He starts a venture by setting up The main aim of a manager is to render
a new enterprise for his personal his/her service in an enterprise already
satisfaction. set up by someone.
Status Entrepreneur is the A manager is a servant in the
owner/founder of the enterprise. enterprise.
Risk An entrepreneur bears all risk A manager does not bear any risk
and uncertainty involved in the involved in the enterprise.
enterprise.
Rewards Entrepreneurs for his/her risk A manager receives salary as a reward
bearing role he/she receives for services rendered which is fixed
profits. The reward is not only and regular. It can never be negative.
uncertain and irregular but can at
time be negative.
Innovation As an innovator s/he is called as A manager executes the plans of the
change agent who introduces entrepreneurs/owners/founders of the
goods and services to meet business.
changing needs of the customer.

1.1.4 Enterprise and Enterprising


Enterprise means always finding a way to keep yourself actively working towards your ambition.
Enterprise is two things. These are:
1. Creativity
2. The courage to be effective
Meaning of enterprise
An enterprising person is one who sees opportunity in all areas of life. To be enterprising is to keep your eyes
open and your mind active. It‘s to be skilled, confident, creative and disciplined to seize opportunities that
present them regardless of the economy.
Enterprising people always see the future in the present.
Enterprising people always find a way to take advantage of a situation, not be burdened by it.
Enterprising people aren‘t lazy. They don‘t wait for opportunities to come to them, they go after the
opportunities.
Being enterprising doesn‘t just relate to the ability to make money. Being enterprising also means feeling good
enough about yourself, having enough self-worth to want to seek advantages and opportunities that will make a
difference in your future. And by doing so, you will increase your confidence, courage, creativity and self-worth
which are aspects of an enterprising nature.
Enterprising men and women exhibits the following characteristics
Energy, Need to achieve, Task oriented, Empathy, Resourcefulness, Planning, Risk-taking, Innovation, Skills,
Independence, Networking, Goal-oriented.
Enterprising need to fulfill the following activities: Idea identification, Planning, Implementation, Successful
completion of activities and Receiving the rewards.
Entrepreneurship plays a key role in enhancing an economy in terms of the following:
 Creating jobs and additional wealth creation
 Promoting free enterprise and healthy competition
 Spreading prosperity and promoting economic growth
 Ensuring innovation and creativity
 Encouraging grassroots development
 Improving social and community conditions
 Shifting the mind set of being employed to self-employment

Entrepreneurial mindset
 An entrepreneurial mindset is a set of beliefs, thought processes, and ways of viewing the world that drives
entrepreneurial behavior. Typically, entrepreneurs firmly believe it‘s possible to improve their life situation
and live life on their own terms. They also believe in their ability to learn, grow, adapt, and succeed.
 The mindset of successful entrepreneurs is different from mindset of traditional workers in many ways. For
example, if a traditional worker needs to earn more money they‘ll often brush up their resume and look for a
better paid job. However, someone with an entrepreneurial mindset would look for ways to earn money by
starting or growing a business
 Here‘s the thing: Anyone can develop the mindset of a successful entrepreneur.
 As the founder of Ford Motor Company, Henry Ford once said, ―Whether you think you can or think you
can‘t you‘re right.‖
 A positive mindset helps motivate entrepreneurs to focus on desired activities and events and the results they
hope to achieve.
The characteristics of the entrepreneurial mindset which are common for all entrepreneurs are:
1. They passionately seek new opportunities.
2. They pursue opportunities with enormous discipline.
3. They pursue only the very best opportunities and avoid exhausting themselves and their organizations by
chasing after every option.
4. They focus on execution specifically, adaptive execution.
5. They engage the energies of everyone in their domain.
The importance of an entrepreneurial mindset
The power of an entrepreneurial mindset is obvious when you think about it. Entrepreneurs succeed like they do
because they think, act, and view the world differently from most people There are so many reasons why an
entrepreneurial mindset matters. For example, developing an entrepreneurial mindset can help to reduce doubt,
fear, and anxiety. It can also help to drive action, focus, and growth. In short, an entrepreneurial mentality is the
foundation of business success. Now, let‘s explore how entrepreneurs think.
The factors that help entrepreneurs to develop a positive mindset include:
• Focus on opportunities to learn from each experience.
• Being involved in positive activities.
• Choose work objectives that are achievable and have an impact.
• Make friends with other entrepreneurs.
• Acquire the thinking, mannerisms, and characteristics of successful entrepreneurs.
• Have successful entrepreneurs serve as role models and mentors.
• Avoid negative thoughts and ideas.
• Take advantage of opportunities to improve your situation, whether it is your personal life, work life or
life in the community.
Successful entrepreneurs need to develop a positive mindset and observe their environment. In order to do this,
the process described below in sequential order should be followed
1. Attention (focus on something)
2. Retention (what observed must be retained)
3. Reproduction (behavior must be practiced again and again)
4. Motivation (learner must be motivated to learn from it)
Distinguishing characteristics of entrepreneurial mindset
If you want to learn how to build an entrepreneurial mindset, you need to know how successful entrepreneurs
think. So, let‘s take a closer look at 19 essential entrepreneurial mindset characteristics. Entrepreneurs are:
Independent: This is one of the most important aspects of the entrepreneurial mindset. Entrepreneurs don‘t
follow the crowd or look to others to be given instructions. Instead,
Responsible: The independent mindset of successful entrepreneurs stems from taking full responsibility.
Entrepreneurs don‘t blame others for their life situation they empower themselves by taking responsibility for
improving it.
Abundant: A key part of the entrepreneurial mindset is abundance. Entrepreneurs know they can improve a
situation, make more money and create new opportunity. The sky is always the limit. As a result, entrepreneurs
don‘t hoard money or knowledge. They‘re open, generous, and understand that ―you get what you give.‖

Goal-Oriented: Entrepreneurial thinking is goal-orientated. In other words, successful entrepreneurs don‘t have
wishes and dreams they have goals and plans.
Not Afraid of Failure: When learning how to think like an entrepreneur, you need to look at failure differently
to most people. Entrepreneurs don‘t fear failure – they appreciate it. Each ―failure‖ is simply a stepping stone to
learn from, helping to move you closer to success.
Growth-Oriented: Entrepreneurs believe that they can grow as people, learn new things, and develop new skills.
They believe that with some consistent effort they can shape themselves into whoever they want to be.
Feedback-Seeking: The most successful entrepreneurs aren‘t worried about looking cool they just want to
succeed, and they know that learning from feedback will help speed up the process
Learning-Oriented: Most people spend their spare time seeking entertainment, whether it‘s social media,
Netflix, gaming, reading novels, or hanging with friends.
Forward-Thinking: If you want to learn how to think like an entrepreneur, you need to think long-term.
Successful entrepreneurs know that big goals take a long time to achieve. So, they start with their goal and work
backward, reverse-engineering every step of the way. In other words, ―If I want this, I need to do that. But to do
that, I need to do this,‖ and so on.
Self-Accepting: Many people struggle with self-acceptance. When you don‘t like something about yourself, it‘s
easy to devalue or even hate yourself. But if you develop a growth mindset, you know you can always change
and improve. So, successful entrepreneurs accept themselves as they are, warts and all. They know who they are
is transient, and they‘re working on becoming the person they want to be.
Self-Aware: Entrepreneurs practice self-awareness. They pay close attention to their strengths and weaknesses,
which allows them to improve faster and play to their strengths.
Collaborative: Great businesses require teamwork after all; Jeff Bezos didn‘t build Amazon alone. So, if you
want to think like an entrepreneur, you need to think in terms of ―we‖ instead of ―I.‖
Comfortable with Discomfort: Courage leads to an essential entrepreneurial mindset characteristic: learning to
be comfortable with discomfort. Growth and expansion require you to move beyond your comfort zone. So,
when developing an entrepreneurial mindset, someone should overcome any uncomfortable feeling such as
rejection.
Adaptable: Entrepreneurs have big goals, and they know it‘s impossible to see the entire staircase before
climbing. But they climb anyway, safe in the knowledge that they can always adapt to new developments.
Problem-Solving: Entrepreneurs look for problems and try to find ways to solve them. If you think about it, this
is the essence of every business. For instance, plumbers fix broken pipes; Netflix cures boredom, and car
manufacturer‘s help people get around.
Driven and Tenacious: Drive is an essential part of the entrepreneurial mind. Entrepreneurs are self-motivated
and driven to achieve their goals. They work hard and enjoy the ride, knowing that they‘ll reap the rewards down
the line.
Focused: Successful entrepreneurs are focused on achieving their goals. They‘re focused, never procrastinate,
and always prioritize the most important tasks. To do this, ask yourself, ―Will this help me to achieve my long-
term goals?‖ If the answer is yes, then ask, ―Is this the most important thing to do right now?‖
Action-Oriented: Entrepreneurs have a bias for action. They know that knowledge without action is
meaningless. As the entrepreneur Walt Disney said, ―The way to get started is to quit talking and begin doing.‖
Decisive: The entrepreneurial mind is decisive. Entrepreneurs must confront problems and make many decisions
every day often with inadequate information to help. So practice decisiveness for example, next time you‘re in a
restaurant, look at the menu once, decide, and order with confidence.
Developing Positive mindset towards work
“Whether you think you can or think you can‟t, you‟re right”
“The best and most beautiful things in the world can‟t be seen or touched ... but are felt in the heart.” Helen
Keller - was a blind and deaf author and lecturer “If you‟re not aiming for success, than you‟re either aiming for
failure or not aiming at all”
Science today says that we can influence our outer world by influencing our inner world. Instead of being
passive observers, we now have the power to participate in the world by using our mind

at a level where it changes what we think and feel, what we believe and which emotions we experience. You
have the power to start making the changes you want and getting the kind of life you‘ve always wanted. And it
all begins in one place; your mind. Because our mind is just like a supercomputer: what you put in, you take it
out. Having the right mindset makes all the difference in the world.
Positive thinking means seeing opportunity where negative thinking means looking at what is missing or what is
wrong. Of course this doesn‘t mean that positive thinking is all only about seeing the nice and happy things in
life and not focusing on the potential dangers. If you choose between positive thinking and negative thinking, the
only difference is that with positive thinking your outcome will not be determined in either disappointment,
feeling like a failure or depression. So, if you choose to have a positive mindset, you make the absolute very best
choice.
It will change your self-image, will get you the best results and will allow you to make the best choices in your
life.
This also works for positive thinking. If you focus on your thoughts consciously, you take control of your
thoughts and you can if necessary redirect them towards a more positive mindset. By focusing on what‘s good in
your life, and not what‘s missing or what doesn‘t work, you change your point of view, and thus the way of your
results. It‘s the way you state things or reframe them, as you want them to be. So, instead of using negative
terminology, try to find something positive in your statement. You‘ll see that the way you start talking about
yourself and the things around you, will change the way you perceive new information and digest situations as
they occur in your life.
Positive mindset to work
There are several factors that may contribute to unhappiness at work ; like a difficult supervisor, tasks that are too
mundane, too stressful, or too difficult, challenging coworkers, or maybe just a general dissatisfaction with where
you are as opposed to where you want to be in your career.
The good news is that job satisfaction has much more to do with internal factors such as having positive
expectations, developing a healthy self-image, and being flexible than it does external factors such as the work
itself or the people it involves. Research confirms that we are only as happy or unhappy as we make up our minds
to be, therefore, we each have the power to choose if we want to respond to our jobs and to the world around us
positively or negatively.
The following are some tips for how you can develop a more positive mindset at work in general and
entrepreneurship in particular; no matter how dissatisfied you may feel in your current position.
 Pay attention to what you’re telling yourself throughout the day (Ex: ―I hate my job,‖ ―I can‘t believe
I have to be here,‖ etc.) and recognize that thinking negatively about your job doesn‘t change anything
about your situation.
 Look for other points of view. Keep in mind that you are viewing your situation from only one
perspective. While you may not think that your work situation is ideal, other people may envy certain
aspects of your job. Think about how you could view your situation differently.
 Be sure to take breaks. Of course, follow your workplace guidelines about timing and duration, but make
the most of your allotted time by physically removing yourself from your work station, touching base with
someone from the ―outside world‖ (friend, family member, etc.), or simply taking a few moments to
breathe deeply and do nothing.
 Try out some new communication strategies at work. For instance, try matching a positive comment to
every negative comment you say or hear to set a more positive tone to the conversation. You may be
surprised to learn how contagious a positive outlook can be to those around you. Work on improving your
assertiveness skills by standing up for yourself when necessary, but also stay professional and polite and
accept responsibility for your own feelings and actions. Treat everyone around you with respect, whether
or not you feel you are getting the same in return.
 Your home should be a place in which you can safely leave behind the daily stresses of your job . Use a
ritual, such as stopping by the gym, going for a walk, changing out of your work clothes, etc., that serves
as a link between work and home.
 Improve your life outside of work. Pursue personal interests and hobbies outside of your job, spend more
quality time with your friends and family, and/or do something generous for someone else.

 Explore your options. When you‘re employed, you have the luxury of searching for a position you really
like, not just one that you need. Explore different positions with your same employer, find out if a
promotion is possible in your area, look for the same type of job with a different employer, or look into a
new career altogether.
 Design long-term goals. Instead of dwelling on how bad you think things are right now, focus on what
you would like your life to be like in five, ten, even twenty years. Write down where you‘d like to be
professionally, financially, emotionally, spiritually, physically, and socially and set attainable goals for
yourself. Research these goals by reading books, viewing software, taking an interest/ability test at your
local community college or workforce center, etc.
Developing effective work habit (Culture)
Work habits refer to a person‘s characteristic approach to work, including such things as organization; priority
setting, and handling of paperwork and e-mail. Some people have great work habits. Others, however, require
intervention to rehabilitate poor work habits. Left unaddressed, poor work habits can lead team members to
assume that such behavior is acceptable. Discussing concerns such as absenteeism, foul language, and dress and
grooming habits can certainly be difficult, but such discussions are a necessary part of leading a team.
Correcting work habits requires careful attention and skill, so supervisors, team leaders and managers must learn
how to maintain a team member‘s self-respect during these discussions so the employee doesn‘t feel alienated.
Employees with good work habits are more successful in their careers, and they are more productive and
attentive to quality than employees with poor work habits. For some, good work habits come naturally. Others,
however, easily slip into poor work habits and need a manager or team leader‘s intervention. These discussions
are rarely easy; however with careful planning, they can go smoothly and yield a positive outcome.
People with good work habits tend to achieve higher career success and have more time to invest in their
personal lives. They also enjoy their personal lives more because they are not preoccupied with unfinished tasks.
Effective work habits are also beneficial because they eliminate a major stress or the feeling of having very little
or no control over your life. Being in control also leads to a relaxed, confident approach to work.
In order to develop effective work habits and became more productive person, things that should be considered
include:
1. Overcoming procrastination
2. Developing attitudes and values that foster productivity.
3. Developing skills and techniques that lead to personal productivity.
4. Overcoming time wasters.
Of all the above factors, overcoming procrastination is the most important. So it is discussed as follows:
Overcoming procrastination
The leading cause of poor productivity and career self-sabotage is procrastination. It is delaying of a task for an
unacceptable or weak reason. Procrastination is also the major work habit problem for most workers and
students.
People procrastinate for many different reasons. The common ones are
1. Thinking that the task to be done (such as quitting a job) is unpleasant.
2. Another reason we procrastinate is that we find the job facing us to be difficult
3. A fear of the consequences of our actions
4. Negative evaluation of your work
5. The fear of success
6. A way of rebelling against being controlled
7. To achieve the stimulation and excitement that stems from rushing to meet a deadline
Techniques for reducing procrastination
To overcome or at least minimize procrastination, we recommend a number of specific tactics.
1. Calculate the cost of procrastination
You can reduce procrastination by calculating its cost. One example is that you might lose out on obtaining a
high-paying job you really want by not having your résumé and cover letter ready on time. Your cost of
procrastination would include the difference in salary between the job you do find and the one you really wanted.
Another cost would be the loss of potential job satisfaction

2. Counterattack
Forcing yourself to do something difficult, frightening, or uncomfortable helps you to prove that the task was not
as bad as initially perceived. Assume that you have accepted a new position but have not yet resigned from your
present one because resigning seems so uncomfortable.
3. Jump-start yourself
You can often get momentum going on a project by giving yourself a tiny assignment simply to get started. One
way to get momentum going on an unpleasant or overwhelming task is to set aside a specific time to work on it.
If you have to write a report on a subject you dislike, you might set aside specific day and time as your time to
first attack the project.
4. Peck away from overburden task
A good way of minimizing procrastination is doing a task bit by bit, by breaking down to manageable size and,
therefore, not seem so overwhelming too much burden.
5. Motivate yourself with rewards and punishments
Give yourself a pleasant reward soon after you accomplish a task about which you would ordinarily
procrastinate. You might, for example, have a walk through the forest after having completed a tough take-home
exam. Punish yourself if you have engaged in serious procrastination.
6. Follow the WIFO principle
This principle recommends that you use the technique of worst in, first out (WIFO) for dealing with unpleasant
tasks you would prefer to avoid. A related motivational principle is that after completing the unpleasant task,
moving on to a more pleasant (or less unpleasant) task functions as a reward.
Identifying Personal Entrepreneurial competencies (PECs)
Competencies: are defined as a body of knowledge, a set of skills and a cluster of traits.
Knowledge: consists of a set or body of information stored, which may be recalled at an appropriate time.
Skill: is the ability to apply knowledge.
Trait: is the total of peculiar qualities or characteristics that constitutes personal individuality.
Entrepreneurial competencies: refer to the key characteristics that should be possessed by successful
entrepreneurs in order to perform entrepreneurial functions effectively.
I. Levels of competencies required by entrepreneurs
There are three levels of competencies, which all entrepreneurs need:
1. Personal competencies: creativity, determination, integrity, persistence, emotional balance and self-criticism.
2. Interpersonal competencies: communication, engagement, delegation, respect.
3. Business competencies: business vision, resource management, networking, negotiating skills.
Personal Entrepreneurial Competencies (PECs) are specific characteristics/ traits that can be achieved through
education, hard work, and planning. There are ten most common Personal Entrepreneurial Competencies, often
called the 10 PECs, required by an entrepreneur; which can be grouped into three clusters as follows:
No Personal Entrepreneurial Competency Cluster
1 Opportunity seeking and initiative Achievement
2 Persistence
3 Fulfilling commitments
4 Demand for efficiency and quality
5 Taking calculated risks
6 Goal setting Planning
7 Information seeking
8 Systematic planning and monitoring
9 Persuasion and networking Power
10 Independence and self-confidence
Opportunity seeking and initiative
An opportunity is a favorable set of circumstances that creates a need for a new product, service or business. An
entrepreneur always seeks out and identifies opportunities. The opportunities may include access to credit,
working premises, education, trainings etc.
Entrepreneurs come up with new ideas. This is an important area for an entrepreneur as it determines his/her rate
of expansion in business, e.g. new designs and use of products.

Quotes
 Successful people move on their own initiative but they know where they are going before they start.
(Napoleon Hill)
 What is not started will never get finished.( Johann Wolfgang von Goethe)
 A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every
difficulty. (Winston S. Churchill)
Persistence
True entrepreneurs face bureaucracy, make mistakes, receive criticism, and deal with money, family, or stress
problems. But they still stick to their dreams of seeing the venture succeed.
It is the ability or the determination to takes action in the face of significant obstacles and challenges. True
entrepreneurs take personal responsibility for the performance necessary to achieve goals and objectives.
Quotes
 If you can‘t fly, then run, if you can‘t run then walk, if you can‘t walk then crawl, but whatever you
do you have to keep moving forward‖ (Martin Luther King, Jr.)
 Success in life is not for those who run fast, but for those who keep running and always on the move.
(Bangambiki Habyarimana)
Fulfilling commitments
An entrepreneur makes a personal sacrifice and extraordinary effort to complete a job, pitches in with employees,
or takes their place if needed, to get a job done and strives to keep customers satisfied and places long-term good
will above short-term gain.

Quotes
 If there is no struggle there is no progress‖ (Frederick Douglass)
 I never dreamed about success. I worked for it. (Estee Lauder)
iv. Demand for efficiency and quality
Efficiency refers to the means of producing results with little wasted effort while quality refers to the standard of
something as measured against other things of a similar kind; it is of excellence of something.
In pursuit of demand for efficiency and quality entrepreneurs tend to: find ways to do things better, faster and
cheaper
 act to do things that meet or exceed standards of excellence
 develop and uses procedures to ensure that work is completed on time and that work meets agreed upon
standards of quality.
Quotes
 ―We are what we do repeatedly. Therefore, excellence is a habit, not an incident.‖ - Aristotle
 ―Almost all quality improvements come via simplification of design, manufacturing, layout, processes, and
procedures.‖-Tom peters
 ―If a thing is worth doing, it is worth doing well‖- Chinese proverb
Taking calculated risks
Businesses face risk. Successful entrepreneurs take risks in business such as starting businesses which have an
equal chance of success or failure or resigning from a secure job to start a business. Taking risks, however, does
not mean going in to business blindly and then expecting grate result; Taking risks involves careful planning and
hard work.
Most entrepreneurs take calculated and moderate risks. Entrepreneurs avoid low-risk situations because there is
lack of challenge, but they also avoid high-risk situations because they want to succeed. They set high goals and
enjoy the excitement of a challenge, but they do not gamble. Hence, low-risk situations and high-risk situations
are avoided because these risks do not satisfy the entrepreneur. In short, the entrepreneur likes a difficult but
achievable challenge.
Quotes
 If there is no risk, there is no reward.‖ (Christy Raedeke )
 Life is all about risks. If you never take a risk, you will never achieve your dreams. Take risks: If you win, you
will be happy ;If you lose, you will be wise ( Unknown )
Goal setting
Goal setting is the process of deciding what you want to accomplish and devising a plan to achieve those desired
result. Successful entrepreneurs have the ability to set goals and objectives which are personally meaningful and
challenging and articulate clear and specific long-term goals.
Quote
 If you don‘t know where you are going, you‘ll end up someplace else.(Yogi Berra)
 The wind never helps the boat that has no clear destination.( Seneca)
Information seeking
Successful entrepreneurs do not rely on guesswork and do not rely on others for information. Instead, they spend
time collecting information about their customers, competitors, suppliers, relevant technology, markets and they
also consults experts for business or technical advice. Gathering relevant information is important to ensure that
the entrepreneur makes well informed decisions. Information on the area of market, supply, operations, finance,
legislation, and infrastructure are important for entrepreneurs.
Quotes
1) Information means power‖ Unknown
2) There are no foolish questions, only fools who do not ask questions.‖ Unknown
Systematic planning and monitoring
Systematic planning is a planning process that is based on the scientific method and includes concepts such as
objectivity of approach and acceptability of results; while Monitoring is the systematic process of collecting,
analyzing and using information to track a program's progress toward reaching its objectives and to guide
management decisions.
Successful entrepreneurs are good planners and monitors. They:
 plan by breaking large tasks down into sub-tasks with clear time-frame
 Revise plans in light of feedback on performance or changing circumstances
 Keep financial records and uses them to make informed decisions
Quote
 By failing to prepare, you are preparing to fail.‖ ( Benjamin Franklin)
 Give me six hours to chop down a tree and I will spend the first four sharpening the axe.‖ ( Abraham Lincoln)
Persuasion and networking
Persuasion is a way of convincing someone to get something or make a decision in your favor. It is inducing or
taking a course of action or embracing a point of view by means of argument, reasoning, or appeal; to convince; to
succeed in causing a person to do or consent to something.
Networking is a socioeconomic business activity by which businesspeople and entrepreneurs meet to form
business relationships and to recognize, create, or act upon business opportunities, share information and seek
potential partners for ventures. Entrepreneurial networks are important for the mobilization and acquisition of
scarce resources that are crucial to starting and developing a business.
Successful entrepreneurs use deliberate strategies to influence and persuade others, take action to develop and
maintain a network of business contacts and uses key people as agents to achieve their objectives.
Quotes
 Everyone you will ever meet knows something you don‘t. (Bill Nye )
 Networking is more about farming than it is about hunting.( Ivan Misner )
Independence and self-confidence
Self-confidence is the state of being certain that a chosen course of action is the best or most effective given the
circumstances and independence may refer to the ability to do what one wants, when s/he wants and where.
Entrepreneurs want to be their own boss this is what we call independence.
Entrepreneurs believe in themselves and the desire for control and the ability to make decisions often makes it
difficult for them to work in a controlled environment. Hence Entrepreneurs:
 Seeks autonomy from the rules and/or control of others
 Attributes the causes of successes and failures to oneself and to one‘s own conduct
 Expresses confidence in own ability to complete a difficult task or to face a challenge
Quotes
 The best way to gain self-confidence is to do what you are afraid to do. (Unknown)
 When you question if you have what it takes to be an entrepreneur, confidence says to you of course you do! You
have me! With me on your success team you can do anything. (Adalia )
Assessing Entrepreneurial potential
Entrepreneurial potential is a set of attitudes, motives and knowledge that enables entrepreneurial activity. Such
a definition shows the place of entrepreneurial potential in the whole process of becoming an entrepreneur.
A self-assessment (personal-assessment) is an evaluation of your actions and attitudes. Self-assessments assist
individuals get in touch with what their core competencies are and how those may overlap with what's needed to
take on running a business.
If you're starting or leading a company, it's beneficial to know yourself inside and out. Even though you've been
with yourself your whole life, it's hard to identify your qualities. Assessing your-self with professional self-
assessment tools can:
 Help you to understand how you perform your work, so you can make appropriate changes.
 Help your employees to understand what are your motivates and drives.
 Help you to recognize when you're in over your head difficulties and need someone‘s help.
 Help you to recognize your strengths and weaknesses.
 See holes and spots where you need help.
Understanding Entrepreneurship and Environment
Business environment refers to the factors external to a business enterprise which influence its operations
and determine its effectiveness. Business environment may be healthy or unhealthy.
 Healthy business environment means the conditions are favorable to the growth of business.
 Unhealthy environment implies conditions hostile or unfavorable to business operations.
Business and its environment interact with each other. Economic system and other conditions in the environment
determine the success of business enterprises. Therefore, business enterprises and their management have to adjust
to the conditions prevalent around them.
I. Classification of Business Environment: Business environment may be classified into two broad categories;
namely: external and internal environment
I. External Environment: It is the environment which is external to the business and hard to influence
independently.
The following are the components of external environment:
1. Economic Environment: Economic environment is of multidimensional in nature. It consists of:
 the structure of the economy,
 the industrial, agricultural, trade and transport policies of the country,
 the growth and pattern of national income and its distribution,
 the conditions prevailing in industrial, agricultural and other sectors,
 the position relating to balance of trade and balance of payments, and
 Other miscellaneous conditions of the economy.
There is a close relationship between a business firm and the economic environment around it. The success of a
business enterprise depends significantly upon the State and growth of the economy.
2. Legal Environment
Business must function within the framework of legal structure. Therefore, adequate knowledge of laws and rules
is necessary for efficient managerial performance.
There are several business laws (such as law of contract, law of sales, law of agency, law of bankruptcy, law of
negotiable instruments etc) in our country. A working knowledge of these laws is very helpful for the
entrepreneur. Such knowledge will keep them away from innocent breaches and resultant penalties.
3. Political Environment
Businessmen should learn to take public opinion into account in the decision-making process because today's
public opinion becomes tomorrow's legislation. Therefore, managers and entrepreneurs should understand the
working of the political system in order to discharge their responsibilities to the satisfaction of the public.
4. Socio-Cultural Environment
It consist the social and cultural norms/customs of a society in a given period of time. The level of
rigidity/flexibility of a given society towards a new Product/service/concept depends on the socio-cultural
practices of that particular society such as values, beliefs, norms, fashions and fads. It is important to protect
traditional culture as long as it is not a hindrance to innovation, motivation, and development.
5. Demographic Environment
It assesses the overall population pattern of a given geographical region.
It includes variables like age profile, distribution, sex, education profile, income distribution etc.
The demographic assessment can help in identifying the size of target customers.
II. Internal Environment
Internal environment is the environment which is under the control of a given organization.
Following are the components of internal environment of a business:
1. Raw Material: It assesses the availability of raw material now and in the near future.
2. Production/Operation: It assesses the availability of various machineries, equipment, tools and techniques that
would be required for production/operation.
3. Finance: It assesses the total requirements of finance in terms start-up expenses, fixed expenses and running
expenses. It also indicates the sources of finance that can be approached for funding.
4. Human Resource: It assesses the kind of human resources required and its demand and supply in the market.
This further helps in estimating the cost and level of competition in hiring and retaining the human resources.
Identifying Environmental Factors Affecting Entrepreneurship
A complex and varying combination of financial, institutional, cultural and personality factors determines the
nature and degree of entrepreneurial activity at any time. The following are some of the environmental factors
which hinder/delay entrepreneurial growth:
 Sudden changes in Government policy.
 Outbreak of war or regional conflicts.
 Political instability or hostile Government attitude towards industry.
 Excessive red-tapism and corruption among Government agencies.
 Ideological and social conflicts.
 Unreliable supply of power, materials, finance, labor and other inputs.
 Rise in the cost of inputs.
 Unfavorable market fluctuations.
 Non-cooperative attitude of banks and financial institutions.
Entrepreneurial Motivation
Generally, motivation is the set of forces that cause people to do something. It is an inner state that energizes
and directs behavior toward goals. So, motivation is the set of intangible forces that stimulate someone to take
a desired course of action. Thus, we can say that entrepreneurial motivation is the set of forces that energizes,
directs and encourages a person to take initiative and carry out entrepreneurial activities. It is defined as
diverse factors arouse desires and activate eagerness in entrepreneurs which make them accomplish an
exacting goal.
The entrepreneurial motivation is the procedure that activates and motivates the entrepreneur to make use of
higher level of efforts for the accomplishment of his/her entrepreneurial goals. Scholars have conducted
various researches on entrepreneurial motivations and have come up with numerous factors that motivate
people to become entrepreneurs.
Motivating Factors:
Let us address to the larger question what factors motivate entrepreneurs to start enterprises. Many researchers
have tried to understand and answer this question by conducting research studies to identify the factors that
motivate people to take all the risk and start a business enterprise
While some researchers have classified the factors motivating entrepreneurs into ‗push‘ (compulsion) and ‗pull‘
(choice) factors, most of the researchers have classified all the factors motivating entrepreneurs into internal and
external factors as follows:
Internal Factors:
Among many internal factors motivating entrepreneurs;
1. Desire to do something new.
2. Become independent.
3. Achieve what one wants to have in life.
4. Be recognized for one‘s contribution.
5. One‘s educational background.
6. One‘s occupational background and experience in the relevant field.
External Factors:
1. Government assistance and support.
2. Availability of labor and raw material.
3. Encouragement from big business houses.
4. Promising demand for the product

Entrepreneurial Decision
As an entrepreneur, you must make different types of decisions on the everyday basis. You must choose
directions. Also, you must solve problems. You must take actions. The decision-making process is one of the
most critical processes in your company. Simply, you as an entrepreneur will make decisions about everything.
Some decisions are more influential on your overall business processes, but some of them are small decisions
without significant effect on your business as a whole.
Let‘s try to describe the decision-making process that you can use in your business as an entrepreneur.
Decision-Making Process
Decision-making process is one of the most critical processes in your business. You can see different types of this
process in reality, but generally, they all have the same purpose effective and efficient decision that will bring
results to your business.
The most common used approaching in the decision-making process is according the following steps:
1. Recognize the problem/the gap
Every decision-making process starts with the problem or some discrepancy that exist between the desired and
current state. You have the desired state, and you have an existing state. The difference between these two is the
gap or problem that you must solve through the decision-making process.
In this step, you can start with your vision about the desired state of your company and goals you want to achieve.
Here are some questions you need to answer as a part of this step in your decision-making process:
 What are the most critical desired states for your small business?
 How close is your small business to these states?
 Why are you close or not close to the desired states?
 What are the most significant problems here?
2. Analyze the problem
After you find possible problems that require solutions you can start with the analysis of already defined
problems. How these problems impact on the achievements of your small business?
At the end of this step, you will need to have a list of possible problems sorted by their urgency for the solution.
In your analysis, you need to find causes and how the problem impact on you small business. If the impact of the
problem is higher, also the importance of the problem will be higher.
3. Define possible solutions
This is the step when you need to start brainstorming all possible solutions for a given problem, or problem you
want to solve with that solutions. For the most critical problems, you analyze in the previous step, create possible
solutions.
When you think about solutions, also think about the causes of the problems. If you don‘t remove the causes, your
solutions will be only a temporary solution. Your decision-making process needs to include possible causes of
each identified problem.
4. Analyze all possible solutions
Because in the third step you come to more than one possible solution for a given problem, in this step you need
to analyze all proposed solutions to rank them and make a decision that you will implement in the future. This
step will need to give you the rankings of all possible solutions from the best ones at the top to the worst ones at
the end of your list for each problem you discover at the beginning of the decision-making process.
5. Select the best solution for the application
Now is time for the real decision. The final result from the decision-making process is a selection of the best
possible solution to the problem. What will you implement as a solution for the given problem? The answer to
this question will be the decision you are making.
6. Implement the decision
We can‘t talk about decision-making process without the implementation of the decision you have made. You
will not finish the job until you don‘t implement what you have decided. Can you solve the problem only by
discovering the solution and making the right solution? No, you will not solve your problem. You need to
implement the solution and check the results to see if the specific solution really solves the identified problem.
As you can see the overall process described above can be divided into the following four parts as shown in the
diagram below.

Definition of business ideas


A business idea is a short and precise description of the basic operation of an intended business. Before you start a
business, you need to have a clear idea of the sort of business you want to run. Your business idea will tell you:
 Which need will your business fulfils for the customers and what kind of customers will you attract?
 What good or service will your business sell?
 Who will your business sell to?
 How is your business going to sell its goods or services?
 How much will your business depend upon and impact the environment?
A good business idea will be compatible with the sustainable use of natural resources and will protect the social
and natural environment on which it depends. A good business idea is essential for starting a successful venture
and to stay ahead of competition in the market. Finding a good business idea is the first step in transforming the
entrepreneur‘s desire and creativity into a business opportunity. Good business ideas, however, do not usually just
occur to an entrepreneur.
Generating and Screening business ideas
Sources of Business Idea
The followings are some of the sources from which business ideas are generated
 Mass Media (newspapers, magazines, TV, Internet)
 Hobbies/Personal Interest
 Personal Skills and Experience
 Business Exhibitions
 Surveys
 Customer Complaints
 Natural scarcities and pollution
 Changes in Society
 Brainstorming
 Being Creative
Some tips to generate a successful business idea
 Start thinking! Get your brain to work
 Buy a note book
 Follow your passion
 Keep your eyes open
 Capitalize on your strengths
 Explore new things
 Check your bank account
 Know what you want in life
 Choose a business that suits your personality
 Read about other people that started their own business
Steps in generating and screening the best viable business idea
Out of the business ideas generated through brainstorming, the best business idea can be screen out using
the following steps:
Step 1: Brain Storming
Brainstorming is a creative idea generation technique. It is also a problem solving technique. This technique
provides free environment to present individual ideas, without attracting criticism from any one. Every
generated idea is recorded and considered as solution to a problem.
Brainstorming shows collective creative power of a group of people. It is group productivity. This is used to find
out large number of business ideas in shorter time. This is accepted as one of the tool in quality
management. It is also useful to generate a large number of ideas about a problem. Brainstorming
provides an environment free of criticism for creative and free exploration of options and ideas to solve
problem.
Step 2: Macro screening
In this step, the viability of the business idea is checked according to the following criteria:
1. Marketability
2. Availability of raw materials &other inputs
3. Ease of implementation
4. Financial ability of the entrepreneur
5. Consistency with government priorities
Step 3: Micro Screening
In this step, the viability of the business idea is checked according to the following criteria:
1. Marketing Viability
2. Technical Viability
3. Organizational and Management Viability
4. Financial Viability
5. Environmental Viability
6. Ecological Viability
Step 4: SWOT Analysis
A SWOT analysis is a simple tool to help you work out the internal and external factors affecting your business.
The S stands for strengths, the W stands for weaknesses, the O stands for opportunities and the T stands for threats.
It is one of the most commonly used business analysis and decision-making tools. A SWOT analysis helps you to
build on strengths (S), minimize weakness (W), seize opportunities (O) and counteract threats (T). In order to get
the most out of a SWOT analysis, you need to conduct it with a particular business objective in mind. For example,
a SWOT analysis can help you decide if you should introduce a new product or service or change your processes.
Strengths
Strengths are within the control of the entrepreneur and they occur at present. Strengths should be capitalized and
harnessed to reduce or eliminate weaknesses. Examples of strengths may include technical expertise, new
improvements of product, good network with customers, managerial experience, superior technology, distribution
system, and product features (utility durability, etc.
Weaknesses
Weaknesses are within the control of the entrepreneur; they occur at present. They are "lack of...", "missing...", or
weak points. As much as possible, weaknesses should be eliminated. Examples of weaknesses include weak selling
effort, lack of working capital, inexperienced managers or employees, technological obsolescence and poor design
of product.
Opportunities
Opportunities are positive or favorable factors in the environment which the entrepreneur. They are, however,
mostly beyond the control of the entrepreneur. They are different from strengths in the sense that strengths are
positive internal factors of the business. Examples of opportunities include few and weak competitors, no such
products in the market, rising income of target market Scarcity of product in the locality, growing demand for the
product, favorable government policy/programs, availability of technical assistance, low interest rate on loans,
access to cheap raw material and adequate training opportunities.
Threats
Threats are negative or unfavorable external factors in the environment and normally beyond the control of the
entrepreneur. They adversely affect the business, if not eliminated or overcome. Threats differ from weaknesses in
as much as they are beyond the control of the entrepreneur. Both have a negative impact on the business. Examples
of threats include hanging government regulations, smuggling, Raw materials shortages, insufficient power,
corruption, poor infrastructure, rising costs of raw materials, too much/Unhealthy competition, government
bureaucracy.
Reasons for generating business ideas
There are many reasons why entrepreneurs or would-be entrepreneurs need to generate business ideas. Here are just
a few:
 You need a great idea to start a new business
 Business ideas need to respond to market needs
 Business ideas need to respond to changing consumer wants and needs
 Business ideas help entrepreneurs to stay ahead of the competition.
 Business ideas are needed to exploit technology and do things better
 Business ideas are needed because the life cycles of products are limited.
 Business ideas help to ensure that businesses operate effectively and efficiently.
 Business ideas help to solve natural resource scarcity, pollution and depletion.
Understanding Business Opportunity
A business opportunity is an attractive investment idea or proposition that provides the possibility of a return for
the person taking the risk. Such opportunities are represented by customer requirements and lead to the provision of
a product or service which creates or adds value for its buyer or end-user.
In other words, a business opportunity is a business idea that has been researched upon, refined and packaged into a
promising venture that is ready to launch.
Multiple business ideas may be generated on a daily basis but only few of them will be profitable in the long run
based on market research and feasibility study conducted. Only these few are the real business opportunities.
An opportunity, in order to be a business opportunity, must fulfill the following criteria:
 There should be a real demand
 Return on investment
 Availability of resources and skills
 Meet objectives
 Be competitive
 It must have a high level of gross profit margins
 It must have the potential to start generating profit within 12 months – 36 months
 The startup capital investments must be realistic and within the range of what an entrepreneur can
provide.
 It must have the potential to keep on improving with time
 It must have a low level of liability to risk
Identifying and Assessing Business Opportunities
Ideas and opportunities need to be screened and assessed for viability once they have been identified or generated.
Identifying and assessing business opportunities involves determining risks and rewards/returns reflecting the
following factors:
 Market
 Length of the ―window of opportunity‖
 Personal goals and competencies of the entrepreneur
 Management team
 Competition
 Capital, technology and other resource requirements
 Environment
The above factors are elaborated below:
Market
Is there a market for the idea? Are there any customers‘ people with money who are able and willing to buy the
product or service? Can you provide what they need or want? How many are there?
Length of the ‗window of opportunity‘
Can you create or seize the opportunity until its full utilization?
Personal goals and competencies of the entrepreneur
Do you really want to venture into the business? Do you have what it takes? Are you motivated enough?
Management team
Who else will be involved with you in the business? Do they have the experience, know-how, contacts or other
desirable attributes required?
Competition
Who are your competitors? Do you have something customers want that your competitors do not have? For
example, can you produce or market at lower costs?
Capital, technology and other resource requirements
How much capital, technology or other resources are required? Do you already have them or could you get them?
Environment
Are the political, economic, geographical, legal, and regulatory contexts favorable? Will the business do any
damage to the physical environment?
Responses to the above questions will determine the attractiveness of any business opportunity.
Meaning of a feasibility study/analysis
Feasibility study/analysis is the process of determining if a business idea is viable. As a preliminary evaluation of
a business idea, a feasibility analysis is completed to determining if an idea is worth pursuing and to screen ideas
before spending resources on them. It comes before the development of a business Plan. When a business idea is
deemed unworkable, it should be dropped or rethought. If it is rethought and slightly different version of the
original idea emerges, the new idea should be subject to the same level of feasibility analysis as the original ideas.
A feasibility study can be carried out on an idea, a campaign, a product, a process or an entire business.
A feasibility study precedes a business plan. Before writing a business plan, one needs to identify how, where, and
to whom they intend to sell a service or product. One also needs to assess the competition and to figure out how
much money they need to start the business and to keep it running until it is established where all of these are
achieved through a feasibility study. Feasibility studies address things like where and how the business will operate.
They provide in-depth details about the business to determine if and how it can succeed. They serve as a valuable
tool for developing a winning business plan.
Benefits of a feasibility study/analysis
The followings are the major benefits of any feasibility study/analysis
 It enables to identify problems that may encounter the business and their solutions;
 It enables someone to develop marketing strategies to convince a bank or investor that your business is worth
considering as an investment;
 It serves as a solid foundation for developing a business plan
 It enables someone to know what customers want, test a product's usability and the quality of the user's
experience
The components of a feasibility study/analysis include all the things that should be considered in conducting a
feasibility study/analysis.
Components of a feasibility study
1. Description of the Business
Here, there should be descriptions of the following issues:
 The product or services to be offered and how they will be delivered.
 How customers would use and buy the product or service
 Key components or raw materials that will be used in the product, how the business will source these and
how available they are.
 Plans to test the product to ensure it works as planned and is sufficiently durable, strong, secure, etc.
2. Market Feasibility study
Here, there should be descriptions of the following issues:
 The industry in which the business operates. Include the size, growth rate, etc
 Demand and supply factors and trends
 Target market for the products and clearly state why would customers buy the produce
 The level of actual market demand and anticipated future market potential
 Direct and indirect competition (as it pertains to the target market only).
 Unique about the enterprise‘s product compared to the competition?
 List all key barriers to entry
3. Technical Feasibility study
Here, there should be descriptions of the following issues:
 Details how you will deliver a product or service (i.e., materials,
 Labor, transportation, where your business will be located, technology needed, etc.).
 additional or ongoing research and development needs
4. Financial Feasibility study
Here, there should be descriptions of the following issues:
 Projects how much start-up capital is needed and when? What sources will provide the capital?
 balance sheet projections
 income projections
 cash flow projections
 When will the enterprise begin to turn a profit, Break even analysis (BEA)?
 What is the expected return on investment (ROI)?
 Will the enterprise provide a viable return on investment (ROI) for the entrepreneur (cost benefit
analysis)?
5. Organizational and production feasibility study
 Here, there should be descriptions of the following issues:
 Defines the legal and corporate structure of the business (may also include professional background
information about the founders and what skills they can contribute to the business).
 What physical premises are required? Give location, size, condition, and capacity of planned production
and warehouse facilities.
 How complex is the manufacturing process? Describe equipment needed and costs.
 Will space be owned or leased? Will renovations be required? At what costs?
6. Management and personnel Feasibility study
There should be descriptions of the following issues:
 List the proposed key managers, titles, responsibilities, relevant background, experience, skills, costs
 Sketch personnel requirements: what people will be needed now, in a year, in the long term? What skills
and qualifications are required and what financial implication results?
Steps for conducting feasibility study...
The basic steps that apply to all feasibility studies are the followings:
Step 1: Assessment Stage
 Conduct a preliminary analysis:
 Consider your options:.
 Begin to assess the demand for your idea:
 Begin to assess the competition:
 Assess the challenges.
 Decide if you should hire expert consultants.
 Set a time-table.
Step 2: Analysis Stage
2.1 Conducting Market Research
 Learn about the market.
 Use data from the Economic Census.
 Survey people directly.
 Design your surveys carefully.
 Analyze the competition's claim on the market.
 Identify your potential share of the market.
2.2 Performing Organizational and Technical Analysis
 Determine where you'll need to work
 Decide how your company or team needs to be structured
 Determine what materials you will need
 Identify the cost of your materials.
2.3 Performing Financial Analysis
 Outline your start-up costs
 Estimate your operating costs
 Estimate your revenue predictions
 Identify your funding sources
 Interpreting the data
Step 3: Interpretation Stage
This is the last stage to complete the Feasibility Study by doing the following tasks
 Compile all of the information
 Look at your financial predictions first
 Balance your estimated business profits against your personal financial needs
 Consider the human costs of your business
 Analyze your findings
 Write it up and distribute it
Definition of Enterprise and Enterprising
An enterprise is a business-oriented organization formed specifically so founders can pursue entrepreneurial
endeavors for a profit. While enterprises have social elements, they are different from clubs or other non-
commercial organizations because of their entrepreneurial purposes. The first step in organizing is to identify and
enumerate the activities required to achieve the objectives of the enterprise.
An enterprise is for the purpose of attracting customers, selling goods and services and earning profit. Enterprises
are either formal or informal. The term enterprise is more commonly used in reference to informal entrepreneurial
activities. An enterprise is considered to be any entity engaged in an economic activity, irrespective of its legal
form.
On a personal level, enterprising can be any identified idea that a person can translate into a planned and
satisfactorily implemented activity. In the business sense, enterprising refers to the implementation of a business
venture or undertaking. By understanding the enterprising concept, one can appreciate that all people have the
potential to be enterprising. Enterprising men and women are able to deal positively with the challenges and
problems they face in their daily lives.
Being enterprising helps an individual to become a valued member of a family, community, place of work and
society. By applying an enterprising approach to business activities, it will be easy to know what to do in whatever
circumstances. This kind of approach is an effect way to appreciate the challenges in which an entrepreneur will be
able to translate challenges into positive results.In the business sense, enterprising refers to the implementation of a
business venture or undertaking.
Concept of enterprising
By understanding the enterprising concept, one can appreciate that all people have the potential to be enterprising.
Enterprising men and women are able to deal positively with the challenges and problems they face in their daily
lives.
Practically all undertakings can be referred to as enterprising it fulfills the followings.
 Idea identification,
 Planning,
 Implementation,
 Successful completion of an activity and
 Receiving the rewards.

Terms to Explain Enterprising


Terms and elements involving in enterprising
TERMS ELEMENTS
Idea Identification
Imagination
Thought
Planned Thought out
Written down
Implemented By men and women
Using materials
Using money
Using natural resource
Activity Can be seen
Can be touched
Reward Satisfying outcome
Acceptable Feed back
Impact Effect on Environment
Enterprise in action
Classification of Enterprise /Types of Business
1. Based on the nature and function of Business of operation
i. Service giving enterprise: - Business enterprises that render service to customers.
ii. Merchandise enterprise: - an enterprise that purchases goods for resale in normal operation of the businesses.
iii. Manufacturing enterprise: - is purchases raw materials and different components and convert it into end
products.
2. Based on the size/scale of the operation
i. Micro enterprise
ii. Small enterprise
iii. Medium enterprise
iv. Large enterprise
3. Based on the nature of ownership
i. Proprietorship
ii. Partnership
iii. Joint stock company (Share Company)
iv. Corporation
Legal forms of business enterprises
The entrepreneur has to be sure of the administrative and legal issues involved in the business project which is
going to be selected. These include, choice of the form of the business ownership, registration and clearness and
approval from the authorities.
Types of business ownership in Ethiopia
The concepts and legal forms of business enterprises in Ethiopia/ need contextualized example.
Every small business must select a legal form of ownership. The most common forms are sole proprietorship,
partnership, and corporation. A limited liability company (LLC) is a relatively new business structure. Before a
legal form is selected, however, several factors must be considered, not the least of which are legal and tax options.
A. The sole proprietorship has only one owner.
B. a partnership has two or more co-owners.
C. a limited company is an association of stockholders or owners chartered by the government. It has the authority
to transact business in same manner as one person.
D. a cooperative is a group of people operating a business through a jointly owned and democratically run
organization.

1. Sole proprietorship/Sole trader


A sole proprietorship is a business that is owned and operated by one person. The enterprise has no existence apart
from its owner
Advantage and Disadvantage of Sole proprietorship
Advantage Disadvantage
it is very easy to establish and dissolve the Unlimited liability, Limited skills
business., Quick decision
No separation of tax return Potential difficulty in borrowing money
High secrecy, Low costs to start, Minimum Lack of continuity/uncertain life: The business is
regulations, Low working capital requirement terminated upon the death or incapacity of the
owner.
Direct control of business/ personal touch: the Difficulty in raising capital/limited financial
owner can maintain personal contact with his sources
employees & clients.
Tax advantages, Owner receives all profits/ direct The sole proprietor is responsible for all decisions
motivation, Flexibility
2. Partnership
It is formed through an agreement among two or more persons to carry on jointly a legalized business as co-
owners.
Like the sole proprietorship, it is not a separate legal entity from its owners.
It is recommended that a partnership agreement, called the Articles of Co-partnership or Memorandum of
Association, be prepared in writing by a competent attorney.
In case of Ethiopia, as per the commercial code of 1960 Article 211,‖A partnership agreement is defined as a
contract where by two or more persons who intended to join together, make contribution for the purpose of carrying
out activities of an economic nature and of participating in the profit and loses arising out there of it any‖
Characteristics of Partnership
 Association of two or more persons, Contractual relationship/ mutual agreement
 Existence of lawful business, Sharing of profit and loss
 Mutual agency among partners: Each partner is responsible and liable for the faults and wrongful acts of a co-
partners with regard to business obligations.
 No separate legal entity of the business, Unlimited liability
 Restriction on transfer of interest, Utmost good faith
Advantage and Disadvantage of Partnership
Advantages Disadvantages
Easy to form , Low costs to start, Larger/added Unlimited liability, Lack of continuity, Lack of
capital sources harmony
Business secrecy as compare to corporation Difficulty in finding suitable partners
business type
Protection of minority interest: each partner has an Risk of implied agency, Shared authority, Non-
equal role in management of firm‘s affair. , Shared transferability of interest
management/specialization
Tax advantages as compare to corporation business Difficulty in raising additional capital/limited
type financial sources
Classification of partnership
Based on the organization characteristics partnership form of business organization is classified in to two:
i. General partnership: A partnership in which all partners have mutual agency and unlimited liability for
partnership debt.
ii. Limited partnership: A partnership that has two classes of partners:
a) Limited partners: A partners who have no personal liability for debts of partnership beyond the amount they
have invested in the partnership.
b) General partners: a partner who assume unlimited liability for the debt of the partnership. Hence, general partner
in the limited partnership are responsible for its management
3. Share Company (Corporation)
It is an association of stockholders that has been established to allow a group of entrepreneurs to act as one.
The officials of the share company must file a special document, called the Articles of Incorporation/Charter.
It is essentially an "artificial person" created and operated with the permission of the state where it is
incorporated.
It's a person like you, but only "on paper.‘‘
Characteristics of Share Company
 Artificial personality: separate legal personality distinct from owners., Limited liability
 Continuity: it has a separate and continuous life of its own, and does not dissolve if a stockholder dies or the
stock is sold to another person.
 Double taxation/taxed twice: first there is tax on the amount of the business profits. Then the owners are also
taxed on any dividends they may receive.
 Managed by professional managers
Advantage and Disadvantage of Share Company
Advantages Disadvantages
Limited liability, Management can specialize, Closely regulated by state, Most expensive form to
Transferable of ownership organize (cost, time and paperwork)
Easier to raise capita, Separation of ownership and Double taxation (company and stockholders)
management
Continuous existence/perpetuity, Separate legal Red-tape , Charter restrictions, Extensive record
entity, Potential tax advantages keeping required
4. Cooperative
It is a group of ten or more people operating a business through a jointly owned and democratically run
organization. The cost of registering a cooperative is usually lower than the cost for registering a share company.
A written cooperative agreement is required and must be filed with the appropriate government authorities.The
management of a cooperative is elected by the members of the cooperative.
Principle of Cooperative
 Registered and have limited liability for its members
 Members have an equal vote in decisions
 Membership is open to everyone who fulfils specified conditions
 Assets controlled and usually owned jointly by members
 Profit shared equally b/n members with limited interest payable on loans made by members
 Share capital remains at its original value
 Members benefit from participation, not investment
Advantages and Disadvantages of Cooperative
Advantages Disadvantages
Means to empower poor women, disabled persons Hard to keep qualified members, Members
and other groups who often lack a voice contributing to cooperative unequally
Joint self-help, Organizational structure helps all Shared authority, Gender issues, Governance
members challenges
Shared risk-taking, Easier to raise capital,
Combines individual skills
Facts of Micro and Small Enterprises in Ethiopia
Small and medium enterprises (SMEs) cover a wider spectrum of industries and play an important role in both
developed and developing economies. Ethiopia is no exception and SMEs occupy a prominent position in the
development of the Ethiopian economy.
MSEs are the natural home of Entrepreneurship. The sector is also an important force to stimulate economic
development by:
 Generate employment , Equitable income distribution , Activate competition
 Exploit niche markets , Enhance productivity and technical change
The government‘s recent industrial development strategy identifies MSEs as key priority
No single definition for MSEs. The definitions vary from country to country and mainly depend on its purposes.
Enterprises in the MSE sector are defined both in terms of paid up capital

Proposed classification of enterprises based on size in Ethiopia


Size Based Classifications of Enterprises
Level of Enterprise Economic Sector No. of Total Asset in ETB Total Asset in
Employees USD
Micro Industry < or equal 10 < or equal 250,000 < or equal 7,500
employees
Service & Agriculture < or equal 10 < or equal 200,000 < or equal 6,000
employees
Small Industry 11 – 50 250,001 – 4 Million 7,500 – 115,000
employees
Service & Agriculture 11 – 50 200,001 – 2.5 6,000 – 75,000
employees Million
Medium Industry 51- 100 4,000,001 - 45 115,000 – 1.5
employees Million Million
Service & Agriculture 51- 100 3,000,001 - 25 75,000 – 750,000
employees Million
Large Industry >100 employees >50 Million > 1.5 million
Service & Agriculture >100 employees >25 Million > 750,000
There are two main approaches to define MSEs. These are:
1. By some measure of Size/Quantitative Approach - Size refers to the scale of operations.
Some criteria are applicable to all industrial areas, while others are relevant only to certain types of business.
2. Using an economic/Control definition/ Qualitative Approach
Size does not always reflect the true nature of an enterprise. In addition, qualitative characteristics may be used
to differentiate small business from other business. The economic/control definition covers:
All three of these characteristics must be satisfied if the business is to rank as a small business.
 Market share: The characteristic of a small firm‘s share of the market is that it is not large enough to
enable it to influence the prices of national quantities of goods sold to any significant extent.
 Independence: Independence means that the owner has control of the business himself. It, therefore, rules
out those small subsidiaries which though in many ways fairly autonomous, nevertheless have to refer to
major decisions (e.g., on capital investment) to a higher level of authority,
 Personalized Management: It is the most characteristics factor of all. It implies that the owner actively
participates in all aspects of the management of the business, and in all major decision-making process.
There is little delegation of authority. One person is involved when anything material is involved.
 Technology: Small business is generally labor intensive. Only few are technology intensive.
 Geographical area of operation: The area of operation of a small firm is often local.
Generally, small business is a business that is privately owned and operated, with a small number of
employees and relatively low volume of sales. Small businesses are normally privately owned companies,
partnerships, sole proprietorships, or cooperatives.
Economic, social & political contributions of small business enterprise
Small and medium enterprises (SMEs) cover a wider spectrum of industries and play an important role in both
developed and developing economies. Ethiopia is no exception and SMEs occupy a prominent position in the
development of the Ethiopian economy. Over the years, the number of SMEs is growing form time to time. They
need a strong support on Scio- economic and political ground. Some of the contributions are hereunder.
 Equitable distribution of wealth and decentralization of economic power
 More Employment creation capacity
 Removing Regional Imbalance
 Ancillary Function - (supply parts and accessories to bigger enterprises)
 Export Promotion

Characteristic and role of small business


Characteristics of Micro and Small Scale Industries The following are some of the important characteristics of
small scale industrial sector/unit.
1) Closely held
 Mostly managed by single person/one man show
 All activities are usually carried out by the owner
2) Personal Character
 The owner his/her self is generally the manager of small scale industries.
 Owners actively participates in all aspects of business decision making such as: purchasing, production,
Labour, Sale of product
3) Limited scale of operation
 It has lesser gestation period, It has limited share of a given market
 Its size in the industry is small
4) Indigenous resources
 They can easily located anywhere subject to availability of raw materials, labour, finance, etc..
 They use local resources
5) Labour intensive
 The capital investment is limited due to the use of simple technology
6) Local area of Operation
 Except marketing activities, all operation of MSEs industry are local/domestic
7) Simple Organization
 MSE unit has few or no layers of management
Why are Micro and Small Enterprises Important to the Economy?
According to ILO (2003), MSEs are pulling economic and employment growth worldwide.
 They can spark off socio-economic revival, as they need little small capital to operate, but can contribute
much
 They use minimum, simple, and inexpensive equipment and inputs
 They often available locally, use limited space, operate with basic technical and management skills., adapt
swiftly, (quickly , rapidly , fast ), repair or replace infrastructure and equipment
 They produce basic tools for Agriculture, manufacturing, and Construction
 They fabricate basic goods and services needed by societies
 They create quickly self-employment and jobs
 Too many eggs in one basket(no expansion or product diversification)
 Greater flexibility, Less bureaucracy
. Advantages of Going in to small Businesses
 The desire of individuals to own and operate their own small business is growing
 For individuals pursuing a career in business ownership, numerous benefits can be attained personally and
professionally.
 The following are more common advantages of owning a MSEs:
 Independence, Financial opportunities, Community service, Job security, Family employment
Disadvantages of going in to Small Businesses
 Sales Fluctuation ,
 Competition,
 Increased responsibilities,
 Financial loses
 Employee relations,
 Laws and regulations,
 Risk of failure
Factors that support the success of small business
 Special contribution of Small Businesses
 As part of the business community, small firms unquestionably contribute to our nation‘s economic welfare.
 They produce substantial portion of our total goods and services.
 Thus, their general economic contribution is similar to that of big business
 Providing new jobs, Introducing innovation, Stimulating economic competition
 Aiding big business, Producing goods and services efficiently
Small Business Failure Factors
 Most of the time small business failed because of failure to pay debts.
 1ncompetence - The owners simply do not know how to run the enterprise
 Unbalanced experience - This means owners do not have well-rounded experience in the major activities of
the business, such as finance, purchasing, selling, and production
 Lacks of managerial experience - The owners simply do not know how to manage people.
 Lack of experience in the business line (field) - The owner has entered a business field in which he/she has
very little knowledge
 Others such as neglect, fraud, and disaster, mischance, Bad luck, tragedy, accident
Challenges and Opportunities of Ethiopian MSEs
Most MSEs face critical constraints, at both operation and start up level. Some of the constraints include:
 Lack of access to finance, Lack of access to premise, Lack of infrastructure,
 Lack of training in entrepreneurial and management skills, Social and cultural facts,
 Lack of information on business opportunities, Deficient entrepreneurial culture
 Excessive corruption, Technology, Market problem
Opportunities
Some favorable factors for entrepreneurial activities in Ethiopia include:
 Liberalization of policies, Exemption from paying import duties and various taxes,
 Availability of untouched natural resources, Availability of labour forces,
 Favorable physical environment
Reasons for Interest in Small Business
 Small business operators constitute a large political pressure group whose voice and concerns cannot be
ignored.
 There are large numbers of people involved in small enterprise.
 Employees and sometimes owners of small enterprises tend to be underprivileged.
 Small enterprises offer many job opportunities.
 Small enterprises reduce poverty and contribute to development.
 Self-employment may appeal to many women and men, especially some persons with disabilities or for those
who have family responsibilities.
Key success factors in setting up a micro and small enterprises
MAIR Model
Motivation and Determination
It is widely acknowledged that, to be successful, the individual or group needs to be highly motivated and
determined to set up the business to make it succeed. This will be reflected in Persistence ,Information seeking
& Opportunity seeking activities
Ability
Another important question is whether the individual or others involved have particular abilities – these may be
knowledge, technical or managerial skills of relevance to the business or project. One way of making up for any
lack in this area could be to team up with people who have the necessary expertise, or buy it in.
Idea and Market
The important issue to be determined here is the viability of the idea, project, product or service to be offered. In
other words, does the idea, product or service meet a need or want for which there are customers who can afford it
and are willing to use/purchase it in sufficient quantities to make the whole project worthwhile (i.e. return a profit,
in a business context)? How the proposition to be offered is more desirable or better than what is currently
available and how will competitors react?
Resources
Acquire or organize resources in adequate measure such as capital, cash, premises, materials, equipment and
labor. The availability of infrastructure (e.g. utilities like electricity, telephone, roads) and support services might
also be important.
Business plan
In order to turn the above 4 components into reality, a plan would be required. In business, this is normally
referred to as a Business Plan. On the whole a business plan should show main things, namely:
 Where you currently are with your idea, project or business;
 What you wish to do;
 How you propose to go about it; and that the project is worthwhile.

Organization and Management


The business then needs to actually start operating and, once this is done, it would need to be managed. The
whole business and the process need to be managed, and how well this is done – in particular, finding and dealing
with customers, management of cash and finances, marketing, handling employees, dealing with suppliers,
control systems – will all affect performance.
Establishing an enterprise
1. Buying an Existing Business
If someone has never owned a business, buying and operating an existing business offers many advantages such
as established customers and business procedures, trained employees, inventory and premises which are in place
and a business which already has a name in the market.
There are many questions which the potential entrepreneur needs to ask about any business which is for sale:
• Why do I want to buy this business?
• Why does the owner want to sell?
• Does the business have a future where it is and the way it is operating?
• Will I be happy operating this business?
• Do I have the skills?
The question of price is a difficult one. Consider what you are getting for the price you are paying.
 Are you getting land and buildings?
 Are you buying the stock, furniture and appliances?
 Are you buying the name of the business and the rights to use that name forever?
 Are you paying for the present owner of the business not to set up another business nearby?
There are several ways of putting a price on a business. By comparing several similar businesses you will get a
‘feel‘ for a reasonable price. However, no matter how much you pay, that amount is your investment in the new
business.
Advantages and Disadvantages of Buying an Existing Business
Advantages Disadvantages
Less risk legality Product or service may be in a declining market
Significant personal freedom Limited growth potential
Cash flow already being generated Debts or stock may be too high
Relationships have been established with suppliers Merchandise may be obsolete
and banks
An established service or product, with customers, Seller may have hidden reasons for selling: the
a method of operation, staff and a name business may have been declining for years
Location may be excellent The business may have a bad reputation in the
neighbor hood. Location may be poor
2. Starting a new business
Most people who want to be entrepreneurs think that the best approach is to start their own new business and
not to buy one that already exists. This approach gives the potential owner a great deal of satisfaction. It also
means taking a relatively high risk compared to buying an established business.
Starting a new business means allocating a great deal of time to planning and investigating the potential
market for the products or services to be sold by the new business.
3. Becoming a franchisee
Franchising is a system where a franchiser has developed and implemented a business that he offers for
replication to a franchisee. The franchisee opens a business by using the business idea of the franchiser
against a fee. In return, the franchisee gets training, the marketing concept, the brand name and the product
or service. He also has the guarantee that no other franchisee from the same franchiser will have the right to
do business in the same area.
All these elements are fixed in a franchising contact that is binding for both parties. Franchising lowers the
risk as the product is usually well known in the market. On the other hand it limits entrepreneurial decision-
making and shrinks the profit margin as a fee or a percentage of the turnover has to be paid to the franchiser.

Advantage and Disadvantage of Becoming a franchisee


Advantages Disadvantages
Lower risk for the start-up Less entrepreneurial decision-making power
Start-up investment cost well known Franchising fees would decrease profits
Good market introduction of the product or service No possibility of introducing a new product from
other suppliers
Proven marketing concept Strong dependency on the franchiser
Training assured by the franchiser If the franchiser‘s business loses the market, your
business loses the market

Basic Concepts of Marketing


Definition of marketing
The following are some of the important definitions of marketing by Philip Kotler and et.al
1. Marketing is too often confused with selling. Today, marketing must be understood not in the old sense of
making a sale—―telling and selling‖—but in the new sense of satisfying customer needs. ―Selling is the art of
finding clever ways to dispose of what you make. It focuses on creating sales transactions rather than on building
long-term, profitable customer relationships.
2. But Marketing is the art of creating genuine customer value. It is the art of helping your customers become
better off. The marketer‘s mottos are quality, service, and value.‖
3. Broadly marketing is defined, as social and managerial process by which individuals and organizations obtain
what they need and want through creating and exchanging value with others. In a narrower business context,
marketing involves building profitable, value laden exchange relationships with customers. Hence, we define
marketing as the process by which companies engage customers, build strong customer relationships, and create
customer value in order to capture value from customers in return.
Generally Marketing answers the following questions:
1. Who are your customers?
2. What are my customer‘s needs and wants?
1. Who are your customers? Your customers are the people or other businesses that want your products/
services and are willing to pay for them. They include;
 People who are buying from you now.
 People you hope will buy from you in the future.
 People who stopped buying from you but you hope to get them back.
2. What are my customer‘s needs and wants? - An important point to note is that customers want to look at
different products so that they can choose what they like best. Some customers want a different design and others
want high quality and are willing to pay extra for that.
How can I satisfy my customers‘?
You need to do everything to find out who your customers are and what they need and want in order to satisfy
them improve your sales and make a profit. You need to find out;
 Products/services your customers want.
 Price your customers are willing to pay.
 Location of your business in-order to reach your customers (Place)
 Promotion to use to inform your customers and attract them to buy your products or services
3. Understanding the Market place and Customer Needs - Marketing is all about creating value for customers.
Marketers need to understand customer needs and wants and the marketplace in which they operate. We examine
five core customer and marketplace concepts: 1) needs, wants, and demands; 2) market offerings (products,
services, and experiences); 3) value and satisfaction; 4) exchanges and relationships; and 5) markets.
1. Customer Needs, Wants, and Demands
Need: Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth,
and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression.
Marketers did not create these needs; they are a basic part of the human makeup.
Wants: wants are the form human needs take as they are shaped by culture and individual personality. Example a
person in Ethiopia needs food but wants Burger. Wants are shaped by one‘s society and are described in terms of
objects that will satisfy those needs.
Demand: when backed by buying power, wants become demands. Given their wants and resources, people
demand products and services with benefits that add up to the most value and satisfaction. Outstanding marketing
companies go to great lengths to learn about and understand their customers‘ needs, wants, and demands.
They conduct consumer research, analyze mounts of customer data, and observe customers as they shop and
interact, offline and online. People at all levels of the company—including top management—stay close to
customers.
2. Market Offerings—Products, Services, and Experiences
Consumers‘ needs and wants are fulfilled through market offerings—some combination of products, services,
information, or experiences offered to a market to satisfy a need or a want.
Market offerings are not limited to physical products. They also include services—activities or benefits offered
for sale that are essentially intangible and do not result in the ownership of anything. Examples include banking,
airline, hotel, retailing, and home repair services.
3. Customer Value and Satisfaction
―Always give the customer quality, value, selection, and service”( Fred G. Meyer)
In terms of marketing, the product or offering will be successful if it delivers value and satisfaction to the target
buyer. The buyer chooses between different offerings on the basis of which is perceived to deliver the most value.
We define value as a ratio between what the customer gets and what we gives .Customer satisfaction depends on
a product’s perceived performance in delivering value relative to a buyer’s expectations. If the products
performance falls short of the customer’s expectations, the buyer is dissatisfied. If performance matches
expectations, the buyer is satisfied. If performance exceeds expectations, the buyer is delighted. Smart companies
aim to delight customers by promising only what they can deliver, then delivering more than they promise.
4. Exchanges and Relationships
Exchange is the act of obtaining a desired object from someone by offering something in return. Marketing
consists of actions taken to create, maintain, and grow desirable exchange relationships with target audiences
involving a product, service, idea, or other object. Two parties are engaged in exchange if they are negotiating-
trying to arrive at mutually agreeable terms. When an agreement is reached, we say that a transaction takes place.
Relationship marketing aims to build long-term mutually satisfying relations with key parties: customers,
suppliers, distributors in order to earn and retain their long-term preference and business effective. And
Companies want to build strong relationships with different stakeholders by consistently delivering superior
customer value.
5. Markets
The term market ‗has traditionally been used to describe a place where buyers and sellers gather to exchange
goods and services (for example, a fruit and vegetable market or a stock market).
A market is the set of actual and potential buyers of a product or service. These buyers share a particular need or
want that can be satisfied through exchange relationships. Sellers must search for buyers, identify their needs,
design good market offerings, set prices for them, promote them, and store and deliver them.
A market for a business consists of all the potential customers within a specific geographical area, who need or
want a specific product or service and are willing and able to engage in exchange to satisfy the need or want.
Every business sells some type of product or service to people. Potential customers can be described as:
1. People who need or want the product or service.
2. People who are able to buy the product or service.
3. People who are willing to buy the product or service.
What should entrepreneurs know about potential customers?
1. Know the customers: The market can be segmented either by dividing it into meaningful buyer groups or
dividing it according to characteristics such as age, sex, marital and family status, employment, income and trends
regarding any of these characteristic
2. Know what different customer groups wants: By segmenting the marketing into groups, it is easier for
entrepreneurs to determine what products or services each group wants or needs.
3. Know where the customer buys: Entrepreneurs need to find out where the customers in their market are
presently buying, and determine what factors will cause them to switch and buy from their new businesses.
4. Know when the customer buys: By knowing when customers buy (daily, weekly, monthly, yearly,
seasonally), entrepreneurs will be able to determine such things as possible hours of operation, when to advertise
and quantity of merchandise to have on hand at specific times of the year.
5. Know how the customer buys: Knowing how the customer pays for products and services can help the
entrepreneur to determine a credit policy as well as a pricing policy for the business.
Marketers are no longer asking only ―How can we influence our customers?
 But also ―How can our customers influence us?
 How can our customers influence each other?

Importance of Marketing
Marketing plays a major role in achieving organization goal and socio-economic system of a given country and
further in the global economy. Since marketing is consumer oriented, it has a positive impact on the business
firms. It enables the entrepreneurs to improve the quality of their goods and services.
Marketing helps in improving the standard of living of the people by offering a wide variety of goods and services
with freedom of choice, and by treating the customer as the most important person. Marketing generates
employment both in production and in distribution areas.
Since a business firm generates revenue and earns profits by carrying out marketing functions, it will engage in
exploiting more and more economic resources of the country to earn more profits. A large scale business can have
its own formal marketing network, media campaigns, and sales force, but a small unit may have to depend totally
on personal efforts and resources, making it informal and flexible.
A customer purchases a product because it provides satisfaction. That something that makes a product capable to
satisfying want is its utility. And it is through marketing that much of a products utility is created.
While the benefits of channel systems are clear, these cannot be enjoyed without an element of cost. When
responsibilities are shared or passed on, the company must pay a cost in terms of loss of control. Ideally, the
channel structure should operate to the mutual satisfaction of all members
The advantages of the channel system can be summarized by describing the utilities that channels create:
1. Possession utility - Possession utility is created when a customer buys the product. That is, ownership is
transferred to the buyer. Thus, for a person to consume and enjoy the product a transaction must take place. This
occurs when you change your money for a product.
2. Time utility - Time utility refers to having a product available when you want it. Having a product available
when we want it is very convenient but it means that the retailers must anticipate our desires and maintains an
inventory. Thus, there are costs involved in providing time utility.
3. Place utility - Place utility exists when a product is readily accessible to potential customers. So physically
moving the products to store near the customers add to its value.
4. Information utility - Information utility is created by informing prospective buyers that a product exists. Unless
you know a product exist and where you can get it, the product has no value. Advertising that describes a sales
person answering a customer question about the durability of a product creates information utility. Image utility is
a special type of information utility. It is the emotional or psychological values that a person attaches to a product
or brand a person attaches to a product or brand because of its reputation or social standing.
5. Form utility - Form utility is associated primarily with production – the physical or chemical changes that
makes a product more valuable. When limber is made into furniture, form utility is created. This is production not
marketing. However, marketing research may aid in decision making regarding product design, color, quantities
produced, or some other aspect of product. All of these things contribute to the product form utility.
Sales and customer service
Customer Service: customer service means providing a quality product or service that satisfies the needs/wants of
a customer and keeps them coming back. Good customer service means much more – it means continued success,
increased profits, higher job satisfaction, improved company or organization morale, better teamwork, and market
expansion of services/products.
Customer Service Qualities:
Customer Service = Accountability + Delivery
Good customer service means accountability, responsibility and taking action to satisfy the customer. If your
customer is unsatisfied (for just or unjust reasons), you will have to use some of the many techniques of the
customer service professional to win their support and continued loyalty.
When coming into contact with a customer, communicating with him/her, or analyzing problems, do not forget to
use the following methods or qualities of the customer service professional:
Listen: It is of primary importance when dealing with an unsatisfied or complaining customer to listen attentively
to his/her complaint, gripe, frustration or grievance. Be patient, attentive, and friendly.
Express you are sorry: better to say,We are sorry for this mistake/problem.We are terribly sorry for this
inconvenience.‖ ―How can we work to solve this problem together?‖ ―I can imagine how frustrated you are.
Do not argue and do not interrupt: This will only worsen the situation, especially if the customer is angry. Let
him speak before you try to discuss with him what has happened.
Do not lose your self-control: If you stay relaxed, customers will calm down.
Point out facts: Listen carefully – and write everything down. Do not make any comments until the customer is
finished talking.
Admit the problem: If you can suggest a solution do it. If not tell the customer what actions you will take and
what actions will follow. Never make the mistake of promising something you are not able to do.
Involve the customer in problem solving: Suggest the customer alternative solutions, if they exist. Customers
appreciate the opportunity to choose the ways of problem solving.
Follow-up: Make sure that the promised measures are taken. If you do not fulfill what was promised and ignore
the customer‘s complaint, the problem will grow. Next time it will be more difficult to solve.
Give the customer a ―way back‖: Sometimes customers are wrong. You should let them leave with dignity,
without feeling embarrassed.
Do not question the customer‘s correctness: From the very beginning you should believe that the customer may
be right. Always be open minded toward the customer‘s opinion, make them feel they deserve to be listened to.
When you listen to the customer‘s complaint you take responsibility to solve the problem by:
 Listen without interruption and with full attention.
 Behave without aggression, and without arguing.
 Don’t extend excuses for the problem, and thank the customer for drawing their attention to it and helping
solve it.
 Find out exactly what the customer needs you to do for them
 Explain first what you can do, and then gently add what you cannot do
 Undertake immediately what was discussed
 Check the result to make sure the customer is completely satisfied
Helpful Reminders for Polite and Friendly Responses to your customers
Wrong Approach Polite and Friendly Alternative
I don‘t know. I‘ll find out.
No. What I can do for you
That‘s not my job. Let me find the right person who can help you with
You‘re right – this is bad. I understand your frustrations.
That‘s not my fault. Let‘s see what we can do about this.
You want it by when?‖ I‘ll try my best.
Calm down. I‘m sorry.
I‘m busy right now. I‘ll be with you in just a moment.
Call me back. I will call you back, what is your telephone number.
You Need to Talk to My Supervisor Let me find that out for you.
Sales
Selling is important enough to be considered as a function of marketing in its own right, even though it is not
included separately as one of the ‗Four Ps‘ of the marketing mix. Selling contributes to the overall effectiveness
of the marketing effort; however, it also has a more fundamental role to play, in that the act of selling is the end
result of all marketing activity.
A company‘s philosophy of business and its particular merits combine to form a company message, and it is the
job of the salesperson to communicate this message to customers. Buyers usually require more than the physical
product when they consider potential suppliers; at the same time, the salesperson is helped by being able to talk
about the company in addition to the products on offer. As well as considering their selling skills, it is important
when recruiting sales personnel that companies take into account how well the applicant ‗fits in‘ with the desired
company image and how well the company image will be transmitted.
The basic difference between marketing and selling lies in the attitude towards business. The selling concept takes
an inside-out perspective. It starts with the factory, focuses on the company’s existing products, and calls for
heavy selling and promoting to produce profitable sales.
Marketing Vs. Sales
Marketing Selling
It focus on customer needs It focus on sellers need
Customer enjoys supreme importance Product enjoys supreme importance
Converting customer‘s needs into product. Converting product into cash.
Profits through customer satisfaction Profits through sales volume
Emphasis is given on product planning and Emphasis is placed on sale of products already
development to match products with the market produced
Integrated approach to marketing is practiced. Fragmented approach to selling is practiced.
The principle of caveat vendor (let the seller beware) The principle of caveat emptor (let the buyer beware)
is followed. is followed.
General Skills Every Salesperson Should Have;
A sales person needs to develop important skills for successful marketing. Some of the skills are discussed as
follows:
Listening Skills - Effective salesperson must be able to listen to what a potential customer or customer is saying
to them as well as what is not being said. They must be willing to take the time to understand what the customer
truly needs and identify the problem the customer trying to solve. In order to be a good listener, you should
practice active listening skills. There are five key aspects of becoming an active listener those are Pay close
attention, demonstrate physically that you are listening, check for understanding, don‘t interrupt and respond
appropriately to your customers.
Effective Communication Skills – in addition to listening, you must be able to respond well. You must be able to
offer solutions to the customer‘s problems if the customer is ever going to buy from you or your company
Problem Solving Skills – good salespeople are always working to solve problems – they understand that problem
solving is what their real job is
Interpersonal Skills – beyond communication skills, salespeople should know how to work well with their
customers and with each other in order to be most effective. They should be courteous, respectful, and skilled at
building relationships
Organization Skills – good salespeople are well-organized. This doesn‘t necessarily mean their desk is well
organized, but it does mean that they have a system for maintaining information about prospects, customers,
products, and any other information their customer might need
Self-Motivation Skills – if you‘re going to be good at sales, you have to be able to motivate yourself. There will
be those times that you don‘t want to take the next step in the sales process, but you‘ll need to know how to work
through those feelings and take the steps that your customers need – and that will help you be successful in your
job.
Persuasion Skills – customers almost always have a choice in the company they work with or
choosetobuyfrom.Persuasionistheartofhelpingthecustomertochooseyourofferoverothers
Customer Service Skills – once you know how to make a sale, do you know how to keep that customer coming
back? Do you view them as a one-time sale or as someone who could be a continual source of sales over the life
of a relationship with them?
Integrity – in any relationship, including a salesperson-customer relationship, integrity is vital. Without it, you
will lose the customer‘s trust, their business, and possibly the business of others that the customer will tell about
your company and you
Marketing Mix
Marketers use numerous tools to elicit the desired responses from their target markets. These tools constitute a
marketing mix. Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in
the target market. These tools are classified into four broad groups that are called the four Ps of marketing:
product, price, place, and promotion. Marketing-Mix decisions must be made to influence the trade channels as
well as the final consumers. Typically, the firm can change its price, sales-force size, and advertising expenditures
in the short run. However, it can develop new products and modify its distribution channels only in the long run.
Different scholars state marketing mix as seven PS but for this topic we use the marketing mix stated by Philip
Kotler.
1. Product
The marketing mix is a combination of many factors, but consumers tend to view the whole of marketing effort in
more tangible terms of the product or service. It is important for marketers to recognize that much of the want.
satisfying‘ nature of the product is derived from consumer perceptions of the product. The true nature of the
product is always what the consumer perceives it to be, and not what the company thinks it is or would like it to
be
Product refers to goods/services produced for sale, the product /service should relate to the needs and wants of the
customers. Thus, a product is anything tangible or intangible that can be offered for purchase or use by
consumers.
Some important questions you need to ask yourself include;
 What products/services do I sell?
 Why did I decide to sell these products?
 Do I have the products customers want?
 Do any of my products not sell well?
 Do I stock products that do not sell well?
 Always listen to what your customers like and don‘t like. When their needs change, change your products and
services to satisfy the new needs.
 Do more market research in order to provide those products or services and increase your sales. If your
product is not selling well, think of new ideas like finding new customers.

Product attributes - such as quality, features, style and design of product


 A brand: is a name, term, sign, symbol, or design or a combination of these, that identifies the maker or seller
of a product or service.
 Packaging: involves designing and producing the container or wrapper for a product.
 Labeling: Labels may range from simple tags attached to products to complex graphics that are part of the
package.
 Product support services: services that augment actual products.
2. Pricing :
Price is a particularly potent element of the marketing mix because of its direct impact on the customer, the
company and the economy. To the consumer, price is a major indication of quality and an important factor in the
decision-making process. For the company, the price at which a product or service is sold represents the sole
means of recouping costs and making a profit.
Price is simply the amount of money that consumers are willing to pay for a product or service
To set your price you need to;
 Know your costs / cost based approach
 Know how much customers are willing to pay/ Demand based approach /
 Know your competitors price / Competition based approach
 Know how to make your prices more attractive
3. Place
Place means the different ways of getting your products or services to your customers. Place refers to having the
right product, in the right location, at the right time to be purchased by consumers.
It is also referred to as distribution. If your business is not located near your customers, you must find ways to get
your products/services to where it is easy for customers to buy. You can distribute your products to your
customers through; different channels
Selling directly to the consumers of the products or
Indirectly through intermediaries (consumer intermediaries or business intermediaries)
Distribution Channels

4. Promotion
The purpose of promotion is to create and stimulate demand. No product can be sold if the target market
is unaware of its existence. It is also undeniable that no amount of promotion will help to sell a product
that is not acceptable to the market.
Promotion means informing or communicating your customers about your products and services and
attracting them to buy the given product /service. Promotion includes advertising, sales promotion,
publicity, personal selling, direct and internet marketing
The Promotion Mix
Some useful ways of advertising include signs, boards, posters, handouts, business cards, brochures, Price lists,
photos and newspapers. You can use sales promotion to make customers buy more when they come to your
business, you could also;
 Ensure you maintain attractive displays.
 Let customers try new products.
 Have competitions
 Give demonstrations
 Sell complementary products (products that go together)

Some useful ways of advertising include signs, boards, posters, handouts, business cards, brochures, Price lists,
photos and newspapers. You can use sales promotion to make customers buy more when they come to your
business, you could also;
 Ensure you maintain attractive displays.
 Let customers try new products.
 Have competitions
 Give demonstrations
 Sell complementary products (products that go together)
Selecting suitable market
Choice of market is a strategic long-term decision that cannot be changed except at considerable loss. Therefore,
great care and planning is required to select the most appropriate market. Marketing analysis is the dynamic
process of analyzing and comparing the appropriateness or otherwise of alternative market with the aim of
selecting the best market for a given enterprise.
It consists of the following:
a. Trade area analysis: It is an analysis of geographic area that provides continued client or customer to the firm.
Convenience and accessibility to the trade area from alterative site, needed to be analyzed.
b. Demographic Analysis: It involves study of population in the area in terms of total population, age
composition, perception income, education level, occupation structure, etc.
c. Competitive Analysis: It helps to judge the nature, location, size and quality of competition in a given area.
You must study your competitors by gathering information on their strengths and weaknesses. You should know
how many competitors you have and where they are located. There are three favorable conditions for opening a
new firm. First, no competitors are located in the area. Second, competitors‘ businesses are poorly managed. Third,
customer demand for your product is growing.
d. Traffic Analysis: The relative desirability of alternative sites can also be judged in terms of pedestrian and
vehicular traffic passing a site. It will give an idea about the number of potential customers passing by the
proposed site during the work hours of the shop.
Locations with greater customer traffic usually cost more to buy or rent, but they require less spending for
advertising to attract customers. This is especially true of retail businesses where traffic count and accessibility are
critical.
e. Economics: A major concern in choosing a community in which to initiate a small business is the economic
base of the community. Why do people live in the area? What is their standard of living? Why are other businesses
located in the area? A study should be made of the industries in the area.
It is necessary also to judge and compare the cost of establishment and operation at various sites under
consideration.
Financing an Enterprise
Whether one is starting a new business or buying an existing business, there is almost always the problem of
having enough capital to operate the business. Starting a new business is an easy task. The entrepreneur can have a
great and clear idea with ability to translate it into a successful business. However, it is difficult to start and run the
business without the money required at initial stage. The financial concerns need to be considered when planning
to start a business.
The initial money required to start the business is referred to as start-up capital which consists of initial investment
capital and working capital. Investment capital refers to the fund to be spent on the acquisition of equipment,
furniture, building and other properties and working capital is the money needed to cover the operation of the
business.
Raising finance for start-up capital requires careful planning. The entrepreneur needs to decide:
 How much finance is required?
 When and how long the finance is needed for?
 What security (if any) can be provided?
 Whether the entrepreneur is prepared to give up some control (ownership) of the start-up in return for
investment?
The finance needs of a start-up should take account of these key areas:
 Set-up costs (the costs that are incurred before the business starts to trade)
 Starting investment in capacity (the fixed assets that the business needs before it can begin to trade)
 Working capital (the stocks needed by the business –e.g. raw materials + allowance for amounts that will be
owed by customers once sales begin)
 Growth and development (e.g. extra investment in capacity)

Sources of Finance
 Generally, the source of finance for a start-up is divided into sources. These are internal source (equity
financing) and external source (debt financing).
 Internal sources (Equity financing)
 The main sources of equity financing includes personal investment, funds obtained from family members or
parents, partners, venture capital, angles among others.
 1. Personal Sources - A large number of start-ups are 'self-funded' through savings or existing sources of
personal borrowings. Sometimes it can be difficult to raise funds from other sources if entrepreneur business
plan is not easily understood by third parties, so personal funding is often the only realistic source of initial
funds. However, it is practically difficult to raise adequate fund from such sources.
Saving - Saving refers to the money set aside for future use. It can be made through
 Small but regular deposit in financial intuition
 Automatic deduction from salary or wage
Forms of Saving
 Formal saving : it refers to saving made in formal financial institutions such as banks and microfinance
institutions
 Informal saving; it is saving made in village based or community based financial setup such as credit and
saving associations
 Traditional saving: this saving is made through the purchase asset which can be liquidated into investment
capital such as jewelry , house, Edir .and Equib
2. Venture Capital - Venture capital is obtained by large companies who are interested to have ownership in
exchange for capital. The percentage of ownership is negotiable. This kind of financing is the best option for
entrepreneurs who do not have adequate collateral to get bank loan. The benefit of venture capital is not only
financial; the relationship an entrepreneur establishes with the company can get knowledge, clear direction and
new skill to grow the business.
3. Angels / Investors - If entrepreneur are seeking an outside investor for entrepreneur business, entrepreneur
will typically seek 'business angels' who look for interesting projects to invest in. These may be wealthy
individuals, retired company executives or other businesses. Some experienced entrepreneurs say ―…there is
no point in borrowing money just to lose it later, angles (accelerators) can save entrepreneurs a lot of money in
the future‖ to show the importance of Angles investors as a source of finance.
Unlike banks, outside investors will provide funds in return for a share in the business. They may also provide
expertise to the business which is as valuable as a cash injection in some cases.
Investor‘s money is better for entrepreneurs than creditor‘s money; because:-
 Creditor‘s money involves a definite promise to repay a lender.
 It has double obligation- repaying the loan and paying the interest on the loan.
 If entrepreneurs can‘t meet this obligation, it results in failure. But;
 Investor‘s money doesn‘t involve a definite promise to repay.
 Investors buy shares at their own risk.
 If they want to sell their share, entrepreneurs are not enforced to buy, investors themselves search for
buyer to sell their share.
4. Families, Friends and Relatives - At times, loans from friends or relatives may be the only available source
of new financing. Such loans can often be obtained quickly. This type of financing is based more on personal
relations than on financial analysis. However, friends and relatives who provide business loans sometimes feel
that they have the right to offer suggestions concerning the management of the business. Included in this
category is ―Love Money‖ as a source of finance; it refers to the money obtained from spouse or finance. It is
also called patient money.
5.1 Partner Financing - This is a type of financing in which a partner who has interest in the business raises
some capital to finance the operation of the business
5.2 Debt Financing
Debt financing is a financing method involving interest payment. Debt financing requires the entrepreneurs to
pay back the amount of funds borrowed with an interest within predetermined period of time. Debt financing is
asset based financing in that it requires collateral of fixed asset (such as car, house, plant, machine, or land).
The most common source of funding comes from commercial banks and micro finances. There are prerequisites
to get loan from financial institutions.

The common requirement include the following


 Decision on the amount and installment plan
 convincing business plan
 collateral
 appraisal by the bank
1. Bank loan - Commercial Banks are sources of short-term funds most frequently used by the entrepreneurs
when collateral are available. The funds provided are in the form of debt financing and requires some tangible
collateral. The collateral can fixed asset such as land, equipment, building, car and other assets.
2. Loan from Micro-Finances - Microfinance is the provision of financial services to low-income clients for
personal consumption or investment. The beneficiaries of this loan are those who lack access to banking and
related services or are not able provide collateral for bank loan or those who do not want to go through hectic
bureaucratic process to get loan from banks. Usually microfinance provide finance to unemployed or low-
income people or groups. The loan can be given against small collateral or written guarantee. These institutions
are operating in every corner of the country. Dire Microfinance, Addis Microfinance are some of the examples
3. Trade credit - It is a credit obtained from suppliers who sell goods and service on credit. The credit is usually
paid within 30-90 days. It is a short term financing scheme.
4. Lease Financing - Lease financing is one of the important sources of medium and long term financing here
the owner of an asset gives another person with a right to use it against periodic payment. The owner of the asset
is named as lesser and the user as lessee. The periodic payment a lessee makes is referred to as lease rental. The
ownership title belongs to the leaser until the asset is returned to the leaser on expiration of a lease contract.
There can
be some arrangement to transfer the ownership to the lessee through purchase or renew the lease agreement.
5. Other Sources - Other sources of funding include grants (both Government and private sector) - there are
thousands of grants available depending on entrepreneur industry and location. Entrepreneur can also have the
following alternative sources of finance..
 Crowd financing
 Business Incubators
 Hire Purchase
Before a decision is made on the selection of an alternative source of finance, it is important to understand the
advantages and disadvantages of alternative source of finance discussed above as show in the following table.
Basics of Business Plan
When an entrepreneur intends to start a business or to expand the existing business, it is wise to prepare and
use a business plan. In the preparation of a business plan, one can put into practice the personal entrepreneurial
competencies.
A business plan is a written document prepared by the individual entrepreneur or partners that describes the
goals and objectives of the business along with steps necessary to achieve those goals. A Business Plan sets
objectives, defines budgets, engages partners, and anticipates
problems before they occur. The preparation of a business plan requires considerable investment of time,
effort, and energy.
3.6.2. Uses of the Business Plan?
Once completed, there are many potential uses of a business plan for entrepreneurs. First, it is a powerful sales
document for raising money. A business plan is a prerequisite for talking to a venture capitalist, and/or other
investors. If entrepreneurs want to borrow money, it is an impressive document to convince bankers to consider a
request for a loan. As a rule of thumb, the more entrepreneurs want to borrow, or the more money entrepreneurs
want to raise capital from investor, the more thorough the business plan must be.
A second major use of a business plan is that it serves as an operational plan to direct entrepreneur‘s operations.
Like a blueprint for a house, entrepreneur‘s plan will tell what entrepreneur to do and when to do it. Many
entrepreneurs use their business plan for the critical start-up and expansion periods of operation so that they will
stay both on target and on budget.
Generally, the business plan benefits the internal and external users
 The plan helps the enterprise to develop a ―road map‖ to follow in executing its strategies and plans.
 The plan introduces potential investors and other stakeholders the business opportunity the firm is
pursuing and how it plans to pursue it.

Contents of the business plan


There is no a general all-purpose business plans because each venture has its own unique set of factors and
conditions. For example, the new start-up has no financial history; hence, none of its financial projections can
be based on past sales, profits, and so on. Besides, a purely service-oriented firm, such as a consulting firm,
must present a different kind of business plan from that of a manufacturing firm.
It should be remembered that a business plan is not the same as a financial proposal or ―loan package‖. A loan
package may be extracted from a business plan since a package is mostly comprised of the financial portion of
the business plan. Not all business plans are intended
Contents/elements of a Standard Business Plan
1. Cover page
2. Executive summary
3. Company Description
4. Product/service
5. Market Analysis
6. Marketing Plan
7. Operation Plan
8. Management Plan
9. Financial Plan
10. Exist Strategy
11. Economic Analysis
12. Environmental Analysis
13. Risk Analysis
The brief reference to each content of the business plan is given below
1. Cover page contains the name of the business, name of the applicant and the date .
2. Executive Summary gives an overview of the whole document in which the main contents are summarized.
3. Company description presents organizational set up, vision, mission, objective, core values and success factors.
4. Product/service. this part describes the type of products or service the prospective business has to offer to the
market
5. Market analysis presents the market situation including industry analysis, competition, current and future
markets trends
6. Marketing plan sets out the plan to reach target customers and get products/services sold
7. Operation Plan deals with how the work is organized and done
8. Management plan shows the human resource requirement for the planned operation and appropriate structure is
proposed.
9. Exit Strategy talks about future development plan and milestone.
10. Financial Plan projects the financial requirement to start up and run the business
11. Economic Analysis points out the economic benefits of the business to the individual entrepreneur, the local
community and the nation
12. Environmental Analysis presents the impact of the the business on the ecosystem of the environment and
mitigation strategies
13. Risk Analysis project potential risks and risk management plan.
Anyone can talk about an idea, but putting it down on paper takes commitment, research and a lot of hard work. If
an entrepreneur does not work on paper, it is rather certain not to work in the market place. Writing a business
plan is a unique opportunity for entrepreneur to think through business idea as thoroughly as possible before
spending any money on hunches or half-baked ideas.
Business model Canvas
Business model canvas is a model that Summarize a series of untested hypotheses of framework, use customer
development to test their hypotheses and Practice agile development (developing a product iteratively and
incrementally).Business model describes how a company creates value for itself while delivering products and
services for customers.
Business model canvas is a language that describes, challenge, design and invent business models more
systematically. It is used for preparation and easily understands main components of business plan.

The following Business model Canvas is a guideline for trainees to prepare mini business plan.
1. Customer Segments
 Define the different groups of people or organizations a business targets to reach and serve
 Make a conscious decision about which segments to serve and which segments to ignore
Separate customer segments if:
 Their needs require and justify a distinct offer;
 They are reached through different distribution channels;
 They require different types of relationships;
 They have substantially different profitability‘s; and
 They are willing to pay for different aspects of the offer
2. Value proposition
 It solves a customer problem or satisfies a customer need.
 It also describes the uniqueness of a business.
 For each customer segment identified
 Describe the bundle of products and services that create value for each specific customer segment
 Identify the reason why customers will turn to your company over its competitors. It solves a customer
problem or satisfies a customer need
3. Distribution Channels
 Describes how your company communicates with and reaches its customer segments to deliver the value
proposition
 Functions of distribution channels include:
 raising awareness among customers about a company‘s products and services;
 helping customers evaluate a company‘s value proposition;
 allowing customers to purchase specific products and services;
 delivering a Value Proposition to customers; and
 Providing post-purchase customer support.
4. Customer Relations
 Describes the types of relationships your company needs to establish and nurture with specific customer
segments
 Focused on:
 Customer acquisition
 Customer retention
5. Revenue streams
 For what value is each customer segment truly willing to pay?
 Identify and quantify the cash your company can generate from each customer segment through one or
more revenue streams (sales pipelines)
 Consider two different types of revenue streams:
 Transaction revenues (resulting from one-time customer payments)
 Recurring revenues (resulting from ongoing payments)
6. Key Resources
 Identify, describe and quantify assets required to deliver on the value proposition to each of the identified
customer segments e.g. Land, Buildings, Equipment ,Facilities ,Platforms ,Systems ,Technology
7. Key Activities
 Identify, define and describe the most important things (actions) your start-up company must do to:
create and offer a value proposition ,reach markets, maintain customer relationships ,earn revenues, to
make its business model work and to operate successfully
8. Key Partnerships
 Identify and describes the network of suppliers and partners that make the business model work, e.g.:
 strategic alliances between non-competitors;
 co-operation: strategic partnerships between competitors;
 joint ventures to develop new businesses;
 buyer-supplier relationships to assure reliable supplies

9. Cost Structure
 Describe the most important costs incurred while operating under a particular business model to:
creating and delivering value,
 maintaining customer relationships,
 Generating revenue.
 Such costs can be calculated relatively easily after defining key resources, key activities, and key
partnerships. Employability Skill
The ILO defines employability as relating to ―portable competencies and qualifications that enhance an
individual‘s capacity to make use of the education and training opportunities available in order to secure and retain
decent work, to progress within the enterprise and between jobs, and to cope with changing technology and labor
market conditions. Individuals are most employable when they have broad-based education and training, basic and
portable high-level skills, including teamwork, problem solving, information and communications technology and
communication and language skills... This combination of skills enables them to adapt to changes in the world of
work.
Employability skills are defined as skills required not only to gain employment, but also to progress within an
enterprise so as to achieve one‘s potential and contribute successfully to enterprise strategic directions.
Core Employability Skills
Core skills refer to skills knowledge and competencies that enhance workers ability to secure and retain a job,
progress at work and cope with changes. Individuals are most employed when they have broad based education
and training, basic and transferable skills; the combination these skills enable job seekers to adapt to changes and
join the world of work. The skills in demand are increasingly core skills for employability.
The core skills are:
1. Basic/foundation skills
2. Vocational/technical skills
3. Professional/personal
4. Core work skills
The following table sets out the main types of skills required in today‘s world of work with corresponding
definition.
Core Employability Skills and their Definition
Type of skill Definition
Basic/foundation skills The literacy and numeracy skills necessary for
getting work that can pay enough to meet day-to-
day needs. These skills are also a prerequisite for
continuing in education and training, and for
acquiring other vocational, professional and core
work skills that enhance the prospect of getting a
good job
Vocational or technical skills Specialized skills, knowledge or know-how needed
to perform specific duties or tasks
Professional or personal skills Individual attributes relevant to work, such as
honesty, integrity, work ethic
Core work skills The abilities to learn and adapt; to read, write and
compute competently; to listen and communicate
effectively; to think creatively; to solve problems
independently; to manage oneself at work; to
interact with co-workers; to work in teams or
groups; to handle basic technology; and to lead
effectively, as well as follow supervision

Important core skills necessary for employability skills include the following though it is not an exhaustive list:
 Communication skills that contribute to productive and harmonious relations between employees and
customers;
 Team work skills that contribute to productive working relationships and outcomes;
 Problem-solving skills that contribute to productive outcomes;
 Initiative and enterprise skills that contribute to innovative outcomes;
 Organizational skills :planning and organizing skills that contribute to long-term and short-term strategic
planning;
 Self-management skills that contribute to employee satisfaction and growth;
 Learning skills that contribute to ongoing improvement and expansion in employee and company
operations and outcomes; and technology skills that contribute to effective execution of tasks.
 Numeracy skills : literacy in basic arithmetic and statistical tools
 Negotiation skill: ability to engage with others
 Valuing diversity and difference
 Digital skills (technology).
The following table shows the range of core skills for employability identified into four broad categories
The broad categories of core employability skills for
Broad skill Core work skills/abilities
category
Learning to  Willingness to learn
learn  Using learning techniques to acquire and apply new knowledge and skills
 Working safely
 Pursuing independent learning
 Taking responsibility for own learning
 Thinking abstractly
 Organizing, processing and holding information
 Interpreting and communicating information
 Conducting systematic enquiry, following through to find answers
 Using time effectively and efficiently without sacrificing quality
 Selecting the best approach for tasks
 Beginning, following through and completing tasks
Communication  Reading competently
 Reading, understanding and using materials, including graphs, charts and
displays
 Understanding and speaking the language(s) in which the business is conducted
 Writing effectively in the language(s) in which the business is conducted
 Listening and communicating effectively
 Listening to understand and learn
 Using numeracy effectively
 Articulating own ideas and vision
 Being adaptable
Teamwork  Managing oneself at work
 Working in teams or groups
 Interacting with co-workers
 Respecting the thoughts and opinions of others in the group
 Working within the culture of the group
 Understanding and contributing to the organization‘s goals
 Planning and making decisions with other sand supporting the outcomes
 Taking accountability for actions
 Building partnerships and coordinating a variety of experiences
 Working towards group consensus indecision-making
 Valuing others‘ input
 Accepting feedback
 Resolving conflicts
 Coaching, mentoring and giving feedback
 Leading effectively
 Mobilizing a group for high performance
Problem-solving  Thinking creatively
 Solving problems independently
 Testing assumptions
 Identifying problems
 Taking the context of data and circumstances in to account
 Identifying and suggesting new ideas to get the job done(initiative)
 Collecting, analyzing and organizing information (planning and organization)
 Planning and managing time, money and other resources to achieve goals

Personal Attributes of Job Seekers


Prospective graduates of TVET programs are expected to build the skills and confidence that create impression in
the job market. Along with basic employability skills, the following personal, attributes are important to create
attractive impression in the minds of employers.
 Loyalty
 Commitment
 honesty and integrity
 Reliability
 Personal presentation
 Enthusiasm
 Commonsense
 Positive self esteem
 Sense of humor
 Balanced attitude towards work and home life
 Ability to deal with pressure
 Motivation
 adaptability
Why Employability Skills are Important?
These set of "job-readiness" skills are, in essence, behaviors that are necessary for every job and are essential
attitudes that allow you to grow in your career and also efficiently let you:
 Connect with co-workers
 Solve problems
 Be a part of and understand your role within the team
 Make responsible choices for your job and your career
 Be independent and take charge of your career
Personal characteristics, habits, and attitudes influence how you interact with others. Employers value
employability skills because they regard these as indications of how you get along with other employees and team
members and customers and how efficiently you are likely to handle your job performance and career success.
Employers value these unique attributes in their potential employees because they have always been necessary for
a productive and smoothly functioning workforce. Enterprises spend a substantial amount of time and money,
developing these foundational and work-readiness skills. But in today's world, where jobs are few, employers
enjoy more options and would like to hire a technical expert who also displays well-rounded employability skills.
Employability is not just securing one job. It has traits and factors that decide the skill of retaining or hiring
employees. These are the reasons why employability is important:
Competitive World
In a world it is difficult to judge the individuality of the candidate? Many might say that college is different.
Though, that is true in some sense. The larger point is that the basic education for every one is the same.
However, even good colleges can just offer good jobs to their students. Retaining that job defines that student.
Thus, this is the unique factor in each candidate.
Adapt to changing situations
Work-life is fickle. As they say, the market can change every second. So can the insides of an office. Not just in
terms of emotions, the real change comes in the form of changes to job descriptions. Over time, you will go up
the ranks of the company. You will be required to do various jobs that are needed at different stages. Hence,
employability helps you gather and retain these traits.
Helps you explore self
The best thing about employability is that it is entirely in your hands. Thus, only you can find your true
employability. Thus, exploring yourself urges you to become employable. You try to learn new things. Also, you
retain more information for future use. And, you go through many work lives to finally select the one that works
for you.
Return on Investment
Costs for completion of higher education are getting higher every year. Students are walking out of colleges with
large debts and are in need of a job. This is why maintaining employability is important.
A degree is not enough
Truthfully, in today‘s day and age, even students from well-reputed colleges are lacking job opportunities because
they have not developed their skills in different areas. Though, Having managerial skills, even in non-business
related fields like medicine, greatly improves your employability
Common Elements of Employability Skills
Employability skills
Employability skills are transferrable skills that are useful in nearly every job. They involve the development of
an expertise, knowledge base or mindset that makes you more attractive to employers. Employability skills are
also often referred to as employment skills, soft skills, work-readiness skills or foundational skills. They often
improve your performance, minimize errors and promote collaboration with your coworkers, enabling you to
perform your role more effectively.
Employability skills may not be listed in a job description, but they are important skills that can make you more
attractive to prospective employers. The main benefit of having these traits is that it can help you stand out among
other job candidates who are vying for the same position. While other candidates may have the same
qualifications and experience, you may have a better chance of getting hired if you have employability skills that
are particularly useful for the role.
Certain employability skills are more sought after in specific industries. You can prepare yourself for an interview
or write your resume for a particular position by researching which employment skills are essential in your
industry.
Elements of Employability Skills
Employers have high regard for employability skills because they are much harder to teach than job-specific
skills. Some employable qualities come naturally, while others can be acquired through education, work or daily
practice. You may already have some of the key employment skills, but you can work to improve those skills and
develop new ones. Here are 10 common employability skills that employers look for:
1. Communication
2. Teamwork
3. Reliability
4. Problem-solving
5. Organization and planning
6. Initiative
7. Self-management
8. Leadership
9. Learning
10. Technology
Communication
Communication is one of the most important employability skills because it is an essential part of almost any job.
The communication process involves five elements:
a. Sender,
b. Receiver,
c. Message,
d. Medium and
e. Feedback.

When these elements work together, you can deliver and understand messages clearly and efficiently, eliminating
unnecessary misunderstandings and errors. Excellent communication skills make you more employable because
they can enhance a company‘s productivity and efficiency and help prevent the waste of valuable time and
resources.
Being an effective communicator involves conveying your thoughts and ideas clearly to achieve certain
outcomes, as well as listening to your coworkers‘ instructions, ideas and intentions. Depending on the job you
want, you may have to be competent in several different types of communication, such as verbal, nonverbal,
written and visual. For instance, a customer-facing employee needs to have excellent verbal and nonverbal
communication skills.
The best way to improve your communication skills is to communicate as frequently as possible. Some of the
activities that can help you develop better communication skills include:
1. Communicating on social media
2. Joining a local club
3. Practicing awareness of your facial expressions and body language

Job Application
How to Fill Out a Job Application
One of the first things an applicant will be asked to do for an interview is fill out a job application. Employers get
more information from an application than facts and numbers. They check the neatness, spelling and grammar
and organizational skills
The application is one more chance for an applicant to keep the name in the ―prospective employee‖ file and out
of the wastebasket. As an application is a legal document. Fill it out completely and honestly.
Resume
What is a resume?
A short document showing an employer that an applicant is a desirable candidate for a job. Resume is a Statement
of facts (using keywords and action verbs) that highlights the accomplishments, skills and education/training.
Creating effective Resumes
What is the purpose of a resume?
 To gain a potential employer‘s interest.
 To obtain an interview.
The resume makes an appeal to, the prospective employer. A job-seeker simply cannot succeed these days with
just the traditional formatted resume intended to be printed out as a visually pleasing marketing piece. The
formatted ―print‖ resume is still important, but it can no longer be the only resume tool in the kit. An applicant
need at least one other version of the resume that can go directly into a keyword-searchable database with no
obstacles. The e-resume, short for electronic resume, is a vital tool for today‘s job-seeker.
Contents of a Resume
The sections most commonly included in a resume are the following:
i. Heading
Create a heading/letterhead that An applicant can use on all of the employment documents
Tell the employer who an applicant is and how they can reach out.
The name should stand out slightly more than the rest of identifying information
The header should include the name, complete mailing address, and the telephone number with area code.
Include the cell phone number if this is the easiest way to reach you. Make sure thevoice mail message is
professionally stated.
Include the email address and make sure it is appropriate and reflects positively on you. If an applicant
doesn‘t have business email address, create one using one of the free sources such as Gmail, yahoo, or
Hotmail.
ii. Objective
Objectives help to sharpen the focus of the resume.
An objective should be specific, not vague and meaningless.
Objectives should reflect the employer‘s perspective, not the jobseekers. It should demonstrate the value the
candidate will add to the organization. It should be as concise as possible.
iii. Strengths or Skills Summary
This section supplements (or replaces) the objective section.
This section spotlights the skills that an applicant need to contribute to the position/organization.
The keywords utilized in this section can help increase the number of hits if the potential employer uses an
electronic process to match applicants with job requirements.
iv. Education
List the most recent education first.
List school name, city and state, expected date of graduation or completion, and any specific programs of
v. Study/special training
List the employability essentials for Success that an applicant has learned.
List related classes an applicant has taken.
Use actual course titles not abbreviations or acronyms.
vi. Work Experience
Show current or most recent job first.
 List job title, name of employer, city/state of employer and dates of employment. This is the order of
importance to the reader. For dates of employment, month and year is sufficient. If an applicant are still
working, state ―Present‖ for the ending date.
The ideal resume is accomplishments driven rather than duties driven. As a high school student, it can be
challenging to follow this format. How did an applicant does the job better than anyone else? How did the
company benefit from the performance?
An applicant should have at least three accomplishments/duties for each position listed on resume. More is
always better! Think about accomplishments first and combine both accomplishments and duties on the resume as
needed. When describing job responsibilities,
vii. Volunteer Experience/Community Service
Show current or most recent volunteer experience first.
List type of volunteer experience, name of organization, city/state, and time period or number of hours
volunteered.
List responsibilities and experience gained.
viii. Activities/Awards/Special Skills
List skills that an applicant acquired through the course work or work experience be specific Example -
Proficient in Microsoft Word 2010.
List clubs and organizations to which an applicant belongs.
List special awards and certificates.
ix. References
Do not list any references on the resume. Instead key the phrase, ―References available on request‖ at the bottom
of the page. This is optional because all employers expect that references will be provided if requested. The line
can serve the purpose of signaling the end of the resume; but if an applicant doesn‘t have room, leave it off.
 On a separate sheet of paper have the references listed so an applicant will have them available. On this sheet,
use the same heading as the resume page.
 Use three to five adult references. Include full name, title (relationship to you), organization with which the
person is affiliated, complete address, phone number and e-mail address.
 Suggestions for good references include past and present employers, volunteer work supervisors, teachers,
coaches, counselors, etc. Do not use family members or school friends.
 Make sure the references can discuss the work-related qualities positively.
 Get permission before an applicant use anyone for a reference.
 Keep the references informed about key accomplishments and make them aware of positions an applicant is
seeking.
 Cover Letter
 Why Is A Cover Letter So Important?
 The first contact with a prospective employer may be the cover letter. Employers use cover letters to
efficiently sort out those applicants they wish to interview. It is essential that the cover letter be well
written so that yours is one of those that obtain an interview. Few employers seriously consider a
resume that is not accompanied by a cover letter. Employers may ask for cover letters to see how
much effort an applicant is willing to make to get the position. They may also want to know how well
an applicant expresses himself in writing.
A cover letter has several purposes:
 A cover letter tells the employer the type of position you‘re seeking.
 A cover letter tells the employer exactly how an applicant is qualified for the position.
 A cover letter highlights the aspects of the experience that are most useful to the employer.
 A cover letter can explain things that the resume can‘t.
 A cover letter can serve the same function as the ―objective‖ on the resume, and expand upon it.
 A cover letter is a little window in to the personality.
The cover letter is all about specifics:
1. Always address the letter to a specific person. ―Dear Sir‖ or ―To Whom It May Concern‖ is unacceptable. Call
the company and ask who the hiring manager is for a given position if it isn‘t stated in the job posting. The worst-
case scenario is that the letter will begin ―Dear Hiring Manager for (name of position).‖ This is the way an
applicant should address a blind job ad also.
2. Target the letter to a specific position and be very specific when describing the skills and qualifications related
to that position. Be sure to refer to the job posting and use key words mentioned. Use specific examples to
demonstrate the claims about yourself. If An applicant say An applicant are organized, give an example of how An
applicant have used this skill.
3. Demonstrate specific knowledge of the company An applicant are writing to. This isn‘t a must, but will help to
grab the attention of a potential employer. It shows An applicant took extra time to research what they are about.
4. Specifically ask for an interview and tell the company how an applicant will follow up. If An applicant take this
proactive approach and follow up, An applicant will be much more likely to get an interview
Tips for Completing a Job Application
1. Follow all directions printed on the job application. Look the application over carefully before an applicant
begins working on it. Show the employer that an applicant can do what is expected of you.
2. Fill out the application yourself. Employers want to know how well an applicant read and write, not how
well the friend or parents can write.
3. Print using black ink. Printing is much easier to read. Use the best penmanship.
4. Think before an applicant write to avoid mistakes. If an applicant does make mistakes, draw one line
through it. Don‘t blot it out!
5. Have all of the data handy. It is a good idea to fill out a ―pocket resume‖ or extra application ahead of time
and take it with you. Then an applicant will have all of the information ready. It also shows good planning on
the part. 6 Put something on every blank. The employer needs to know that an applicant did read it, but it just
doesn‘t fit the situation. So, if it doesn‘t apply, put N/A (this means it does not apply to you), or draw a line in
each box. Do not write ―see resume‖ even though an applicant is attaching one.
6. Be as specific as possible with all answers.
7. Be specific about employment history in the application. Make sure an applicant know starting and ending
dates of all the jobs. Employers are looking for a complete work history, including gaps in employment.
8. Proofread the application before submitting it. Don‘t forget to sign it and be sure to read what an applicant
are signing
9. Salary desired? Do not pin yourself down to a dollar figure. An applicant may: oversell yourself and the
employer will think an applicant is too expensive undersell yourself and ask for less than the employer was
planning on paying for that position
Where to Look for a Job
Once an applicant has the above information organized, it is time to start looking for a job.
Here are some common sources of job information:
1. Word of Mouth/Networking - The best source is the old reliable ―grapevine.‖ Ask around! Ask family,
friends, neighbors, and co-workers if they know of any businesses who are hiring. Talk with the parents of the
friends. Ask them for leads and let them know an applicant is looking for a job. More job leads are discovered
through networking than any other method.
2. Pounding the Pavement - This is the oldest method of job hunting, especially for entry-level positions. This
means literally going door-to-door and submitting job applications. Be sure to always dress professionally for
those rare occasions where an applicant may be interviewed on the spot.
3. “Help Wanted” Signs - Maybe the simplest method of all is the good old ―Help Wanted‖ sign in the front
window. If an applicant sees one, don‘t go in right away. Take some time to prepare. Practice writing a cover
letter and prepare a resume. Also, brush up on how to fill out a job application and practice the interviewing
skills.
4. Public Employment Agencies - Youth Opportunities Unlimited (YOU) provides various career services
including job placement assistance for students in Kalamazoo County. Some of their services are based on income
eligibility. School credit may be available in certain situations. The phone number for an applicant
5. Newspapers - Newspapers usually list jobs under the ―Help Wanted‖ column of the classified ads. Many
newspapers are now putting their Help Wanted ads on their websites. These are usually unique listings specific to
a certain location. One website to try for Michigan classifieds is www.mlive.com/jobs. Some companies are
advertising in nontraditional sites such as www.craigslist.org. The key here is to be persistent!
6. List of Employers - Check the yellow pages of the telephone book, industrial directories, and the local
Chamber of Commerce listings. They will tell an applicant about local businesses or employers.
7. Government - Civil Service Commission jobs involve working for the local, state, or federal government. In
order to get a civil service job, an applicant must take a civil service occupation-specific test. Candidates for civil
service jobs are then contacted based on their test score. Most post offices have application forms and information
on civil service opportunities. The armed forces offer job training and career opportunities.
8. Unions - Industrial and trade unions have exclusive hiring authority for some companies, usually through
apprenticeship programs. Listed below are some of the unions represented in the area that have apprenticeship
programs. The first step in becoming part of an apprenticeship program is filling out an application, which can be
obtained by calling the numbers listed below. Most applicants take some type of aptitude test and must receive a
certain score to be asked back for an interview. After the interview process the union selects who they will invite
to be part of their program. The apprenticeship programs last 4-5 years.
Online Application Process:
Many companies are now having prospective employees apply online. Sometimes this is the only way to apply
and there isn‘t a paper application that can be filled out. An applicant may be able to access the site from any
computer or an applicant may have to go into the business to use a specific computer that is set up for online
applications.
Tips for Completing Online Applications
1. The focus should be on making the application unique, to avoid its being swallowed up in the technology
abyss.
2. Follow directions. Be careful to enter the correct data in the correct field.
3. Tailor the information to the position. Don‘t copy and paste text from the resume.
4. Use key words, buzz words, and industry verbiage. Use the verbiage in the job ad as the model. Employers
search key words when they‘re looking for people to fill specific positions. Key words are very important and will
help an applicant get past the computer to a live person.
5. Create a skills-inventory section even if the application doesn‘t require it. An applicant might put this in
acomments section.
6. Include numbers and statistics if available. Example counted five cash drawers daily; Responsible
7. Complete all fields – even those that aren‘t required
8. If the company offers an optional assessment test online, take it. Some employers have said that candidates
who don‘t take the optional assessment test are automatically screened out.
9. Make sure the resume can hold its own in a very simple format. Fancy bullets, text, italics, and bold do not
convert well in an electronic application.
10. Spell check and grammar check the application before submitting it. Have an error-free application because
this application serves as the employer‘s first impression of you.
11. Include a strong objective tailored to the specific job for which an applicant is interested.
12. Another use for the comments section: use it to demonstrate that you‘ve done research on the company and
the industry.
13. Follow-up the electronic application with a personal e-mail to the hiring manager. A follow-up phone call is
acceptable if the ad does not say ―No phone calls.‖
Interviews
After the application is made for a job, the next step is interview if the employer finds an applicant attractive. The
job interview can be one of the most important few minutes of the life. The job application and cover letter may
have impressed the employer, but it‘s the interview that will be the deciding factor regarding whether or not An
applicant get the job. First impressions are formed within three to eleven seconds.
Teamwork
Good teamwork skills refer to the ability to work harmoniously with your colleagues to achieve a shared goal.
Teamwork skills such as collaboration can increase your hiring chances because you may be able to help a
company reach its goals more effectively. These skills can also contribute to a more positive work environment.
To become a great team player, you need to be comfortable working with people, take responsibility for your
share of work and contribute to team goals.
There are many things you can do to boost your teamwork skills, including:
 Volunteering to help coworkers with projects
 Working with others in a local organization
 Joining a sports team
Reliability
Reliability makes you more employable because it promotes trust between you and your employer. You are a
reliable employee if you can consistently complete your tasks on time, deliver quality work and make minimal
mistakes. You must also be able to respond to inquiries and emails promptly and only make promises you can
keep.
You can become more reliable by:
 Consistently meeting or exceeding your expected levels of work performance
 Creating schedules for your daily tasks and maintaining them
 Acknowledging your mistakes and making a conscious effort to avoid them in the future
Problem-solving
Problem-solving involves identifying key issues and their implications, having a clear understanding of problems
and determining the most effective solutions. For more complex problems, you need to know how to divide them
into smaller parts that are easier to understand and more manageable.
Problem-solving skills can set you apart from other job candidates because they can help your potential employer
maintain an efficient operational process and achieve objectives more effectively. If you are a good problem-
solver, you can play an important role in troubleshooting issues, which can enable your team to overcome
obstacles and solve complex problems. Depending on the position you are applying for, you may need a certain
set of sub-skills to solve problems effectively, including research, analysis and decision-making.
You can become a better problem-solver by:
 Undertaking research assignments and projects
 Participating in brainstorming sessions
 Regularly developing your skills by solving puzzles and playing games
Organization and planning
Being able to organize and plan effectively is important because it helps you and your employer save time, effort
and money by improving workflow. It ensures that assignments and projects are completed on time and prevents
confusion and errors that can be costly to the company.
To be a good organizer and planner, you should be able to identify tasks, prioritize them, create schedules for
them and complete them on time. If you are in a leadership position, you need to develop systematic processes for
achieving goals and delegating tasks appropriately.
You can develop organizational and planning skills by:
 Developing a timetable for your daily activities
 Organizing an event
 Writing down your tasks and activities in a planner
Initiative
Taking initiative means recognizing a problem and solving it, preparing for a potential crisis by taking preemptive
action, taking advantage of opportunities and having a positive attitude. It shows that you can think for yourself
and take the necessary actions without being instructed to do so. As a person with initiative, you have a strong
drive to succeed and a desire to keep improving yourself through continuous learning, which makes you valuable
to any organization.
Employers consider initiative one of the key employability skills and value employees who possess self-
motivation to complete tasks without being asked. The flexibility and courage of such employees can push
organizations to innovate and achieve a competitive edge.
You can improve your ability to take initiative by:
 Approaching companies and other organizations to inquire about job opportunities
 Proposing changes to the policies or activities of a group you belong to
 Setting up a local club or fundraiser
Self-management
Self-management refers to the ability to perform job duties satisfactorily with little or no supervision. For
higher-level employees, it also means delegating tasks to ensure you complete them on time. Additionally,
self-managed employees can motivate themselves to deliver solid work performance consistently.
If you have good self-management skills, you can help your supervisor or manager save time and effort simply
because you need minimal guidance and assistance from them. Also, being a self-motivated person means you
may be less likely to have productivity issues. These abilities can make you an appealing candidate to most
employers.
You can develop self-management skills by:
 Asking for more responsibilities at work
 Creating schedules for certain activities and maintaining them
 Participating in volunteer work that allows you to work independently
Leadership
Employers look for good leaders because they can benefit organizations in many ways. As a leader, you play
an important role in ensuring that your team shares the same vision as the company and works in unison with
other teams and departments to achieve a common goal. Additionally, you can develop strategies for
achieving objectives, keep your team constantly motivated and monitor work performance to produce better
results for the company.
Leadership skills are important at every level. If you are seeking a managerial position, you need to be a good
leader to motivate your team members. You can also benefit from having some leadership ability in entry-
level positions because it may help you stand out and climb the ranks faster. You can show leadership by
directing and motivating your coworkers, setting objectives and goals for your team, improving work
practices and coaching your colleagues. You can learn to become a better leader by:
 Attending a leadership course
 Starting a local group
 Reading about the habits of successful leaders, particularly those in your industry
Learning
Having strong learning skills means understanding new concepts and methods quickly, taking on new tasks,
adapting to change and having the tendency to improve your knowledge and skills continually.
Employees who have good learning skills may help employers fill challenging roles more quickly and reduce the
cost of staff training. Good learners are especially desirable to companies that are at the forefront of innovation
because they can help transition to new methods and technologies more smoothly.
You can increase your ability to learn by:
 Taking a course to improve your learning skills, such as a speed-reading, memory-boosting or an accelerated-
learning course
 Researching skills and activities related to your job, such as organizing, teamwork or presentation skills
 Teaching yourself a new skill or hobby
Technology
Companies search for candidates with technical skills to help them use the latest technology and stay ahead of
their competitors. Depending on your job, the technology skills you need may vary greatly, from word processing
and sending email to video editing and using programming languages. If you can grasp technology-related
concepts and learn how to use new technologies quickly, you may be more attractive to employers.
Technology skills are acquired through learning and practice. Some of the ways to develop and improve
technology skills include:
 Enrolling in a technology course
 Trying out new apps and technology in your daily life
 Staying up-to-date with the latest technology in your industry

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