enterprenuership
enterprenuership
enterprenuership
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.
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.
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.
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 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
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