ENREPRENEURSHIP

Is ability to create and build something from practically nothing.

It is initiating,doing,achieving and establishing an enterprise or organisation.

It is the practise or starting of a new business or revotalising existing business in response to identifying
new opportunities.

ENTREPRENUER

Is the person identifies business opportunity,obtains the resources necessary to initiate a successful
basic activity.

RESOURCES

Means competencies or capabilities that could be utilised to make profit or perform a task.

PROFIT

Is the gain or extra earnings realised after business expenses has been excluded.

CAPITAL

Money or investments used in business operations.

ENVIRONMENT

Means setting,situation or condition.A business environment refers to the condition under which the
enterprise operates politically,economically,social,technologically and physical conditions or setting.

SELF EMPLOYMENT

Is the process by which one earns income through doing or performing its own work.

SALARISED EMPLOYMENT /FORMAL

This is the kind of formal work in which an employee is engaged and paid a pre-determined or stated
amount of wages regularly or periodically.

REASONS WHY PEOPLE GO FOR SELF EMPLOYMENT

 DESIRE TO SELL THEIR SKILLS

 LOVE OF CHALLENGES
 A NEED TO MAKE HOBBY COMMERCIAL
 A NEED TO EARN AN EXTRA INCOME BECAUSE SALARY IS NOT ENOUGH
 A NEED TO BE INDEPENDENT
 A NEED TO PROVE THEIR WORTH
ADVANTAGES OF ENETRPRENEURSHIP

 The individual his or her own boss

 Creates job opportunities as one is able to get self employed.
 It provides goods and services to the society offered by the individuals who are involved.
 There is unlimited earning as no limit has been put .
 It improve living standard of people who depend on it

DISADVANTAGES OF ENTERPRENUERSHIP

 One may not have enough capital to start the business.

 One may have limited skills in terms of management
 There is no assurance of income compared to salarised persons.
 When the business suffers loses the owner bears it alone
 Self-employed people are accorded low social status compared to salaried one who are
accorded high social status.
 May lead to specialization which at a time leads to boredom.

ADVANTAGES OF SALARISED EMPLOYEMENT

 There is an assurance of income.

 There is certain allowances enjoyed by employees like medical,house.
 There is room for growth through promotions
 There is room for training through workshops and seminers,organised by companies.
 There is room for sponsorship to members who wish to further their studies.
 They are accorded high social status than self-employed persons.

DISADVANTAGES OF SALARISED EMPLOYMENT

 One has to adhere to the rules and regulations set by the organization.
 There is no opportunity to make an extra income to supplement the salary.
 There is no job security because the employer may demote one of his duties at will.
 One may not get time to involve in leisure activities.
 Once idea may not easily implemented by the employer and can only be done through members
participation.
 COMPARISION

SELF EMPLOYED SALARISED EMPLOYED

Owner determines the number of working Employees has to work with a given period
hours agreed upon
Owners earns less benefit Employee has several benefits like medical
and house allowances
Fatigue has the owner does the all work alone Employee works for the owner
Choice of job is affordable Employee has to work for a certain job
Owner earns more money Owner pays the employees’ salaries and
wages

TYPES OF ENTERPRENEURS

a) Opportunist entrepreneur

Is a type of entereprenuer who looks for any viable business opportunity and
takes it up as a business.He or she gets into business at the correct time and get
out at the right time .

One can decide to sell grains but due to shortage of grains during drought
switches in selling cattle feed which is in demand.

b) Specialist entereprenuer

They are individuals who are involved into the business that are related to what
they studied and specialized in.

A mechanical engineer who runs a garage.

A doctor who runs a clinic,and a teacher who runs a school.

c) Innovative entrepreneur

They are individuals who start business from what they love doing most.

d) Egoistic entreperenuer

They are individuals who venture into a particular business in order to satisfy their
pride or ego.
A retired public servant who has accumulated wealth and decides to start a chain
of hotel or restaurant.

e) Builders entrepreneur

They are individual who build stable business very fast.They tend to do anything
to grow their business very fast.

CHARACTERISTIC OF AN ENTREPRENUER

a) Self confidence

Help to protect a positive image about him or herself and the business.

This help gain the confidence of other.

b) Persistence and determination

Help an enterprenuer not get discourage and give up easily.

They consider problems and challenges and cop with them.

c) Hardwork

He or she must be aware that nothing comes easily and one as to work hard in
order to reap.

d) Innovative and creative

It is important for one to adopt new ways and introduce ideas in order to improve
the business.

e) Flexibility

An entrepreneur must be ready to change and try different businesses.

f) Goal oriented

An entrepreneur must be ready to achieve his or her goals.

g) Independence
They are not ready to be guided and are usually follow their daily routine.

h) Fore sight

Entrepreneur have a good foresight to know future business environment.

i) Good communication

Must be able to communicate effectively to employees,customers,suppliers .

ROLE OF AN ENTREPRENUER IN AN ENTERPRISE

a) Innovator

As an innovator the entrepreneur institutes new combination of factors of

productions.

b) Organizer

Determines how the resources used are to be combined and utilized in order to
determine maximize these output.

c) Risk taker

Responsible for fortunes and misfortunes of the business in terms of profit and
losses.

d) Director

He does this by contributing ideas to advance the business objectives.

e) Financier

Contributes the capital for starting and maintain the business operations.

f) Leader

Since is the one who contribute the working capital ,he also plays the role of
leardership as the owner.

g) Coordinator
Makes sure that the business runs smoothly through proper coordination with
others such as suppliers .

h) Recruitment of staffs

Plays the role of selecting the new staffs through conduction of interviews .

CHALLENGES OF ENTREPRENUER

a) Competition

They face challenges from existing business players.

b) Uncertainity

Unexpected challenges such as fires and theft.

c) Lack of enough capital

d) Staff issues

An entrepreneur has to fight to keep the employees during conflict in the

business by solving them.

e) Technological changes

every day technology keep on changing thus making an entrepreneur to keep on

installing new technology in order to maintain the market.

f) Unfair trade

An environment where there is no good relationship between business persons

tend to be unfair.

g) Human evils

some entrepreneurs tend to use witch craft act to do business in order to get
more customers than the others.
ENTERPRENEUR OPPORTUNITIES
a business opportunity is a gap or a need that an entrepreneur feels that if he were to develop
a certain product then he would fill that gap.

Evaluating a business opportunity

This means assessing whether the identified opportunity is viable or not. this help in arriving at
the best decision concerning the business idea to implement.

Evaluating should be done carefully, systematically and without emotions.

Factors to consider when doing business evaluation

1. PERSONAL CONSIDERATION

These are the abilities and expectations of an enterprenuer.they include;

 Objectives
 Skills
 Commitment
2. BUSINESS CONSIDERATION

These are external factors that are likely to affect the operation of the business and they
include:

 Availability for market for the products

 Technology
 Availability of raw material and other resources
 Government policy
 Amount of capital required to start and maintain the business
 Possibility for expansion
 The break given period
 Security
 Level of competition
 Infrastructure
 Price structure

BUSINESS IDEA

Is a thought or a concept that can be used for financial gain.

Ways of generating business ideas

1. NEWS PAPER AND MAGAZINES
Commercial advertisement pages may contains the business opportunities
2. RADIO/TELEVISION AND INTERNET
Radio and television talk shows about business matters can give you school information
e.g enterprise Kenya in KTN
3. TRADE SHOWS AND EXHIBITIONS
Here one can discover product and services and also meet with dealers from other
places or countries who give valuable information about business creation
4. INDIVIDUAL PERSONAL SKILLS AND KNOWLEDGE
The education background of an entrepreneur determines the type of business he or
she can go for.
5. COMPLAIN FROM CUSTOMERS ABOUT PRODUCT AND SERVICES
Such a complains are signs of dissatisfaction and satisfaction of the product and
services,it helps the enterprenuer to know the best quality needed.
6. THINGS THAT ANNOY YOU
Example you can decide to start a tuition during holidays to prevent children from
getting into bad groups.
7. YOUR INTEREST OR HOBBY
A lot of people have turned their hobbies in successful business e.gdj classes.
8. BRAIN STORMING
This involve group activities where each participant member give different ideas as soon
as they come to mind.
9. FOCUS GROUP
In this method a group of individuals discuss and provide information in a structure
format to arrive at a new business idea.
10. EXISTING PRODUCT
Observe the product you use on a daily basis if a product does not meet your standards
or has some short coming you can create a better one.
11. LISTENING TO YOUR INNER VOICE
Many people ignore their gut feelings or forget happenings in their dreams and yet this
could be the source of great business ideas.
12. ENGAGING AND INTERRACTING WITH EXISTING ENTERPRENUERS
13. TRAVEL
14. ENGAGING FAMILY AND FRIENDS