Characteristics Of Entrepreneurship (continuation)

 Preference for moderate risk

Entrepreneurs are not wild risk takers but instead the take moderates and calculated risk.

 Desire for feedback

Entrepreneurs always desire feedbacks for their business to know if their business is doing well or
not.

 Dealing with failures

Entrepreneurs do not fear failures because they see failure as a means to learn more about the
business

 Internal locus of control

This means entrepreneurs believe in their ability and ambition to succeed.

 External locus of control

This implies entrepreneurs believe in luck or faith to succeed in their business.

Types Of Entrepreneurs
1. Innovative Entrepreneur.
These are entrepreneurs that love innovation ie the love to generate new ideas, new products and
enter into new markets. When new technology is introduced in the market they are the first to
engage and adapt to it.
2. Imitative or Adoptive Entrepreneurs.

Imitative entrepreneurs are also known as adoptive entrepreneurs. They simply adopt successful
innovations introduced by other innovators in the market. They do not generate new ideas or new
innovations in the market.

3. The Fabian or Timid Entrepreneurs

The fabian entrepreneurs are timid and cautious by nature. They love to generate new ideas and
engage in new markets and also new tech. They also have the char of imitating successful
innovations in the market but they imitate only when they realize their business is about to fall

4. The Drone Entrepreneurs

These are entrepreneurs that are conservative or orthodox in nature. They are also known as
traditional entrepreneurs. ie they never like to get rid off their traditional business and their
traditional machines. They are based on their old and traditional system of production.

Differences Between A Manager And An Entrepreneur

 Entrepreneurs are generalists
Entrepreneurs have divert knowledge in business in areas such as product designing, but they are
masters of none while managers are specialized and focused on running of a business.

 Top priority

The main priority of an entrepreneur is to have financial freedom and do what ever they like while
managers top priorities are security, steady pay check promotions etc…

 Ownership of the business

Entrepreneurs are owners of the business and bears all the risks associated to it while managers are
employees of the business and their objectives is to run the day to day activities of the business.

 Objectives

Entrepreneurs objectives is to innovate, create and act as change agents while managers objectives is
to supervise implement the plans and ideas of the entrepreneurs.

 Starting the business

Entrepreneurs are concern with the launching and sustaining the business while managers are
concerned with effective and efficient running of the day to day activities of the business.

 Commitment to the business

Entrepreneurs are committed to the business while managers are committed till their next pay
cheque.

 Handle mistakes

Entrepreneurs see mistakes as opportunities to learn more about the business while managers avoid
mistakes since it may cause their job.

 Patient

By nature, entrepreneurs are patient, this is because things do not always move as planned and the
allow things to move the way they are while managers are not patient because any delay will lead to
cause his job.

 Ability to face competition

Entrepreneurs have the ability to be aware in competition and face them while managers do not.

CH2 : BUSINESS OPPORTUNITIES

 Ideas

refers to taught , impressions, notions about a product or service.

 Opportunities

It refers to as a favorable set of circumstances that create a need for new products, service or
business.

Qualities Of Opportunities
  It should be attractive.
 It must be durable.
 Timely.
 It should be attached to a product or service that create values to customers.

Differences Between Opportunities And Ideas

 The starting point of a new business creation is a business idea while the ending point of any
business is a business opportunity.
 Business idea represent the input stage of a business while business opportunities represent
the output stage
 An idea is a thought, impression or notion about a product or service while an opportunity is
a set of favorable circumstances that create a need for new product, service or business.

Sources Of Business Opportunities

 Copying of successful existing business forms

It gives a good source if and only if there is no barrier to entry.

 Personal or people experience

Human experience whether pleasant or unpleasant may be used to stimulate a creative response to
a solution or problem.

 Through work experience

A creative solution may emerge for which potential customers are willing to pay for and in turn yield
profit.

 Hobby

These are activities done in one measure time ex: singing, dancing, playing soccer. These activities
can be converted to a profitable venture.

 Franechise

This is when a license is granted by a government to a person or individual allowing him/her to use,
produce or sell certain products. This may present opportunities to these individuals.

 Vocation

Possession of vocational skills or professional skills such as hair dressing, catering etc. These
professional skills when invested in become opportunities.

 Consultants

The vast experience of knowledge gain by consultants in the cause of selecting a solution or
problem encountered by organizations is a major

 Join effort
This is when 2 individuals come together in an attempt to spot business opportunities in the
environment.

Some Possible Business Ideas

 Forex
 Crypto
 Repairs
 Catering
 Entertainment
 Laundry service
 Delivery service
 Typing service
 Holiday selling
 Thrift and service
 T-shirt printing
 T-shirt branding
 House cleaning/help
 Nursing care

Marketing
It refers to the process of identifying, anticipating and satisfying customer needs and wants through
mutual beneficial exchange. Marketing of product is centered on 7 Ps of marketing. The first 4 Ps are
the traditional Ps of marketing; product, price, place, promotion. While the last 3 Ps are centered on
service; people, process, physical evidence.

 Product

This is centered on what to produce. Product involve goods and services. It should be able to create
values or add values to customers. when creating products, we should take note on product quality
such as the size, the shape, the color, and what is expected from the customers.

 Price

This based on what price to charge for the product. It is always advisable to charge a moderate price
that all class of customers can afford. When charging price we should observe competitors price in
the market to avoid loosing our customers. The most common strategies to be used are the
penetration pricing strategy and skimming pricing strategy.

 Place

This involve logistics of the product ie it creates the value of availability to customers which implies it
creates a convenient environment which is customers friendly in which customers can accessed at a
very low cost.

 Promotion
This involve the efforts made by marketers to create awareness of their offers. Marketers will often
use advertisement and s to create awareness to customers

 People

These are the people involve in a whole marketing process. They help in the delivering process of the
service or good. They are mostly trained to avoid mistakes because any mistake made can not be
undone.

 Process

This is the process involve in delivering the goods and services. Mistakes should be minimized in this
process to ensure the customers get satisfied.

 Physical evidence

This is the physical structure or organization. It should be beautiful and attractive.

Considerations Of Choosing A Business Opportunity

1.

An entrepreneur should consider his or her experience in a particular field of business b4

choosing certain opportunities or when they are presented in the market.

2. S

Entrepreneurs should consider if they have the required skills for running and operating the business
smoothly.

3. Financial capacity

It is very important to be considered when choosing opportunities in the this is because a lot of
financial requirements are needed in the business. The4 entrepreneurs should consider their
financial abilities b4 entering into a business.

4.

Every business has risks associated to it => entrepreneurs should consider a risk profile of the
business and accept the risk b4 going into the business

5. Support from friends and family members

Usually people fail in business not because of their inability but because they fail to gain the support
of their friends and family members.

6. The owner’s personal interest

If the entrepreneur loves the kind of activities that the business it will be easier for the business for
the business to succeed.

7. The

Income expected from the business venture must be aggregate for housing to meet entrepreneurs ie
the business should have the potential of providing
 8. Legal or regulatory constraints

And entrepreneur should consider the legal and regulative laws of the country b4 accepting a
business opportunity. they are certain opportunities that have legal constraints such as sales of guns,
and other harmful products which have negative effects on the society.

CH3: FEASIBILITY STUDY

Feasibility analysis is the process of determining weather or not an entrepreneur’s idea is

viable also feasibility can be defined as the process by which an entrepreneur the potential outcome
of a product. It may also be seen as the process or the workability and the profitability of a proposed
business.

The purpose or importance of feasibility study

1. It helps to determine the profitability level of the project. This is to avoid vast waste pf time
and resources
2. It demonstrate to potential lenders and investors the existence and size of the market, the
liquidity

Critical Investigation in a Business

 This is done to identify flaws in the goods or services which may be jeopardize the success of
the business.
 It helps to point out the amount of financial and human resources that we require to operate
the business successfully.

Problems involve in writing feasibility study

 Poor statistical data
 Unethical behavior of consultants
 Unwillingness sponsored to be guided by feasibility report
 Pressure from client

Business plan
Business plan refers to a written summary of and entrepreneur proposed business venture. It
reflects the operational and financial details, its marketing opportunities, its strategies and its
managers skills and abilities th4 a business plan is a wrote map that an entrepreneur follows in
building the success of the business.

Benefits of having a business plan

  It helps the entrepreneur to analyze all the aspects of the business venture and to prepare
effective strategy to deal with uncertainties that may arrive.
 Time, effort, research and discipline needs to be put together for the entrepreneurs to view
the business critically and objectively.
 The business plan quantifies objectives by providing measurable benchmarks for comparing
forecast.
 It provides a business communication tools for outside financial institutions as well as
operational tools for guiding business towards success.
 Business plan provides market potential and plans for securing a share of the market.
 It illustrates the venture ability to service dept or provide an adequate return on equity.
 Business plan identify critical risks and crucial events with a discussion of contingency plans
that provide opportunity for venture success

Components of a business
Ass: write a business plan of your choice